Southwest Portland couple whose house slid down hill gets $274,000 [The Oregonian, Portland, Ore.]

Apr. 3--A Multnomah County jury today denied a Portland couple's claim against their insurance company after the insurer refused to cover damages to their house, which was destroyed when it slid down a hill in 2008.

An attorney for Farmers Insurance had argued that the damage to Dave and Kathei Hendrickson's house in Southwest Portland was caused by a landslide, which was not covered by their policy.

"I'm disappointed," said Kathei Hendrickson. "We don't think it was a landslide."

But the jury agreed that Farmers should pay the Hendricksons more than $274,000 for the loss of personal belongings and nearly $13,000 for living expenses incurred after their home was destroyed.

They had sought more than $3 million.

The trial pitted the Hendricksons, whose home was destroyed on Oct. 8, 2008, against Farmers, the company that insured their house at 6438 S.W. Burlingame Place.

Kathei Hendrickson was home alone that morning when she heard creaking and buckling about 5:30 a.m.

She ran to the door as the house began to slide down the hill. Hendrickson slid with the house on a slab of concrete before she grabbed the bottom rung of a ladder being held by a neighbor, who had rushed to help.

"The Hendricksons appear before you today not just seeking to rebuild a house, but seeking to rebuild a life," Hendrickson attorney Robert Bonaparte told the jury during closing arguments on Thursday.

The key issue in the case was how exactly to define the slide that destroyed the house.

Bonaparte argued that the slide was caused by a retaining wall that failed. He claimed that a massive discharge of water into the soil created the pressure that broke the wall.

But an attorney for Farmers, Francis Maloney III, argued that the company did not have to pay for the damage to the house because it was destroyed by what the policy called "earth movement," or a landslide.

Maloney declined to comment after the verdict.

Bonaparte warned homeowners to make sure they understand what kind of coverage they have.

"The issues in insurance coverage are very difficult," he said. "People need to be especially alert to the type of coverage they have."

The suit is one of several filed in connection with the slide that destroyed the Hendricksons' home and damaged others nearby.

-- Stephen Beaven

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