A federal district court in Pennsylvania has denied an insurer's motion for judgment on the pleadings on an insured's breach of contract claim after finding that the insured plausibly alleged that he had resided at a home that had been damaged by fire as required by his insurance policy.
The Case
After the home owned by Nanette and Justin Bloxham in Lackawanna County, Pennsylvania, was damaged by a fire, they submitted a claim to their insurer, Allstate Insurance Company.
Allstate denied payment, explaining that the Bloxhams did not reside in the home as required for coverage by their policy.
The Bloxhams disputed the decision to deny coverage, arguing that Mr. Bloxham had been "residing there" and that he had been making "ongoing and continuous repairs and renovations to the dwelling so he could continue to reside there."
The Bloxhams sued Allstate for breach of contract, and the insurer moved for judgment on the pleadings.
Allstate argued that it was entitled to judgment on the pleadings on Ms. Bloxham's breach of contract claim because she did not reside at the property, and that it was entitled to judgment on the pleadings as to Mr. Bloxham's claim because there was no evidence that he resided at the property or because he had made misrepresentations of material facts and circumstances.
The Bloxhams conceded that Ms. Bloxham had not resided at the property but disputed that Allstate was entitled to judgment on the pleadings as to Mr. Bloxham's breach of contract claim.
The District Court's Decision
The district court denied the motion to dismiss Mr. Bloxham's breach of contract claim.
In its decision, the district court explained that, under the Allstate policy, an insured's residency was a condition precedent to insurance coverage. (Therefore, the district court dismissed Ms. Bloxham's breach of contract claim with prejudice because the Bloxhams had conceded that she had not resided at the property).
The district court pointed out that, before denying the Bloxhams' claim, Allstate took Mr. Bloxham's statement under oath, at which time he produced a valid driver's license reflecting that the home was his address. He also testified that he lived there for more than 10 years before the fire, that he slept there, and that he was "settled there and made that residence his home. [He] had his personal belonging there and was at the home every day."
Accordingly, the district court found that, accepting the Bloxhams' allegations in their complaint as true and drawing all reasonable inferences in their favor, the Bloxhams had plausibly alleged that Mr. Bloxham had resided at the property at the time of the fire.
As such, the district court concluded, judgment on the pleadings in favor of Allstate on Mr. Bloxham's breach of contract claim was "not warranted."
The case is Bloxham v. Allstate Ins. Co., No. 3:19-CV-0481 (M.D. Pa. Oct. 9, 2019). Attorneys involved include: For Nanette Bloxham, Justin Bloxham, Plaintiff: Thomas W. Munley, LEAD ATTORNEY, Minora, Minora, Colbassani, Krowiak & Mattioli, Scranton, PA. For Allstate Insurance Company, Defendant: Bonnie S. Stein, LEAD ATTORNEY, Curtin & Heefner LLP, Morrisville, PA.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].