Insurer won't pay when its insured says eyewear was stolen in a burglary.
Foster, Sultanyan & Euredjian, LLP by David R. Euredjian, North Hollywood.
Law Offices of Richard M. Foster by Richard M. Foster and Alec G. Bedrossian, North Hollywood.
Woolls Peer Dollinger & Scher by Gregory B. Scher and Katy A. Nelson, Los Angeles.
On September 9, 2016, plaintiff AGA & Titan Inc. suffered a burglary loss at its premises in Burbank. Plaintiff claimed that the burglars stole more than $800,000 worth of eyewear from the premises.
Plaintiff submitted a claim to its insurance carrier. After a lengthy investigation, defendant insurer United Specialty Insurance Company denied plaintiff's claim, contending that plaintiff's documents were unreliable such that no losses could be calculated; further that plaintiff failed to cooperate in its investigation.
Plaintiff contended that its premises was burglarized and that more than $800,000 in inventory was stolen and that defendant insurer acted in bad faith in denying the claim.
Defendant claimed that plaintiff's records were unreliable, such that the losses could not be calculated. Defendant also denied there was a burglary. Defendant presented two affirmative defenses: (1) Termination of Insurance Policy for Fraudulent Claim; and (2) Failure to Cooperate.