David Simmonds And Debra Simmonds, Apps V. Privilege Underwriters Reciprocal Exchange, Resp

CourtCourt of Appeals of Washington
DecidedAugust 7, 2023
Docket84081-9
StatusUnpublished

This text of David Simmonds And Debra Simmonds, Apps V. Privilege Underwriters Reciprocal Exchange, Resp (David Simmonds And Debra Simmonds, Apps V. Privilege Underwriters Reciprocal Exchange, Resp) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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David Simmonds And Debra Simmonds, Apps V. Privilege Underwriters Reciprocal Exchange, Resp, (Wash. Ct. App. 2023).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DAVID M. SIMMONDS and DEBRA K. SIMMONDS, No. 84081-9-I husband and wife, DIVISION ONE Appellants, UNPUBLISHED OPINION v.

PRIVILEGE UNDERWRITERS RECIPROCAL EXCHANGE, dba PURE INSURANCE,

Respondent.

COBURN, J. — Homeowners challenge the denial of insurance coverage for rot

damage from a leak surrounding their bedroom shower. After learning about the leak,

the insurer engaged multiple experts to investigate and determined that the claim was

not covered by the policy because the cause of the leak was an excluded construction

defect. The homeowners sued their insurer alleging breach of contract and extra-

contractual claims of violations of the Insurance Fair Conduct Act (IFCA) and Consumer

Protection Act (CPA). Only the breach of contract claim survived a summary judgment

hearing. Following a bench trial, the trial court found in favor of the insurer. We affirm.

Citations and pincites are based on the Westlaw online version of the cited material. 84081-9-I/2

FACTS

David and Debra Simmonds built their home in Redmond, Washington in 1998.

At issue is the 2020 discovery of rot in the subfloor and joists underneath a leaky

shower that has a glass block shower surround adjacent to their primary bedroom.

In July 2018, Simmonds 1 used a hair dryer to remove what he thought was

condensation on some of the glass blocks of the shower. After 45 minutes of heating

the bottom glass block, he heard a loud “pop” and saw that he cracked the glass block.

Neither he or his wife ever had anyone come out to address the glass block after it

cracked.

In August 2020, Simmonds discovered water leaking from a shower handle.

When he looked in the crawl space, he discovered significant puddles of water on the

visqueen, damp insulation, and rot in the plywood subfloor and flooring joists. The rot

was “pretty significant.”

Simmonds called his insurer, Privilege Underwriters Reciprocal Exchange d/b/a

PURE Insurance (PURE), which has insured the home since 2013. Shawn Roessler

was the assigned claim adjuster out of California. Roessler engaged Crawford and

Company (Crawford), an independent local adjuster, to review the claim and visit the

home. Crawford told Roessler of the possible rot exclusion. Roessler informed

Simmonds that she thought the rot exclusion was going to “come into play.” Simmonds

1 Because David Simmonds, an attorney who proceeded pro se, is the person who discovered the rot, was the main point of contact with the insurer and their experts, and was the only Simmonds to testify at trial, we use “Simmonds” to refer to David Simmonds while acknowledging that both David and Debra Simmonds are listed as plaintiffs.

2 84081-9-I/3

then described Washington’s efficient proximate cause rule 2 to her, disagreeing with

Roessler’s assessment of the policy. According to Roessler, at that time both of them

thought the rot may be related to the leak from the shower valve. Simmonds therefore

believed because that leak was covered the rot should be as well. Roessler told

Simmonds that PURE would do an additional review. As a result, PURE retained

Washington coverage counsel. PURE also asked American Leak Detection (ALD) to

conduct a full inspection.

ALD technician Zachary Schneider conducted the inspection. Schneider

confirmed a leak from the right-hand shower valve. The affected area of the closet and

wall cavity containing the shower valve did not appear to have any long-term damage. 3

Schneider also did not see rot below that leak area. Testing on the shower pan

revealed water manifesting from below the glass block and thermal imaging revealing

that the leak was lower than the glass blocks. Based on his observations, including

absence of damage to the shower and testing, Schneider concluded that there

appeared to be an issue with the shower pan membrane. He testified that when a

shower is installed, the membrane is integrated with the shower drain. Then, mortar is

placed over everything before laying down the tile; it is the membrane that keeps the

water contained. Schneider hypothesized that the membrane may not have been

adequately lapped over the threshold dam to provide a proper waterproof seal.

2 The essence of the “efficient proximate cause rule” is that when an insured cause of a loss sets in motion other causes which may not be insured, the loss is covered. Am. States Ins. Co. v. Rancho San Marcos Properties, LLC, 123 Wn. App. 205, 213, 97 P.3d 775 (2004). 3 Coverage for damage related to the valve leak is not at issue and not part of this appeal.

3 84081-9-I/4

Schneider had seen leaks develop because membranes were not high enough. He

noted that he was not aware of the exact age of the shower, but if someone had built it

correctly, it should probably last at least 30 years. Because he did not see anything that

appeared to have happened to the shower to have otherwise caused this leak, he

believed the membrane issue was “likely either a result of wear and tear or construction

defect.”

Simmonds had not mentioned the cracked glass block to Schneider during his

inspection. Schneider later testified at trial that he did not see any cracked glass during

his inspection and a review of the photos he took did not show any cracked glass

blocks, but clarified that he did not consider any cracked glass because he knew that

“the surround composed of glass blocks is not where the leak was located.”

After Schneider’s inspection, Simmonds remembered the hairdryer incident and

emailed Roessler the next morning asking for a convenient time to talk, explaining, “I

think I figured out what happened.” After PURE received ALD’s report, PURE

discussed the claim internally and discussed it with coverage counsel. They determined

that the rot-related claim appeared to involve a non-covered loss, which was a

construction defect. The policy provides a list of excluded coverage areas including

property loss caused by faulty, inadequate, or defective planning; loss caused by

presence, growth, proliferation, spread of wet or dry rot; and loss from wear and tear,

deterioration or mechanical breakdown. These excluded coverage areas formed the

basis of why PURE denied coverage related to the rot. PURE sent Simmonds the ALD

report and Simmonds and Roessler spoke by phone. Roessler followed up by emailing

4 84081-9-I/5

Roessler two photos of the cracked glass block that shows a crack that extends to the

bottom of the block to the grout line. Simmonds contested the ALD report.

To address Simmonds’ concerns, PURE hired ARCCA structural engineer Kurt

Ahlich to conduct a failure analysis. Ahlich reviewed Schneider’s report, met with

Simmonds for background, examined the shower and the shower surround, conducted

a limited water test of the shower and bathroom floor, and inspected the crawl space

and the condition of the wood framing below the shower area. Ahlich documented the

scene, including taking photographs of the cracked glass block. Water testing revealed

heat signatures along the curb of the shower and moisture readings also were elevated

along the shower curb, especially the northern part. Ahlich had considered the

hairdryer incident, but stated that the moisture level readings and the heat signature

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