(Genuine Dispute Doctrine
Bars Bad Faith Claim in Connection With Property Loss)
(May 2020) - In 501st. St. Long
Beach-10 LLC v. Kookmin Best Ins. Co., Ltd,
---Cal.App.5th---(April 16, 2020), the California Second District
Court of Appeal affirmed the trial court's entry of judgment in
connection with a bad faith claim against Kookmin Best Insurance
Company, Ltd., doing business as Leading Insurance Company and
Leading Insurance Group Insurance, Ltd. ("LIC"), based on
application of the "genuine dispute doctrine" with
respect to damage sustained by a building due to settlement of
soils. The insured, 501 East 51st Street, Long Beach-10 LLC
("501"), tendered a property loss claim for damage
sustained by a 10-unit, two-building apartment complex, built in
1963. According to 501, the damage was caused by a sudden water
main break, which caused the building to settle. According to LIC,
the loss was excluded, as the building had been undergoing
settlement for a lengthy
