United States District Court, S.D. California
PHILADELPHIA INDEMNITY INSURANCE COMPANY, a Pennsylvania corporation, Plaintiff,
GOTHAM MANAGEMENT, LLC, a New York corporation; and DOES 1 through 10, Defendant. GOTHAM MANAGEMENT, LLC, a New York corporation, Counterclaimant,
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]
Nita L. Stormes United States Magistrate Judge
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
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. ¶
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.
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.
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
. $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