Las Vegas attorney in HOA, drug probe sues insurer

Las Vegas construction defect attorney Nancy Quon is suing an insurance company in hopes of blocking the insurer from participating in a criminal investigation of Quon.

Attorneys for Quon with the law firm Alverson, Taylor, Mortensen & Sanders filed the suit on her behalf Thursday in Clark County District Court against State Farm Fire and Casualty Co.

Quon, who is believed to be a target of a federal investigation into corruption involving homeowner associations and construction defect lawsuits against construction companies, was indicted along with her boyfriend in April on drug charges after surviving a fire at her home in October.

Thursday’s lawsuit says that after the fire ignited at the home Oct. 27 and Oct. 28, Quon on March 1 submitted to a four-and-a-half-hour examination under oath at the request of State Farm, which has reserved its rights under Quon’s policy to deny coverage for fire damages because of suspicions the fire may not have been accidental.

State Farm is insisting Quon submit for an additional examination or examinations that have nothing to do with Quon’s claim for fire damages, but "instead appear geared towards the District Attorney’s investigation," the lawsuit alleges.

The county grand jury that indicted Quon on the drug charges heard testimony about the fire, but didn’t indict her in the fire.

"State Farm has forced, and is continuing to force, plaintiff to choose between her Fifth Amendment rights (against self-incrimination) and giving a statement by asking questions of plaintiff that were not, and are not, necessary to the investigation of plaintiff’s claims," the lawsuit charges.

The lawsuit notes the transcript from State Farm’s March 1 examination of Quon was used "in the grand jury proceedings that unsuccessfully attempted to indict plaintiff for arson and insurance fraud" and that State Farm employees and retained experts testified to the grand jury.

"It is a reasonable inference that State Farm’s investigation appears to be geared towards obtaining information for the state’s investigation of plaintiff that the state cannot obtain due to limitations on its ability to conduct discovery and plaintiff’s right to remain silent, rather than to obtain facts about the loss and confirm coverage," the suit charges.

The suit seeks a court declaration that State Farm is no longer entitled to additional examinations of Quon; or that she is entitled to State Farm’s investigative materials and evidence should additional examinations take place.

Investigators have theorized the fire and an alleged drug purchase were part of a scheme Involving her boyfriend -- former Metro Police officer William Ronald Webb Jr. -- in which Quon would kill herself or be killed so her life insurance proceeds would go to her family.

Quon has denied these suggestions and her lawsuit last week said: "State Farm’s fire investigator and the fire department investigator found no accelerants. Both State Farm and the fire department investigator deemed the cause of the fire to be undetermined."

State Farm has not yet responded to Quon’s lawsuit.