Walsworth’s Bad Faith Team Wins Significant Victory After Three-Day Trial

Congratulations to the Walsworth Bad Faith Team, Partner Jean Daly, Senior Counsel Christy Gargalis and Angela Martin, and Senior Paralegals Penny Gutierrez and Michelle MacKay, on their recent federal court win for Walsworth’s insurance carrier client.

The plaintiff/insured filed a complaint arising from her insurance carrier’s denial of a claim arising from a 2017 home burglary. The plaintiff sought over $450,000 for policy benefits related to structural and personal property damages and stolen personal property, in addition to attorney’s fees and punitive damages. The operative complaint asserted causes of action for breach of contract, breach of the duty of good faith and fair dealing, promissory estoppel, bad faith denial of a first-party property damage claim, and fraud.

After prior counsel removed the matter to the United States District Court, Central District of California, the Walsworth team stepped in to defend the insurance carrier and took an aggressive approach to the defense through targeted discovery and motion practice. In April 2023, the Court granted, in part, the insurer’s summary judgment motion, resulting in a dismissal of the causes of action for breach of the duty of good faith and fair dealing, promissory estoppel, bad faith denial of a first-party property damage claim, and fraud. Thus, trial preparation began on the sole cause of action for breach of contract.

The three-day jury trial began on May 27, 2025. After the plaintiff rested, Walsworth’s team noted that even with factual stipulations and extensive arguments, the plaintiff had failed to submit admissible evidence on which the jury could calculate any damages. The Walsworth team then moved for judgment as a matter of law on the grounds that the plaintiff failed to submit sufficient admissible evidence to establish a cause of action for breach of contract under Federal Rule of Civil Procedure 50(a). After careful consideration, the Court granted the motion — determining that no reasonable jury could rule in favor of the plaintiff. Specifically, the Court found that the plaintiff failed to provide admissible evidence upon which a jury could calculate any actual damages.

“This serves as a reminder that, as counsel, we must ensure that we address each element of every claim or affirmative defense we present to a jury. However, it was the Walsworth Bad Faith Team’s attention to detail and pointing out this fatal flaw in the plaintiff’s case that established a significant victory and is a testament to the strength of our case preparation and courtroom execution,” said Partner and lead trial counsel Jean Daly.  

Another great win for the Walsworth Bad Faith Team — congratulations to everyone involved!