Don Winslow: While Drowning in the Desert

As to Mr. Abdullah’s claim for his personal property destroyed in the fire, I can only say that I have some personal doubts as to the legitimacy of Mr. Abdullah’s claim that he had (as a partial sample): 28 Armani suits, 37 pairs of Gucci loafers, 52 silk shirts, 2 large-screen Sony television sets, a valuable 1965 Mustang in the garage and an Edward Hooper (sic) painting valued at $137,000. The claim becomes all the more preposterous when you consider that Mr. Abdullah can show no proof of employment for the past five years although he claims to have been making between “thirty to two hundred fifty thousand dollars” a year during that period as a “consultant.”

I think you are well within your rights to deny Mr. Abdullah’s claim, cancel his policy and sever his additional living-expense payments immediately, based on fraud and misrepresentation. Unfortunately, I do not believe that we have developed sufficient proof to deny Mr. Muller’s claim, and advise that you pay him $600,000 forthwith.

If you have any questions, or if I may be of any further assistance, please do not hesitate to contact me.

Sincerely,

Craig Schaeffer, Esquire

Ms. Pamela A. HolmstrumClaims SuperintendentWestern States Insurance Co. 801 Flower StreetLos Angeles, CA

Craig D. SchaefferAttorney-at-Law3615 MontereyPalm Desert, CA

21 July 1983

Dear Mr. Schaeffer,

Thank you for your letter of the 17th inst. and for your valuable coverage analysis. I have only one question:

What are you, nuts?!

You know, I know-and if Helen Keller were alive, she’d know-that Heinz Muller and Sami Abdullah burned down this house. For God’s sake, Schaeffer, Muller had a $500,000 balloon payment coming up. The damn house had been on the market for fourteen months! It was either lose the house or sell it to his insurance company. As to that moke Sami Abdullah, you’re damned right we’re canceling his policy. (By the way, have you asked to see the little bastard’s green card? Let him go back to Beirut and file a phony claim there, see what happens. Don’t they cut off their hands or something?)

Here’s the deal, Craig: I’ll pay Heinz Muller policy limits on the same day a trained monkey crawls out my butt singing “Tie A Yellow Ribbon ’Round the Old Oak Tree” in Polish.

Where are your balls, Craig? I didn’t hire you to roll over like a beaten dog.

Sincerely,

Pamela Holmstrum

Claims Superintendent

Western States Insurance Co.

Craig D. SchaefferAttorney-at-Law3615 MontereyPalm Desert, CA

Ms. Pamela A. HolmstrumClaims SuperintendentWestern States Insurance Co. 801 Flower StreetLos Angeles, CA

24 July 1983

Dear Ms. Holmstrum,

Thank you for your letter of the 21st inst. and may I observe what a wonderful thing it is that the attorney-client privilege allows us to have such a frank and open exchange of views.

While I understand your reluctance to reward a criminal act such as arson with a policy limits payment, I would be remiss in my duty as your attorney not to advise you to nevertheless do just that.

You have no proof. You have no witnesses. If you deny this claim, Mr. Muller will most likely file a bad-faith lawsuit which could expose your company to a multimillion-dollar punitive-damages award.

Pamela, I know that you are new to this job and eager to impress your bosses and that at your tender age you nevertheless deserved this promotion. I am further sensitive to the fact that, as a young woman executive, you feel more than the usual pressure to show “toughness.” I understand these things. Nevertheless-and again-my best opinion is to pay the $600,000 now or risk having a very large, multilingual, singing simian indeed force its egress from your digestive system, the hard way.

Sincerely,

Craig Schaeffer, Esquire

By Fax

July 26, 1983

Dear Craig,

Too late. I denied both claims.

Pamela

By Fax

July 26, 1983

Dear Pamela,

He’ll sue.

Craig

By Fax

July 26, 1983

Dear Craig,

He doesn’t have the cajones.

Pam

The Law Offices of Eugene E. Petkovitch1500 Mitch Miller BoulevardPalm Springs, CA

Ms. Pamela Holmstrum

Western States Insurance Co.

801 Flower Street

Los Angeles, CA

27 July 1983

Dear Ms. Holmstrum,

This letter is to put you on notice that I have filed a lawsuit on behalf of my client and your insured, Mr. Heinz Muller, for breach of contract and bad faith. The conduct of both your claims department and its coverage counsel, Attorney Craig Schaeffer, has been despicable in the extreme. Your fraudulent, oppressive and malicious attempts to violate the rights of my client and avoid paying the insurance benefits to which he is rightly entitled are flagrant violations of both California law and common decency.

I am personally and professionally outraged-OUTRAGED-that an insurance carrier in this day and age would single out for oppressive treatment an individual just because that person happens to be a foreign immigrant. Immigration built this land, Ms. Holmstrum, lest you or Western States Insurance Company ever forget it!

Your conduct has been despicable!

I am certain that a California jury will send a message to the insurance industry-via a large punitive damages award-that this type of conduct will no longer be tolerated.

There is still time for you to avoid litigation.

My client, Mr. Heinz Muller, is generously willing to accept full policy benefits plus an additional $10,000,000 for the pain, suffering and humiliation that your Gestapo-like inquisition and jackboot investigative tactics have inflicted upon him. This sum represents far less than an outraged jury would award and saves you the cost of a long, expensive, and ultimately futile defense.

This offers expires at close of business, five working days hence, and will not be compromised or renewed.

Sincerely yours,

Eugene Petkovitch, Esquire

The Law Offices of Eugene E. Petkovitch1500 Mitch Miller BoulevardPalm Springs, CA

Ms. Pamela Holmstrum

Western States Insurance Co.

801 Flower Street

Los Angeles, CA

27 July 1983

Dear Ms. Holmstrum,

This letter is to put you on notice that I have filed a lawsuit on behalf of my client and your insured, Mr. Amin “Sami” Abdullah, for breach of contract and bad faith. The conduct of both your claims department and its coverage counsel, Attorney Craig Schaeffer, has been despicable in the extreme. Your fraudulent, oppressive and malicious attempts to violate the rights of my client and avoid paying the insurance benefits to which he is rightly entitled are flagrant violations of both California law and common decency.

I am personally and professionally outraged-OUTRAGED-that an insurance carrier in this day and age would single out for oppressive treatment an individual just because that person happens to be a foreign immigrant. Immigration built this land, Ms. Holmstrum, lest you or Western States Insurance Company ever forget it!

Your conduct has been despicable!

I am certain that a California jury will send a message to the insurance industry-via a large punitive damages award-that this type of conduct will no longer be tolerated.

There is still time for you to avoid litigation.

My client, Mr. Amin ‘Sami’ Abdullah, is generously willing to accept full policy benefits plus an additional $5,000,000 for the pain, suffering and humiliation that your Gestapo-like inquisition and jackboot investigative tactics have inflicted upon him. This sum represents far less than an outraged jury would award, and saves you the cost of a long, expensive, and ultimately futile defense.

This offers expires at close of business, five working days hence, and will not be compromised or renewed.