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Insurance
Bad Faith
Delay in Payment

Chevalier v. Blue Ridge Insurance Company

Published: Aug. 31, 1996 | Result Date: Aug. 5, 1996 | Filing Date: Jan. 1, 1900 |

Case number: BC139743 –  $0

Judge

Ricardo A. Torres

Court

L.A. Superior Central


Attorneys

Plaintiff

Brian H. Krikorian


Defendant

John N. Frye

Jeffrey A. Katz


Experts

Plaintiff

Edwin Danielson
(technical)

Basil Makaati
(technical)

Keith Charleston
(technical)

Raymond E. Steinberg
(technical)

Defendant

Gary Schaffel
(technical)

Henry A. Ojendyk
(technical)

James Olbinski
(technical)

Boyd A. Veenstra
(technical)

Facts

The plaintiffs' home, insured by defendant Blue Ridge Insurance, was damaged in the Jan. 17, 1994, Northridge earthquake. The initial adjuster failed to discover all the earthquake-related damages and, therefore, determined the cost to repair to be only $30,000. A year later, in January 1995, the plaintiffs suffered damage from a roof leak at which time the carpet was removed and more severe earthquake damage was discovered. Defendant Blue Ridge reopened the earthquake claim and in October 1995, paid the plaintiffs an additional amount based on an estimated cost to repair of $122,000. The plaintiffs claimed that the cost of repair would be at least $171,000. The plaintiffs brought this action against the defendant based on breach of contract and breach of the implied covenant of good faith and fair dealing theories of recovery.

Settlement Discussions

The plaintiffs made a C.C.P. º998 settlement demand for $250,000. The defendant made no settlement offers.

Damages

The plaintiffs claimed $171,000 in repair damages and an unspecified amount in emotional distress damages.

Other Information

The verdict was reached approximately nine months after the case was filed. The plaintiff refused to go to a settlement conference unless the defendants made an opening offer of $250,000.

Deliberation

1 hour

Poll

10-2

Length

9 days


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