Fireman's Fund Ins. v. Black CA1/1

BACKGROUND

This case arose as a result of a claim Black submitted to Fireman’s Fund for losses incurred on a “vintage” motor home he purchased in 1999 for $26,000. The losses were allegedly extensive. Black alleged that he delivered the motor home to a company, Northern California Classic GMC Service (NorCal), to be restored and modified. He alleged that NorCal failed to complete the work and abandoned the vehicle after being paid more than $250,000. Black eventually regained possession of the motor home and filed a suit against NorCal and its owners and associates for fraud, breach of contract, and common counts. After settling with NorCal’s owners for $116,000, Black obtained a default judgment against the remaining defendants for more than $323,000. In the insurance claim submitted to Fireman’s Fund, Black asked for over $215,000 for the vehicle’s replacement costs, including amounts paid for work not performed and parts not installed, as well as for court costs in his suit against NorCal. An appraiser with Fireman’s Fund inspected the motor home and found no evidence of vandalism or theft of parts and concluded the vehicle’s poor condition was the result of a “renovation gone…