Burglarized business sues insurer for bad faith. $542K. Los Angeles County.

Summary

Insurer won't pay when its insured says eyewear was stolen in a burglary.

Case Name: AGA & Titan Inc. v. United Specialty Insurance Company
Court and Case Number: United States District Court, Central District of California / 2:20-cv-02698-MCS-AS
Date of Verdict or Judgment: Tuesday, June 07, 2022
Date Action was Filed: Wednesday, February 05, 2020
Type of Case: Insurance – Bad Faith, Claims Handling
Judge or Arbitrator(s): Hon. Mark C. Scarsi
Plaintiffs:
AGA & Titan Inc.
Defendants:
United Specialty Insurance Company
Type of Result: Jury Verdict

Attorney for the Plaintiff:
Foster, Sultanyan & Euredjian, LLP by David R. Euredjian, North Hollywood.

Law Offices of Richard M. Foster by Richard M. Foster and Alec G. Bedrossian, North Hollywood.
Attorney for the Defendant:
Woolls Peer Dollinger & Scher by Gregory B. Scher and Katy A. Nelson, Los Angeles.

Facts and Background:
On September 9, 2016, plaintiff AGA & Titan Inc. suffered a burglary loss at its premises in Burbank. Plaintiff claimed that the burglars stole more than $800,000 worth of eyewear from the premises.

Plaintiff submitted a claim to its insurance carrier. After a lengthy investigation, defendant insurer United Specialty Insurance Company denied plaintiff's claim, contending that plaintiff's documents were unreliable such that no losses could be calculated; further that plaintiff failed to cooperate in its investigation.
Plaintiff's Contentions:
Plaintiff contended that its premises was burglarized and that more than $800,000 in inventory was stolen and that defendant insurer acted in bad faith in denying the claim.
Defendant's Contentions:
Defendant claimed that plaintiff's records were unreliable, such that the losses could not be calculated. Defendant also denied there was a burglary. Defendant presented two affirmative defenses: (1) Termination of Insurance Policy for Fraudulent Claim; and (2) Failure to Cooperate.