Court Affirms Judgment for State Farm on Earthquake Damage Claims

LOS ANGELES - A California appellate court has affirmed summary judgment for an insurer accused of bad faith and breach of contract for its alleged failure to adequately investigate damage from the 1994 Northridge Earthquake. 1231 Euclid Homeowners Association v. State Farm Fire and Casualty Co., No. B175242 (Calif. 2nd App. Dist.).

In an unpublished opinion on Dec. 14, California's 2nd Appellate District held that because a homeowners association voluntarily withdrew its claim in 1994, it could not take advantage of a one-year window granted by the legislature in 2000.

The 1231 Euclid Homeowners Association complained in a lawsuit filed …