Jennifer Whitworth (Birmingham, Alabama) (Bad Faith) obtained Summary Judgment on behalf of her client, Allstate Indemnity Company (“Allstate”), in a first-party breach of contract and bad faith action brought by Plaintiff against her rental insurance carrier.
The Plaintiff filed a property damage claim with Allstate alleging that a leaky roof and moisture intrusion in her rental home caused mold damage to her personal property. Allstate denied the claim based on various exclusions in the policy, namely that the cause of the roof leak was not a covered event under the policy and that the plaintiff’s damages were also excluded under the policy’s mold exclusion. The Plaintiff eventually filed a lawsuit against Allstate alleging breach of contract and bad faith, seeking bodily injury damages and over $30,000 in personal property damage.
Following depositions, Allstate filed a Motion for Summary Judgment. At the hearing on same, the defense argued that the Plaintiff failed to show she was entitled to benefits under the policy, and therefore could not show that Allstate breached its contract with her when it denied her claim. Because the Plaintiff must show breach of contract on the part of Allstate to sustain her bad faith claim, the bad faith claim was also due to be dismissed. The plaintiff argued that Allstate failed to adequately investigate her claim prior to denying it.
The Court agreed with Allstate and granted final Summary Judgment in its favor.