This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Insurance
Bad Faith
Claim Denied

Bitter v. Allstate Insurance Company

Published: Feb. 28, 1998 | Result Date: Oct. 10, 1997 | Filing Date: Jan. 1, 1900 |

Case number: LCO30391 Verdict –  $0

Judge

Richard G. Kolostian

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Ernest J. Franceschi Jr.


Defendant

R. Randal Crispen

Ronald D. Getchey


Experts

Plaintiff

Wayne Schick
(technical)

Oshin Tosounian
(technical)

Defendant

Robert Hollingworth
(technical)

Facts

The plaintiffs, Steven and Debbie Bitter, owned a home in Woodland Hills which suffered substantial damage in the 1994 Northridge earthquake. The plaintiffs made an insurance claim to defendant Allstate Insurance Company for the damage to the residence in October 1994 after discovering a large crack running the entire length of the concrete slab in their residence. Allstate paid plaintiffs over $50,000 for the damage to their residence but did not pay for repair of the crack in the slab and foundation. The plaintiffs brought this action againsts defendant based on bad faith and breach of contract theories of recovery.

Settlement Discussions

The plaintiffs made a settlement demand for $200,000. The defendant made an offer of $50,000.

Damages

The plaintiffs claimed economic damages of $175,000, plus undisclosed non-economic damages and punitive damages.

Other Information

The verdict was reached approximatley two years and nine months after the case was filed. SETTLEMENT CONFERENCE: A settlement conference was held on Aug. 13, 1997, resulting in no settlement. Per defendant, the trial judge excluded the testimony of plaintiffs' structural engineer after an Evidence Code º402 hearing because the court found that the engineer was not qualified to render opinions about the cause of damage to the slab and foundation. The trial judge also granted a nonsuit as to plaintiffs' claim for punitive damages at the close of plaintiffs' case.

Deliberation

1½ days

Poll

9-3

Length

eight days


#125866

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390