SACRAMENTO – An insurance company alleges a business filed a claim and was issued a check despite the fact that its policy was canceled. It is seeking reimbursement.

General Star Indemnity Co. filed a complaint on March 24 in the U.S. District Court for the Eastern District of California against Thunderbutte Enterprises LLC, doing business as Sierra Nevada House, citing unjust enrichment.

According to the complaint, the plaintiff alleges that it provided coverage through an insurance broker to the defendant but that policy was later canceled by the broker in in November 2015 due to noncompliance with recommendations from a property inspector. The suit states that the Sierra Nevada House was damaged in a fire on Dec. 15, 2015, and that the defendant filed a claim for which the plaintiff issued a $100,000 check. The plaintiff holds Thunderbutte Enterprises responsible because the defendant allegedly received and accepted the payment from the plaintiff even after knowing that the policy has been canceled prior to the issuance of the check. General Star alleges it was never informed that the policy was canceled by the broker.

The plaintiff seeks the following: reimbursement for all amounts paid in advance for the loss, reimbursement of the $100,000, interest at the maximum rate allowed by the law, all legal fees and any other relief as this court deems just. It is represented by Alan H. Barbanel and Paul A. Impellezzeri of Barbanel & Treuer PC in Los Angeles.

U.S. District Court for the Eastern District of California Case number 2:16-cv-00628-MCE-AC

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