In $5M Bad Faith Insurance Suit, Defense Says Insured Was Not Entitled to Indemnification Under Policy

Jamie Carsey, representing Everest Indemnity Insurance in a $5 million bad faith, class-action insurance suit, tells jurors that the policy its insured, Matthews Homes, had purchased did not cover earth movement damage that served as the basis of plaintiffs' underlying claim against Matthews. The plaintiffs, whose property was damaged in a 2008 flood, obtained a $5 million settlement against Matthews Homes for the damage, as well as the right to sue Everest for the insurer’s failure to indemnify Matthews.