Houle v. Liberty Insurance Corp.
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The Supreme Court vacated the order of the superior court granting the motion for judgment on the pleadings filed by Defendant in this insurance dispute, holding that the grant of judgment on the pleadings for Defendant was erroneous.
The roof at Plaintiffs' home collapsed due to accumulating ice and snow. The property was insured through a policy issued by Defendant. Plaintiffs invoked the appraisal provision of the policy and later brought a second amended complaint alleging that Defendant had breached the terms of the policy by not performing a complete investigation and had acted in bad faith in the handling of their claim. The motion justice granted Defendant's motion for judgment on the pleadings, concluding that Plaintiffs could not maintain an action for breach of contract against Defendant. The Supreme Court vacated the judgment below, holding that the allegations, as pled, could support a claim for breach of contract or breach of the implied covenant of good faith and fair dealing.
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