MARK A. SUNDERMAN and JUDY K. SUNDERMAN, individually and MARK A. SUNDERMAN and JUDY K. SUNDERMAN, as next friend for and on behalf of their minor children MARK ALLEN SUNDERMAN, JR. and GABRIELLE SUZANNE SUNDERMAN v.

On February 17, 1994, fire broke out in a wall near a wood stove,
damaging the Sundermans' home in Laramie, Wyoming. The Sundermans
were insured by State Farm under a policy that provided three
types of coverage. The dwelling coverage included a "guaranteed
replacement cost" feature wherein State Farm agreed to pay the
reasonable costs of repairing or replacing the dwelling, if
necessary, in an amount exceeding the policy limit. The contents
of the home were covered on the basis of "replacement costs" up
to the policy's limit. The Sundermans also had "additional living
expenses" coverage; available to absorb additional expenses while
their home was uninhabitable due to fire. At the time of trial,
State Farm had paid the Sundermans a total of $176,510.85 under
the three coverages.

In May 1994, the Sundermans notified State Farm that no repair of
their home was acceptable, contending that Mrs. Sunderman and one
or both of the children suffer from a condition known as multiple
chemical sensitivity. According to the Sundermans, residual wood
smoke and chemicals left in the repaired dwelling would be toxic
to them. Therefore, nothing less than a total demolition of the
structure and a complete replacement of their house would be
sufficient.

State Farm responded by requesting some form of medical
documentation of the family's condition. The Sundermans then
contacted an attorney and future attempts to reconcile the
dispute were unavailing when no medical records were provided.[fn1]
The Sundermans filed a complaint on September 22, 1994, claiming
bad faith, negligent and/or fraudulent misrepresentation, agency
liability for alleged gaps in coverage, failure to meet
reasonable expectations, and the right to attorney fees and
punitive damages. The "reasonable expectations" claim was
dismissed pursuant to W.R.C.P. 12 and is not under appeal here.

Directed verdict for defendant.

Unknown

Unknown

Affirmed by the Supreme Court of Wyoming.