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Thomas L. Moffett, Ii, et al. v. Computer Sciences Corporation

January 13, 2011

THOMAS L. MOFFETT, II, ET AL. PLAINTIFFS,
v.
COMPUTER SCIENCES CORPORATION, ET AL. DEFENDANTS.



The opinion of the court was delivered by: Dennis M. Sweeney Special Master

REPORT AND RECOMMENDATION CONCERNING THEWAIVER CLAIM OF RICHARD CONROY AND BERNICE MYER

This constitutes the Report and Recommendation to the Court concerning the waiver claim of Richard Conroy and Bernice Myer pursuant to Part 1.f of the Memorandum Order of the Court (Document 467). In preparing this report, the Special Master reviewed the motions, memoranda, affidavits and exhibits provided in connection with the process specified in the Memorandum Order. As necessary, the Special Master also reviewed other documents that are part of the Court filings in this case. The Special Master was also provided by the Federal Emergency Management Agency ("FEMA") the computer disc of the "appropriate documents of record" for this claim, as specified in Part 1.a of the Memorandum Order. In this case, the documents consist of 1,179 pages labeled FEMA-000001 to 001179.

I. Background

In this particular case, Plaintiffs' property located at 8922 Hinton Avenue, Lot 1323 Swan Point, Baltimore, Maryland, was insured by Standard Fire under Policy Number 6-0023-4396-7 for dwelling coverage in the amount of $183,900.00 and personal property of $16,600.00, each subject to a $1,000.00 deductible. See FEMA-000149. The original home had been constructed in 1945. Id.

On September 19, 2003, Hurricane Isabel made landfall in Maryland, and Plaintiffs' home was damaged by flooding. See FEMA-000262. On October 6, 2003, Plaintiffs filed their first Proof of Loss ("POL") with Standard for $73,211.47 for building and contents losses. FEMA-000287. On October 21, 2003, a check was issued to Plaintiffs in the amount of $56,613.97 for building coverage. FEMA-000153. On October 21, 2003, Plaintiffs were issued a check in the amount of $16,597.50 for their contents coverage, paying the above-referenced Proof of Loss in full. FEMA-000152.

On January 7, 2004, Plaintiffs filed an Increased Cost of Compliance ("ICC") Proof of Loss in the amount of $3,500.00. See FEMA-000487. On January 22, 2004, a partial payment of $1,750.00 was issued on Plaintiffs' ICC POL. See FEMA-000155. On February 12, 2004, Plaintiffs were issued a check for the remaining $1,750.00 payment on this ICC Proof of Loss. Id.

On February 4, 2004, Plaintiffs filed a further ICC Proof of Loss in the amount of $13,250.00. FEMA-000164. On February 18, 2004, Plaintiffs were issued a check for $13,250.00 as full payment for this second ICC claim. FEMA-000154. Plaintiffs then filed a third ICC POL for an additional $13,250.00. FEMA-000180. On May 11, 2004, a check for $13,250.00 was issued to Plaintiffs, which brought Plaintiffs' total compensation on their ICC coverage to $30,000.00, the maximum amount allowed under ICC coverage. FEMA-000176. On May 6, 2004, Plaintiffs were informed that, under their policy, they qualified for replacement cost coverage in the amount of $10,531.55. On May 6, 2004, a check was issued to Plaintiffs for $10,531.55 for the replacement cost coverage. FEMA-000779 and FEMA-000807. Plaintiffs were asked to furnish additional documentation to support a supplemental payment of $7,211.65. On May 25, 2004, Standard Fire issued a check to Plaintiffs for $7,211.65; FEMA-000807. Plaintiffs then requested a review by FEMA's Hurricane Isabel Task Force ("Task Force").

The claim was reviewed by the Task Force three times: July, August, and October 2004. FEMA-000752 through FEMA-000753, FEMA-000798, FEMA-000813 and FEMA-000814. As a result of the Task Force reviews, Plaintiffs' claim was supplemented with a new proof of loss totaling $90,125.78 for the full cost to repair or replace their home. See FEMA-000857. On July 30, 2004, Standard Fire received Plaintiffs' signed and sworn POL dated July 26, 2004. This was an increase of $13,941.45 over the first Proof of Loss. See FEMA-000857.

On August 30, 2004, Plaintiffs received a final loss payment from Standard Fire in the amount of $13,941.45, representing the full balance on the unpaid portion of the foregoing Proof of Loss. See FEMA-000811 and Doc. No. 364.2 (copy of executed check).

On October 5, 2004, after the third review by the Task Force, Plaintiffs were notified that they were not entitled to any further payments under their flood policy. FEMA- 000749.

Ultimately, Plaintiffs had received payments totaling $134,895.62, including dwelling coverage, contents coverage, and ICC for their 2003 flood claim. FEMA-000807 and FEMA-000811. Plaintiffs did not repair their home, but decided to demolish their home and build a new, larger home. FEMA-000187 and FEMA-000188.

II. Waiver Claim and Denial

On February 25, 2008, Plaintiffs submitted a waiver application. See FEMA-000001 through FEMA-0000009. Plaintiffs claimed a shortfall of $60,997.71. FEMA-000005 and 000025. On July 31, 2008, Plaintiffs' waiver application was denied because it was untimely, and because Plaintiffs failed to show that the additional compensation ...


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