Jim McKenzie v. Scottsdale Insurance Co.
Published: Apr. 26, 2005 | Result Date: Nov. 2, 2004 | Filing Date: Jan. 1, 1900 |Case number: SC030556 Verdict – $1,375,160
Judge
Court
Ventura Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Martin Firestone
(technical)
David F. Peterson
(technical)
Facts
On Aug. 6, 1999, the plaintiff purchased a Policy of Property Insurance from Scottsdale Insurance Company which covered over $1.3 million worth of scheduled parts, tools and inventory used by the plaintiff in his off-road racing "Hobby Shop." On Sep. 11, 1999, the Hobby Shop was burglarized and just over $761,000 worth of insured property was stolen. Immediately after the burglary, the plaintiff notified the Simi Valley Police Department and Scottsdale of the burglary. Over the course of the following two years, Scottsdale refused to pay the plaintiff's claim, claiming instead that it was still investigating the cause and origin of the burglary and that it was awaiting a report from its accountant as to the value of the stolen property. On Sep. 10, 2001, the plaintiff filed an action for breach of contract and breach of the implied covenant of good faith and fair dealing. On Nov. 2, 2004, the matter was decided by jury verdict in favor of the plaintiff, Jim McKenzie.
Settlement Discussions
The plaintiff made a C.C.P. Section 998 demand for $500,000 which was not accepted by Scottsdale. The plaintiff made a $500,000 settlement demand at the mandatory settlement conference. The defense offered nothing.
Result
Jury verdict in favor of the plaintiff finding breach of contract and breach of the implied covenant of good faith and fair dealing against the defendant. The jury also found fraud and oppression for the purposes of imposing liability for punitive damages. The jury awarded $761,833 in contract damages; $3,107 in bad faith damages (excluding attorney fees); and $75,000 in punitive damages. The court awarded prejudgment interest in the amount of $246,676; attorney fees in the amount of $220,606; and costs in the amount of $67,942.
Other Information
The defendant, Scottsdale Insurance Company, brought motions for new trial, judgment notwithstanding the verdict and to tax costs. The plaintiff brought a motion for new trial limited to the issue of the amount of punitive damages. All motions were denied except that the defense motion to tax costs was granted in part, reducing the plaintiff's claimed costs by $324 from $68,266 to $67,942.
Deliberation
two days
Length
10 days
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