Fire destroyed a home owned by Steve and Jimmie Norman in Etowah County, Alabama, in July 2015. Liberty Mutual Fire Insurance Company provided coverage for the losses through a homeowner’s insurance policy. Liberty Mutual engaged ProFire to rebuild the home. ProFire rebuilt the home using the original foundation and other “salvaged” materials and issued a three-year express warranty for its work. During the warranty term, the Normans repeatedly notified Liberty Mutual of “problems with their home,” and Liberty Mutual represented it would engage a thirdparty contractor to address the problems. Liberty Mutual’s representation was not memorialized in a written agreement.
Liberty Mutual never engaged a contractor to address the Normans’ complaints regarding ProFire’s performance. The Normans sued Liberty Mutual for breach of the insurance contract. The Normans alleged Liberty Mutual failed to repair or replace their home or assure that its payment resulted in an adequate repair or replacement. Liberty Mutual moved to dismiss the Normans’ complaint.
1. How should the court decide this case?
2. Was Liberty Mutual’s retention and payment of ProFire sufficient to satisfy its obligations under the insurance contract? Why or why not?