Calistoga Ranch sued by homeowners over $100M insurance breach
The remains of Calistoga as seen in November, 2020, after the Glass Fire devastated the property.
Homeowners at Calistoga Ranch resort have filed a $100 million lawsuit against Auberge Resorts for failing to provide adequate insurance coverage for losses sustained in the Glass Fire.
The suit, filed July 7 in Napa County Superior Court, accuses Auberge of breach of contract, negligence, and constructive fraud, saying the management company “dramatically reduced insurance coverage on the property four months before the blaze, and never informed the homeowners.”
Calistoga Ranch, a luxury resort just off Silverado Trail, was destroyed in the 2020 wildfire, including 15 Lodges on the property. The private residences were owned in membership shares, and as of July 9, there were 218 plaintiffs consisting of individuals, companies, and trusts holding the majority of those shares, said Doug Elmets, a communications representative for Fenton Grant Mayfield Kaneda & Litt, LLP.
The lawsuit claims that Auberge was required to maintain $100 million in insurance to cover Calistoga Ranch. When homeowners turned to Auberge to file an insurance claim after the blaze, they discovered that the insurers claimed that the fire policy limit had been reduced, with only $58 million available, their attorneys said.
The suit alleges that in the summer of 2020 Auberge intentionally or negligently failed to purchase sufficient fire/casualty insurance to fully cover loss or property damage, and failed to notify the homeowners association.
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