Bethany Bowers (Bowers) filed a lawsuit against Farmers Insurance Exchange (Farmers) after most of her claim was denied. Bowers’ rental dwelling was insured under a Farmers Landlord’s Insurance Policy. During the policy term, Bowers had rented her home to tenants who, unknown to her, used the dwelling to grow marijuana, causing damage throughout. Farmer’s replaced warped paneling but denied other damage. A lower court decided against Bowers, ruling that the policy had no obligation to respond and she appealed.
Upon appeal, the higher court reviewed the issue. Bowers’ tenants made significant changes to her property. The basement was used to grow marijuana, assisted by installing halide (heat-generating) lights, walls were covered throughout the home and the flow of the residence’s furnace was diverted to the basement. While optimizing the ability to grow plants, the changes also created heavy moisture and condensation. Besides warped paneling, mold grew and covered most surfaces. The mold damage was deemed to be excluded and a lower court agreed with Farmer’s position that the policy’s exclusion regarding mold applied and that the policy’s vandalism coverage was inapplicable.
The higher court read the vandalism issue differently. It considered that the renters acted in a manner that demonstrated disregard for the inevitable damage they caused by the installation and use of the special lights, diverting the residence’s heat and sealing the home. The court based its decision on interpreting vandalism and malicious mischief as including willful and wanton acts. In its view, the renters’ alterations were deliberate and foreseeably created harm, so their acts rose to a level that constituted V&MM.
The lower court decision was reversed in favor of Bowers. The case was remanded to rule on damages consistent with the higher court’s finding. Bowers was also awarded attorney’s fees.
Bethany Bowers, a single woman, Appellant, v. Farmers Insurance Exchange, a foreign insurance corporation, Respondent. Court of Appeals of Washington, Division 3. No.18306-8-III. Filed January 25, 2000/Amended March 7, 2000. Reversed and Remanded. Westlaw 991 P. 2d 734.
