Calhoun v. State Farm Fire and Casualty Company

CourtDistrict Court, E.D. Missouri
DecidedAugust 31, 2021
Docket4:19-cv-02540
StatusUnknown

This text of Calhoun v. State Farm Fire and Casualty Company (Calhoun v. State Farm Fire and Casualty Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calhoun v. State Farm Fire and Casualty Company, (E.D. Mo. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

BARRY CALHOUN, et al., ) ) Plaintiffs, ) ) v. ) Case No. 4:19 CV 2540 SNLJ ) STATE FARM FIRE AND CASUALTY ) COMPANY, ) ) Defendant. )

MEMORANDUM AND ORDER

Plaintiffs Barry Calhoun and Temima Spetner bring this suit against their insurer, defendant State Farm Fire and Casualty Company, over a dispute regarding coverage for hailstorm damage to their property. Two motions are pending in the case: defendant’s motion for summary judgment and plaintiffs’ Daubert motion to exclude the expert testimony of Larry Herzing. The Court will deny both motions. Background Plaintiffs own an approximately 120-year-old, 3-story home with a clay tile roof in St. Louis. They also have a carriage house on the property. Plaintiffs had a homeowners’ insurance policy through defendant that went into effect on October 1, 2017. Defendant’s vendor conducted a basic inspection of plaintiffs’ home in October 2017 and noted no issues with, or damage to, the home’s roof. A hailstorm occurred over plaintiffs’ property in November 2017. In January 2018, during a heavy rain, plaintiffs saw water leaking through their home’s third-story ceiling. Plaintiffs had not had problems with water leaking through the roof before; neither had the prior owner of the home. Plaintiffs hired a company experienced with historic clay tile

roofs, Kirberg Company, to inspect the roof. Plaintiffs claim Kirberg advised them their home’s roof had been damaged by hail. They filed a claim with defendant for hail damage. Defendant sent an engineer to inspect the damage. The engineer concluded the November 2017 hailstorm had contributed to cosmetic damage to the copper valleys and gutters on the home’s roof but had not damaged its clay tiles. See Donan Report, Doc. #64- 5 at 3 (“Dents in the soft metal appurtenances have occurred over multiple events, including

the November 5, 2017, storm.”). Based on the engineer’s assessment, defendant agreed to cover replacement of the home roof’s copper parts, as well as portions of the carriage house roof. See State Farm Claim File, Doc. #64-1 at 5 (“The engineer has clarified that cosmetic damage occurred to copper valleys, ridge and gutters due to multiple storms, and includes November 5, 2017, storm among them. We will proceed to write to replace the copper as

well as the 11 slate tiles identified as hail damaged on the carriage house.”). There is no dispute that the damage to the copper parts on plaintiffs’ roof was a “covered property loss” under the policy that occurred in the policy period. See Doc. #74 at 3, 5. Plaintiffs planned to hire Kirberg to do the repair work. Kirberg advised that plaintiffs needed to replace the home’s entire roof and submitted a bid with an estimated

cost of more than $500,000. Defendant suggested replacing only the hail-damaged copper parts and asked Kirberg to prepare a bid for just that work. Kirberg prepared a revised proposal for those repairs and for limited repairs to the carriage house, at an estimated cost of about $221,000. But that bid stated that while the home’s existing roof underlayment was sound and still served its current purpose, its condition was such that a large repair would compromise its ability to shed water. The bid further stated Kirberg would not

warranty defendant’s limited repair proposal because the “repair that is suggested by the insurance company would compromise the integrity of the roof which is a condition that did not exist prior to the hail event” and would preclude them from replacing the copper parts in a workmanlike manner. See Kirberg Proposal, Doc. #64-8 at 2. Defendant then sent another contractor experienced with clay tile roofs, Renaissance Roofing, to evaluate the damage and prepare a bid. Renaissance also proposed replacing

the entire roof, at a cost around $500,000. A historical roofing systems specialist from Renaissance explained to defendant that they could not replace the copper valleys and gutters without replacing the entire roof, as once they start removing tiles to facilitate the copper replacement, “many problems will arise.” See Raleigh Email, Doc. #64-15 at 1. That specialist concluded: “if you are accepting valley and gutter replacement on the main

roof, this will be a complete reroof.” Id. Defendant continued to maintain that it was only responsible for the limited, non- warrantied repair proposal prepared by Kirberg. Plaintiffs eventually signed a contract to replace the roof, apparently believing defendant would pay for it, but defendant maintained it would only cover the cost to replace the copper parts. Defendant paid plaintiffs about

$211,000 total and closed the file. Defendant called the last payment it made to plaintiffs “the Replacement Cost Benefit payment.” Doc. #64-4. Plaintiffs again demanded defendant cover whole roof replacement. Defendant denied this demand, stating it is not responsible for the roof’s deteriorated underlayment or for warranty of repair work. Plaintiffs then filed this suit. Plaintiffs claim defendant breached the insurance contract by denying their claim for whole roof replacement and

only providing coverage for the limited, non-warrantied repair it proposed. Plaintiffs have not replaced the roof, claiming they have been unable to do so because defendant refused to approve their claim or agree to pay enough to cover a proper repair. Legal Standard for Summary Judgment Pursuant to Federal Rule of Civil Procedure 56, a district court may grant a motion for summary judgment if all of the information before the court demonstrates that “there is

no genuine issue as to material fact and the moving party is entitled to judgment as a matter of law.” Poller v. Columbia Broadcasting Sys., Inc., 368 U.S. 464, 467 (1962). This burden is on the moving party. City of Mt. Pleasant, Iowa v. Assoc. Elec. Co-op., Inc., 838 F.2d 268, 273 (8th Cir. 1988). The court must review the facts in a light most favorable to the party opposing the motion and give that party the benefit of any inferences that logically

can be drawn from those facts. Buller v. Buechler, 706 F.2d 844, 846 (8th Cir. 1983). Missouri law governs interpretation of the insurance policy in this case. See Secura Ins. v. Horizon Plumbing, Inc., 670 F.3d 857, 861 (8th Cir. 2012). In Missouri, interpretation of an insurance policy is a question of law. Schmitz v. Great Am. Assur. Co., 337 S.W.3d 700, 705 (Mo. banc 2011). The “‘cardinal rule”” for contract interpretation is

to “‘ascertain the intention of the parties and to give effect to that intention.’” Secura, 670 F.3d at 861 (quoting J.E. Hathman, Inc. v. Sigma Alpha Epsilon Club, 491 S.W.2d 261, 264 (Mo. 1973)). “The parties’ intent is presumptively expressed by the plain and ordinary meaning of the policy’s provisions, read in the context of the policy as a whole.” Id. (cleaned up). “When interpreting the terms of an insurance policy, [the Missouri Supreme] Court applies the meaning that would be understood by an ordinary person of average

understanding purchasing the insurance.” Schmitz, 337 S.W.3d at 705-06.

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Related

Poller v. Columbia Broadcasting System, Inc.
368 U.S. 464 (Supreme Court, 1962)
Daubert v. Merrell Dow Pharmaceuticals, Inc.
509 U.S. 579 (Supreme Court, 1993)
Secura Insurance v. Horizon Plumbing, Inc.
670 F.3d 857 (Eighth Circuit, 2012)
Fred Lauzon v. Senco Products, Inc.
270 F.3d 681 (Eighth Circuit, 2001)
Shuck v. CNH AMERICA, LLC
498 F.3d 868 (Eighth Circuit, 2007)
J. E. Hathman, Inc. v. Sigma Alpha Epsilon Club of Columbia
491 S.W.2d 261 (Supreme Court of Missouri, 1973)
Hillis v. Blanchard
433 S.W.2d 276 (Supreme Court of Missouri, 1968)
Schmitz v. Great American Assurance Co.
337 S.W.3d 700 (Supreme Court of Missouri, 2011)
Olga Despotis Trust v. Cincinnati Insurance Company
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Buller v. Buechler
706 F.2d 844 (Eighth Circuit, 1983)

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Bluebook (online)
Calhoun v. State Farm Fire and Casualty Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calhoun-v-state-farm-fire-and-casualty-company-moed-2021.