This was a case of insurance bad faith resulting from a claim for earthquake damages following the Northridge earthquake. Safeco determined that the damage to the dwelling was below the plaintiff’s $35,000 deductible but plaintiff’s expert claimed that there was major hidden damage to the home caused primarily by the movement of a 30 ton chimney. Plaintiff eventually sold the home but claims she did so for “land value” even though the sale price was over $1 million.
| Demand | $450,000 for the cost of repair. |
| Offer | $50,000 as a starting point for negotiations. No further settlement discussions took place. |
| Verdict | DEFENSE. Defendant filed a cost bill in the amount of $35,000. (12/04) |
| Insurer | Safeco |