Providing Temporary Housing to an Insured Who Incurred a Loss is Not Unlimited
Post 5081
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Insured as Lessee is Obligated to Pay Rent
Millar sued Anakka Hartwell, Liberty Insurance Corporation, and Temporary Housing, Inc. (THI) were sued after Hartwell, a policyholder of Liberty, failed to pay rent for a property Millar leased to her through THI. The court granted summary judgment in favor of THI and Liberty, dismissing Millar’s claims, and Millar appealed the decision .
In Joel Millar v. Anakka Hartwell, a Washington resident, Liberty Insurance Corporation, a foreign insurance corporation; and Temporary Housing, Inc. d/b/a CRS Temporary Housing, a foreign entity, No. 85876-9-I, the Court of Appeals of Washington, Division 1 (May 19, 2025) resolved the dispute.
Case Overview
Incident and Claim:
In September 2018, Hartwell reported a water leak in her home and sought Additional Living Expense (ALE) coverage from Liberty for temporary housing. THI was appointed to assist Hartwell in finding temporary accommodation and placed Hartwell at a residence.
Temporary Housing Arrangement:
Liberty Insurance provides home insurance policies that include coverage for temporary housing after a covered loss. THI secured housing for Hartwell in a property owned by Millar, formalized through a Temporary Housing Confirmation. The lease was set from April 1, 2019, to June 30, 2019, with options for extensions.
After the initial lease term, THI requested extensions, and Millar agreed. However, after confirming with Liberty that no further extensions would be granted, THI notified Millar that Hartwell was to vacate by November 8, 2019. Despite this, Hartwell remained in the property until December 2022, making some but not all rent payments.
Legal Proceedings
Millar’s lawsuit sought recovery of unpaid rent and included claims for breach of contract, misrepresentation, and violation of the Washington Consumer Protection Act (CPA). The trial court found no valid contract between Millar and THI or Liberty that would obligate them to continue paying rent after the lease termination date .
Summary Judgment:
The court granted THI and Liberty’s motion for summary judgment, ruling that Millar’s claims lacked sufficient evidence and that any agreement did not extend to indefinite rent payments.
Appeal:
Millar appealed the summary judgment, arguing genuine issues of material fact regarding the existence of a contract and the duty of good faith and fair dealing.
COURT’S CONCLUSIONS
The court concluded that:
1. The Confirmation did not establish a perpetual obligation for THI to pay rent beyond the specified lease period.
2. Millar acknowledged that the lease agreement was between himself and Hartwell, not involving THI or Liberty.
3. THI had provided the required notice before terminating payments, and thus, no breach occurred .
Conclusion
The appellate court affirmed the trial court’s decision, dismissing all claims against THI and Liberty, thereby upholding the ruling that there was no enforceable contract obligating THI or Liberty to continue rent payments after the lease’s termination date.
ZALMA OPINION
Liberty, in accordance with its contract of insurance, found temporary housing for its insured while the damaged premises was repaired. It paid for a lease between the insured Hartwell and Millar for the period of reconstruction. The temporary lease expired and was extended with the agreement of Hartwell and Millar. Hartwell failed to pay all rent due so Millar sued the insurer with whom there was no contract. The good deeds of Liberty and THI arranging for the temporary housing was returned with a law suit even though they were not parties to the lease.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Detail Charging Defendant for Fraud is Sufficient
Post 5242
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Charges that Advises the Defendant of the Crime Cannot be Set Aside
In United States Of America v. Lourdes Navarro, AKA Lulu, No. 25-661, United States Court of Appeals, Ninth Circuit (December 4, 2025) Lourdes Navarro appealed the district court’s denial of her motion to dismiss the indictment and enter final judgment was in error.
FACTUAL BACKGROUND
The indictment alleged that insurers reimburse only for medically necessary services. Navarro performed unnecessary respiratory pathogen panel (RPP) tests on nasal swabs collected from asymptomatic individuals for COVID-19 screening.
Navarro billed over $455 million to insurers for those additional RPP tests that she knew to be medically unnecessary. These allegations constituted a plain, concise, and definite written ...
Louisiana Statute Prevents Enforcement of Contract Term Requiring Arbitration of Disputes
Post 5241
Read the full article at https://www.linkedin.com/pulse/international-convention-requiring-enforcement-award-barry-sttdc, see the video at and at and at https://zalma.com/blog plus more than 5200 posts.
In Town of Vinton v. Indian Harbor Insurance Company, Nos. 24-30035, 24-30748, 24-30749, 24-30750, 24-30751, 24-30756, 24-30757, United States Court of Appeals, Fifth Circuit (December 8, 2025) municipal entities including the Town of Vinton, et al sued domestic insurers after dismissing foreign insurers with prejudice. The insurers sought arbitration under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “Convention”) but the court held Louisiana law — prohibiting arbitration clauses in such policies—controls, as the Convention does not apply absent foreign parties who ...
Refusal to Provide Workers’ Compensation is Expensive
Post 5240
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In Illinois Department of Insurance, Insurance Compliance Department v.USA Water And Fire Restoration, Inc., And Nicholas Pacella, Individually And As Officer, Nos. 23WC021808, 18INC00228, No. 25IWCC0467, the Illinois Department of Insurance (Petitioner) initiated an investigation after the Injured Workers’ Benefit Fund (IWBF) was added to a pending workers’ compensation claim. The claim alleged a work-related injury during employment with the Respondents who failed to maintain workers’ compensation Insurance.
Company Overview:
USA Water & Fire Restoration, Inc. was incorporated on January 17, 2014, and dissolved on June 14, 2019, for failure to file annual reports and pay franchise taxes. It then operated under assumed names including USA Board Up & Glass Co. and USA Plumbing and Sewer. The business ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
