Villa Highlands, LLC v. Western Community Insurance

226 P.3d 540, 148 Idaho 598, 2010 Ida. LEXIS 31
CourtIdaho Supreme Court
DecidedFebruary 9, 2010
Docket35472
StatusPublished
Cited by9 cases

This text of 226 P.3d 540 (Villa Highlands, LLC v. Western Community Insurance) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Villa Highlands, LLC v. Western Community Insurance, 226 P.3d 540, 148 Idaho 598, 2010 Ida. LEXIS 31 (Idaho 2010).

Opinion

BURDICK, Justice.

This case involves a dispute over an insurance claim filed by Appellant Villa Highlands, LLC (Villa Highlands) under its builder’s risk insurance policy issued by Western Community Insurance Co. (Western Community) and Farm Bureau Insurance Company of Idaho (Farm Bureau). 1 In May 2006, during construction, the Villa Highlands building was destroyed by fire. Thereafter, a dispute and litigation ensued over the application and interpretation of the underinsurance provision in the policy. A jury trial was held May 5, 2008, following extensive pre-trial motions and orders. On appeal, Villa Highlands argues that the district court erred in the following: (1) holding that Count Four of Villa Highlands’s Second Amended Complaint did not state a claim for breach of the insurance contract; (2) dismissing Villa Highlands’s claim for declaratory relief; (3) denying Villa Highlands’s Motion for Relief from Judgment; (4) allowing counsel for Villa Highlands to withdraw and then refusing to vacate the trial or extend certain deadlines; (5) refusing to allow Villa Highlands to present evidence in connection with its consequential damages claim; and (6) denying, in part, Villa Highlands’s Motion to Compel. We affirm the district court on all issues.

I. FACTUAL AND PROCEDURAL BACKGROUND

Villa Highlands was constructing an independent living community when the building was destroyed by fire in May 2006. This dispute arose regarding the insurance claim filed by Villa Highlands with Western Community and Farm Bureau for the loss of the building. On October 11, 2006, Western Community requested that the parties proceed with an appraisal process to resolve questions about the loss claimed by Villa Highlands, in accordance with Paragraph E.2 of the builder’s risk policy. 2 On November *600 13, 2006, Villa Highlands filed its Complaint against Western Community and Farm Bureau, as a result of the companies’ alleged refusal to pay Villa Highlands’s casualty claim arising under the policy. An amended complaint was filed December 6, 2006, and included Dale Zimney, an insurance agent for Western Community, as a defendant. The amended complaint alleged that Western Community had directly breached the insurance contract and that Zimney had breached an agreement to provide adequate insurance coverage, a breach for which Western Community was vicariously liable. It appears that little occurred in the case during 2007; however, on December 14, 2007, Western Community filed a Motion to Compel Appraisal, contending that Villa Highlands had delayed or failed to cooperate in the appraisal process.

In January of 2008, the parties entered into a written stipulation wherein they agreed that the fully appraised fair market value of the building on the date of completion would be $7,580,000; that the amount of the “loss (repair/replacement cost)” under the policy was $3,967,157; and that the stipulation satisfied the appraisal conditions set forth in the policy. Also in January, Villa Highlands filed its Second Amended Complaint substantially modifying the breach of contract claim to focus primarily on Zimney’s actions. Western Community filed its Answer on January 29, 2008. On February 29, 2008, Villa Highlands filed a Motion for Summary Judgment seeking partial summary judgment on the issue of the interpretation of the builder’s risk policy at issue. On March 3, 2008, Western Community filed its Motion for Summary Judgment, seeking the dismissal of all claims pending against it in Villa Highlands’s Second Amended Complaint.

On March 6, 2008, counsel for Villa Highlands moved to withdraw as counsel of record for Villa Highlands, and the request was granted on March 12, 2008. Prior to withdrawing, counsel filed a Motion to Vacate Trial. At that time, the district court denied the motion to vacate and refused to grant a continuance, keeping the trial date of May 5, 2008. However, the court extended the hearing date on the motions for summary judgment from March 26, 2008, to April 9, 2008, and extended the deadline for depositions of expert witnesses to April 18, 2008. On March 24, new counsel for Villa Highlands moved for an extension of time to file its opposition and reply briefing in connection with the summary judgment motions. The court denied this request. Villa Highlands also filed two subsequent motions to vacate the trial date and extend certain deadlines, both of which were denied.

On April 9, 2008, the district court ruled from the bench on the pending motions for summary judgment, finding that: (1) Farm Bureau was dismissed from the case; (2) the builder’s risk policy was unambiguous; (3) the value of the building would be determined by the appraisal process provided for under the policy rather than using the $7,580,000 figure contained in the January stipulation; and (4) the “value” of the building for use in the appraisals at issue was “actual cash value.” On April 17, 2008, prior to trial, the district court ruled that Count Four of Villa Highlands’s Second Amended Complaint did not allege a claim for breach of the written insurance contract, and Villa Highlands had not timely supplemented its discovery regarding consequential damages and thus would not be allowed to submit the same to the jury.

During that hearing, as well as the hearing on April 16, the district court noted that the claim for declaratory action in Count Six of the Second Amended Complaint was decided to the extent of the court’s determination that “the value on the date of completion is the actual cash value.” Then, during the hearing on April 28, 2008, in interpreting the *601 insurance contract, the court stated its understanding that the declaratory action would be decided once the parties obtained two matching appraisals or had an umpire determine the “value” for the purpose of calculating the amount the insurance company owed, to which neither party objected. On April 29, 2008, the court entered a written order as to its April 9th rulings on the summary judgment motions. The court amended the proposed language dismissing Villa Highlands’s claim for declaratory relief, and handwrote “[t]o be determined after appraisals.”

On May 1, 2008, Villa Highlands and Western Community submitted their appraisals to an umpire, and, on May 4, 2008, the umpire sent a letter to the parties with his finding that the appraisal submitted by Western Community was more reliable. On May 5, counsel for Villa Highlands stated that Villa Highlands was “not attacking the appraisal process ... for purposes of this trial,” but did not waive the right to challenge the appraisal process on appeal. The parties stipulated to the amount of damages sought at trial, and that Stipulation was entered on May 6, 2008.

The case was tried before a jury from May 5, 2008, through May 13, 2008. The jury awarded no damages to Villa Highlands. On May 27, 2008, the court ordered that all claims against Western Community, including the claim for declaratory relief, were dismissed. On August 26, 2008, the district court denied Villa Highlands’s Motion to Grant Relief from Judgment. Villa Highlands timely appealed.

II. ANALYSIS

A. The district court did not err in holding that Count Four of Villa Highlands’s Second Amended Complaint did not state a claim for breach of the insurance contract.

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Bluebook (online)
226 P.3d 540, 148 Idaho 598, 2010 Ida. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/villa-highlands-llc-v-western-community-insurance-idaho-2010.