722 F.Supp.3d 1226
E.D. Okla.2024Background
- Plaintiffs Jeri and Robert McKenzie owned a home in Ardmore, Oklahoma, insured by Hanover Insurance Company, with coverage for property losses and specific policy exclusions for wear, tear, and faulty materials.
- The McKenzies filed a claim for hail and wind damage following an April 2020 storm; Hanover's initial inspection (Ladder Now) and a subsequent engineering report (Day Engineering) found no hail damage to the roof, only age-related deterioration and damage below the policy deductible.
- Plaintiffs obtained their own expert (Kaemmerling), who inspected the roof and opined there was significant hail damage warranting full replacement; Hanover disputed Kaemmerling’s qualifications and methods.
- Plaintiffs brought suit for breach of contract and bad faith denial; both parties filed motions regarding expert exclusions, evidentiary limits, and summary judgment.
- The court ruled on summary judgment, Daubert motions, and motions in limine, addressing both merits and admissibility of evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exclusion of Plaintiff’s Expert | Kaemmerling is qualified and reliable | Kaemmerling unqualified and unreliable; disclosures lacking | Denied exclusion; expert allowed |
| Breach of Contract | Roof damaged by hail, covered by policy | No hail damage; damage below deductible; exclusions apply | Genuine issue of fact; summary judgment denied |
| Bad Faith (Claim Handling) | Insufficient investigation, selective evidence; denial in bad faith | Prompt, thorough investigation; legitimate disagreement in findings | No evidence of bad faith; summary judgment granted |
| Exclusion of Defendant’s Expert | Opinions not relevant after dismissal of bad faith claim | Expert supports good faith in claim handling | Exclusion granted; not relevant to breach of contract |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard)
- Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 (admissibility of expert testimony)
- Christian v. Am. Home Assurance Co., 577 P.2d 899 (insurer’s duty of good faith)
- McCorkle v. Great Atl. Ins. Co., 637 P.2d 583 (Oklahoma bad faith standard)
- Digital Design Grp., Inc. v. Info. Builders, Inc., 24 P.3d 834 (breach of contract elements)