Insurers’ Failure to Mitigate Damages
According to the complaint filed on Thursday, the plaintiff claims that its building is still damaged due to AmGuard’s refusal to pay for repairs, which they say is creating an ongoing negative impact on their business.
The Plaintiff is seeking the full policy limits for damage and repairs, and to compensate the store for the unnecessary business interruption caused by AmGuard’s denial of its damage claim, as well as for litigation expenses and penalties for bad faith violations.
Plaintiff’s Allegations of Bad Faith
La Place is represented by Michael S. Barcus of McClenny Moseley & Associates PLLC. In his argument, Barcus said, “Defendant wrongfully refused to pay plaintiff pursuant to the policy when it determined that although there was water damage to the business personal property — the water damage was not the result of a Hurricane Ida created opening.”
He went on to say “Defendant’s explanation that the water leakage into the property was due to deteriorated roof seams and sealants are a clear attempt to avoid coverage.”
