Paslay v. State Farm General Insurance Company

In Paslay v. State Farm General Insurance Company, 248 Cal.App.4th 639 (2016), the California Second District Court of Appeal reversed the trial court's entry of summary judgment in favor of State Farm with respect to plaintiffs', Clayton and Traute Paslay ("the Paslays"), claims of breach of contract, bad faith and elder abuse arising out of State Farm's adjustment of a water damage claim tendered by the Paslays under the first party property damage coverage afforded by a State Farm homeowner's policy. The Court of Appeal affirmed the trial court's entry of judgment in favor of State Farm in connection with plaintiffs' claims of bad faith and elder abuse based on the genuine dispute doctrine. However, the Court of Appeal found that there was a triable issue of fact with respect to plaintiffs' claim of breach of insurance contract.