Foran Glennon shareholder James Glennon and partners Michael Errera and Morgan Smith secured a summary judgment victory in defense of a property damage claim arising from a roof leak that the policyholder alleged was improperly denied and handled in bad faith in California.
The policyholder alleged a single high windstorm event in December 2019 damaged a roof, which subsequently allowed water infiltration to cause more than $850,000 in property damage. After investigation, it was determined that the leak was caused by deterioration over time and not due to a single wind event, and the policyholder’s claim was denied.
Following denial of the claim, the policyholder filed suit in the United States District Court for the Eastern District of California. The lawsuit alleged that the insurance carrier breached the insurance policy by declining to cover the interior water damage and roof repairs and that the insurer acted in bad faith in its investigation and denial.
To defend the insurance company and its coverage position, Foran Glennon took an aggressive approach to secure critical testimony from fact witnesses with regards to the building’s historical maintenance and condition. The insurer’s position was bolstered by several experts, including:
- A construction contractor who opined that the roof leak was a result of poor maintenance and deterioration and not due to a single wind event.
- A meteorologist who opined that, based upon analysis of historical weather patterns and evaluation of the wind conditions, there were insufficient wind conditions present when the policyholder claimed the damage occurred. He further confirmed the building was exposed to significant wind events several times over a number of years and those prior high wind events adversely impacted the roof’s condition.
In an attempt to rebut the strong factual evidence and expert opinions presented, the policyholder presented several witnesses, who were ultimately found by the Court to be under-qualified and inadequate.
Without any admissible evidence offered by the policyholder to counter the insurer’s experts’ supported opinions, the Court held:
- the declination of coverage by the insurer was proper;
- the claim was properly investigated and handled; and
- there was no merit to a claim that the insurer acted in bad faith.
Foran Glennon is proud to have delivered this favorable result for its client following a lengthy and hotly contested litigation process.
Jim concentrates his practice in the areas of loss recovery/subrogation, first-party property insurance coverage, casualty litigation, products liability and construction litigation. In addition to his extensive domestic and international litigation experience, he also represents excess liability insurers in the role as monitoring counsel in the energy sector in claims involving catastrophic injuries or extensive damages.
Michael centers his practice on civil litigation matters with an emphasis on loss recovery/subrogation, commercial and construction claims, product liability and first-party property insurance coverage. With his broad range of experience, he assists clients in a variety of issues and contributes to leading industry publications and organizations regularly.
Morgan focuses her litigation practice on complex commercial, subrogation and loss recovery, product liability, mass tort and breach of contract claims. Insurance company clients trust her on matters involving losses to property, heavy equipment and cargo during interstate transportation, among other high-exposure issues.