Facts

Plaintiffs Neal and Joyce Jacobson owned a home that was destroyed by a wildfire. Defendant insurance carrier Residence Mutual paid the policy limits for their home, property and living expenses. The plaintiffs sued for breach of contract and promissory fraud.

PLAINTIFF'S CONTENTIONS:
The plaintiffs claimed the defendant wrongfully refused to pay their extended replacement cost benefit. They claimed that their policy limit was increased by 50 percent pursuant to the Extended Replacement Cost Endorsement (ERC) they had. In the alternative, if the ERC did not apply, the ERC was a false and illusory promise. Finally, they alleged that defendant wrongfully denied or withheld benefits for "other structures" and landscaping losses.

DEFENDANT'S CONTENTIONS:
The defendants claimed it was the plaintiff's responsibility to select an adequate insurance policy. It also disputed the applicability of the ERC, because it claimed the plaintiffs did not comply with the conditions precedent, including a requirement that they insure the house for the value of the home. It denied the plaintiff's claims for other structures or landscaping were appropriate, and alleged that no such claims were ever made.

Settlement Discussions

The plaintiffs demanded $235,000 and later, according to defendant, $560,000; the defendant offered $150,000, and later, $190,000.

Damages

The plaintiff claimed to have been denied $195,000 in benefits. They also sought to recover punitive damages and for their emotional distress.

Result

The jury found for the defense.

Deliberation

2.5 hours

Poll

10-2 (breach of contract), 12-0 (promissory fraud)

Length

11 days