KANSAS CITY – A federal judge sided with State Auto Property and Casualty Insurance Co. by granting its motion for summary judgment in a breach of contract lawsuit.
Convenience store owners Javid and Arshad Chaudhri sued State Auto in response to the denial of their claim for damage and stolen property. They had filed a suit over allegations of breach of contract and vexatious refusal to pay.
On April 8, Judge Greg Kays of the U.S. District Court for the Western District of Missouri issued an order favoring the defendant on grounds the proprietors violated the policy’s cooperation clause.
“In this case, the undisputed facts show that plaintiffs materially breached the cooperation clause by not providing the requested documentation and submitting to an examination under oath,” wrote Kays. “This failure to comply denied defendant the opportunity to complete its investigation, particularly regarding coverage concerns based on who owned the property.”
The order stated that the defendant “requested supporting documentation and/or that plaintiffs submit to an examination under oath eight times” before it ultimately denied coverage.
“In December of 2012, defendant postponed a scheduled examination based on plaintiffs’ request; despite numerous subsequent requests, plaintiffs never provided their availability,” the eight-page document said.
Kays also ruled against the complainants’ vexatious refusal claim.