The action arose from a massive flood at a gentlemen’s club, which resulted in extensive water damage to the building and its contents. To address this emergency, the club owner immediately contacted the Company to remove the water from the building and dry-out the interior. The Company performed emergency water removal and drying services for four consecutive days. As a result of the Company’s quick response and service, business at the club was suspended for only four days. Thereafter, the club’s owner submitted the Company’s invoice to its insurance carrier, but neither the club owner nor the insurance carrier paid any part of the invoice.
Because the Company had not been paid for its services, it retained Roetzel to file suit against the club owner for breach of a work authorization agreement. On the day of trial, the Company settled its case against the club owner. As part of the settlement, the club owner assigned the water remediation claim under its insurance policy to the Company.
Immediately after the trial, the insurance carrier filed a declaratory judgment complaint against the Company, as assignee of the club owner’s water remediation claim, alleging, among other things, that the claim was not covered under the insurance policy. Roetzel counterclaimed on behalf of the Company, asserting causes of action for breach of contract and bad faith for the insurance carrier’s improper claim handling, and took the offensive by filing a motion for partial summary judgment. In awarding partial summary judgment in favor of the Company, the judge held that the water remediation claim was covered under not only the Building and Property section of the policy, but also the Extra Expense section of the policy. The claimed damages, including attorney’s fees and costs, exceed $1,000,000.