United States District Court, W.D. Washington
ORDER GRANTING IN PART AND DENYING IN PART
CROSS-MOTIONS FOR SUMMARY JUDGMENT; GRANTING IN PART AND
DENYING IN PART MOTIONS TO STRIKE
J. Pechman United States Senior District Court Judge
MATTER comes before the Court on Plaintiffs' Motion for
Partial Summary Judgment (Dkt. No. 23) and Defendant's
Cross-Motion for Summary Judgment (Dkt. No. 27) and Motions
to Strike (Dkt. Nos. 27, 39). The Court has reviewed the
Motions (Dkt. Nos. 23, 27), the Responses (Dkt. Nos. 27, 32),
the Replies (Dkt. Nos. 35, 36) the Surreply (Dkt. No. 39),
and all related papers. The Court declines to hear oral
argument on the matter.
160 Lee Street Condominium Homeowners' Association
(“160 Lee Street”) is the owner of a condominium
in Seattle, Washington (the “condominium”) that
was damaged by fire. At the time of the fire, the condominium
was insured by Defendant Mid-Century Insurance Company
(“Mid-Century”). While the parties do not dispute
that the condominium was covered on the date of the fire,
they disagree as to whether the terms of the insurance policy
(the “policy”) required Mid-Century to cover
various repair, replacement, and incidental costs. Plaintiff
filed this action seeking declaratory judgment as to
Mid-Century's liability for these costs, and alleging
claims for (1) breach of contract; (2) insurance bad faith;
(3) violation of the Washington Consumer Protection Act
(“WCPA”); and (4) violation of Washington's
Insurance Fair Conduct Act
(“IFCA”). (Dkt. No. 22 at ¶¶ 4.1-20.)
policy provided “all risk” coverage, effective
February 1, 2015 through February 1, 2016. (Dkt. No. 23 at
2.) Relevant provisions of the policy include the following:
We will pay for direct physical loss of or damage to Covered
Property at the premises described in the Declarations caused
by or resulting from any Covered Cause of Loss.
1. COVERED PROPERTY
Covered property, used in this policy, means . . . Building
and structure described in the Declarations . . .
2. PROPERTY NOT COVERED
Covered Property does not include: . . . Fences, walls,
walks, driveways . . .
3. COVERED CAUSES OF LOSS Risks of Direct Physical Loss
unless the loss is [excluded or limited herein]. . . .
5. ADDITIONAL COVERAGES . . . Extra Expense
(a) We will pay necessary Extra Expense you incur during the
“period of restoration” that you would not have
incurred if there had been no direct physical loss or damage
to property at the described premises. The loss or damage
must be caused by or result from a Covered Cause of Loss.
(b) Extra Expense means expense incurred:
(i) To avoid or minimize the suspension of business and to
continue “operations” . . .
(ii) To minimize the suspension of business if you cannot
i. Repair or replace any property; or ii. Research, replace
or restore the lost information on damaged “valuable
papers and records”.
We will only pay for Extra Expense that occurs within 12
consecutive months after the date of direct physical loss or
damage. . . .
(Dkt. No. 24, Ex. 1 at 12-14, 17.) A policy endorsement
titled “Washington Changes - Condominium Policy”
reflects a “Property Loss Condition - Loss
Payment” which provides:
event of loss or damage . . . at our ...