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Commercial Property |
Issues Of Material Fact |
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Condominiums |
Bad Faith |
Michelle Stefano purchased a
condominium unit in April 1996. A pipe burst in the wall between the garage and
her bathroom the following February. She filed a claim with the insurance
carrier for the condominium (Association) and liability was refused. She then
filed a claim with her carrier, State Farm. The lower court dismissed State
Farm as a defendant and found the Association liable for the damage.
The condominium bylaws provided
that each unit owner was responsible for property insurance for the unit. The
Association had a duty to purchase property insurance for the common areas and
for certain portions of each unit. The insurance carrier for the Association
was Farmers Insurance Company and Truck Insurance Exchange (collectively Truck).
The Association bylaws stated that the Association would buy insurance for the
benefit of the unit owners and that Truck could cancel the policy only after
prior notice to the Association and each unit owner who had received a
certificate of insurance.
Stefano filed this action on
August 27, 1999, to recover damages because of bad faith on Truck's part. Truck
eventually paid the claim on February 28, 2001.
The trial court entered
summary judgment in favor of the Association's insurance carrier. On appeal,
the higher court decided that the trial court erred in granting the motion for
summary judgment. It said there were genuine issues of material fact that the
trial court should have decided. The summary judgment was reversed and the
action remanded for proceedings in accordance with this opinion.
Stefano, Appellant, v.
Commodore Cove East, Ltd., et al.-No. 20447-Court of Appeals of Ohio, Ninth
District, Summit County-August 1, 2001-762 North Eastern Reporter 2d 1023