Christopher C. Cayce, Esq. SBN: 114033 Nelson T. Rivera, Esq. SBN: 263707 Law Ofces of Christopher C.

Cayce The Casa Estrada Adobe 470 Tyler Street, Second Floor Monterey, California 93940 Ph: (831) 373-2610 Fax: (831) 373-1723 Attorneys for Plaintiff: RALPH C. KENNAUGH

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CONNIEMA22Ei CL ERKOFTHESUPERIORCOURT - - - - D E R N ?

J. CEDILLO

SUPERIOR COURT OF CALIFORNIA COUNTY OF MONTEREY RALPH C. KENNAUGH, Plaintiff, Case No.: ti

FARMERS INSURANCE GROUP, FIRE INSURANCE EXCHANGE, FARMERS INSURANCE EXCHANGE, MIDCENTURY INSURANCE COMPANY, and DOES 1 through 100, inclusive, Defendants.

COMPLAINT FOR: 1. BR EAH OF CONTRACT; 2. BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING (BAD FAITH) CASE M NAGEMENT CONFERENCE
DATE: \ TIME: 9:00 AM PLACE: Courtroom 2 n d Agualito Rd. Monterey CA 93940 1200 F l o o r

Plaintiff RALPH C. KENNAUGH submits the following: Plaintiff alleges: 1. P l a i n t i f f , RALPH C. KENNAUGH (hereinafter referred to as "Plaintiff') was a resident of 4027 Sunridge Rd., Pebble Beach, Monterey County, California on or about September 25, 2009, and so resided since April of 2009. Thi s court is the proper court because defendant entered into a contract here; the contract was to be performed here; the incident to which this complaint refers occurred here. 2. D e fe n d a n ts were, and at all times herein mentioned, business organizations, forms unknown with principle places of business in Los Angeles, Los Angeles County, California; and authorized by the California Insurance Commissioner to transact business in this state as insurance companies issuing policies insuring against various risks, including theft.

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

Christopher C. Cayce, Esq. SBN: 114033 Nelson T. Rivera, Esq. SBN: 263707 Law Ofces of Christopher C. Cayce The Casa Estrada Adobe 470 Tyler Street, Second Floor Monterey, California 93940 Ph: (831) 373-2610 Fax: (831)373-1723 Attorneys for Plaintiff: RALPH C. KENNAUGH
SUPERIOR COURT OF CALIF O RNIA COUNTY OF MO NTEREY RALPH C. KENNAUG H, Plaintiff, Case No.: CO MPLAINT FOR: I. B R E A H OF CONTRACT; 2. B R E A C H OF THE IMPLIED CO VENANT OF GOOD F AIT H AND FAIR DEALING (BAD FAITH)

FARMERS INSURANCE GROUP, FIRE INSURANCE EXCHANG E, FARMERS INSURANCE EXCHANG E, MIDCENTURY INSURANCE CO MPANY, and DOES 1 through 100, inclusive, Defendants.

Plaintiff RALPH C. KENNAUGH submits the following: Plaintiff alleges: I. P l a i n t i f f , RALPH C. KENNAUGH (hereinafter referred to as "Plaintiff') was a resident of 4027 Stmridge Rd., Pebble Beach, Monterey County, California on or about September 25, 2009, and so resided since April of 2009. Th i s court is the proper court because a defendant entered into a contract here; the contract was to be performed here; the incident to which this complaint refers occurred here. 2. D e fe n d a n ts were, and at all times herein mentioned, business organizations, forms unknown with principle places of business in Los Angeles, Los Angeles County, California; and authorized by the California Insurance Commissioner to transact business in this state as insurance companies issuing policies insuring against various risks, including theft.

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

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3. P l a i n t i f f does not know the true names or legal capacities of the defendants sued herein as Does 1 through 100, inclusive, and therefore sue said defendants by such ctitious names. Plaintiff will amend this complaint to allege their true names and capacities when ascertained. Plaintiff is informed and believes and thereon alleges that each of said ctitiously named defendants are responsible in some manner for the occurrences herein alleged, and that the injuries herein alleged were proximately caused by said acts. 4. P l a i n t i f f is informed and believes and thereupon alleges that each defendant, whether specically named or designated herein as a Doe, was the agent, representative, servant, employee, principal, joint-venturer, co-conspirator, management company and/or representative of each of the remaining co-defendants, and in doing the acts hereinafter alleged, was acting within the course and scope of said agency, employment, joint venture, conspiracy, agreement, management company agreement and/or service with the approval, knowledge, authority and/or consent of the remaining defendants.
FIRST CAUSE OF ACTIO N (BREACH OF CONTRACT)

5. P l a i n t i f f re-alleges and incorporates by reference each and every allegation contained in paragraphs 1-4 of this complaint, and incorporates same by reference as though fully set forth herein. 6. A t all times herein mentioned, plaintiff had in full force and effect a written Broad Form Renters insurance policy, number 93990-09-45, hereinafter referred to as "the policy," issued to plaintiff as the insured by defendants and covering theft of personal property, which would include and not be limited to: works of art and associated provenance, jewelry, electronic equipment, electronic information, electronic information storage equipment, and cash. A copy of said policy is attached hereto, marked Exhibit "A", and made a part hereof by this reference thereto. Implied in the policy was a covenant by defendants that defendants would act in good faith and deal fairly with the insured and that defendants would do nothing to interfere with the rights of the insured to receive the benets of the policy. HI

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

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7. O n or about September 25, 2009, while the policy was in full force and effect, a theft was committed at the premises described in the policy, and the following described property covered by the policy was removed, without plaintiff's knowledge or consent, from the interior of the premises: Refer to plaintiffs Amendment to Proof of Loss, marked Exhibit "B" attached hereto, and made a part hereof by this reference thereto. Neither all nor any part of the property has been recovered or returned to plaintiff. By reason of this felonious removal, plaintiff sustained a loss by theft in a sum greater than $500,000.00. 8. B y the provisions of the policy defendants represented to plaintiff that if plaintiff complied with all the terms and conditions of the policy defendants would pay the plaintiff the amount of damages up to the policy limit. Plaintiff has duly complied with all the terms and conditions of the policy on his part to be performed, has given defendants due and timely notice of the theft, has given defendants due and timely notice regarding proof of loss and was legally entitled to recover from the aforementioned policy of insurance. Consequently, plaintiff became entitled to receive from the defendants payment in the amount of $500,000.00, the policy limit, for loss of personal property as a result of theft. 9. A t all times herein material, defendants knew that defendants were obligated to pay plaintiff the full insurance policy limit. 10. Notwithstanding defendants' knowledge of its obligation defendants have denied coverage under the policy of insurance. 11. P l a i n t i f f hasdemanded of defendants payment in the sum of $500,000.00, as alleged in Paragraph 8, above, but defendants have failed and refused, and continue to fail and refuse, to pay plaintiff that sum or any part of it, and there is now due, owing, and unpaid from defendants to plaintiff the sum of $500,000.00. 12. A s a direct and proximate result of defendants' failure and refusal as herein alleged, plaintiff has been damaged in the sum of $500,000.00 due under policy and unpaid, together with interest on that sum at the legal rate of 10% per annum according to proof III

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SECOND CAUSE OF ACTION (BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING) 13. P l a i n t i f f re-alleges and incorporates by reference each and every allegation contained in paragraph 1-12 of this complaint and incorporates same by reference as though set forth in full. 14. Defendants at all times relevant herein, had a duty to act fairly and in good faith with Plaintiff in meeting its responsibilities under the policy issued by Defendants in which it insured plaintiff. 15. I m p l i c i t in the policy is Defendants' obligation to act fairly and in good faith, with its insured, plaintiff, by promptly investigating any claims. 16. Defendants breached their duty to act fairly and in good faith towards Plaintiff and acted in bad faith by: a. Wrongful implication of the plaintiff in the claim of loss under the policy of insurance by wrongfully accusing plaintiff's associate, Angelo Amadio of complicity in the aforementioned theft, refer to Farmers letter dated April 22, 2011, marked Exhibit "C", and made a part hereof by this reference thereto; refer to Farmers letter dated June 22, 2011, marked Exhibit "D", and made a part hereof by this reference thereto; and plaintiff's attomey's letter dated May 12, 2011, marked Exhibit "E", and made a part hereof by this reference thereto. b. Overzealous attempts to disprove the plaintiff's claim by obtaining incomplete investigative reports, Refer to Exhibits "C" and "D", and "E"; c. Failing to fully exhaust all sources of information available to defendants, refer to Exhibits "C", "D", and "E"; d. Demanding information at the beginning of the investigation in an unreasonable timeframe and at an unreasonable pace for the purpose of inducing inconsistencies in testimony and evidence upon which to base a denial of the claim of loss under the policy of insurance; e. Calculating to avoid the obligations of defendants' under the policy of insurance by failing to conduct a further and full investigation and further and full Examinations

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

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1 and Statements Under Oath to conrm, corroborate or repudiate testimony and evidence 2 obtained from all sources, refer to Exhibits "C", "D", and "E"; 3 4 5 6 7 8 f. Calculating to avoid the obligations of defendants' under the policy of insurance by purposefully misstating the testimony of plaintiff during his Examination Under Oath and plaintiff's associate Angelo Amadio's Statement Under Oath, and thereupon basing defendants' denial of plaintiff's claim under the policy of insurance, refer to Exhibits "C", "D", and "E"; g . Calculating to avoid the obligations of defendants' under the policy of

9 insurance by purposefully denying the plaintiff's claim of loss without stating specic bases; and 10 b e i n g purposefully vague, ambiguous and conclusory in defendants' statements supporting 11 d e n i a l of plaintiff's claim of loss, refer to Exhibits "C", "D", and "E"; 12 h . Attempting to appear to act in "good faith" by stating in defendants' letter of

13 A p r i l 22, 2011, refer to Exhibit "C", that defendants would reconsider defendants' denial of 14 coverage under the policy of insurance and continue to investigate the claim, when in fact 15 defendants had no intention of reconsideration of defendants' denial under the policy of 16 insurance and in fact did not reconsider the denial of plaintiff's claim under the policy of 17 insurance or conduct a further investigation to determine the veracity of plaintiff's claim; 18 i . Demanding information and documents not reasonably calculated to lead to

19 evidence that would prove or disprove plaintiff's claim of loss under the policy of insurance for 20 t h e sole purpose to harass, vex, annoy, and burden plaintiff in an effort to discourage the pursuit 21 o f his claim of loss under the policy of insurance; 22 j . Demanding information and documents for the sole purpose to harass, vex,

23 annoy, and burden plaintiff in an effort to discourage the pursuit of his claim of loss under the 24 p o l i cy of insurance; 25 k . Conducting an oppressive and lengthy Examination Under Oath of plaintiff in

26 a n effort to unduly harass, vex, annoy, and burden plaintiff in an effort to discourage his pursuit 27 o f his claim of loss under the policy of insurance; 28

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

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1.Conducting an oppressive and lengthy Statement Under Oath of plaintiff's associate, Angelo Amadio, in an effort to unduly harass, vex, annoy, and burden plaintiff in an effort to discourage his pursuit of his claim of loss under the policy of insurance; 17. A s a direct and proximate result of defendants' tortuous breach of the implied covenant of good faith and fair dealing, plaintiff is entitled to attorneys' fees and interest on said fees at the rate of 10% per annum, because plaintiff was compelled to obtain an attorney to collect on policy benets improperly withheld and due under the policy by defendants in an amount according to proof 18. A s a further direct and proximate result of defendant's wrongful conduct as herein alleged, plaintiff sustained emotional and mental distress and anguish, embarrassment, mortication, humiliation, and indignity, all to his general damage in the additional sum according to proof 19. I n committing the acts described in this complaint, defendants acted in conscious disregard of the rights of plaintiff and are guilty of malice, fraud, and oppression with the intent to willfully injure, harass, vex, and annoy its insured. The conduct of defendants warrant an assessment of punitive damages in an amount appropriate to punish defendants and to deter others from engaging in similar wrongful conduct. Al l of the aforementioned alleged acts were done or ratied by management level employees of defendants' who acted with knowledge that defendants' conduct would cause plaintiff harm. Plaintiff is therefore entitled to recover punitive damages pursuant to Civil Code of Procedure 3294, which has been held to allow the trebling of damages for bad faith insurance claims to redress unfair business practices in the insurance industry. /// /// ///

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WHEREFORE, PLAINTIFF PRAYS FOR JUDGMENT AGAINST DEFENDANTS AS FOLLOWS: 1. For the sum of $500,000.00 together with interest thereon at the legal rate of 10% per annum from a date according to proof; 2. General Damages for emotional distress according to proof; 3. For as attomey's fees in the sum according to proof incurred in collecting policy benets together with interest thereon at the legal rate of 10% per annum from a date according to proof; 4. For $1,500,000.00, treble damages, for the breach of the implied covenant of good faith and fair dealing; or in the alternative for punitive damages according to proof; 5. For costs of suit herein incurred; and 6. For such other and further relief as the court may deem proper. Date: Respectfully submitted,
LAW OFFICES OF CHRISTOPHER C. CAYCE

By:

Christoph r C. Cayce Attorney for Plaintiff

Complaint For Breach of Contract and Breach of Implied Covenant of Good Faith and Fair Dealing

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