The Colorado Court of Appeals issued its opinion in Kyle W. Larson Enterprises, Inc. v. Allstate Insurance Co. on September 27, 2012.
First-Party Claimant—Repair Vendor—CRS §§ 10-3-1115 and -1116.
Plaintiff Kyle W. Larson Enterprises, Inc., doing business as The Roofing Experts, (roofer) appealed only a portion of the trial court’s summary judgment in favor of defendant Allstate Insurance Company (Allstate). The judgment against the roofer on its claim under CRS § 10-3-1116 was reversed and the case was remanded for further proceedings on that claim.
The roofer contracted with the owners of four homes insured by Allstate to repair their roofs. The contracts provided that the repair costs would be paid from insurance proceeds and granted the roofer full authority to communicate with Allstate regarding all aspects of the insurance claims. The roofer met with Allstate adjustors to discuss the four homes and to determine the amount of each claim, and began each repair after receiving approval from Allstate for the claims. It later was determined that additional repairs were necessary to comply with applicable building codes and to maintain certain manufacturers’ warranties. The roofer made the repairs and invoiced Allstate for them. Allstate paid the claim amounts that were agreed to during the original adjustment, but refused to pay for the additional repairs. Pursuant to CRS §§ 10-3-1115 and -1116, the roofer filed suit as a first-party claimant against Allstate for unreasonable delay and denial of benefits. The trial court ruled that the roofer was not a first-party claimant entitled to seek relief under the statutes, and granted Allstate’s summary judgment motion.
On appeal, the roofer contended that the trial court erred in granting summary judgment for Allstate because the roofer is a first-party claimant. A repair vendor that brings a claim against an insurer on behalf of its insured qualifies as a first-party claimant under § 10-3-1115 and is entitled to sue the insurer under § 10-3-1116. CRS § 10-3-1115(1)(b). This includes vendors such as the roofer, which is authorized to assert, and do assert, claims on behalf of insureds.
Summary and full case available here.