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Insurance
Bad Faith
Fraud

Harold Natori, Mary Natori v. Allstate Insurance Company, Roofing & Waterproofing Forensics Inc., John Shepherd

Published: Jul. 29, 2003 | Result Date: Jun. 23, 2003 | Filing Date: Jan. 1, 1900 |

Case number: BC263061 –  $0

Judge

William F. Highberger

Court

L.A. Superior Central


Attorneys

Plaintiff

Suzanne E. Rand-Lewis
(Gary Rand & Suzanne E. Rand-Lewis PLC)


Defendant

Gregory Michael MacGregor

Michael M. Pollak
(Pollak, Vida & Barer)

Charles J. McLurkin


Facts

The plaintiffs, the defendant Allstate's insureds, sustained wind damage to the wood shake roof of their home in Torrance. During the claim, Allstate retained the co-defendant RWFI to inspect the roof. RWFI's employee, the co-defendant Shepherd, stated that the roof damage caused by wind was $690. Allstate paid that amount and paid for the damage to the interior of the house. The plaintiffs sued Allstate for bad faith and other causes of action and sued RWFI and Shepherd for fraud, concealment, violations of Business & Professions Code section 17200 and professional negligence. The negligence cause of action was eliminated on demurrer.

Settlement Discussions

The plaintiffs demanded $120,000 from Allstate, reduced to $50,000. Allstate offered $3,000. RWFI and Shepherd never made any offer. After RWFI and Shepherd's motion for summary judgment was filed, the plaintiffs offered to dismiss RWFI and Shepherd for a waiver of costs but RWFI and Shepherd declined.

Result

The plaintiffs and their contractor testified at their depositions that Shepherd never made any representations to them. The defendants RWFI and Shepherd then moved for summary judgment. Allstate also moved for summary judgment. In opposition to the motions, the plaintiff Harold Natori and his contractor submitted declarations contradicting their deposition testimony. At the hearing of the summary judgment motion of RWFI and Shepherd, the court ruled that the later declarations were inadmissible to contradict the declarants' testimony. The plaintiffs opposed offering new facts that Shepherd had withheld namely, his notes, that the plaintiffs contend show major wind damage. The court granted summary judgment for RWFI and Shepherd and continued Allstate's summary judgment motion. The defendants RWFI and Shepherd will pursue collection of their cost bill judgment. The plaintiffs will appeal. The plaintiffs' case against Allstate is still pending.

Other Information

The defendants RWFI and Shepherd are continuing to pursue collection of their cost bill judgment.


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