The plaintiffs allege that the second adjuster concluded their loss was not covered and Allstate denied payment. As a result, the repairs were never performed, which resulted in further damage to the motor home, including electrical issues, decay of the interior walls, and mold.
Plaintiffs Commence their action
Unable to resolve the matter, In July 2021, the plaintiffs sued for breach of contract, negligence, and bad faith. Allstate filed a motion moving to dismiss the bad faith and negligence claims.
The plaintiffs alleged that one adjuster told them the loss was covered, and that they relied on his representation to begin repairs on the motor home, and then a second adjuster, without notice or explanation informed them that the loss was not covered.
The Plaintiff’s Bad Faith Claim
Patricia L. Dodge, United States Magistrate Judge, found that the plaintiff’s allegations as to bad faith attributed to Allstate did not meet the requisite standard of review. The court found the facts as currently alleged in the complaint were not sufficient to state a plausible bad faith claim.
