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A Colorado property owner is accusing Westfield Champion Insurance Co. of dragging its feet and dodging responsibility for more than $790,000 in storm-related hotel damage, sparking a federal court battle that reads like a showdown between a battered mountain lodge and an insurer allegedly determined to shut its doors to coverage.

Hotel Owner Says Insurer Ignored Clear Evidence of Damage

In a complaint initially filed in state court and removed to federal court Monday, Lazier Tivoli LLC, owner of the Tivoli Lodge in Vail, claims Westfield breached its policy obligations and operated in bad faith by failing to pay a penny for extensive roof and water damage caused by a brutal winter storm.

The suit alleges that despite receiving “satisfactory proof of damage,” Westfield either denied or stalled the claim, attributing the destruction to routine wear and tear—an explanation the plaintiff says crumbles under scrutiny.

Ice, Snow and a Failing Roof: The August 2023 Storm

According to the complaint, an August 2023 storm packed with heavy ice and snow compromised the hotel’s roof. The breach allowed water to seep into the property, triggering further destruction throughout the lodge.

A public adjuster’s June 2024 inspection estimated that repairing the roof and resulting damage would exceed $791,000, a figure Lazier says is well within the hotel’s policy limits—$38.9 million in building coverage and $1.7 million for business personal property.

A Claim Met With Silence and Delay

Despite these coverage limits, Lazier alleges Westfield went months without meaningful communication, leaving the claim unresolved nearly two years after the loss. Even after sending an engineer to examine the property, the insurer allegedly declined to consider the owner’s repair estimate or conduct a reasonable, industry-standard investigation.

The complaint argues that Westfield’s actions created an “inadequate, incomplete” inquiry that failed to meet Colorado’s legal requirements for claim handling.

Seeking Double Damages Under Colorado Law

Lazier is seeking not just the repair costs but also statutory damages under Colorado Revised Statute §10-3-1116, which allows for two times the delayed or denied covered benefits when an insurer unreasonably withholds payment.

The lodge owner argues that Westfield’s conduct caused a “substantial delay” without justification, leaving the property in disrepair and violating its contractual and legal obligations.