Lauro ACEVES, Jamie Aceves, Plaintiffs-Appellants, Cross-Appellees, v. ALLSTATE INSURANCE COMPANY, Defendant-Appellee, Cross-Appellant
Opinion
Opinion
Brunetti, J.
Lauro and Jamie Aceves (the Aeeveses) appeal from a judgment against Allstate Insurance Company (Allstate) for its failure to pay a claim on their homeowners’ policy. The Aeeveses argue that the district court, after conducting a bench trial, understated their contract damages, overstated their liability for Allstate’s costs, and gutted their bad faith claim by its evidentiary rulings at trial. Allstate cross-appeals from the district court’s denial of summary judgment on their contract claim.
I. Introduction
A. Facts
The Aeeveses’ coverage claim arises as a result of structural damage to their house. In 1978, they bought a house in Bonita, California from the McMillin Construction Company. In 1981, they discovered a crack more than one-quarter inch wide, running longer than thirty feet of the length of a wall. They notified McMillin immediately and insisted that the damage was too serious to be patched. Although the Aeeveses notified McMillin in 1981, they did not notify Allstate, their home insurer. Their homeowners’ policy specified that they could only sue to enforce a coverage claim within one year of the loss giving rise to the claim.