LOS ANGELES — A state appeals court recently declined to revive a Long Beach apartment complex's bad faith lawsuit against an insurance company that refused to pay for water damage.
"We agree with the trial court’s assessment that none of plaintiff’s evidence raised a triable issue that this was not a genuine coverage dispute," the California Second District Court of Appeal three-judge panel said in its opinion. "There is no dispute that defendants based their claim denial on the final expert report, and there is no evidence that report was contrived or false."
The panel affirmed an earlier judgment by Los Angeles Superior Court Judge Mark C. Kim in favor of Leading Insurance Group, identified in the case under the company's several aliases, in 501 East 51st Street Long-Beach-10's breach of good faith covenant and fair dealing claims.
The 23-page opinion in 501 East 51st Street Long-Beach-10's appeal was filed April 2 and certified for publication on April 16.
The 501 East 51st Street address is the location of 10-unit apartment building in North Long Beach.
Appeal Court Justice Elizabeth A. Grimes wrote the opinion in which Justice Tricia A. Bigelow and Justice John Shepard Wiley Jr. concurred.
The plaintiff in the case sued after the insurance company denied a claim for damages to its Long Beach apartment complex that was said to have been caused by a ruptured underground water main, according to the background portion of the opinion.
The plaintiff initially sued, claiming breach of the covenant of good faith and fair dealing, fraud in the inducement, breach of contract, estoppel, negligence and negligent misrepresentation.
"Experts hired by plaintiff and defendants provided conflicting reports on the cause of the damage," the opinion said. "We agree with the trial court there is no material dispute whether defendants denied the claim in good faith based on an expert report concluding the damage was not caused by the broken water main, and affirm the judgment."