Facts

On Aug. 6, 2005, plaintiffs Ralph and Patricia Schaber, both retired, filed a claim with defendant Allstate Insurance Co. alleging property damage to the entire house and its contents after a cleaning company cleaned their Novato home. On July 7, 2006, defendant told plaintiffs their homeowners insurance policy did not cover damage to their home.

The plaintiffs sued defendant for breach of contract. The court granted partial summary judgment for defendant, finding plaintiffs' alleged personal property damage did not fall within the "specified peril" pursuant to the policy. The case proceeded to a bench trial to determine whether damage to plaintiffs' home was covered under the policy and whether defendant breached the covenant of good faith and fair dealing.

PLAINTIFFS' CONTENTIONS:
The plaintiffs contended defendant breached the insurance policy by denying coverage for damage to their home and personal property. The defendant violated its duty of good faith and fair dealing by unreasonably delaying investigation of plaintiffs' claim. Plaintiffs claimed the paint on the walls and ceilings were scrubbed down to the primer; the protective finish was stripped from the woodwork, floors, and countertops, resulting in color changes; and the coating on nearly two dozen oil paintings was removed, among other damages. The plaintiffs stipulated that the claim for bad faith delay would be foreclosed if the court found defendant justifiably denied coverage.

DEFENDANT'S CONTENTIONS:
Defendant denied that plaintiffs' home suffered damage from the cleaning operations. Defense construction expert Martin Raye testified his inspection of the house did not reveal the alleged damage, which was either impossible, or the natural result of wear and tear.

Defense mechanical engineering expert Roland Huet testified the claimed damages were impossible.

Damages

The court excluded plaintiffs' testimony regarding the cost to repair the home. Plaintiffs sought unspecified damages.

Result

In a bench trial, Judge Edward M. Chen found plaintiffs did not show their property had sustained "sudden and accidental" damage pursuant to the insurance policy, and therefore, were not entitled to contract or bad faith damages.