CalFarm Insurance Co. v. Mister C Investment Corp., Randy Castiglione, Donna Castiglione
Published: Mar. 21, 2004 | Result Date: Nov. 5, 2003 |Case number: 01CECG00109 Verdict – $1,900
Judge
Court
Fresno Superior
Attorneys
Plaintiff
Julian J. Pardini
(Lewis, Brisbois, Bisgaard & Smith LLP)
Defendant
Facts
Property was stolen from a storage shed on a farm owned by Mister C Investment Corp. CFO Randy Castiglione, observed two vehicles, one of which was loaded with tires, rims and go-carts belonging to Mister C. Castiglione followed the vehicles and contacted the Fresno County Sheriff's Department. The stolen property was recovered and returned to Mister C's storage shed. Castiglione filed a claim to CalFarm Insurance Company under a farm policy for which he claimed a loss of $182,000 worth of items, including farm chemicals that were not recovered by the sheriff's department. Castiglione then filed a second claim for damage to a work truck under an auto policy, alleging the truck was damaged in an accident involving a fence. A CalFarm appraiser determined that nearly all of the damages pre-existed the accident. The suspect nature of the invoices and other facts related to both claims resulted in CalFarm refusing to pay Mister C's claims. CalFarm instead filed a declaratory relief action against Mister C, Castiglione and his wife, Donna. The defendants then filed a cross-complaint against CalFarm alleging breach of contract and insurance bad faith.
Settlement Discussions
Mister C demanded $1 million from CalFarm on the cross-complaint. CalFarm offered waiver of costs pursuant to C.C.P. Section 998.
Damages
CalFarm sought only a declaration concerning the existence of coverage. Mister C claimed contract damages of $185,000 for the theft claim and $3,300 for the vehicle claim and damages for bad faith, including punitive damages.
Result
$1,900 to defendants; $25,000 costs to plaintiff.
Other Information
As to Phase I, whether Castiglione intentionally misrepresented material facts with respect to both claims thereby negating coverage, the jury found that Mister C intentionally misrepresented material facts and committed fraud concerning the burglary claim. As to the vehicle claim, the jury found in favor of the defendants and awarded them $1,900. The parties then agreed to forego Phase II on the vehicle claim and future appeals as to both claims and the defendants agreed to pay CalFarm $25,000 to cover its costs.
Deliberation
1.5 days
Poll
12-0 (burglary claim), 9-3 (vehicle claim)
Length
three weeks
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