Preview
1 GERARD V. KASSABIAN, ESQ. (SBN 222703)
LAW OFFICES OF GERARD V. KASSABIAN
2 15260 Ventura Blvd., Suite 960
Sherman Oaks, California 91403
3 Telephone: (310) 278-8001
Facsimile: (310) 278-0808
4 gerard@kassabianlaw.com
5
Attorney for Plaintiff
6 2148 STRATFORD LLC
7
SUPERIOR COURT OF THE STATE OF CALIFORNIA
8
COUNTY OF LOS ANGELES - CENTRAL DISTRICT
9
OF GERARD V. KASSABIAN
10
2148 STRATFORD LLC, a California Limited CASE NO.:
11 Liability Company,
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 Plaintiff,
UNLIMITED CIVIL COMPLAINT
13 vs. FOR DAMAGES
(310) 278-8001
14 STATE FARM GENERAL INSURANCE 1. BREACH OF CONTRACT
COMPANY, an Illinois Corporation, and 2. BREACH OF IMPLIED COVENANT
15 DOES 1 through 50, inclusive, OF GOOD FAITH AND FAIR
DEALING
LAW OFFICES
16 Defendant.
DEMAND FOR JURY TRIAL
17
18
19
20 COMES NOW, Plaintiff 2148 STRATFORD LLC, a California Limited Liability
21 Company, (hereinafter referred to as “Plaintiff”) and complain against the above-named
22 Defendant, STATE FARM GENERAL INSURANCE COMPANY, an Illinois Corporation,
23 and DOES 1 through 50, inclusive, (hereinafter referred to as “Defendant”) and alleges as
24 follows:
25
26 I. PRELIMINARY ALLEGATIONS
27 1. Plaintiff brings this complaint for Breach of Contract and Breach of Implied
28 Covenant of Good Faith and Fair Dealing against Defendant in the bad faith denial of
COMPLAINT FOR DAMAGES
1 Plaintiff’s insurance claim which is duly covered by Plaintiff’s insurance policy issued by
2 State Farm General Insurance Company with policy number 92-EX-Y488-1 effective June 1,
3 2022. Attached hereto and incorporated herein as Exhibit 1 is a true and correct copy of the
4 State Farm General Insurance Company policy number 92-EX-Y88-1.
5 2. The relief sought from Defendant, viewed in the aggregate, includes actual
6 damages arising from Defendant’s conduct under the laws of the State of California and
7 pursuant to the terms, conditions and provisions of a certain homeowner's Insurance Policy,
8 Policy reference number 92EXY4881.
9 3. All allegations contained in this Complaint are based on information and belief.
OF GERARD V. KASSABIAN
10
11 JURISDICTION, VENUE AND GOVERNING LAW
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 4. Jurisdiction and venue over this matter is proper because Defendant’s wrongful
13 breach of insurance contract occurred and deceitful conduct occurred in Los Angeles County,
(310) 278-8001
14 California; the subject property is located in the County of Los Angeles and the insurance
15 contract was entered in this County. Indeed, Defendant’s bad faith denial and breach of
LAW OFFICES
16 contract occurred in this County.
17 5. At all times relevant here, Plaintiff is a California Limited Liability Company
18 located in the County of Los Angeles, State of California, and was the rightful and legal owner
19 of the insured property located at 2148 Stratford Cir, Los Angeles, CA 90077-1314, Los
20 Angeles County (hereinafter referred to as "PROPERTY").
21
22 PARTIES
23 6. Defendant STATE FARM GENERAL INSURANCE COMPANY, an Illinois
24 Corporation, with its headquarters in Bloomington, Illinois, has branches and operations
25 throughout the United States, including California, where it boasts millions of customers.
26 7. Plaintiff is ignorant of the name of the Defendant sued herein as DOES 1
27 through 50, inclusive, and Plaintiff will amend this Complaint to show their true names and
28 capacities when ascertained.
1
COMPLAINT FOR DAMAGES
1 8. At all times herein mentioned, Defendant DOES 1 through 50, inclusive, was
2 designated, assigned, instructed, hired, and otherwise directed to handle Plaintiff’s insurance
3 claim, claim reference number 75-45N3-87D 2148 (hereinafter referred to as "CLAIM").
4 9. Plaintiff is informed, believes and thereupon alleges that Defendant Does 1
5 through 50, inclusive, was authorized and instructed to address and discuss all aspects of the
6 Plaintiff’s Insurance Policy with Plaintiff and their representatives, to evaluate the Insurance
7 CLAIM, investigate the losses thereunder, determine the extent, nature and scope of the
8 damages and to act in all other capacities for and on behalf of Plaintiff.
9 10. Pursuant to the terms of the subject Insurance Policy, which is a written contract
OF GERARD V. KASSABIAN
10 entered into between Plaintiff and Defendant, Plaintiff was to make premium payments, and in
11 return for Plaintiff’s consideration, Defendant, in his capacity as an insurance company, was to
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 provide coverage and benefits owing to Plaintiff for all covered losses.
13 11. At all times relevant herein, Defendant joined and associated together by way of
(310) 278-8001
14 contract, arrangement, joint venture, employment agreement or otherwise in connection with
15 underwriting, solicitation, insurance transaction, claim procedures, inspections, adjustments
LAW OFFICES
16 and investigations of the Insurance CLAIM.
17
18 FACTUAL ALLEGATIONS
19 12. Plaintiff listed his beautiful Bel Aire home on the market on December 2, 2022
20 for its fair market value price of $10,900,000.00. The home was impeccable in every way in
21 one of the most desirable areas of Los Angeles in an exclusive gated community.
22 13. While on the market fielding offers from potential buyers, during the night
23 between December 31, 2022, and January 1, 2023 and the evenings following, due to a heavy
24 rain storm in Los Angeles, Plaintiff’s PROPERTY sustained a tremendous amount of water
25 damage, destroying an entire two floors of extremely valuable European marble that was
26 damaged or eroded and became unsalvageable.
27 14. This damage was covered pursuant to the insurance policy between Plaintiff and
28 Defendant. Defendant acknowledged receiving the claim and further acknowledged coverage
2
COMPLAINT FOR DAMAGES
1 for the losses after a thorough investigation including an onsite evaluation.
2 15. It became apparent during the investigation process that the damage caused to
3 Plaintiff’s home was severe and irreparable. Defendant accepted the CLAIM and became
4 obligated to conduct a fair and thorough investigation and promptly pay the benefits of the
5 subject Insurance Policy to Plaintiff. However, instead of doing so, they undervalued the loss
6 and delayed the entire process.
7 16. Plaintiff, who urgently wanted to replace the damaged marble in an effort to sell
8 the home hired several specialists and discovered that the cost to replace the marble would be
9 in excess of $2,000,000.00 with six months estimated contractor time. Plaintiff provided his
OF GERARD V. KASSABIAN
10 findings to Defendant who responded by approving the claim but intentionally undervalued the
11 loss amount to $22,223.48, with full knowledge that Plaintiff’s deductible was $43,147.00.
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 Defendant did so in an effort not to pay the full claim.
13 17. After showing the property to potential buyers, the water damage to the marble
(310) 278-8001
14 floor in the living room deterred them all. The jewel of Plaintiff’s home was not just the rare
15 marble, but the sheer amount of it which was imported from Europe.
LAW OFFICES
16 18. Considering his situation, Plaintiff was forced to reduce the selling price of the
17 home by an excess of $2,000,000. The home entered escrow in February 2022 and sold on
18 March 15, 2023, for $8,775,000.
19 19. During the claim process, Plaintiff and his representatives sent over 25
20 communications in the form of emails, letters, and voicemails, requesting State Farm to
21 provide an estimate of replacement and not just repair. Defendant continued to delay Plaintiff
22 by failing to response to moving the claim from adjustor to adjustor with no reason aside from
23 bad faith.
24 20. Defendant further devised a scheme with the aim of not paying the benefits
25 owed to Plaintiff pursuant to the subject Insurance Policy by:
26 a. intentionally underpaying for the real property damage caused to the subject
27 PROPERTY in connection with the subject CLAIM;
28 b. intentionally failing to pay for Plaintiff’s damages in connection with the subject
3
COMPLAINT FOR DAMAGES
1 CLAIM;
2 c. intentionally delaying the resolution of the subject CLAIM by moving the matter
3 around from adjuster to adjuster internally.
4 d. failing to provide claim-related documents and information when requested;
5 e. failing to respond to correspondence and inquires made by Plaintiff.
6 21. On October 6, 2023, Defendant emailed Plaintiff notifying him that the CLAIM
7 was closed without further information. Defendant’s conduct mentioned in this Complaint
8 was intended to compel Plaintiff to abandon the CLAIM, in furtherance of Defendant’s
9 financial gains. Defendant’s conduct was in bad faith and in breach of the subject policy.
OF GERARD V. KASSABIAN
10 22. At all times relevant, Plaintiff has complied with all of Defendant’s requests and
11 produced all relevant documents and information that Defendant has requested from Plaintiff.
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 23. Plaintiff has allowed Defendant to inspect the subject property and even shared
13 with Defendant their own experts’ findings, contractor estimates and costs and other
(310) 278-8001
14 information to assist Defendant in adjusting their claim.
15
LAW OFFICES
16 FIRST CAUSE OF ACTION
17 [FOR BREACH OF CONTRACT AGAINST DEFENDANT AND DOES 1 THROUGH
18 50 inclusive,]
19 24. Plaintiff incorporates by this reference each and every allegation contained in
20 Paragraphs 1 through 23, inclusive, as set forth verbatim at this point.
21 25. Plaintiff fully paid Defendant the consideration for the subject Insurance Policy
22 at all times relevant herein. Plaintiff had also fully and faithfully performed all the terms,
23 conditions and provisions of Insurance Policy, in effect at the time of the loss, required to be
24 performed by Plaintiff, except to the extent that Plaintiff have been prevented or otherwise
25 prohibited by Defendant.
26 26. Plaintiff neither had the expertise nor the requisite qualification to perform
27 investigation of the subject Insurance Claim. Instead, Plaintiff depended on the good faith
28 investigation of the Defendant.
4
COMPLAINT FOR DAMAGES
1 27. Defendant knew that Plaintiff was attempting to sell the home and mitigate the
2 damages. Defendant intentionally delayed and/or minimize payment of benefits owed to
3 Plaintiff, and to deter Plaintiff from pursuing the subject CLAIM and forced him into selling
4 the home for a reduced amount, all to Plaintiff’s determinate and a loss of over $2,000,000.00.
5 28. Defendant additionally breached the subject Insurance Policy and its respective
6 duties of care in various manners, inclusive of failure to:
7 a. Adopt and implement reasonable standards for the prompt, thorough and
8 accurate investigation and processing of the subject CLAIM;
9 b. accurately represent to Plaintiff the applicable coverage for the loss under the
OF GERARD V. KASSABIAN
10 subject Insurance Policy;
11 c. disclose the standard of care in the business of insurance for adjustment of
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 claims in relation to the loss;
13 d. attempt in good faith to effectuate prompt, fair, complete and equitable
(310) 278-8001
14 settlement of the subject CLAIM;
15 e. make coverage and loss valuation decisions and determinations with the benefit
LAW OFFICES
16 of unbiased and/or qualified professionals;
17 f. comply with the applicable provisions of California Law, including Insurance
18 Code Section 790.03;
19 g. produce "claim related documents" in accordance with Insurance Code Section
20 2071;
21 h. produce Plaintiff’s claim files of when requested;
22 i. produce POLICY procedures and protocols of Defendant;
23 j. properly and accurately direct Plaintiff about to the applicable provisions of the
24 Insurance POLICY;
25 k. implement a fair and reasonable standard of practice regarding adjustment of the
26 subject CLAIM;
27 l. train Defendant’s adjusters regarding adjustment of the subject CLAIM;
28 m. supervise Defendant’s adjusters and representatives regarding adjustment of the
5
COMPLAINT FOR DAMAGES
1 subject CLAIM;
2 n. place Plaintiff on notice of the tolling period for the subject CLAIM and the
3 times within which statutes of limitation on the subject CLAIM would expire;
4 o. be truthful regarding results of Defendant’s investigation of the subject CLAIM;
5 29. As a direct and natural consequence of the aforementioned breaches of the
6 Insurance POLICY and Defendant’s duties of care, Plaintiff has suffered damages to the value
7 of his property which sold for $2,000,000 less than its fair market value as a result of the
8 damaged marble Defendant refused to replace.
9
OF GERARD V. KASSABIAN
10 SECOND CAUSE OF ACTION
11 [FOR BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 - BAD FAITH AGAINST DEFENDANT AND DOES 1 THROUGH 50 inclusive]
13 30. Plaintiff incorporates by this reference each and every allegation contained in
(310) 278-8001
14 Paragraphs 1 through 29 inclusive, as set forth verbatim at this point.
15 31. The subject Insurance Policy contained an implied covenant by Defendant that
LAW OFFICES
16 they would act in good faith and deal fairly with Plaintiff and that Defendant would do nothing
17 to interfere with the rights, remedies, privileges, benefits and interests of Plaintiff under the
18 subject Insurance Policy.
19 32. Defendant knowingly, willingly and conveniently ignored, misguided and ill-
20 advised Plaintiff regarding the extent, scope, amount, limitations of action, contents of the
21 CLAIM file as well as duties of Plaintiff after the filing of the subject CLAIM.
22 33. Although Defendant inspected the subject PROPERTY, Defendant intentionally,
23 maliciously and oppressively failed to adequately and accurately pay for the damage caused to
24 Plaintiff’s PROPERTY, intentionally undervaluing the loss as a way to deter Plaintiff from
25 furthering their CLAIM.
26 34. In breach of the implied covenant of good faith and fair dealing, Defendant
27 further intentionally, fraudulently, deceitfully, maliciously and oppressively failed and refused,
28 and continue to refuse to pay Plaintiff the full amount of the benefits of the subject Insurance
6
COMPLAINT FOR DAMAGES
1 POLICY and claimed damages as a result of the subject CLAIM.
2 35. Defendant has breached their duty of good faith and fair dealing owed to
3 Plaintiff by other acts or omissions of which Plaintiff is presently unaware. Plaintiff will seek
4 leave of Court, if necessary, to amend this Complaint at such time as Plaintiff discovers the
5 other acts or omissions of Defendant constituting such breach.
6 36. As a direct and proximate result of the Defendant’s conduct, as alleged in this
7 Cause of Action, Plaintiff has suffered a loss of over $2,000,000.00 when he was forced to sell
8 the damaged property significantly lower than its fair market value.
9 37. As a result of the intentional, malicious, oppressive, deliberate, deceitful,
OF GERARD V. KASSABIAN
10 vexatious and fraudulent conduct of Defendant, Plaintiff is entitled to an award of attorneys'
11 fees, in accordance with the law, also pursuant to Brandt v. Superior Court (1985) 37 Cal.3d
SHERMAN OAKS, CALIFORNIA 91403
15260 VENTURA BLVD., SUITE 960
12 813, and prejudgment interest.
13 38. Additionally, as a consequence of the foregoing conduct of Defendant, Plaintiff
(310) 278-8001
14 is entitled to exemplary and punitive damages against Defendant in conformity with Civil
15 Code Section 3294, or as provided by law, in an amount according to proof to punish or set an
LAW OFFICES
16 example of Defendant and to deter such conduct in the future.
17
18 WHEREFORE, Plaintiff prays judgment against Defendant as follows:
19 ON THE FIRST CAUSE OF ACTION
20 [Breach of Contract Against Defendant - Insurance Policy]:
21 1. For general damages according to proof; and
22 2. For special damages according to proof.
23 ON THE SECOND CAUSE OF ACTION
24 [Breach of the Implied Covenant of Good Faith & Fair Dealing - Bad Faith
25 Against Defendant]:
26 1. For general damages according to proof;
27 2. For special damages according to proof;
28 3. For attorneys' fees; and
7
COMPLAINT FOR DAMAGES
1 4. For exemplary and punitive damages according to proof.
2 ON ALL CAUSES OF ACTION:
3 1. For prejudgment and post judgment interest at the legal rate; and
4 2. For cost of suit and other relief as this Court may deem just and proper.
5
6 Dated: March 26, 2024
7
8 By:
Gerard V. Kassabian
9 Attorney for Plaintiffs
OF GERARD V. KASSABIAN
10
11
SHERMAN OAKS, CALIFORNIA 91403
REQUEST FOR JURY TRIAL
15260 VENTURA BLVD., SUITE 960
12
Plaintiff, 2148 Stratford LLC, hereby requests a trial by jury.
13
(310) 278-8001
14
Dated: March 26, 2024
15
LAW OFFICES
16
By:
17
Gerard V. Kassabian
18 Attorney for Plaintiffs
19
20
21
22
23
24
25
26
27
28
8
COMPLAINT FOR DAMAGES
EXHIBIT 1
State Farm General Insurance Company
A Stock Company With Home Offices in Bloomington, Illinois AMENDED JUN 10 2022
DECLARATIONS PAGE
Po Box 853907 Policy Number 92-EX-Y488-1
Richardson, TX 75085-3907
Named Insured
Policy Period Effective Date Expiration Date
AT1 H-23-1892-FB94 R F 12 Months JUN 1 2022 JUN 1 2023
000760000760
00460046 The policy period begins and ends at 12:01 am
2148 STRATFORD LLC standard time at the residence premises.
10560 WILSHIRE BLVD APT 2003
LOS ANGELES CA 90024-7315
Loan # 1004177
Mortgagee
GOLDEN STATE BANK ____
____
Preview
1 GERARD V. KASSABIAN, ESQ. (SBN 222703) LAW OFFICES OF GERARD V. KASSABIAN 2 15260 Ventura Blvd., Suite 960 Sherman Oaks, California 91403 3 Telephone: (310) 278-8001 Facsimile: (310) 278-0808 4 gerard@kassabianlaw.com 5 Attorney for Plaintiff 6 2148 STRATFORD LLC 7 SUPERIOR COURT OF THE STATE OF CALIFORNIA 8 COUNTY OF LOS ANGELES - CENTRAL DISTRICT 9 OF GERARD V. KASSABIAN 10 2148 STRATFORD LLC, a California Limited CASE NO.: 11 Liability Company, SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 Plaintiff, UNLIMITED CIVIL COMPLAINT 13 vs. FOR DAMAGES (310) 278-8001 14 STATE FARM GENERAL INSURANCE 1. BREACH OF CONTRACT COMPANY, an Illinois Corporation, and 2. BREACH OF IMPLIED COVENANT 15 DOES 1 through 50, inclusive, OF GOOD FAITH AND FAIR DEALING LAW OFFICES 16 Defendant. DEMAND FOR JURY TRIAL 17 18 19 20 COMES NOW, Plaintiff 2148 STRATFORD LLC, a California Limited Liability 21 Company, (hereinafter referred to as “Plaintiff”) and complain against the above-named 22 Defendant, STATE FARM GENERAL INSURANCE COMPANY, an Illinois Corporation, 23 and DOES 1 through 50, inclusive, (hereinafter referred to as “Defendant”) and alleges as 24 follows: 25 26 I. PRELIMINARY ALLEGATIONS 27 1. Plaintiff brings this complaint for Breach of Contract and Breach of Implied 28 Covenant of Good Faith and Fair Dealing against Defendant in the bad faith denial of COMPLAINT FOR DAMAGES 1 Plaintiff’s insurance claim which is duly covered by Plaintiff’s insurance policy issued by 2 State Farm General Insurance Company with policy number 92-EX-Y488-1 effective June 1, 3 2022. Attached hereto and incorporated herein as Exhibit 1 is a true and correct copy of the 4 State Farm General Insurance Company policy number 92-EX-Y88-1. 5 2. The relief sought from Defendant, viewed in the aggregate, includes actual 6 damages arising from Defendant’s conduct under the laws of the State of California and 7 pursuant to the terms, conditions and provisions of a certain homeowner's Insurance Policy, 8 Policy reference number 92EXY4881. 9 3. All allegations contained in this Complaint are based on information and belief. OF GERARD V. KASSABIAN 10 11 JURISDICTION, VENUE AND GOVERNING LAW SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 4. Jurisdiction and venue over this matter is proper because Defendant’s wrongful 13 breach of insurance contract occurred and deceitful conduct occurred in Los Angeles County, (310) 278-8001 14 California; the subject property is located in the County of Los Angeles and the insurance 15 contract was entered in this County. Indeed, Defendant’s bad faith denial and breach of LAW OFFICES 16 contract occurred in this County. 17 5. At all times relevant here, Plaintiff is a California Limited Liability Company 18 located in the County of Los Angeles, State of California, and was the rightful and legal owner 19 of the insured property located at 2148 Stratford Cir, Los Angeles, CA 90077-1314, Los 20 Angeles County (hereinafter referred to as "PROPERTY"). 21 22 PARTIES 23 6. Defendant STATE FARM GENERAL INSURANCE COMPANY, an Illinois 24 Corporation, with its headquarters in Bloomington, Illinois, has branches and operations 25 throughout the United States, including California, where it boasts millions of customers. 26 7. Plaintiff is ignorant of the name of the Defendant sued herein as DOES 1 27 through 50, inclusive, and Plaintiff will amend this Complaint to show their true names and 28 capacities when ascertained. 1 COMPLAINT FOR DAMAGES 1 8. At all times herein mentioned, Defendant DOES 1 through 50, inclusive, was 2 designated, assigned, instructed, hired, and otherwise directed to handle Plaintiff’s insurance 3 claim, claim reference number 75-45N3-87D 2148 (hereinafter referred to as "CLAIM"). 4 9. Plaintiff is informed, believes and thereupon alleges that Defendant Does 1 5 through 50, inclusive, was authorized and instructed to address and discuss all aspects of the 6 Plaintiff’s Insurance Policy with Plaintiff and their representatives, to evaluate the Insurance 7 CLAIM, investigate the losses thereunder, determine the extent, nature and scope of the 8 damages and to act in all other capacities for and on behalf of Plaintiff. 9 10. Pursuant to the terms of the subject Insurance Policy, which is a written contract OF GERARD V. KASSABIAN 10 entered into between Plaintiff and Defendant, Plaintiff was to make premium payments, and in 11 return for Plaintiff’s consideration, Defendant, in his capacity as an insurance company, was to SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 provide coverage and benefits owing to Plaintiff for all covered losses. 13 11. At all times relevant herein, Defendant joined and associated together by way of (310) 278-8001 14 contract, arrangement, joint venture, employment agreement or otherwise in connection with 15 underwriting, solicitation, insurance transaction, claim procedures, inspections, adjustments LAW OFFICES 16 and investigations of the Insurance CLAIM. 17 18 FACTUAL ALLEGATIONS 19 12. Plaintiff listed his beautiful Bel Aire home on the market on December 2, 2022 20 for its fair market value price of $10,900,000.00. The home was impeccable in every way in 21 one of the most desirable areas of Los Angeles in an exclusive gated community. 22 13. While on the market fielding offers from potential buyers, during the night 23 between December 31, 2022, and January 1, 2023 and the evenings following, due to a heavy 24 rain storm in Los Angeles, Plaintiff’s PROPERTY sustained a tremendous amount of water 25 damage, destroying an entire two floors of extremely valuable European marble that was 26 damaged or eroded and became unsalvageable. 27 14. This damage was covered pursuant to the insurance policy between Plaintiff and 28 Defendant. Defendant acknowledged receiving the claim and further acknowledged coverage 2 COMPLAINT FOR DAMAGES 1 for the losses after a thorough investigation including an onsite evaluation. 2 15. It became apparent during the investigation process that the damage caused to 3 Plaintiff’s home was severe and irreparable. Defendant accepted the CLAIM and became 4 obligated to conduct a fair and thorough investigation and promptly pay the benefits of the 5 subject Insurance Policy to Plaintiff. However, instead of doing so, they undervalued the loss 6 and delayed the entire process. 7 16. Plaintiff, who urgently wanted to replace the damaged marble in an effort to sell 8 the home hired several specialists and discovered that the cost to replace the marble would be 9 in excess of $2,000,000.00 with six months estimated contractor time. Plaintiff provided his OF GERARD V. KASSABIAN 10 findings to Defendant who responded by approving the claim but intentionally undervalued the 11 loss amount to $22,223.48, with full knowledge that Plaintiff’s deductible was $43,147.00. SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 Defendant did so in an effort not to pay the full claim. 13 17. After showing the property to potential buyers, the water damage to the marble (310) 278-8001 14 floor in the living room deterred them all. The jewel of Plaintiff’s home was not just the rare 15 marble, but the sheer amount of it which was imported from Europe. LAW OFFICES 16 18. Considering his situation, Plaintiff was forced to reduce the selling price of the 17 home by an excess of $2,000,000. The home entered escrow in February 2022 and sold on 18 March 15, 2023, for $8,775,000. 19 19. During the claim process, Plaintiff and his representatives sent over 25 20 communications in the form of emails, letters, and voicemails, requesting State Farm to 21 provide an estimate of replacement and not just repair. Defendant continued to delay Plaintiff 22 by failing to response to moving the claim from adjustor to adjustor with no reason aside from 23 bad faith. 24 20. Defendant further devised a scheme with the aim of not paying the benefits 25 owed to Plaintiff pursuant to the subject Insurance Policy by: 26 a. intentionally underpaying for the real property damage caused to the subject 27 PROPERTY in connection with the subject CLAIM; 28 b. intentionally failing to pay for Plaintiff’s damages in connection with the subject 3 COMPLAINT FOR DAMAGES 1 CLAIM; 2 c. intentionally delaying the resolution of the subject CLAIM by moving the matter 3 around from adjuster to adjuster internally. 4 d. failing to provide claim-related documents and information when requested; 5 e. failing to respond to correspondence and inquires made by Plaintiff. 6 21. On October 6, 2023, Defendant emailed Plaintiff notifying him that the CLAIM 7 was closed without further information. Defendant’s conduct mentioned in this Complaint 8 was intended to compel Plaintiff to abandon the CLAIM, in furtherance of Defendant’s 9 financial gains. Defendant’s conduct was in bad faith and in breach of the subject policy. OF GERARD V. KASSABIAN 10 22. At all times relevant, Plaintiff has complied with all of Defendant’s requests and 11 produced all relevant documents and information that Defendant has requested from Plaintiff. SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 23. Plaintiff has allowed Defendant to inspect the subject property and even shared 13 with Defendant their own experts’ findings, contractor estimates and costs and other (310) 278-8001 14 information to assist Defendant in adjusting their claim. 15 LAW OFFICES 16 FIRST CAUSE OF ACTION 17 [FOR BREACH OF CONTRACT AGAINST DEFENDANT AND DOES 1 THROUGH 18 50 inclusive,] 19 24. Plaintiff incorporates by this reference each and every allegation contained in 20 Paragraphs 1 through 23, inclusive, as set forth verbatim at this point. 21 25. Plaintiff fully paid Defendant the consideration for the subject Insurance Policy 22 at all times relevant herein. Plaintiff had also fully and faithfully performed all the terms, 23 conditions and provisions of Insurance Policy, in effect at the time of the loss, required to be 24 performed by Plaintiff, except to the extent that Plaintiff have been prevented or otherwise 25 prohibited by Defendant. 26 26. Plaintiff neither had the expertise nor the requisite qualification to perform 27 investigation of the subject Insurance Claim. Instead, Plaintiff depended on the good faith 28 investigation of the Defendant. 4 COMPLAINT FOR DAMAGES 1 27. Defendant knew that Plaintiff was attempting to sell the home and mitigate the 2 damages. Defendant intentionally delayed and/or minimize payment of benefits owed to 3 Plaintiff, and to deter Plaintiff from pursuing the subject CLAIM and forced him into selling 4 the home for a reduced amount, all to Plaintiff’s determinate and a loss of over $2,000,000.00. 5 28. Defendant additionally breached the subject Insurance Policy and its respective 6 duties of care in various manners, inclusive of failure to: 7 a. Adopt and implement reasonable standards for the prompt, thorough and 8 accurate investigation and processing of the subject CLAIM; 9 b. accurately represent to Plaintiff the applicable coverage for the loss under the OF GERARD V. KASSABIAN 10 subject Insurance Policy; 11 c. disclose the standard of care in the business of insurance for adjustment of SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 claims in relation to the loss; 13 d. attempt in good faith to effectuate prompt, fair, complete and equitable (310) 278-8001 14 settlement of the subject CLAIM; 15 e. make coverage and loss valuation decisions and determinations with the benefit LAW OFFICES 16 of unbiased and/or qualified professionals; 17 f. comply with the applicable provisions of California Law, including Insurance 18 Code Section 790.03; 19 g. produce "claim related documents" in accordance with Insurance Code Section 20 2071; 21 h. produce Plaintiff’s claim files of when requested; 22 i. produce POLICY procedures and protocols of Defendant; 23 j. properly and accurately direct Plaintiff about to the applicable provisions of the 24 Insurance POLICY; 25 k. implement a fair and reasonable standard of practice regarding adjustment of the 26 subject CLAIM; 27 l. train Defendant’s adjusters regarding adjustment of the subject CLAIM; 28 m. supervise Defendant’s adjusters and representatives regarding adjustment of the 5 COMPLAINT FOR DAMAGES 1 subject CLAIM; 2 n. place Plaintiff on notice of the tolling period for the subject CLAIM and the 3 times within which statutes of limitation on the subject CLAIM would expire; 4 o. be truthful regarding results of Defendant’s investigation of the subject CLAIM; 5 29. As a direct and natural consequence of the aforementioned breaches of the 6 Insurance POLICY and Defendant’s duties of care, Plaintiff has suffered damages to the value 7 of his property which sold for $2,000,000 less than its fair market value as a result of the 8 damaged marble Defendant refused to replace. 9 OF GERARD V. KASSABIAN 10 SECOND CAUSE OF ACTION 11 [FOR BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 - BAD FAITH AGAINST DEFENDANT AND DOES 1 THROUGH 50 inclusive] 13 30. Plaintiff incorporates by this reference each and every allegation contained in (310) 278-8001 14 Paragraphs 1 through 29 inclusive, as set forth verbatim at this point. 15 31. The subject Insurance Policy contained an implied covenant by Defendant that LAW OFFICES 16 they would act in good faith and deal fairly with Plaintiff and that Defendant would do nothing 17 to interfere with the rights, remedies, privileges, benefits and interests of Plaintiff under the 18 subject Insurance Policy. 19 32. Defendant knowingly, willingly and conveniently ignored, misguided and ill- 20 advised Plaintiff regarding the extent, scope, amount, limitations of action, contents of the 21 CLAIM file as well as duties of Plaintiff after the filing of the subject CLAIM. 22 33. Although Defendant inspected the subject PROPERTY, Defendant intentionally, 23 maliciously and oppressively failed to adequately and accurately pay for the damage caused to 24 Plaintiff’s PROPERTY, intentionally undervaluing the loss as a way to deter Plaintiff from 25 furthering their CLAIM. 26 34. In breach of the implied covenant of good faith and fair dealing, Defendant 27 further intentionally, fraudulently, deceitfully, maliciously and oppressively failed and refused, 28 and continue to refuse to pay Plaintiff the full amount of the benefits of the subject Insurance 6 COMPLAINT FOR DAMAGES 1 POLICY and claimed damages as a result of the subject CLAIM. 2 35. Defendant has breached their duty of good faith and fair dealing owed to 3 Plaintiff by other acts or omissions of which Plaintiff is presently unaware. Plaintiff will seek 4 leave of Court, if necessary, to amend this Complaint at such time as Plaintiff discovers the 5 other acts or omissions of Defendant constituting such breach. 6 36. As a direct and proximate result of the Defendant’s conduct, as alleged in this 7 Cause of Action, Plaintiff has suffered a loss of over $2,000,000.00 when he was forced to sell 8 the damaged property significantly lower than its fair market value. 9 37. As a result of the intentional, malicious, oppressive, deliberate, deceitful, OF GERARD V. KASSABIAN 10 vexatious and fraudulent conduct of Defendant, Plaintiff is entitled to an award of attorneys' 11 fees, in accordance with the law, also pursuant to Brandt v. Superior Court (1985) 37 Cal.3d SHERMAN OAKS, CALIFORNIA 91403 15260 VENTURA BLVD., SUITE 960 12 813, and prejudgment interest. 13 38. Additionally, as a consequence of the foregoing conduct of Defendant, Plaintiff (310) 278-8001 14 is entitled to exemplary and punitive damages against Defendant in conformity with Civil 15 Code Section 3294, or as provided by law, in an amount according to proof to punish or set an LAW OFFICES 16 example of Defendant and to deter such conduct in the future. 17 18 WHEREFORE, Plaintiff prays judgment against Defendant as follows: 19 ON THE FIRST CAUSE OF ACTION 20 [Breach of Contract Against Defendant - Insurance Policy]: 21 1. For general damages according to proof; and 22 2. For special damages according to proof. 23 ON THE SECOND CAUSE OF ACTION 24 [Breach of the Implied Covenant of Good Faith & Fair Dealing - Bad Faith 25 Against Defendant]: 26 1. For general damages according to proof; 27 2. For special damages according to proof; 28 3. For attorneys' fees; and 7 COMPLAINT FOR DAMAGES 1 4. For exemplary and punitive damages according to proof. 2 ON ALL CAUSES OF ACTION: 3 1. For prejudgment and post judgment interest at the legal rate; and 4 2. For cost of suit and other relief as this Court may deem just and proper. 5 6 Dated: March 26, 2024 7 8 By: Gerard V. Kassabian 9 Attorney for Plaintiffs OF GERARD V. KASSABIAN 10 11 SHERMAN OAKS, CALIFORNIA 91403 REQUEST FOR JURY TRIAL 15260 VENTURA BLVD., SUITE 960 12 Plaintiff, 2148 Stratford LLC, hereby requests a trial by jury. 13 (310) 278-8001 14 Dated: March 26, 2024 15 LAW OFFICES 16 By: 17 Gerard V. Kassabian 18 Attorney for Plaintiffs 19 20 21 22 23 24 25 26 27 28 8 COMPLAINT FOR DAMAGES EXHIBIT 1 State Farm General Insurance Company A Stock Company With Home Offices in Bloomington, Illinois AMENDED JUN 10 2022 DECLARATIONS PAGE Po Box 853907 Policy Number 92-EX-Y488-1 Richardson, TX 75085-3907 Named Insured Policy Period Effective Date Expiration Date AT1 H-23-1892-FB94 R F 12 Months JUN 1 2022 JUN 1 2023 000760000760 00460046 The policy period begins and ends at 12:01 am 2148 STRATFORD LLC standard time at the residence premises. 10560 WILSHIRE BLVD APT 2003 LOS ANGELES CA 90024-7315 Loan # 1004177 Mortgagee GOLDEN STATE BANK ____ ____