Timothy Sterling and Sarah A. Sterling v. Liberty Mutual Group Inc., d/b/a Safeco Insurance Company; Liberty Mutual Insurance Company; American Economy Insurance Company; and John and Jane Does 3-101

District Court, S.D. Mississippi·Decided August 31, 2026·No. 3:25-cv-00097·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF MISSISSIPPI NORTHERN DIVISION

TIMOTHY STERLING and SARAH A. STERLING PLAINTIFFS

vs. CAUSE No. 3:25-CV-97-HTW-LGI

LIBERTY MUTUAL GROUP INC., d/b/a SAFECO INSURANCE COMPANY; LIBERTY MUTUAL INSURANCE COMPANY; AMERICAN ECONOMY INSURANCE COMPANY; AND JOHN AND JANE DOES 3-101. DEFENDANTS

ORDER

BEFORE THIS COURT are three (3) motions concerning expert testimony: (1), Plaintiffs Timothy J. Sterling and Sarah A. Sterling's Motion to Strike or Exclude Defendants' Experts and/or Expert Reports and Opinions [ECF No. 161]; (2), Defendant Liberty Mutual Group’s Motion to Exclude the testimony of Plaintiffs' expert Cory Smith [ECF No. 164]; and (3), Defendant Liberty Mutual Group Inc.’s Motion for Leave to File a Limited Sur-Reply [ECF No. 175]. Defendants American Economy Insurance Company (“American Economy”) and Liberty Mutual Insurance Company (“LMIC”) later joined motions 164 and 175 [ECF No. 199].

1 Plaintiffs’ Complaint descries John and Jane Does 3–10, as unidentified individuals or related entities that allegedly participated in, or bear derivative responsibility for, the conduct at issue. Compl. ¶ 3 [ECF No. 1]. Plaintiffs have neither identified nor served these fictitious defendants; these fictitious defendants have not appeared; and no party contends that these fictitious defendants are indispensable to this action. The Court, therefore, dismisses John and Jane Does 3–10 without prejudice under Rule 21 of the Federal Rules of Civil Procedure, which provides that, “[o]n motion or on its own, the court may at any time, on just terms, add or drop a party.” Fed. R. Civ. P. 21. Notably, the unknown citizenship of these dismissed fictitious parties does not affect this Court’s diversity subject matter jurisdiction. See Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 832–38 (1989). Originally, Plaintiffs sued Liberty Mutual Group Inc. (“Liberty”), doing business as Safeco Insurance Company (“Safeco”), and John and Jane Does 1–10. Compl. [ECF No. 1]. American Economy was not a named defendant when Plaintiffs filed their Complaint. On March 26, 2026, the United States Magistrate Judge directed the Clerk of Court to substitute the corporate entity

Liberty Mutual Insurance Company for John Doe 1 and American Economy for John Doe 2. Order [ECF No. 184]. Accordingly, the named corporate defendants herein are: Liberty Mutual Group, Inc. d/b/a Safeco; Liberty Mutual Insurance Company; and American Economy Insurance Company (collectively, “Corporate Defendants”). The Court refers to the Corporate Defendants and the Doe Defendants collectively as “Defendants”. Having reviewed the parties’ submissions, the record, and the governing law, this Court finds as follows.

I. BACKGROUND Plaintiffs Timothy J. Sterling and Sarah A. Sterling (“The Sterlings” or “Plaintiffs”) own a home at 4121 Crane Boulevard in Jackson, Mississippi. Compl. ¶ 6 [ECF No. 1]. The declarations for homeowners Policy No. OF3039712 (the “Policy”) identify American Economy Insurance Company as the issuing insurer. The declarations also identify American Economy as “A SAFECO Company,” reflecting that American Economy issued the Policy under the Safeco brand2. Policy Declarations [ECF No. 119-1 at 1]. The Policy provided coverage from May 17, 2023, through May 17, 2024. Id. This lawsuit features a dispute over whether certain hail damage to the Sterlings’ cedar-shake roof occurred during the Policy’s coverage period, and whether

Defendants had a legitimate basis for denying the resulting insurance claim.

2 “A SAFECO Company” does not mean that American Economy and Safeco are the same legal entity. Liberty Mutual Insurance Group identifies American Economy as one of several separate underwriting companies that issued Safeco-branded policies; each underwriting company remains legally responsible for the policies it issued. See Liberty Mutual/Safeco Terms and Conditions. The Sterlings allege that a storm on April 9 and 10, 2024, damaged their home and personal property. Compl. ¶ 8 [ECF No. 1]. By April 22, 2024, they had notified Safeco of the loss. Id. ¶ 9. Safeco sent field adjuster Cory Hill and another individual, Zach Longgrear, to inspect the property on May 4, 2024. Hill did not climb onto the roof; the other individual did. According to the

Complaint, the inspection lasted less than thirty minutes. Id. ¶ 11. Safeco's May 6, 2024, estimate recognized damage to thirty-five cedar shakes, a vent cap, and portions of the copper gutters and coverings. Id. ¶¶ 12-13. On June 10, 2024, Mr. Sterling asked Safeco to reassess the claim, evaluate the entire roof and its copper valleys, chimney caps, awnings, and flat-roof areas, and consider whether wind or

hail had caused additional damage. Id. ¶ 15. Safeco responded that its inspection had revealed "no damage to the valleys" and "no hail damage" to the property. Id. ¶ 16. Safeco declined to conduct the requested reassessment and, instead, directed the Sterlings to retain a contractor and submit any additional information for Safeco’s consideration. Id. ¶ 17. Plaintiffs’ Complaint alleges that, as of that date, neither an adjuster nor an engineer had climbed onto the roof to inspect it for hail damage. Id. ¶¶ 18-20.

That same month, June 2024, Mr. Sterling contacted Renova Roofing & Construction ("Renova"), a Mississippi roofing contractor that inspects and repairs hail-damaged roofs. Cory Smith (“Smith”), then a Renova employee, and Zach Longgrear, another employee, personally inspected the roof. Smith climbed onto the roof, photographed its condition, assessed the cedar shakes and associated copper fixtures, and prepared Renova's report. Smith later stated that the damage appeared recent and was consistent with the April 9-10, 2024, storm; that the damage was consistent with hail measuring approximately 0.75 to 1.25 inches; and that the extent of the damage required a complete roof replacement. Smith Report [ECF No. 164-2 at 1-2]. By July 11, 2024, Mr. Sterling had provided Safeco with a roofer's estimate, a damage report, and photographs; he supplied a HailTrace3 weather report on July 17, 2024. Compl. ¶¶ 21-23 [ECF No. 1].

American Economy then retained EFI Global, a third-party forensic-engineering consulting firm, to investigate the cause and timing of the roof damage. Defs.' Resp. [ECF No. 172 at 5]. EFI assigned engineer Joe Mattson to investigate the reported roof damage and, pursuant to that assignment, Mattson inspected the property on August 12, 2024. Compl. ¶ 26 [ECF No. 1]. On August 20, 2024, EFI submitted Mattison’s report to Safeco. EFI Report [ECF No. 119-6 at 1]. The report recognized hail impacts and damage to the roof valleys and stated that the work associated with the valleys could require replacement of the entire roof. Compl. ¶¶ 35-42 [ECF No. 1]. Relying on a CoreLogic4 weather report, EFI also concluded that no hail had been reported

near the property on or around the stated date of loss. Id. ¶¶ 29, 43. The Sterlings allege that Safeco did not provide EFI with their HailTrace report or other information that supported their position. Id. ¶¶ 30-34. On August 28, 2024, Safeco relied on EFI’s report to deny coverage for the hail damage,

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Timothy Sterling and Sarah A. Sterling v. Liberty Mutual Group Inc., d/b/a Safeco Insurance Company; Liberty Mutual Insurance Company; American Economy Insurance Company; and John and Jane Does 3-101, (S.D. Miss. 2026).

Timothy Sterling and Sarah A. Sterling v. Liberty Mutual Group Inc., d/b/a Safeco Insurance Company; Liberty Mutual Insurance Company; American Economy Insurance Company; and John and Jane Does 3-101 (Timothy Sterling and Sarah A. Sterling v. Liberty Mutual Group Inc., d/b/a Safeco Insurance Company; Liberty Mutual Insurance Company; American Economy Insurance Company; and John and Jane Does 3-101) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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