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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 THE WAIVER CLAIM OF LEO AND DAWN DARR

This constitutes the Report and Recommendation to the Court concerning the waiver claim of Leo and Dawn Darr 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 220 pages labeled FEMA-000001 to 000220.

I. Background

Plaintiffs' property located at 3836 Holly Drive, Edgewater, Maryland, was insured by State Farm Fire and Casualty Company ("State Farm") under Policy Number 90-RF-0225-9 with $129,300.00 in building coverage, subject to a $1,000.00 deductible. See FEMA-000005.

On September 18, 2003, Plaintiffs' covered property suffered damage as a result of Hurricane Isabel. See FEMA-000102. On September 20, 2003, Plaintiffs contacted State Farm to notify the company of their loss. See FEMA-000115.

On October 13, 2003, Plaintiffs submitted a Proof of Loss ("POL") claiming $28,142.53 in damages, which State Farm paid in full. See Doc. No. 294-2*fn1 at ¶¶13-14.

On December 5, 2003, Plaintiffs submitted a POL increasing their total loss to $39,367.33, id. at ¶15, an increase of $11,224.80 over the original POL. Id. at ¶15. State Farm paid this amount in full; id. at ¶16.

Plaintiffs sought review by the Hurricane Isabel Task Force ("Task Force"). On June 8, 2004, the Task Force completed its review and determined Plaintiffs were entitled to an additional net payment of $9,009.28. See FEMA-000083. On July 22, 2004, Plaintiffs submitted a supplemental POL for $9,009.28, which State Farm paid in full. See Doc. No. 294-2 at ¶¶17-18. Plaintiffs did not acknowledge this payment in their subsequent waiver application; see FEMA-000005.

On December 5, 2003, and July 22, 2004, Plaintiffs submitted two Increased Cost of Compliance ("ICC") coverage POL's for the policy limit of $30,000.00. See Doc. No. 294-2 at ¶ 9. State Farm made an initial payment of $12,855.00 on December 5, 2003, and paid the balance of $17,145.00 on July 26, 2004. Id. Plaintiffs were paid a total of $48,376.61 on their structure after application of the $1,000.00 deductible and the policy limit of $30,000.00 for ICC coverage. Plaintiffs were paid in full on every POL that had been approved by FEMA. Id. at ¶21.

Plaintiffs do not appear to contest the fact they were paid in full on all timely submitted POL's; see FEMA-000005. However, Plaintiffs decided to demolish their original structure and rebuild a larger one. See FEMA-000005.

II. Waiver Claim and Denial

On February 25, 2008, Plaintiffs submitted a waiver application; see FEMA-000001 through FEMA-000009. Plaintiffs claimed a shortfall of $75,195.82. FEMA-000005 and 000021. On August 18, 2008, Plaintiffs' waiver application was denied. See FEMA-000075 through FEMA-000076.

III. Reasons for Waiver Denial

In her Supplemental Declaration with Respect to the Claim of Leo and Dawn Darr (Document 484-2) at ΒΆΒΆ13-22, Karen Christian states ...


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