Michelson
Michelson v. Mid-Century Insurance
Opinion
Opinion
Nott, J.
Diana Michelson appeals from a judgment entered following the grant of summary judgment in favor of respondent Mid-Century Insurance Company (Mid-Century).
Background
This is one of many cases arising out of the January 17, 1994 Northridge earthquake. Michelson was a homeowner insured by Mid-Century. The policy had a provision requiring commencement of litigation within one year after occurrence of a loss.
On February 19, 1994, Michelson submitted a claim to Mid-Century for damage sustained to her residence by the Northridge earthquake. Mid-Century denied the claim on March 16, 1994. The claim was denied because the cost to repair was estimated to be $6,964.76, whereas Michelson was required to first pay a deductible of $20,700 (10 percent of $207,000). In the letter of denial, Mid-Century stated that should Michelson discover any additional damage or have any further questions, Mid-Century “will be happy to re-open your file.”
On May 3, 1995, over a year after the earthquake, Michelson retained counsel, who submitted a claim showing earthquake damage of $257,816.78.
On February 16, 1996, Mid-Century made payment on a portion of Michelson’s claim. Evidently the…