Kelley Kronenberg Practice Partner Coral Lerner secured a zero-dollar walk-away dismissal on behalf of First Protective Insurance Company in a first-party property case filed in Lake County Court. 

The insureds reported a water line leak in the attic that caused a ceiling collapse and extensive mold growth throughout multiple areas of the property, including the master bedroom, both master bedroom closets, master bathroom, and office closet. The insureds, who split their time between Florida and another state, were out of town when the loss occurred and had not inspected the interior of the property for several months prior to discovering the damage. 

First Protective denied the claim on the grounds that the damage resulted from repeated seepage or leakage of water over a period of time, which is excluded under the policy. The insureds filed suit for breach of contract. 

Coral filed a motion for summary judgment supported by two expert opinions. A retained engineer opined that the moisture-related damage was caused by a historical plumbing leak and that the damage had been ongoing for at least three months prior to his inspection, as evidenced by biological growth and staining on the floors, walls, baseboards, and ceilings throughout the affected areas. A building scientist further opined, based on water use records and contractor documentation, that the leak had been occurring for approximately five months. Together, the experts established that the damage was the result of a continuous, long-term leak rather than a sudden and accidental loss, placing it squarely within the policy’s repeated seepage or leakage exclusion. 

Rather than respond to the motion for summary judgment, opposing counsel requested a walk-away settlement. The case was dismissed, sparing our client the costs and uncertainty of continued litigation, and our client paid nothing toward the claim. 

 

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