The following is a sampling of verdicts and court rulings in significant insurance matters.
Thykkuttathil, et al. v. Progressive Max Ins. Co., et al., Western District of Washington Cause No. 2:12-cv-01749-RSM – Negotiated settlement for no new money on UIM claim on third day of multi-week trial involving traumatic brain injury allegations where the pretrial demand was $5.2 million.
First Mercury Ins. Co. v. Miller Roofing Enterprises, et al.– 2013 U.S. Dist. LEXIS 24728 (W.D. Wa.) – Summary Judgment in favor of insurer in declaratory judgment action. The only ruling in Washington on this issue and the only successful ruling in the Western United States on application of the EIFS exclusion in liability policy.
Travelers Property Cas. Co. of America v. AF Evans Co., et al., 2012 U.S. Dist. LEXIS 188758 (W.D. Wa.) – Superior Court found stipulated settlement of $8 million unreasonable and collusive. In subsequent coverage case, summary judgment ruling finding that claims by condominium declarant are barred by the “owned property” exclusion. Case settled following this ruling.
Travelers Indemnity Company v. Realvest Corp., 2012 U.S. Dist. LEXIS 159208 (W.D. Wa.) – Summary Judgment in favor of insurer in declaratory judgment action seeking finding of no coverage based on the fact that the claimant did not qualify as insured under policy.
Nesbitt v. Progressive Northwestern Ins. Co., 2012 U.S. Dist. LEXIS 74084 (W.D. Wa.) – Summary Judgment dismissal of contractual and extra-contractual claims involving anti-stacking language in a PIP coverage form.
Cardenas v. Navigators Insurance Company, 2011 U.S. Dist. LEXIS 145194 (W.D. Wa.) – Summary Judgment in favor of insurer on contractual and extra-contractual claims regarding defense of underlying construction defect lawsuit.
Silva v. Silva, Pierce County Cause No. 10-2-15462-6 – Court found consent judgment settlement with assignment of rights and covenant not to execute to be unreasonable as a matter of law. Negotiated final settlement for less even than the amount set by the Court.
Bayley Construction v. American Guarantee and Liability Insurance Company, 2010 U.S. Dist. LEXIS 110767 (W.D. Wash.) – Summary judgment in favor of client on insurance contribution claim by another insurer. First significant Washington ruling based on non-cumulation endorsement.
MacLean Townhomes v. Charter Oak Fire Ins. Co., 2008 U.S. Dist. LEXIS 95192 (W.D. Wa.) – Following a trial to the bench, the Court reduced the amount of a stipulated judgment settlement in an underlying construction defect case and found in favor of insurer on extra-contractual claims.
Farris v. Farmers Ins. Co. of Washington, King County Cause No. 04-2-04938-5, jury trial – Defense verdict in a high explosive and medic coverage/bad faith action involving claim for liability coverage for claims associated with the unauthorized removal of trees in Seattle’s Coleman Park.
On the Green Apartments v. Farmers Ins. et al., King County Cause No. 99-2-01349-2, jury trial – First-party property claim by Apartment complex with water intrusion issues caused by faulty, inadequate or defective construction. Defense verdict for insurer on $23 million claim. Significant issues involving causation, collapse coverage and known loss issues.
Pang v. Farmers Ins. Exchange, King County Cause No. 98-2-06412-9 – Summary Judgment dismissal of claims arising from the arson fire that destroyed the Mary Pang Warehouse in Seattle killing four Seattle firefighters.
Mangola v. Allstate Ins. Co., Kitsap County Superior Court Cause No. 95-2-03195-3 – The largest residential arson/fraud case in the history of the State of Washington. Defense verdict for insurer.
Successful Appeals
In addition to trial court results, the following is a sampling of successful Appellate Court decisions.
Water’s Edge Homeowner’s Association v. Farmers Insurance Exchange, et al., 2014 Wash. App. LEXIS 633 (March 3, 2014) – Washington State Court of Appeals affirmed summary judgment dismissal of coverage and bad faith claims arising from stipulated judgment, covenant not to execute, and assignment of rights settlement in the amount of $8.7 million.
Brandt v. American Bankers Ins. Co. of Fla., 653 F.3d 1108 (9th Cir. 2011) – Following defense verdict in favor of insurer on a flood claim, insureds appealed seeking review of district court’s prior order setting aside a default judgment that had been entered against the insurer. Ninth Circuit affirmed in all respects.
Reardon v. Farmers Ins. Co. of Washington, 2010 Wash. App. LEXIS 1990 – Affirming jury verdict in favor of insurer on contact and bad faith claims. CPA claim dismissed by trial court on remand due to failure to comply with Court orders and deadlines.
Baldwin v. Silver v. Farmers Ins. Co. of Washington, 147 Wn. App. 531, 196 P.3d 170 (2008) – Washington State Court of Appeals affirmed summary judgment dismissal of first-party property coverage claim and extra-contractual causes of action in residential fire loss.
Bedford v. Safeco Ins. Co., 2007 Wash. App. LEXIS 2675 (Sept. 24, 2007) – Washington State Court of Appeals affirmed jury verdict in favor of insurer in $16 million commercial collapse and bad faith action.
Smith v. Farmers, 2007 Wash. App. LEXIS 304 (2007) – Court of Appeals decision upholding right of insurer to seek IME and suspend benefits when insured refused to comply with IME request.
Lipscomb v. Farmers Ins. Co. of Washington, 142 Wn. App. 20, 174 P.3d 1182 (2007) – Affirming summary judgment in favor of insurer and insurance agent on allegations of failure to properly insure.
Gerry v. American Econ.,2006 Wash. App. LEXIS 1267 (2006) – Upholding summary judgment dismissal of a claim for coverage based on estoppel theory in the first-party property context.
Stuart v. WPIG, 2005 Wash. App. LEXIS 1814 (2005) – Affirming summary judgment dismissal of first-party claim based on failure to comply.
Rasmussen v. Safeco Ins. Co. of Am., 2005 Wash. App. LEXIS 419 (2005) – Court of Appeals affirmed summary dismissal of insured’s claim as discovery sanction.
Herman v. Safeco, 104 Wn. App. 783, 17 P.3d 631 (2001) – Affirming summary judgment in favor of insurer on coverage denial based on failure of insured to cooperate with terms and conditions of the policy.
Dombrosky v. Farmers Ins. Co. of Washington, 84 Wn. App. 783, 928 P.2d 1127 (1996) – Washington State Court of Appeals affirmed summary judgment dismissal of first-party property claims and extra-contractual causes of action in personal lines loss. This remains one of the most important Washington cases on several issues, including waiver and estoppel in the insurance coverage context and the application of the actual cash value and replacement cost value provisions of insurance policies.
Eide v. State Farm, 79 Wn. App. 346, 901 P.2d 1090 (1995) – Affirming denial of coverage based on “earth movement” exclusion. Important early case in the development of Washington’s efficient proximate cause jurisprudence.
Hess v. North Pacific, 122 Wn.2d 180, 859 P2d 586 (1993) – Washington Supreme Court holding in favor of insurer where insured sought replacement cost value despite stated intention not to actually replace the subject property.
Appraisals, Mediations and Expert Work
The best result is sometimes a good settlement. Here are some examples.
Timothy Reardon v. Progressive Ins. Co., Western District of Washington Cause No. 2:10-CV-00225-RSL – Negotiated settlement on eve of trial of less than $10,000 in UIM claim involving allegations of traumatic brain injury.
Ethel Adams v. Farmers Ins. Exchange, King County Cause No. 05-2-34320-6 – Negotiated confidential settlement of high-media exposure case involving UIM claim initially denied by insurer. Settlement following a summary judgment ruling in favor of Farmers on punitive damage claims.
Seattle Mariners v. Hunt Kiewit – Successfully represented insurer for general contractor in resolving significant construction defect claims involving the Safeco Field project in Seattle, WA.
Navigators Ins. Co. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 U.S. Dist. LEXIS 109903 (W.D. Wa.) – Successful subrogation/contribution claim on behalf of insurer that funded defense and indemnity of underlying action involving the Southcenter Mall in Seattle.
Plaza 305 Crane Collapse – Represented insurer in regard to multiple claims arising from the collapse of a construction crane in Bellevue, WA resulting in significant property damage and one fatality.
Carpenter’s Tower/McGuire Apartments – Represented multiple insurers in resolving substantial first- and third-party claims involved in the failure of a downtown Seattle apartment building.
Tampa Bay Water District – (Florida) – Represented insurer in resolving claims arising from the failure of the City of Tampa, Florida aqueduct system.
Clearwire Class Action – Successfully resolved claims against in underlying action and coverage litigation in both Connecticut and Washington involving multi-billion dollar class action lawsuit against Clearwire Wireless.
Elkhorn Springs Condominiums – (Idaho) – Resolution of a multi-million dollar construction defect claim in Sun Valley, Idaho.
Pierce County Transit Natural Gas Explosion – Successful resolution of a multi-million dollar gas explosion claim in Tacoma, Washington.
Rivergate Condominium Association v. Okland Construction v. Travelers– (Colorado) – Successful resolution of a complicated construction defect, coverage and bad faith claim. Despite total exposures of $32 million, the client paid no additional money and recovered $1.3 million from third parties.
Pullman Regional Hospital v. Lydig Construction, Inc. – Successful resolution of a complicated construction defect and coverage claim involving a major hospital in Eastern Washington.
Sun Valley YMCA v. Okland Construction– (Idaho) – Successful resolution of a construction defect and coverage matter at the YMCA facility in Sun Valley, Idaho.