Lawrence Hamilton v. State Farm Fire & Casualty Company, an Illinois Corporation David's Restaurant Supply

Plaintiff-appellant Lawrence Hamilton appeals the district court’s grant of summary judgment for Defendant-appellee State Farm Fire and Casualty Company on Hamilton’s bad faith and breach of contract claims. We hold that Hamilton is judicially estopped from asserting these claims, and affirm.

FACTS

This action arises out of a claim that Hamilton filed under his State Farm homeowners’ insurance policy. Hamilton purchased a house in Los Angeles in 1992 and insured the house with State Farm. Pursuant to California Insurance Code § 2070, the insurance policy contained a “concealment or fraud” provision, which renders coverage null and void if the policyholder should intentionally conceal or misrepresent any material fact or circumstance relating to the insurance policy. In January 1996, Hamilton completed an ambitious and expensive remodel of the house. He then rented the house to Dr. Edwin Floyd and family.

The Floyds experienced financial difficulties and stopped paying Hamilton rent in February 1997. Hamilton initiated eviction proceedings against the Floyds, and they vacated the house on May 28, 1997. On the morning of May 29, 1997, Hamilton reclaimed possession of the house…