Wells v. State Farm Fire & Casualty Co.

Insurer denied coverage for Plaintiff's claim for water in her basement and the 2nd-floor bathroom of her property. Court granted insurer's motion to dismiss Plaintiff's complaint for breach of insurance contract and for vexatiously and unreasonable denial of her claim in violation of Section 155 of Insurance Code. Pleadings unambiguously showed that a bona fide dispute existed as to coverage, including as to whether the property was unoccupied at the time of loss. Plaintiff provided inconsistent information on that issue and as to whether the water supply had been turned off. Insurer did not act vexatiously and unreasonably in denying coverage.(PUCINSKI and COGHLAN, concurring.)