MOUNDSVILLE — A Marshall County housing authority is suing an insurance company, alleging breach of implied duty of good faith and fair dealing and negligence.
Benwood-Memechen Housing Authority filed a complaint in Marshall Circuit Court against Great American Insurance Company, alleging the defendant denied coverage for the Roxby Complaint without conducting any investigation.
According to the complaint, on Jan. 24, the Benwood-Memechen Housing Authority caused a notice of the Roxby Complain to be provided to Great American, together with a demand for coverage, including a provision of a defense to and indemnification of the claims against BMHA and its employee Robert Allen Skvarka.
However, the plaintiff alleges, no investigation was performed, causing the authority to be denied its request for coverage and the refusal to provide defense to the Roxby Complaint. As a result, the plaintiff says, it continues to incur legal fees in the amount of $6,050.
The plaintiff alleges Great American Insurance failed to train its employee on insurance industry standards for good faith claims handling practices, including how to conduct a reasonable, thorough and fair coverage analysis.
The Benwood-Memechen Housing Authority seeks trial by jury, contractual and compensatory damages, plus attorney fees and costs incurred. It is represented by attorneys Jonathan E. Turak and Michaelle Marinacci of Gold, Khourey & Turak LC in Moundsville.
Marshall Circuit Court case number 18-C-209