On Tuesday, Judge Peter J. Messitte of the U.S. District, dismissed the suit against Greenwich Insurance Co., without prejudice, allowing the litigants 60 days to finalize their settlement agreement. The terms of the settlement were not disclosed.
Relevant Case Background
In its complaint filed in October 2022, Fairfax alleged that Greenwich was refusing to cover the brokerage company or Ms. Lima’s defense costs in the lawsuit bought by the homebuyer who was accusing them of undisclosed “latent defects,” negligent misrepresentation, and unjust enrichment.
Fairfax and Lima said they spent $170,000 defending the action and wanted Greenwich to cover them for their losses.
They sued Greenwich for reimbursement of that amount, asserting claims for breach of contract and declaratory judgment against Greenwich.
The plaintiffs argued that Greenwich was acting in bad faith by denying coverage and using the policy’s property damage exclusion, as a basis to deny the claim.
In their complaint, the plaintiffs characterized the underlying lawsuit, as the buyer having alleged that he suffered damages related to the purchase price, property taxes, and closing costs, which he claimed were not worth the price he paid because of the alleged defects.
