Now for Then

In a recent negotiation, a close friend was concerned about a request from an insurance company to provide evidence of a property lease.  He had earlier submitted a claim for damages to his property and under the insurance policy he was able to claim for lost rent as the property was uninhabitable during the repair process. After several weeks of emails and papers going back and forth including proof of lost rental via receipts, the insurance company finally asked for a copy of the lease agreement. My close friend did not have a signed lease between the parties as the property rental was to people he knew and could trust.

The insurance company indicated without a copy of the original lease agreement, they were unable to process the claim for lost rental. He feared his claim would not be processed. So how to fix this administrative error?

There was in fact a lease agreement in place – it just so happens the physical memorial of the agreement had not been completed. To resolve this simple administrative issue, I asked him to create a short one page agreement that would be the memorial of the contract they had verbally put in place years earlier. The date form at the top of the agreement read something like:

Dated Nunc Pro Tunc to 1 Jan 2012

Each of the parties signed the agreement and dated it at the bottom with the current date.

After sending a copy of the agreement to the insurance company, the insurer responded a few days later and agreed to pay the lost rent. The wording of the response was interesting and implied they were going out of their way specially to approve the claim in this unusual circumstance. Their actions speak louder than words.

Nunc Pro Tunc: Now for then

Nunc Pro Tunc is used extensively in contracts to correct errors and the like.


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