The night before trial, the district court informed the parties that, because the case had been reduced to a simple contract dispute, the court would permit the parties one day each to present their case.
Jackson’s claims for unjust enrichment and estoppel were properly dismissed. That Jackson had to make mortgage payments after the fire was part of her breach of contract damages. The bad faith claim was properly dismissed since Allstate had substantial evidence that Jackson intentionally caused her house to be burned and materially misrepresented her role in causing the fire.
In addition, Jackson’s expert, could not say whether Allstate denied Jackson’s claim in bad faith. Under Arkansas law, “a claim based on the tort of bad faith must include affirmative misconduct by the insurance company, without a good faith defense, and . . . the misconduct must be dishonest, malicious, or oppressive in an attempt to avoid its liability under [the] insurance policy.”
The appellate court upheld the trial court’s pretrial rulings and rulings on the evidence. As to the mortgage payment, the Bank failed to provide a proof of loss for 2 years. When a proof of loss was provided, Allstate issued a check to the Bank, but Jackson would not agree to the funds being used to pay her mortgage. Presumably, Jackson wanted to get back some of her payments made after the fire. Allstate did not have to pay more than the Bank’s proof of loss.