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Contracts
Breach of Contract
Delay in Payment

Edward McDonald, Elizabeth Johnson v. USAA

Published: May 20, 2003 | Result Date: Dec. 23, 2002 | Filing Date: Jan. 1, 1900 |

Case number: GIC784272 Verdict –  $5,880

Judge

Kevin A. Enright

Court

San Diego Superior


Attorneys

Plaintiff

Edward H. Cross

Lanetta D.W. Rinehart
(Law Offices of Lanetta D. W. Rinehart)

Steven Leichter


Defendant

Teresa J. Freiderichs

Kyle Kveton


Experts

Plaintiff

Ralph Godfrey
(technical)

Patrick J. Moffett
(technical)

Defendant

Gregory C. Kane
(technical)

Colin Young
(technical)

Edward J. McKinnon
(technical)

Steven C. Wright
(technical)

Facts

The plaintiffs owned a residence in Coronado. The main house and guest house suffered separate water damage (the guest house in August 1999 and the main house, in September 2000). Separate claims were made to the defendant for the water damage and the alleged resulting mold growth in both structures. The plaintiffs sought contract benefits for water damage, mold remediation, damage to unscheduled personal property and additional living expenses. The plaintiffs moved from the main residence (the plaintiff, Elizabeth Johnson's son was living in the guest house) to a hotel. The plaintiffs moved back to the main house in late 2002. The plaintiffs sued five defendants for negligence and settled with all but USAA.

Settlement Discussions

At an initial mediation before Michael Roberts in July 2002, the defendant was willing to offer a package of contract benefits and new money totaling approximately $280,000. At a second mediation before James Roberts in November 2002, the defendant offered $200,000.

Damages

USAA stated that plaintiffs were owed nothing additional and that no mistakes were made on the claim.

Result

In addition to the confidential settlements and an additional amount of $240,000 that had been paid prior to trial, the jury returned a verdict for the plaintiffs on breach of contract claim for $5,880 and the court awarded $36,024 in costs. Jury verdict for the defendant on bad faith. Punitive damage claim, and causes of action for negligence, conspiracy, fraud and constructive fraud were disposed of on nonsuit or directed verdict motions.

Other Information

The plaintiffs settled with all other defendants prior to trial in confidential amount. The plaintiffs motion for new trial is pending.

Deliberation

one day

Poll

10-2 (for plaintiff on breach of contract), 11-1 (for defense on bad faith)

Length

12 days


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