Atain Specialty Insurance Company v. Green Earth Management, LLC

INTRODUCTION

17 In this insurance action, plaintiff moves for default judgment. For the reasons stated 18 19 herein, the motion is GRANTED.

STATEMENT

20 Defendant Green Earth Management, LLC is a wood-chipping and green-waste recycling 21 business in San Jose. In November 2017, a fire of unknown cause broke out on its property. 22 At the time, it had an insurance policy from plaintiff Atain Specialty Insurance Company. 23 The policy provided coverage for Green Earth’s building or personal property, business income 24 or extra expenses, and specific equipment. Under each part, the policy stated that coverage 25 would be void in any case of fraud, misrepresentation, or intentionally concealed material facts. 26 On the same day as the fire, Green Earth notified Atain of property loss and allegedly demanded 27 payment for damage resulting from “suspected arson.” Green Earth supported its claim with an 28 expense report alleging loss to real and personal property along with lost income and extra expenses (Dkt. No. 22 at 4–11). Atain retained forensic accountants to review Green Earth’s report of income loss. Atain also used an independent adjuster and fire…