Insurance-Property Insurance-Denial of Coverage-Vexatious Refusal to Pay

Staff Report//July 24, 2025//

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Defendant moved for partial summary judgment on plaintiff’s complaint. After a hailstorm damaged plaintiff’s building, it sought coverage under its insurance policy with defendant. After defendant refused to pay the full claim, plaintiff filed suit asserting breach of contract and vexatious refusal to pay claims. Defendant contended that it had reasonable grounds to believe that it had no liability to pay the full claim and that it had a meritorious defense.

Where the facts supported finding that defendant failed to conduct a reasonable investigation as plaintiff’s expert concluded that a joint inspection was necessary and defendant’s expert refused to attend such an inspection, the court denied defendant’s summary judgment motion.

Defendant’s motion for partial summary judgment denied.

Parc Lorraine Condominium Association v. Philadelphia Indemnity Insurance Company (MLW No. 83527/Case No. 4:24-cv-00228-SRC – 8 pages) (U.S. District Court, Eastern District of Missouri, Clark, J.)