Westwood v. Travelers Home and Marine Insurance Company
2:24-cv-00719
| D. Utah | Jun 30, 2025Background
- The Westwoods' home in Vernal, Utah, was significantly damaged during the 2022-2023 winter due to heavy snow, leading to water intrusion and interior damage.
- Their insurer, Travelers, denied their claim based on an engineering report by Aaron Harrigfeld, which allegedly relied on misleading post-loss photographs.
- The Westwoods notified Travelers and Harrigfeld of inaccuracies in the report, including evidence that the report’s photos did not show preexisting damage but damage from the storm.
- Despite their evidence, Travelers reaffirmed its denial; the Westwoods sued for both contract damages (over $160,000) and tort damages (including fraud and misrepresentation).
- Defendants moved to dismiss the tort claims (negligent misrepresentation, fraud, conspiracy to commit fraud) and for partial judgment on the pleadings.
- At this stage, the court assumed all well-pleaded facts in the complaint were true.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligent Misrepresentation | Harrigfeld’s report contained false statements, harming insureds. | No party relied on the report’s alleged misrepresentations. | Dismissed: No reliance alleged by any party. |
| Fraud | Defendants intentionally misrepresented damage to deny claim. | No reasonable reliance on misrepresentations by Westwoods or Travelers. | Dismissed: No one acted in ignorance or reliance. |
| Conspiracy to Commit Fraud | Defendants conspired to deny rightful insurance coverage through misrepresentation. | No underlying fraud occurred, so no conspiracy possible. | Dismissed: Requires underlying actionable fraud. |
| Economic-Loss Rule | Tort claims should proceed alongside contract claims. | Dispute is contractual; tort damages precluded by economic-loss rule. | Dismissed: Applies, barring tort claims. |
Key Cases Cited
- Mayfield v. Bethards, 826 F.3d 1252 (10th Cir. 2016) (explains standard for accepting complaint facts at motion to dismiss stage)
- Atl. Richfield Co. v. Farm Credit Bank of Wichita, 226 F.3d 1138 (10th Cir. 2000) (motion for judgment on the pleadings analyzed under Rule 12(b)(6) standard)
- Armed Forces Ins. Exch. v. Harrison, 70 P.3d 35 (Utah 2003) (recites elements of fraud under Utah law)
- Gildea v. Guardian Title Co. of Utah, 970 P.2d 1265 (Utah 1998) (conspiracy to defraud requires proof of underlying fraud)
- Reighard v. Yates, 285 P.3d 1168 (Utah 2012) (economic-loss rule bars tort claims covered by contract)