Bad Faith With No Breach of Contract
Post number 5375
Essential Condition of a Tort of Bad Faith Ignored in California
Read the full article at https://www.linkedin.com/pulse/payment-all-policy-benefits-does-defeat-bad-faith-zalma-esq-cfe-yhnec and at https://zalma.com/blog.
In Jennifer Bornoff v. State Farm General Insurance Company, B339796, California Court of Appeals, Second District, First Division (May 1, 2026) Bornoff’s business suffered two burglaries in March 2022. She submitted claims promptly, and State Farm never disputed coverage, only valuation.
After months of delay and poor communication, State Farm paid the property-loss benefits about four months later, shortly after Bornoff sued.
ISSUE:
Whether State Farm was entitled to summary adjudication of Bornoff’s bad-faith claim when it had paid all policy benefits but allegedly caused extracontractual economic loss through unreasonable delay.
RULE:
In California, an insurer may be liable for bad faith if it unreasonably delays payment of benefits. Payment of all policy benefits does not defeat bad faith if the insured suffered separate economic harm, such as attorney’s fees or lost business income.
HOLDING:
State Farm was not entitled to summary adjudication on the bad-faith claim.
REASONING:
State Farm only showed that it eventually paid the policy benefits, but it did not negate Bornoff’s alleged extracontractual losses, including attorney’s fees and lost vendor income. The evidence also raised a triable issue as to whether the four-month delay was unreasonable, especially because State Farm never disputed coverage and failed to respond to repeated communications.
DISPOSITION:
The judgment was reversed and remanded and the Court of Appeals concluded that summary adjudication was proper only on the breach of contract claim, not the bad-faith claim.
State Farm’s undisputed evidence that it paid Bornoff all benefits due under the parties’ contract did not satisfy its initial burden of production to show that no triable issue existed as to actionable economic loss.
ZALMA OPINION
This case is interesting, and odd, because it found there was no breach of contract, the sine qua non basic minimum for a bad faith case and still found a right to proceed with the bad faith suit because the insured claimed an economic loss due to delay. Without the indispensable, essential, condition, of breach of contract for a bad faith case did not exist yet the California Court of Appeals found a right to bad faith anyway.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
Please tell your friends and colleagues about this blog and the videos and let them subscribe to the blog and the videos.
Subscribe to my substack at https://gbarryzalma.substack.com/subscribe
Go to X @bzalma; Go to the InsuranceClaims Library – https://lnkd.in/gwEYk.
Arsonist Tried To Represent Himself, Failed, and Sought Habeas Relief
Post number 5357
Read the full article at https://www.linkedin.com/pulse/he-who-acts-his-own-lawyer-has-idiot-client-barry-zalma-esq-cfe-d4bwc, See the full video at and at and at https://zalma.com/blog.
Karacson’s Arson for Profit Attempt Required Skill & Experience to Succeed
In Steve Ellis Karacson v. David Shaver, Warden, No. 25-1089, United States Court of Appeals, Sixth Circuit (May 20, 2026) Steve Karacson was convicted in Michigan state court of arson and insurance fraud after evidence showed he burned his own insured home. Investigators found multiple points of origin, gasoline odor, and evidence tying him to the scene, including cell-phone location data and a receipt showing he had purchased a gas can and gloves shortly before the fire.
FACTS
Karacson initially had appointed counsel, but his relationships with both appointed attorneys ...
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
See the full video at and at and at https://zalma.com/blog plus 5300 posts.
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 ...
Post number 5374
The Government Must Remove a Noncitizen Within 90 Days of Detention
In Jean Marcel Perez Garcia v. Warden, Florida Side South Detention Facility, et al., No. 2:26-cv-788-JES-DNF John E. Steele United States District Judge United States District Court, M.D. Florida, Fort Myers Division (June 10, 2026) Jean Marcel Perez Garcia, a Cuban citizen, entered the United States in 2003. After convictions for a drug offense and felony insurance fraud, he was ordered removed in 2018 but was later released under supervision.
ICE revoked that supervision in December 2025 and detained him again to execute the removal order. In February 2026, ICE transported him to the U.S.–Mexico border and sought to have him depart to Mexico, but he refused. ICE then continued to detain him for more than six months without showing that any country had agreed to accept him or that travel documents had been secured.
LAW
Under 8 U.S.C. § 1231(a)(1)(A), the government must remove a noncitizen within 90 days after the ...
Guilty Plea of Conspiracy to Commit Petty Theft Survives Appeal
Post number 5373
When You Plead Guilty be Ready to Go to Jail
Posted on June 16, 2026 by Barry Zalma
In The People v. Jacob Ossian Alberry, case number A173036, California Court of Appeals, First District, Fourth Division (June 2, 2026) Jacob Ossian Alberry and another person entered a Kohl’s store together, selected merchandise, and left without paying. The original complaint charged conspiracy to commit organized retail theft, organized retail theft, and petty theft.
After the preliminary hearing raised doubts about proof of an intent to sell, exchange, or return the merchandise for value, the prosecution dropped the organized retail theft counts and filed an information charging felony conspiracy to commit petty theft and misdemeanor petty theft.
Alberry later pleaded guilty to conspiracy to commit petty theft and appealed the denial of his section 995 motion.
LAW:
When a general criminal statute overlaps with a more specific statute covering ...
Guilty Plea of Conspiracy to Commit Petty Theft Survives Appeal
Post number 5373
When You Plead Guilty be Ready to Go to Jail
Posted on June 16, 2026 by Barry Zalma
In The People v. Jacob Ossian Alberry, case number A173036, California Court of Appeals, First District, Fourth Division (June 2, 2026) Jacob Ossian Alberry and another person entered a Kohl’s store together, selected merchandise, and left without paying. The original complaint charged conspiracy to commit organized retail theft, organized retail theft, and petty theft.
After the preliminary hearing raised doubts about proof of an intent to sell, exchange, or return the merchandise for value, the prosecution dropped the organized retail theft counts and filed an information charging felony conspiracy to commit petty theft and misdemeanor petty theft.
Alberry later pleaded guilty to conspiracy to commit petty theft and appealed the denial of his section 995 motion.
LAW:
When a general criminal statute overlaps with a more specific statute covering ...
