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CLA Milton LLC v. N. Am. Elite Ins. Co.

Arizona Breach Action Facially Untimely Under Policy's Contractual Limitations Period

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OPINION & ORDER CLA Milton, LLC (“CLA”) brought this action against North American Elite Insurance Company (“NAEIC”) on November 11, 2020. Doc. 1. CLA filed an amended complaint on March 25, 2021. Doc. 18. The complaint alleges that NAEIC failed to pay CLA’s insurance claims related to water damage at their facility in Milton, Georgia, resulting in breach of contract and breach of the duty of good faith and fair dealing. Id. NAEIC now moves to dismiss the complaint under Fed. R. Civ. P. 12(b)(6). Doc. 19. For the reasons set forth below, the motion to dismiss is GRANTED. I. BACKGROUND The following facts are based on the allegations in the Amended Complaint, which the Court accepts as true for purposes of the instant motion. See, e.g., Koch v. Christie’s Int’l PLC, 699 F.3d 141, 145 (2d Cir. 2012). CLA is an Arizona limited liability company with its principal place of business in Scottsdale, Arizona. Doc. 18 1. CLA operates numerous child and teen daycare facilities, including a facility in Milton, Georgia which is the subject of this lawsuit. Id. 7. NAEIC is a New Hampshire corporation with its principal place of business in Kansas City, Missouri. Id. 2. NAEIC is an insurance company that insured CLA against commercial property damage and business interruption from December 5, 2017 to February 1, 2019, with extended periods of liability for certain types of losses. Id.

8-9; Doc. 18-1. On approximately January 4, 2018, CLA’s Milton, Georgia facility experienced substantial water damage, particularly to the facility’s bowling alley and infant room. Doc. 18 11. CLA timely notified NAEIC of the commercial property damage. Id. 12. CLA alleges that NAEIC then refused to timely pay for the uncontested damages, despite conceding that the claim was covered under the policy, by delaying the claims adjustment process through May 2020. Id.

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