Jury: Homeowner due $1.5 million

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Jury: Homeowner due $1.5 million

Insurance firm ordered to pay damages for not covering claim

By Glenn Chapman, STAFF WRITER

http://www.insidebayarea.com/ci_2709910?rss

OAKLAND — An Oakland jury has decided Amco Insurance Co. must pay a

Pleasanton homeowner $1.5 million in punitive damages for balking at

covering mold damage caused by a leaky pipe in her house.

Jurors awarded Radosevich the cash on top of $53,000 they say

the Iowa-based insurance company owes her for repairs, plus

emotional distress, according to her Berkeley attorney, Doug

Prutton.

Radosevich cried tears of relief and vindication after the jury

revealed its decision in Alameda County Superior Court Judge

Freedman's courtroom last Thursday. She filed a civil suit against

Amco in December 2002.

" They made her fight long and hard from day one, when the first

insurance adjuster came out on June 10, 2002, until last week, "

Prutton said Wednesday. " The jury sent the message back to Iowa that

you shouldn't treat insureds in California this way. "

Amco, a subsidiary of Nationwide Insurance, has maintained it

handled Radosevich's claim appropriately and is considering whether

to ask for the damage award to be overturned, said company spokesman

Joe Case.

" There are a number of post-judgment motions before the judge, " Case

said Wednesday. " We are evaluating our options, including whether to

appeal. "

The problem in Radosevich's house began as a leak from a pipe under

a water heater, according to Prutton. It was discovered that mold

had grown in a nearby wall cavity and crawl space, and that mold

spores pervaded the air in the house, Prutton said.

Amco resisted paying Radosevich's claim for more than eight months,

finally giving her a check for significantly less than the

contractors charged her to fix the problems, according to Prutton's

case.

" I think the jury felt the insurance company was trying hard to deny

the claim instead of stepping up and paying the claim early on, "

Prutton said. " I think they felt the company didn't care about

her. "