July 2018

Villa Maison Homeowners Association, Inc. v. Owners Insurance Company, Case No. 17-cv-01542-RM-KMT, United States District Court, District of Colorado. Plaintiff is the owner of real property in Denver, Colorado and defendant issued a policy of insurance to plaintiff. Plaintiff alleged a hail/wind event on June 24, 2015 caused property damage. It reported that alleged damage to defendant nearly two years later. Plaintiff sought benefits and then asserted claims for unreasonable delay in claim handling in violation of Colo.Rev. Stat. §§ 10-3-1115, 1116 and common law bad faith. The court granted summary judgment in defendant’s favor. In its ruling, the court held, “If there were ever two claims that should not have been raised in an insurance-coverage-dispute case, Claims Two and Three for unreasonable delay and bad faith are certainly those two claims. Although plaintiff did not provide notice of her claimed loss until somewhere around 21 months after the loss occurred, plaintiff expects its insurance company to have investigated and paid-out on the claim within around 3 months after being notified.” As a result, the court dismissed plaintiff’s extra-contractual claims.