A federal appeals court on Friday upheld a lower court ruling in favor of the insurer in a lawsuit filed by a homeowners association, ruling that the association had filed its lawsuit late and had failed to establish its claim in bad faith.
A dispute between 199 East Pearl Owners Condominium Owners Association regarding coverage for water-related roof damage led 199 East Park Condominium Owners Association of Jackson, Wyoming, to sue its insurer, Sheboygan, Wis.-based Acuity Insurance Co., for breach of contract and bad faith , according to the ruling of the 10th US Circuit Court of Appeals in Denver i 199 East Pearl Condominium Owners Association v. Acuity Insurance Co .
The U.S. District Court in Cheyenne, Wyoming, ruled in favor of the insurance company and was affirmed by a three-judge court panel.
Under its policy̵
7;s terms, an action against the insurer must be brought within four years of the discovery of the loss or damage, the ruling said.The homeowners association had until February 2021 “to file suit under the policy, so its contract-based claims from September 2021 were time-barred,” the panel said, as it also ruled the association “did not present a triable issue” in its bad faith claim.
Attorneys in the case did not respond to requests for comment.
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