This is funny; however, Urban Legends just lists it as "dubious" so maybe it did happen.
Description: Email joke / Urban legend
Circulating since: 1960s
Status: Dubious
http://urbanlegends.about.com/library/blcigar.htm
This took place in Charlotte North Carolina. A lawyer purchased a box of
very rare and expensive cigars, then insured them against, among other
things, fire.
Within a month, having smoked his entire stockpile of these great cigars,
the lawyer filed a claim against the insurance company.
In his claim, the lawyer stated the cigars were lost 'in a series of small
fires..' The insurance company refused to pay, citing the obvious reason,
that the man had consumed the cigars in the normal fashion.
The lawyer sued and WON!
Delivering the ruling, the judge agreed with the insurance company that the
claim was frivolous. The judge stated nevertheless, that the lawyer held a
policy from the company, in which it had warranted that the cigars were
insurable and also guaranteed that it would insure them against fire,
without defining what is considered to be unacceptable 'fire' and was
obligated to pay the claim.
Rather than endure lengthy and costly appeal process, the insurance company
accepted the ruling and paid $15,000 to the lawyer for his loss of the
cigars that perished in the 'fires'.
NOW FOR THE BEST PART...
After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON!!!
With his own insurance claim and testimony from the previous case being used
against him, the lawyer was convicted of intentionally burning his insured
property and was sentenced to 24 months in jail and a $24,000 fine. This
true story won First Place in last year's Criminal Lawyers Award contest.