Pfuhl

I. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiffs are homeowners, whose property was insured by Mercury under a

homeowner’s insurance policy. The policy contains the following one-year limitations

provision: “Suit Against Us. No action shall be brought unless there has been

compliance with the policy provisions and the action is started within one year after the

loss or damage.” (Original boldface.)

2 It is undisputed, at least for purposes of this appeal, that plaintiffs sought coverage

under the policy for damage that occurred on November 18, 2009.1 According to

plaintiffs, on that date the first floor of their house was flooded with sewage, which

backed up out of several toilets and a bath tub.

The parties dispute, however, when plaintiffs sought coverage for that damage.

Mercury contends that plaintiffs first reported the flood to it on July 26, 2010, and that it

opened a claim immediately. Plaintiffs contend that they (specifically, Carin Pfuhl) first

reported the flood on the day that it occurred, November 18, 2009, to the broker who had

procured the homeowner’s insurance policy for them, defendant Cheryl Joseph, a

principal of defendant Raphael John Joseph…