May 31, 2024

Kelley Kronenberg Secures Walkaway Settlement for State Farm Insurance

We are pleased to announce a significant win for State Farm Insurance, achieved by Kelley Kronenberg’s First-Party Property Insurance Defense Division. Attorney Coral Lerner, alongside Partner/Business Unit Leader Scott Dornstein, successfully defended State Farm in a complex property insurance dispute in Volusia County, Florida. 

The case involved an insured party who reported a loss due to an alleged shower leak, which purportedly caused damage to an adjacent bedroom. The claim, filed in 2022, stemmed from a bathroom remodel completed in 2019. State Farm’s position was that the damage resulted from a lack of a shower pan, which pointed to faulty or improper installation during the remodel, as well as deferred maintenance, such as a crack in the caulking. 

The plaintiff filed a suit for Breach of Contract, seeking damages exceeding $30,000.00. State Farm denied coverage, citing long-term seepage and leakage, and the lack of a proper shower pan as the root cause of the loss. 

Our team mounted a robust defense, highlighting several critical points: the absence of a shower pan, confirmed by the contractor who performed the repairs; the long-term nature of the seepage and leakage; and deferred maintenance issues, specifically the failed caulk. We retained an engineer for a desk review, who, based on photographic evidence and the contractor’s statements, concluded that the water damage to the adjacent bedroom would not have occurred if a proper shower pan had been installed. 

After comprehensive depositions of both the insured and the contractor, and following rigorous hearings, our defense strategy led to a pivotal moment. In the face of our aggressive and detailed defense, the plaintiff filed a dismissal without prejudice, resulting in a walkaway settlement for State Farm. 

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