Facts

In 2002, intervenors Theodore and Denise Bielen sustained water damage as a result of leaks on their property in Berkeley. Plaintiff United Services Automobile Associations (USAA) insured the intervenors. USAA paid some funds on the claim and sued for subrogation against defendants Pella Window and Door Company of California Inc., Pella Corporation, and J.E. Higgins Lumber Company (collectively Pella) for reimbursement for money that plaintiff paid to intervenors.

Intervenors paid additional funds to repair the problem. Intervenors joined the complaint and also sued USAA claiming breach of insurance contract and bad faith.

PLAINTIFF'S CONTENTION: The plaintiff and intervenors claimed the defendants were at fault for faulty windows and installation, causing water damage to the insured property. The plaintiff also argued that it was the intervenors who breached their contract by failing to sign the proof of loss forms.

DEFENDANTS' CONTENTION: The insurer defendant claimed they do not owe any additional money.

INTERVENORS' CONTENTIONS:
As against USAA, the Bielens claimed that the additional losses were covered under their homeowners policy. As against Pella, the Bielens claimed that if there was no coverage, defendants were liable for faulty replacement and repair of windows.

Result

A verdict was returned for the plaintiff USAA for $61,857 against Pella. The jury returned a verdict in favor of the Bielen intervenors for $362,125 against Pella. The jury found for USAA against intervenors on the breach of insurance contract/bad faith claim.

Other Information

FILING DATE: April 4, 2005.