Nationwide Sued for Allegedly Withholding Insurance Payouts to Eaton Fire Victims

Nationwide Mutual Insurance Company is being sued for allegedly denying coverage to a family whose home was contaminated by smoke and toxins from the Eaton Fire, leaving them displaced and covering living expenses out of pocket.

Attorneys at Singleton Schreiber LLP filed the lawsuit on behalf of the Greer family, alleging that Nationwide withheld insurance payouts for damages caused by smoke, ash, and other contaminants, despite extensive evidence. The suit seeks compensation for medical costs, emotional distress, and punitive damages for alleged insurance bad faith.

The Greers had lived in their home for eight years when the fire deposited ash, soot, char, and heavy metals throughout the property. All four family members developed serious respiratory issues requiring emergency medical treatment.

After filing a claim with Nationwide for property damage, personal property losses, and relocation expenses, the family said the insurer delayed payments for more than a month after the fire was contained. Unable to remain in the contaminated home, the Greers moved into a rental property while continuing to pay their mortgage.

The lawsuit alleges Nationwide made unreasonable demands for damage evidence, harassed the family, and created additional obstacles even after documentation was provided.

The insurer allegedly treated the Greers like adversaries rather than policyholders, according to the lawsuit.

“The Greers are a hard-working small-business owning family and Nationwide, a massive corporate entity, is knowingly taking advantage of a vulnerable party,” said Michelle Meyers, partner at Singleton Schreiber LLP.

“I worry there are other families like the Greers that are enduring the same experience, and we hope this lawsuit sets a standard that this behavior, especially amidst such a catastrophic fire, is unacceptable for an insurance company.”

Singleton Schreiber describes itself as the nation’s largest fire litigation practice. It said it has represented more than 30,000 victims of wildfires and explosions caused by utilities, government negligence, railroads, and corporate misconduct.

The firm has led litigation in cases including the Eaton Fire, Moss Landing Battery Fire, Esparto Fireworks Explosion, and the Maui Fires.

The lawsuit against Nationwide was filed in California Superior Court. Nationwide has not publicly responded to the allegations.