A residential building owner alleged that Nationwide deliberately delayed the policy payments, misrepresented the prerequisites for invoking appraisal and had illegally filed its subrogation suit before Washington Street was made whole. The Stock Photo Girl/Stock.adobe.com
The judges of the Third Circuit recently affirmed summary judgment for Nationwide in a bad faith suit filed by the owner of an apartment building that had suffered severe fire damage. The case is called Washington Street, LLC v. Nationwide Property & Casualty Insurance Company.
An apartment building burned down after one of the tenants negligently caused a fire. The building owner, Washington Street, LLC, promptly reported the fire damage and submitted a claim to Nationwide. The first payment under the policy was issued to Washington Street six weeks later, after its attorney complained to Nationwide about how slowly the process was moving. When the payment was made, Nationwide acknowledged the payment was incomplete and agreed it would be subject to change if additional repairs were needed or more damage was found.
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