No Coverage for Alleged Misrepresentation Claim

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The underlying suit alleged that Coyne had was engaged in fraud, misrepresentation and concealment by omitting material facts in connection with the sale of the home.

January 23, 2023
Tred R. Eyerly - Insurance Law Hawaii

The court found there was no coverage for a misrepresentation claim against the insured sellers of a residence. Am. Family Mut. Ins. Co. v. Coyne, 2022 U.S. Dist. LEXIS 186417 (E.D. Mo. Oct. 12, 2022).

Aaron and Tobi Beckman purchased a home from Denise Coyne. The Bockmans alleged in the underlying suit that Coyne represented that the property had a "2-car garage." A disclosure statement signed by Coyne stated she had disclosed all conditions which might lower the value of the property or adversely affect the Bockman's decision to buy the property. After purchasing the property, the Bockmans learned that they could not fit their two vehicles in the attached garage. The Bockmans alleged that substantial remediation was necessary to expand the depth of the garage to fit two cars within it.

The underlying suit alleged that Coyne had was engaged in fraud, misrepresentation and concealment by omitting material facts in connection with the sale of the home. Coyne allegedly engaged in negligent misrepresentation by failing to inform the Bockmans of the depth of the attached garage.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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