This case was last updated from U.S. District Courts on 09/22/2021 at 11:19:44 (UTC).

Jean Jacques Darmon, Inc. v. State Farm General Insurance Company et al

Case Summary

On June 28, 2021, Plaintiff Jean-Jacques Darmon, Inc., d/b/a 5Art Gallery filed a contract - insurance lawsuit against State Farm General Insurance Company and Does 1 through 50, inclusive, (collectively, “Defendants”), represented by Michael J. Mcguire of Pacific Law Partners, LLP for allegedly engaging in bad faith insurance practices. This case was removed to the U.S. District Court for the Central District of California.

In the complaint, the Plaintiff alleges that “Plaintiff’s business, 5Art Gallery, sustained substantial property and income losses when its gallery was infiltrated and vandalized during the social unrest related to the George Floyd incident in May 2020. 5Art had insurance for its losses and tendered a claim to its insurer, Defendant State Farm General Insurance Company.”

The Plaintiff also alleges “While State Farm ultimately paid for 5Art’s property losses, it decided to save money on the business income portion of the claim. It did so by ignoring 5Art’s business model, which is selling high worth artworks to wealthy collectors on an unpredictable basis. State Farm instead analyzed 5Art’s income losses against an irrelevant generic model, thereby supporting State Farm’s lowball claim payout.”

The Plaintiff further alleges “In March 2021, State Farm declared that it would pay no more for 5Art’s business income losses, having paid only a fraction of 5Art’s estimated $1.1 million in actual losses. 5Art was left with no option but to institute litigation to recover the full proceeds it is owed under its insurance policy, consequential damages incurred from State Farm’s withholding of the full benefit and damages for State Farm’s bad faith.”

There are two claims laid down by the Plaintiff. One is for the Defendant’s alleged breach of the contractual duty to pay a covered claim. The second claim is for the Defendant’s alleged breach of the duty of good faith and fair dealing.

In its prayer for relief, the Plaintiff requests the Court to enter a judgment against the Defendant, award damages for the Defendant’s breach of the contractual duty to pay a covered claim, award damages for the Defendant’s breach of the duty of good faith and fair dealing, and award all attorney’s fees incurred.

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Case Details Parties Documents Dockets

Case Details

Case Number:
2:21-CV-05235

Filing Date:
06/28/2021

Case Status:
Pending - Other Pending

Case Type:

Contract - Insurance

Court:
U.S. District Courts

Courthouse:
California Central District Court

Judge Details

Presiding Judge

John A. Kronstadt

Referral Judge

Alka Sagar

Party Details

Plaintiff

Jean Jacques Darmon, Inc. doing business as 5Art Gallery

5Art Gallery

Defendants

STATE FARM GENERAL INSURANCE COMPANY

Does 1 through 50, inclusive

Attorney/Law Firm Details

Plaintiff Attorneys

Samuel Lawrence Bruchey

Attorney at Shernoff Bidart Echeverria LLP

600 South Indian Hill Boulevard

Claremont, CA 91711

William M Shernoff

Attorney at Shernoff Bidart Echeverria LLP

600 South Indian Hill Boulevard

Claremont, CA 91711

Defendant Attorneys

Dominique Madalaine Waters Tomaino

Attorney at Pacific Law Partners LLP

15615 Alton Parkway Suite 240

Irvine, CA 92618

Michael John McGuire