Fadeeff v. State Farm General Insurance Co.
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The 2015 Valley Fire caused smoke damage to the Fadeeffs’ home, insured under a State Farm homeowners’ policy. Linen wall covering inside the home had started to buckle and the Fadeeffs had health concerns. With State Farm’s approval, the Fadeeffs retained ServPro to assist with smoke and soot mitigation and cleaning. State Farm’s independent adjuster (Gannaway) reported that the home was “well maintained” and that “[a]ll damage is related to smoke and soot.” State Farm made payments totaling $50,000. The Fadeeffs hired a public adjuster and submitted supplemental claims, totaling $75,000. State Farm’s independent adjuster (Carpenter), who is not a licensed adjuster in California and not licensed in any building trade reported he could not find smoke damage. State Farm retained FACS, which took only surface samples from the home and determined that no additional cleaning was required. State Farm denied the supplemental claims. The Fadeeffs filed suit, alleging insurance bad faith. The court granted State Farm summary judgment.
The court of appeal reversed, concluding that multiple disputed facts made summary judgment inappropriate. It is not possible to conclude that it is indisputable that the basis for denial was reasonable. There are triable issues regarding whether State Farm could have reasonably relied on its experts. A jury should determine the issue of punitive damages.
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