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Contracts
Breach of Contract
Bad Faith

David Phillips and Stephan Phillips v. Fire Insurance Exchange, Fire Underwriters Associates, et al.

Published: Mar. 20, 1999 | Result Date: Jan. 22, 1999 | Filing Date: Jan. 1, 1900 |

Case number: C9601406 –  $7,500,000

Judge

Terence L. Bruiniers

Robert G. McGrath

Court

Contra Costa Superior


Attorneys

Plaintiff

Robert I. Westerfield
(Bowles & Verna)

Richard T. Bowles
(Bowles & Verna LLP)


Defendant

James A. Sarrail
(Sarrail, Castillo & Hall, LLP)

Linda J. Lynch


Experts

Plaintiff

Barry Ben-Zion Ph.D.
(technical)

Ernest Altmann
(technical)

Jerry A. Ramsey
(technical)

Lawrence Mansbach
(technical)

Harry Hasegawa
(technical)

T.C. Cheng
(technical)

Defendant

Carol A. Arieff
(technical)

Richard A. Blanchard
(technical)

Mark G. Bonino
(Hayes, Scott, Bonino, Ellingson, Guslani, Simonson & Clause LLP) (technical)

Paul Hamilton
(technical)

Charles D. Allen
(technical)

Larry W. Anderson
(technical)

Kevin Morgan
(technical)

Michael Yovino Young
(technical)

Facts

Defendant Fire Insurance Exchange had insured plaintiffs 11,000 square foot, three-story residence in Martinez since it was constructed in 1985. In January 1994, Fire required the plaintiffs to increase their coverage to $1.7 million for the structure and $1.2 million for the contents. The plaintiffs suffered the first of four losses on June 9, 1994, when an electrical short caused a fire in the laundry room. The house was unoccupied for the next five months while Fire obtained repair estimates. On June 10, 1994, paint was sprayed on walls and contents were vandalized. On Nov. 21, 1994, the house which still had not been repaired was completely destroyed by fire. On Dec. 25, 1994, there was theft and vandalism to some of the outbuilding and their contents. The plaintiffs brought this action against the defendants based on breach of contract and insurance bad faith.

Settlement Discussions

The plaintiffs served a C.C.P. º998 about two years before trial for $12 million. During trial, Judge Robert McGrath instructed the parties to go to mediation, at which time there was a $3 million offer from Fire and a demand of approximately $7 million from plaintiffs.

Damages

The plaintiffs claimed the house would cost over $4 million to rebuild, and that they had contents of over $3 million. They also claimed additonal living expense of $33,000 per month plus damages for bad faith.

Other Information

The plaintiffs asked the jury to award between $7 million and $8 million. The defendants asked the jury to award nothing to plaintiffs, approximately $650,000 to defendants. The trial began before the Hon. Robert McGrath and was completed before the Hon. Terence Bruiniers.

Deliberation

four days

Length

62 days


#80318

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