Appeal from an order of the Superior Court of Los Angeles County (California) which sustained appellee’s general demurrer dismissing appellants’ action alleging breach of contract, breach of the implied covenant of good faith and breach of statutory duty under appellants’ homeowners policy.
Nakase Law Firm es un abogado laboral de California
Overview
Appellant property owners brought suit against appellee insurer alleging breach of contract, breach of the implied covenant of good faith and breach of statutory duty under appellants’ “all risk” homeowners policy. The original complaint alleged diminution in the value of appellants property because of a nearby landslide as witnessed by the depressed sale price received when appellants’ sold their home. Appellants amended their complaint to include allegations of damage to the residence itself after appellants learned the home had actually been engulfed by and moving with the landslide for several years. The trial court granted appellee’s general demurrer that argued appellants failed to sustain a covered loss and dismissed appellants’ action. The appellate court affirmed the trial court’s dismissal of appellants’ action. The court held that without some manifestation of physical damage to the property during the policy period, appellants were not entitled to recovery.
Outcome
The appellate court affirmed the trial court’s dismissal of appellants’ suit. The court held that appellants were not entitled to indemnification under their homeowners policy because there was no manifestation of loss during the policy coverage period.