The Fourth Circuit refused on Friday to revive a suit brought by the owners of a North Carolina beach house accusing certain underwriters at Lloyd’s London of stalling a $1 million payout over hurricane damage.
4th Circuit NC Homeowners Coverage Suit : Court Affirms Dismissal
A North Carolina federal court properly dismissed Michael and Christie Bailey’s suit claiming the underwriters acted in bad faith and violated the Unfair and Deceptive Trade Practices Act, a three-judge panel concluded, agreeing that the couple failed to allege that the underwriters committed the level of malfeasance required for such claims.
“This case remains merely a reasonable disagreement regarding the scope of damage,” the panel said.
Hurricane Florence Damage Dispute
The dispute stems from damage that occurred in September 2018 when Hurricane Florence struck the couple’s beach house in Carteret County, according to court filings. A Lloyd’s adjuster assessed the damage as minor, and the Baileys made repairs for about $170,000.
