While it does not happen frequently, a decision does come out every once in a while where the facts are so compelling that an insurer can make out a case for attorney fees under 42 Pa.C.S.A. Section 2503. This is exactly what happened in the Superior Court’s decision in Scalia v. Erie Insurance Exchange, 878 A.2d 114 (Pa. Super. 2005).
After a fire caused extensive damage to Richard and Serena Scalia’s home, they submitted a claim to their homeowners’ insurer, Erie Insurance Exchange, for the property damage caused and for living expenses due to their displacement. Erie conducted an analysis of the fire scene and an investigation of the circumstances surrounding the cause of the fire. Based on the analysis and investigation, Erie declined the Scalias’ claim. In doing so, Erie contended that arson was involved in the fire and, more particularly, that the fire was set by or at the direction of the Scalias. Erie also contended that the Scalias had misrepresented facts about the fire and the repair costs they had incurred in their claim and during Erie’s investigation.
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