On April 28, Scottsdale Insurance Company’s motion to dismiss a lawsuit from a bakery that suffered damage from Hurricane Irma was denied in the Middle District of Florida’s Fort Myers Division.
Still, Senior U.S. District Judge John E. Steele granted Scottsdale its motion to abate in Levi Holding, LLC’s (d/b/a Nino’s Bakery) bad faith claim (Count II).
The court denied Scottsdale’s motion for Count I, breach of contract - business interruption. While Scottsdale said the claim couldn’t hold up because Nino’s didn’t state a claim for relief, Judge Steele ruled otherwise. The claim not only says that Nino’s and Scottsdale had an insurance policy, it also claims that Nino’s filed a timely application to receive the benefits of the policy. It also pointed out that the business interruption part of its claims weren’t included in the appraisal award it previously won.
“No further details are required to satisfy the Rule 12(b)(6) standard,” wrote Judge Steele. “Plaintiff is entitled to reasonable inferences from the facts set forth in the Second Amended Complaint.”
The court also granted the motion to abate the bad faith claim, agreeing with Scottsdale that a bad faith claim does not exist in this case because there has not been a resolution in favor of plaintiff as to coverage and damages for the underlying claim, Judge Steele wrote.
Nino’s had a policy with Scottsdale when the natural disaster hit in early September 2017. The bakery filed a claim and the following November, a public adjuster hired by Nino’s determined repairs would cost $378,234.34, and that the store would have to be closed during the repair process.
While Scottsdale said it would cover wind and water damage, it refused to insure Nino’s for miscellaneous damage, like food getting spoiled. It gave Nino’s $15,495.18, followed by a payment of $31,782.36. B
Nino's sued in state court, claiming Scottsdale breached the terms of the insurance policy. Scottsdale ended up paying Nino’s $168,906.16, for the amount of appraisal, minus the previous payments it made and the deductible. While the court previous denied the motion for confirmation, stating it was too early, the case was reopened for Scottsdale’s current motions.