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Insurance
Breach of Contract
Denial Of Coverage

Michael Urdea v. State Farm Insurance

Published: Dec. 7, 1996 | Result Date: Nov. 4, 1996 | Filing Date: Jan. 1, 1900 |

Case number: SACV95771LHM –  $197,316

Judge

Linda H. McLaughlin

Court

USDC Central


Attorneys

Plaintiff

Sidney Greenbaum


Defendant

Randall M. Nunn

E. Kenneth Purviance


Experts

Plaintiff

Robert Roman
(technical)

Defendant

Lonnie Bragden
(technical)

R. Vasu Vasudevan
(technical)

Facts

On Sept. 27, 1992, plaintiff Michael Urdea, a 67-year-old business owner, purchased insurance from defendant State Farm Insurance to cover his business premises against damage. On June 5, 1994, the plaintiff's business, a ceramics store known as the The Ceramics Factory, was destroyed by fire. The defendant insurer refused to pay the plaintiff's claim under the contract. The plaintiff business owner brought this action against the defendant insurer based on a breach of contract theory of recovery.

Settlement Discussions

The parties discussed submitting the action to binding arbitration with agreed upon limits. Defendant State Farm offered a high limit of $225,000, all of which would be paid if the plaintiff prevailed. The plaintiff demanded a high limit of $360,000.

Damages

The parties stipulated to damages of $197,316 for damage of loss of business, property, and loss of income adjusted for earnings in mitigation.

Other Information

The verdict was reached approximately one year and four months after the case was filed. The jury was split four to four at the end of the first day of deliberations.

Deliberation

10 hours

Poll

8-0 (fire not arson)

Length

4 days


#78997

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