Facts

Seacoast Coin Inc. brought a lawsuit against Travelers Property Casualty Co. of America.

PLAINTIFF'S CONTENTIONS:
Seacoast Coin alleged that it was a coin dealer and purchased an insurance policy from Travelers. Seacoast Coin further alleged that in July 2012 it shipped seven packages of gold coins through the U.S. Postal Service Express valued at approximately $408,398, but that the packages were stolen while in transit. Seacoast Coin argued that Travelers failed to conduct an adequate investigation and only paid $75,000 for all seven of the package, despite policy language that insured each package for $75,000.

DEFENDANT'S CONTENTIONS:
Travelers argued that the lost packages only amounted to a "single loss" because they were stolen at the same time and location.

Result

The court granted Seacoast Coins motion for partial summary judgment as to the breach of contract. The court found that the policy in this case was ambiguous and that such ambiguity was required to be resolved in favor of the insured, Seacoast Coins. Therefore, Seacoast Coins was entitled to recover the full amount of benefits claimed. While the court denied Travelers' motion for summary judgment on the breach of contract claim, it granted Travelers' motion as to the claims of breach of the implied covenant of good faith and fair dealing and punitive damages, on the grounds that Travelers actions were not unreasonable or in bad faith. Once summary judgment was granted in plaintiff's favor, plaintiff dismissed its complaint against Cleland & Associates in exchange for a waiver of costs.

Other Information

FILING DATE: March 4, 2013.