Confidential
Settlement – $835,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Daniel J. Callahan
(Callahan & Blaine)
Defendant
Kurt C. Peterson
(Reed Smith LLP)
Lorenzo E. Gasparetti
(Reed Smith LLP)
Facts
The plaintiff owns four apartment buildings that were damaged in the Northridge earthquake. After the earthquake, plaintiff made insurance claims for the damage. He claimed the insurer initially gave him "lowball" estimates. When the plaintiff later discovered further damage, defendant insurer refused to reopen the claim based on a one year contractual limitation period. Defendant insurer eventually reopened the claim but denied coverage based on the limitations period. Based on the low estimates, delay and denial of the claim, on what plaintiff contended was improper grounds, plaintiff brought this action against the defendant insurer for breach of contract and breach of the covenant of good faith and fair dealing.
Settlement Discussions
Settlement discussions were not disclosed.
Damages
The insured suffered $408,476 in property damage, plus emotional distress and attorney fees.
Other Information
The settlement was reached approximately five months after the case was filed.
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