Facts

Fresno Rock Taco LLC and Zone Sports Center LLC brought an action against National Surety Corp.

PLAINTIFF'S CONTENTIONS:
Fresno Rock Taco alleged that it had an insurance contract with National Surety, which insured certain assets of Fresno Rock Taco located at its restaurant/night club in Fresno. Fresno Rock Taco further alleged that sometime between January 12, 2009 and February 5, 2009 many items of electronic equipments were stolen from its premises. Fresno Rock Taco also alleged that after filing a claim for the stolen items with National Surety, National Surety denied its claim on February 4, 2010. Fresno Rock Taco contended National Surety based its denial on eight factors, which National Surety alleged were inconsistencies or misrepresentations in the claim. Fresno Rock Taco further contended that it provided explanations for any alleged inconsistencies or misrepresentations to Nation Surety prior to the February 4, 2010 denial. Fresno Rock Taco alleged that National Surety breached the insurance contract, breached the covenant of good faith and fair dealing, and wrongfully refused to pay an insurance claim.

DEFENDANT'S CONTENTIONS:
National Surety denied the claims of Fresno Rock Taco.

Result

A jury returned a verdict finding that Fresno Rock Taco and Zone Sports Center suffered losses covered by their insurance policies with National Surety. The jury found that National Surety failed to pay Fresno Rock Taco $2,224,349 and failed to pay Zone Sports Center $274,823.