In $5M Bad Faith Suit, Insurer’s Exclusion Argument Is Bewildering, Says Insurance Expert

Jeffrey Stempel, an expert on insurance law, tells jurors that he believes Everest Indemnity Insurance Co. breached its duty to defend its insured, developer Matthews Homes, against a suit for property damage caused by flooding because the insurer’s exclusion determination was unsupportable. Matthews Homes settled the suit with the property owners, which included the Reimers class of plaintiffs, assigning the right to sue Everest in this bad faith breach suit against Everest.