February 6, 2023Share
Kelley Kronenberg Negotiates De Minimus Settlement Following Sanctions Win
Kelley Kronenberg Practice Group Partner, Sunita Smith, successfully leveraged her victory on a Motion for Sanctions to secure a $500.00 settlement on this First-Party Property claim, valued at more than $47,000.00.
The subject case involved a homeowners’ insurance claim for air-conditioning-related water loss, allegedly occurring on April 30, 2021. The claim was reported on June 25, 2021, and the main issue was whether the loss occurred during the policy period, potentially invoking the carrier’s duty to pay.
Ms. Smith launched a rigorous course of discovery, uncovering records from vendor, One Hour Air, which contained Plaintiffs’ admissions from July 3, 2020, that the air conditioning was leaking water after installation work done on July 2, 2020. The records contained a statement that the current issue was exactly the same as that which they endured in 2020. This evidence established the damages clearly pre-dated the effective date of Plaintiffs’ policy, making the instant suit frivolous; as such, Ms. Smith filed a Motion for Sanctions.
Armed with this information, Ms. Smith was able to settle the case for $500.00, saving our client over $47,000.00, plus protracted litigation and defense costs, as depositions had not yet been taken.