A Tarzana surgery center is suing State Farm General Insurance Co., alleging the insurer has wrongfully denied compensation for roof and interior damage incurred during a Christmas Eve 2025 storm despite a policy that the plaintiff contends covers such destruction.
The Brand Tarzana Surgical Institute Inc.’s Los Angeles Superior Court lawsuit alleges breach of contract and the implied covenant of good faith. The complaint filed Monday also seeks a declaration of the rights and obligations of the parties as well as compensatory and punitive damages and attorneys’ fees.
A State Farm representative issued a statement regarding the suit.
“While we can’t comment on pending litigation, we know storm damage can be stressful and disruptive for any business,” the statement read. “Our policies, subject to their terms, cover accidental direct physical loss. We review every claim carefully based on the facts of the loss and the policy. We take every claim seriously, review the facts carefully and work to help customers move forward as quickly and fairly as possible.”
According to the suit, Brand Tarzana’s policy with State Farm covers all accidental physical damage to covered property unless the loss is specifically excluded. Wind and storm damage are among the covered items and the policy also provides for further coverage for business loss income during restoration periods and for expenses incurred to avoid or lessen the impacts of business suspensions, the suit further states.
After a severe Dec. 24 storm with high winds that constituted a state of emergency under state law struck Tarzana, the Ventura Boulevard business incurred displacement of roofing flashing as well as a separation of roofing materials from their foundational surfaces, plus other damage.
Rain poured into the building’s interior, damaging medical and surgical equipment that the plaintiff contends is covered under its State Farm policy, the suit states.
The surgery center’s interior was left partially unusable during the storm and subsequent remediation period, which included a disruption of operations during repair and remediation efforts, according to the suit.
A contractor hired by Brand Tarzana identified “wind lifted and displaced (roof) flashing” and other damage, the suit states.
Brand Tarzana quickly reported the losses in a claim, but State Farm assigned four different people to the case, denying the plaintiffs with adequate continuity and a reliable point of contact through whom management could obtain information about the claim’s status, the suit alleges.
State Farm’s subsequent denial of coverage attributed the Brand Tarzana building loss solely to “wear and deterioration” without addressing the contractor’s contrary findings, according to the suit, which further alleges that Brand Tarzana has not recovered lost income and has had to absorb the costs of roof repair, interior damage repair and restoration and replacement of damaged medical and surgical equipment.