Warren Restoration Co. vs. Northgate Shopping Center vs. State Auto Ins. Cos.

This is a dispute regarding the valuation of a strip mall for purposes of determining the applicability of a co-insurance penalty clause in Northgate Shopping Center's casualty insurance policy. In a bench trial, the trial court found the witness for Northgate to be more credible than the witness for State Auto Insurance Companies, and found the replacement cost of the building to be $3,068,000. Since the building was insured for $3,100,000, the co-insurance penalty did not apply. The trial court awarded Northgate judgment of $73,637.56, less a $1,000 deductible. This judgment included prejudgment interest of $16,107.00 assessed against Northgate and awarded to Plaintiff Warren Restoration, which had repaired areas of the mall damaged by fire. On appeal, State Auto challenges the trial court's acceptance of the valuation as determined by witnesses for Northgate, contends that the co-insurance penalty clause is applicable, and challenges the award of prejudgment interest. For the reasons set forth below, we affirm the trial court in all respects.