- Cummins & White successfully defended an insurance company (representing it through the claim process, appraisal, trial, and appeal) charged with bad faith in a dispute over losses claimed by a condominium HOA following the Northridge earthquake.
- The trial court agreed that the insurer was not liable for bad faith due to its reliance on expert opinion and the existence of a “genuine dispute” about what losses were covered.
- Mr. Arnold and Ms. Harris then successfully navigated the case through the appeals process, emerging victorious when the California Court of Appeals affirmed entry of summary adjudication in favor of the insurance company.
- This landmark insurance decision expanded the “legitimate dispute doctrine” in bad faith cases to factual disputes—or differences only in the amount to be paid. This doctrine has become a first line of defense relied on by insurance companies that have been sued for insurance bad faith in California (cited more than 100 times).