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CONFIDENTIAL

Apr. 27, 1995

Breach of Contract
Insurance Bad Faith
Coverage Denied

Confidential

Settlement –  $780,000

Judge

Jack K. Mandel

Court

Orange Superior


Attorneys

Plaintiff

Michael J. Piuze

Douglas D. Shaffer
(Dordick Law Corporation)


Facts

Plaintiff was a 37-year-old senior claims adjuster. The rear patio of her home was damaged allegedly by tree root growth. Plaintiff further claimed that the walls of her home had some minor cracks. Plaintiff then received notice from her homeowner's insurance carrier that the policy was to be amended and that it would, thereafter, preclude coverage for this damage at renewal. Thus, Plaintiff submitted her claim prior to the renewal and the damages were appraised by her contractor at $25,000. On September 20, 1989, Defendant insurance carrier denied the claim based upon the new policy language. Defendant, after realizing that the tree root damage was a covered claim, alleged that the damage was caused by earth movement which was specifically excluded under both versions of the policy.

Settlement Discussions

Plaintiff contends that she demanded $950,000 and that Defendant offered $200,000.

Damages

$25,000 to repair property.


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