Insurer wins homeowners association ruling
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A federal appeals court on Friday affirmed a lower court ruling in favor of the insurer in litigation filed by a homeowners association, ruling the association had filed its lawsuit too late, and had not established its bad faith claim.
A dispute between the 199 East Pearl Owners Condominium Owners Association over coverage for water-caused roof damage led the 199 East Park Condominium Owners Association in Jackson, Wyoming, to sue its insurer, Sheboygan, Wisconsin-based Acuity Insurance Co., for breach of contract and bad faith, according to the ruling by the 10th U.S. Circuit Court of Appeals in Denver in 199 East Pearl Condominium Owners Association v. Acuity Insurance Co.
The U.S. District Court in Cheyenne, Wyoming, ruled in the insurer’s favor and was affirmed by a three-judge appeals court panel.
Under its policy’s terms, an action against the insurer must be brought within four years after the loss or damage was discovered, the ruling said.
The homeowners association had until February 2021 “to file an action under the Policy, so its September 2021 contract-based claims were time-barred,” the panel said, in also ruling the association “did not present a triable question” in its bad faith claim.
Attorneys in the case did not respond to requests for comment.
