Frozen Pipes Not Covered if Thermostat not Set Over 50 Degrees
Post number 5351
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Proof without Contradiction Needed for Summary Judgment
In Kenneth Taylor v. State Farm Fire & Casualty Co., Civil Action No. 24-0882, United States District Court, W.D. Louisiana, Shreveport Division (May 7, 2026) the District Court issued a Memorandum Ruling denying State Farm’s motion for summary judgment (May 7, 2026).
FACTS
State Farm issued a homeowner’s policy to Kenneth Taylor covering a multi-story townhouse in Shreveport, Louisiana. Taylor lived in California during renovations and relied on local contacts to check the property; the parties dispute who had access and how often the home was inspected.
Taylor testified he set the thermostat to roughly 60–65°F before leaving the townhouse about two months before the freeze. Taylor’s handyman, Raymond George, testified he visited “once or twice a week,” ensured the heater worked, and set the thermostat around 60–70°F during winter visits.
After a January 2024 freeze, a pipe burst in the attic and water leaked throughout the townhouse; a neighbor reported water intrusion.
Taylor promptly filed a claim; State Farm inspected within days and denied coverage, asserting Taylor had the thermostat set to “zero” and/or “off,” and that inspection showed a 41°F reading with the system off.
LAW
Summary judgment (Fed. R. Civ. P. 56(a)):
Granted only if there is no genuine dispute of material fact and the movant is entitled to judgment as a matter of law; the court views evidence in the light most favorable to the nonmovant and does not weigh credibility at this stage.
Contract interpretation (Louisiana law):
Insurance policies are contracts construed under Louisiana Civil Code principles; clear and unambiguous terms are enforced as written.
Coverage condition for frozen pipes:
Policy excluded frozen-pipe losses unless the insured used “reasonable care to maintain heat” in the building at 55°F or higher.
Bad faith (La. R.S. § 22:1892):
Louisiana imposes a duty of good faith and fair dealing on insurers. La. Stat. Ann. § 22:1892 (“An Insurer.owes its insured a duty of good faith and fair dealing.”). To establish a bad faith claim, the insured “must show that (1) an insurer has received satisfactory proof of loss, (2) the insurer failed to tender payment within thirty days of receipt thereof, and (3) the insurer’s failure to pay is arbitrary, capricious or without probable cause.”
A genuine dispute over coverage generally defeats bad-faith penalties.
DISCUSSION / ANALYSIS
Breach of Contract (Coverage for Frozen Pipe)
The central coverage question was whether Taylor exercised “reasonable care” to keep the townhouse heated at or above 55°F. State Farm argued the condition failed because Taylor had not personally visited for two months, could not specify inspection frequency, and the post-loss condition suggested low temperature and an “off” thermostat.
A genuine dispute exists whether Taylor exercised reasonable care to maintain the townhouse’s heat above 55 degrees. First, Taylor testified that he set the thermostat to a temperature between 60 and 65 degrees before he left the townhouse two months earlier.
BAD FAITH (La. R.S. § 22:1892)
State Farm contended it had a reasonable basis for nonpayment because its investigation allegedly revealed conflicting accounts about property access and because it believed Taylor had the thermostat turned off or set to “zero” before the freeze.
The court found a triable issue on whether State Farm’s denial was supported by probable cause. Evidence, viewed favorably to Taylor, indicated State Farm’s initial denial may have stemmed from a miscommunication. Taylor attempted to correct the record early, provided utility bills showing pre-loss electricity usage, and George reported regular checks and thermostat settings above 55°F.
CONCLUSION
The court denied State Farm’s motion for summary judgment on both the breach-of-contract and bad-faith claims because the record contains genuine disputes of material fact about (1) whether Taylor used reasonable care to maintain heat at or above 55°F and (2) whether State Farm had probable cause for denying payment.
ZALMA OPINION
In my years as a practicing lawyer, before I retired, I filed and won many motions of summary judgment and lost a few. If the facts establish the defense or the allegations without evidentiary dispute the Motion for Summary Judgment would be granted. In this case the evidence showed an dispute that could only be resolved by a trier of fact hearing evidence at trial. State Farm didn’t have the evidence and its motion was properly denied.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Foolish to Repeatedly Disobey Court Orders
All That Remains For Trial Is Plaintiff’s Damages On Each Of These Claims And Establishing Proximate Causation Of Those Damages.
Post number 5348
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In Linh Wang v. Esurance Insurance Company, No. C24-0447-JCC, United States District Court, W.D. Washington, Seattle (May 1, 2026) John C. Coughenour, United States District Judge, found that throughout this case, culminating with its briefing on Plaintiff’s renewed motion and that Defendant has subjected Plaintiff to unnecessary motion practice for clearly discoverable information and made dubious representations (including to the Court).
FACTUAL BACKGROUND
This case involves an underinsured/uninsured motorist insurance bad faith claim arising from a 2017 motor vehicle collision. The plaintiff, Linh Wang, alleges that Esurance Insurance ...
The Right to Negotiate with Insurer is Not an Assignment of Claims
Post number 5347
Read the full article at https://www.linkedin.com/pulse/ambiguous-contract-repair-assignment-barry-zalma-esq-cfe-2xppc, see the full video at https://rumble.com/v79is1s-ambiguous-contract-to-repair-not-an-assignment.html and at and at https://zalma.com/blog plus more than 5300 posts.
Nebraska Requires an Actual Assignment to Allow Contractor to Sue Insurer
In Millard Gutter Company, a corporation doing business as Millard Roofing and Gutter v. Farmers Mutual Insurance Company of Nebraska, also known as Farmers Mutual Insurance, also known as Farmers Mutual, No. A-24-818, Court of Appeals of Nebraska (May 5, 2026) Millard sued Farmers as an assignee of Jane Anzalone who had hired Millard Gutter to repair the roof of her home and agreed to allow Millard Gutter to coordinate with her insurer, Farmers Mutual, concerning reimbursement for repairs authorized under her insurance policy.
FACTUAL BACKGROUND
In ...
Attempt to Withdraw Plea After Sentencing Fails
Post number 5346
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Stealing from Insurers and Employer Gets Defendant Five Years in Prison
In State of Wisconsin v. Jacquelyn R. Harris, No. 2025AP489-CR, Court of Appeals of Wisconsin (April 22, 2026) Harris pled no contest and was found guilty. She was sentenced to five years of initial confinement and three years of extended supervision, with restitution ordered in the amounts of $31,086 to Kaliber and $25,000 to Erie Insurance Company.
FACTUAL BACKGROUND
In late 2022, Jacquelyn R. Harris was charged with theft in a business setting under WIS. STAT. § 943.20(1)(b) (2023-24). Harris, while employed as the office manager for Kaliber Collision Repair in Port ...
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Life Settlement Agreements Lose Money When People Insured Live Long
Life Settlement Organization Fails to Pay Investors
Post number 5350
In Luis Ramiro Aviles, et al., Fraida Kahan, Saul Raznoszczyk v. Wells Fargo Bank, N.A., Wells Fargo Delaware Trust Company, N.A., Wells Fargo Bank Northwest, N.A., Atc Realty Fifteen, Inc., et al, No. 25-312-cv, United States Court of Appeals, Second Circuit (May 8, 2026)
FACTS
Plaintiffs are investors in Lifetrade funds that invested in “life settlements” (purchasing life insurance policies, paying premiums, and collecting death benefits). In 2008 Lifetrade obtained a one-year, up to $500 million credit facility from Wachovia, later assumed by Wells Fargo after its acquisition of Wachovia.
Lifetrade failed to meet payment obligations, triggering a “Termination Event” and giving Wells Fargo UCC secured-party default remedies. After default, the parties negotiated a consensual strict foreclosure ...
Order Denying Insurer’s Motion to Dismiss Insured’s Third-Party Complaint Against Insurance Agency
Post number 5349
Insurance Agents Must Honestly Report Coverage In Policy Obtained
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In Golden Bear Insurance Company v. SBD Enterprises, Inc. d/b/a America Wild West, SBD Enterprises, Inc. d/b/a America Wild West, Third-Party Plaintiff v. FMSI Upper Plains, L.C. d/b/a Revo Insurance Alliance, Nos. CV 25-71-BLG-DWM, CV 25-73-BLG-DWM. United States District Court, D. Montana, Billings Division (May 7, 2026)
FACTS
Two firearm-related incidents occurred at the America Wild West bar in Billings, Montana (Feb. 2023): (1) a patron (Xavier Buffalo) fatally shot Beau Harlan Beaumont in the parking lot after an altercation and removal from the bar; and (2) bartender David Simmons pointed a handgun at patrons Derek Coffman and Guadalupe Garza and fired at least once, striking no one.
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It is Fraud to Make the Same Claim Twice
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Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages
Post number 5347
No One is Entitled to be Paid for the Same Loss Twice
In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.
BACKGROUND
In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.
PROCEDURAL HISTORY
State Farm filed motion for summary...