On September 29, 2008, Peter and Tanya Strojnik filed a lawsuit against Rob Rich, a self proclaimed Senior Professional Public Adjuster, and his associate Mike Mehl. Rob Rich conducts his business under the name "Rob Rich & Associates"; Mike Mehl conducts his under the banner "Royal Restoration."
The Strojnik Family suffered a catastrophic fire at their home. They thought it would be a good idea to hire a public adjuster to help them deal with the insurance company. They hired Rob Rich. They believed that he would protect their interests.
The Complaint against Rich and Mehl alleges that Rich and Mehl conspired to defraud the Strojniks and their insurance company by inflating the bills and agreeing to a 20% kickback. The Complaint asserts that "Rich attempted to get Strojnik on board of this conspiracy to defraud by promising to Strojnik that if Farmers does not pay the entire amount out of its own pocket, then Strojnik's responsibility to [pay] Mehl would be reduced" by approximately $50,000. The Complaint charges that Strojnik reviewed Mehl's bills and concluded that Mehl overcharged Strojnik and/or Farmers by a whopping $67,457.92! After Strojnik discovered the fraud, he promptly fired both Rich and Mehl.
"In my opinion, this kind of fraud could very well permeate the entire public adjusting industry," said Peter K. Strojnik, son and attorney to Mr. and Mrs. Strojnik. "Public adjusters know and understand the system, but the homeowner does not. How do you protect an innocent homeowner from fraudulent practices of their own adjuster? How often does fraud like this go unnoticed? In my opinion, this type of a case requires close scrutiny by the Department of Insurance and the Attorney General."
According to Attorney Strojnik, in response to Mr. And Mrs. Strojnik's allegations, C. Kyle Brown, attorney for Defendants stated, "My clients deny your false accusations"¦" Mr. Brown added, "You are hereby demanded not to publish the press release "¦ Both you personally and your clients would be liable for defamation for publishing such material."
Rules governing the conduct of attorneys specifically allow an attorney to warn "of danger concerning the behavior of a person involved, when there is reason to believe that there exists the likelihood of substantial harm to an individual or to the public interest."