Everyday Discount, Inc. v. State Farm General Insurance Company

I. Background

Everyday Discount, Inc. (“Plaintiff”) brought this action against State Farm General Insurance Company (“Defendant”) for breach of contract and breach of the “obligation of good faith.” Plaintiff’s Complaint alleged that, on or about October 28, 2015, Plaintiff had an insurance policy with Defendant wherein Defendant agreed to indemnify Plaintiff for any damages Plaintiff sustained as a result of fire. See Complaint ¶ 5, Docket No. 1-2. On that date, Plaintiff’s retail store and attached warehouse suffered a conflagration that destroyed and/or damaged most of its inventory; but Defendant eventually refused to reimburse Plaintiff for the suffered loss. See id. ¶¶ 7-8, 12. On December 14, 2018, the parties filed a stipulation to waive a jury trial and “to dismiss, with prejudice, any extra contractual claims, allegations and prayed for damages, including, without limitation, bad faith/breach of the implied covenant of good faith and fair dealing/unreasonable claim handling allegations, Brandt attorney’s fees, valuation of business damages, punitive damages and the like (‘bad faith allegations/claims’) and further agree[d] that Everyday Discount will…