Edge Construction, LLC v. Owners Insurance Company, Civil Action 14-cv-00912-MJW, U.S. District Court, District of Colorado. Sable Cove Condominium Association made a claim for insurance benefits after sustaining hail and wind storm property damage. As a result of that claim, Owners Insurance paid certain benefits. However, a dispute arose over certain profit and overhead charges charged by Sable Cove’s contractor, Edge. Owners sought a copy of the Edge’s general contractor construction contract, as well as Edge’s contracts with subcontractors so that Owners could evaluate the claim for overhead and profit. That request was made to Sable Cove’s public adjuster, who was acting on behalf of Sable Cove. The public adjuster refused to provide the requested contracts.
Sable Cove assigned certain rights to Edge so that Edge could pursue claims against Owners Insurance. Thereafter, Edge filed suit against Owners Insurance seeking overhead and profit payment, along with bad faith damages. Ultimately, the court found that Sable Cove breached its duty to cooperate with Owners Insurance. Since Edge stepped into the shoes of Sable Cove, Edge was charged with the failure to cooperate. As a result, the Court agreed with Karen Wheeler, finding that no further benefits were owed and that there was no viable bad faith claim. As a result, the court entered summary judgment in favor of Owners Insurance.