Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Philadelphia Indemnity Insurance Co. v. Gotham Management, LLC

United States District Court, S.D. California

May 23, 2017

PHILADELPHIA INDEMNITY INSURANCE COMPANY, a Pennsylvania corporation, Plaintiff,
v.
GOTHAM MANAGEMENT, LLC, a New York corporation; and DOES 1 through 10, Defendant. GOTHAM MANAGEMENT, LLC, a New York corporation, Counterclaimant,
v.
PHILADELPHIA INDEMNITY INSURANCE COMPANY, a Pennsylvania corporation, Counterdefendant.

          ORDER: (1) GRANTING PHILADELPHIA INDEMNITY INSURANCE COMPANY'S MOTION TO COMPEL LOSS OF REVENUE RECORDS, FINANCIAL RECORDS, AND RECORDS DEMONSTRATING COSTS INCURRED TO DATE; AND (2) EXTENDING CERTAIN SCHEDULING ORDER DEADLINES. [DKT. NO. 35]

          Hon. Nita L. Stormes United States Magistrate Judge

         Relevant Background.

         Plaintiff Philadelphia Indemnity Insurance Company (Philadelphia) filed this declaratory relief action regarding an insurance claim. Philadelphia provided a “Commercial Lines” policy for defendant insured Gotham Management, LLC, doing business as the Keating Hotel (Gotham). Compl. ¶¶ 5-6. In the underlying insurance claim, Gotham suffered extensive water damage due to an intoxicated guest passing out in the shower and allowing water to eventually overflow into several rooms at the hotel. Compl. ¶ 7. In response to this declaratory relief action, Gotham filed a bad faith insurance counterclaim.

         On March 30, 2014-the same day as the suffered water loss-Gotham submitted a claim to Philadelphia for the loss. Compl. ¶ 8. Gotham believes that by April 23, 2014, Philadelphia's independent adjuster estimated the loss to be worth $480, 000, even though its adjuster communicated to Gotham that the loss was valued at only $250, 000. Losh Decl. ¶ 5.[1] Philadelphia sent Gotham a check for $100, 000 on May 27, 2014. Losh Decl. ¶ 5. As the parties could not agree on the amount of the loss, they submitted the matter for an appraisal. Compl. ¶ 10. The first partial appraisal award was issued on June 17, 2015, approximately 15 months after the loss. Compl. ¶ 11. This first appraisal determined values for the building repairs and business personal property, as well as the lost business income and sustained extra expense damages. Miglietta Decl. ¶ 4. It left open for future evaluation the value of the following items: the hallway carpets; the point of sale unit; the telephone systems; and the alarm, sound and lighting systems in the hotel bar. Compl. ¶ 11; Losh Decl. ¶ 9.

         A second appraisal award issued on October 19, 2015 and covered the alarm system, and the sound and lighting systems in the night club or lounge area. Miglietta Decl. ¶ 5. Philadelphia ultimately paid the Gotham $547, 834.98 for the water loss. Miglietta Decl. ¶ 6.

         By filing this declaratory relief action Philadelphia asks the court to declare that it owes no extra-contractual damages. In the bad faith counterclaim, Gotham seeks these extra-contractual damages:

. $323, 000 in lost revenue for the basement nightclub bar and restaurant.
. $200, 000 in lost revenue for the hotel due to inability to host special events.
. $93, 000 in depreciation holdback.
. $260, 000 in lost revenue for the hotel for 19 months.
. $19, 000 for extra laundry expense.
. $45, 000 for phone replacement system.
. $80, 000 in appraisal, attorney and public adjusting ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.