Cotton v. Scottsdale Ins. Co.

Plaintiffs filed suit against Scottsdale, seeking additional pay for wind-related damages to their property from Hurricane Isaac. Two months later, plaintiffs added Underwriters as defendants and alleged that they were entitled to additional payment for flood damages. At issue in this appeal is plaintiffs' mortgage lender's, First American’s, breach of contract claim against Underwriters. Underwriters sought summary judgment on the merits of that claim, arguing that First American failed to timely submit a formal proof-of-loss statement and could not prove that the approximately $232,000 Underwriters already paid was insufficient to repair the properties’ damage. Determining that the district court has jurisdiction to allow the filing of the complaint adding First American’s claim that was tried against Underwriters, the court held that First American's claim was timely; there was adequate evidence to support the jury's findings that Underwriters received satisfactory proof of loss to support First American’s claim for additional recovery; and there was sufficient evidence from which to conclude that Underwriters’ presuit payments were inadequate to repair the properties to their pre-Hurricane Isaac condition. Accordingly, the court affirmed the district court's denial of Underwriter's motion for judgment as a matter of law. View "Cotton v. Scottsdale Ins. Co." on Justia Law