A decision concerning the city of Hollister’s attempt to legally
force an insurance company to make good on a $1 million policy
involving a burned-down building at the Hollister Airport won’t be
final until mid-January, according to the city’s attorney.
Hollister – A decision concerning the city of Hollister’s attempt to legally force an insurance company to make good on a $1 million policy involving a burned-down building at the Hollister Airport won’t be final until mid-January, according to the city’s attorney.
A trial involving the city versus the Monterey Insurance Company ended Tuesday at the Monterey County Superior Court after five days of testimony and presenting evidence, said City Attorney Elaine Cass.
“I feel the city presented a very good case,” Cass said.
Irene Yesowitch, attorney for the insurance company, did not return phone calls Thursday.
The city filed a lawsuit against the Monterey Insurance Company several months ago, claiming it has not paid for the rebuilding of Building 25 that burned down in November of 2002, according to city officials.
The judge who heard the case requested that briefs containing summary arguments of all the evidence presented at trial be submitted by the city by Nov. 1, and by the insurance company about a month later, Cass said.
The judge should render a decision around mid-January on whether the insurance company will have to compensate the city on a policy close to $1 million, Cass said.
Building 25 was a 60-year-old building that was used as a storage facility and meeting place for several organizations and businesses. It burned down accidentally from an overheated light bulb hanging over combustible material, fire officials have said.
Several months later the city demolished the building, and the insurance company paid only $58,000 for the building – which was about half the demolition costs, Cass said.
The city sent many letters to the company, requesting it pay the needed money to rebuild the building, but it didn’t respond and the city finally filed a suit after about two years of haggling with the company, Cass said.
“The insurance company admitted it made mistakes (during the trial),” she said. “Basically this insurance company delayed the city in its ability to move forward to obtain a construction contract to rebuild the building at the airport.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or em*******@fr***********.com
