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South Bend Common Council President Sharon McBride is embroiled in a legal battle with Citizens Insurance Company of the Midwest and Hanover Insurance Company. In the lawsuit, the insurance companies raised questions about her residency, housing arrangements, and property maintenance.
The suit, initiated by South Bend Common Council President Sharon McBride against her insurance companies for what she described as a breach of contract and bad faith, has taken a turn with the defendants filing a motion for summary judgment. The core of their argument centers on Sharon McBride's alleged misrepresentation regarding her temporary housing arrangements and her failure to repair a home damaged in a storm over four years ago.
Residency Controversy
Key allegations in the lawsuit focus on Sharon McBride's living arrangements. While seeking funds for temporary housing through her homeowner's insurance policy, Sharon McBride claimed she intended to live in an Airbnb. Instead, according to court documents, since September 2020, she has been living with her mother (in her mothers 2nd District home), Delores Walker, and paying her mother cash rent. “(McBride) even misrepresented her temporary housing intentions to Defendants and has instead been living with family since September 2020,” the defendants state in their memorandum for summary judgment.
During a November 10th, 2023 deposition, Sharon McBride admitted to the following: Q· And you said you -- when after this all occurred ·did you move in with your mother?
A· I believe September 1st. Q· And is your mother Delores Walker? A· Correct.
Q· And you said you're still living with your mother at this time? A· Correct.
Q· Between September of 2020 and now, have you stayed anywhere else?
A· No, other than when I travel, of course.
Q· Do you travel for work or
A· Yes.
Q· -- personal travel too, I guess?
A· Do that as well, yes.
Q· During this time, did you look for any other accommodations or just exclusively stay with your mom?
A· No.· Actually, I did not want to live with my mom at the age of 50, but I felt that I had no other recourse.·
The defendants allege Sharon McBride failed to disclose her actual housing situation while receiving reimbursement for Airbnb fees amounting to $2,842.87. Notably, she never stayed at the Airbnb but cashed the check for the stated expenses, which is a critical point in the ongoing dispute.
Property Neglect
The residence in question, located at 415 East Broadway Street in South Bend, suffered significant water and mold damage during a weather event in August 2020. The insurance companies have contended that McBride did not fulfill her responsibility to repair the property despite receiving substantial payments.
Court records show that Citizens Insurance and Hanover Insurance provided McBride with $43,367.59 for expenses related to the damage, including $15,183.39 for dwelling repairs and $5,000 for mold remediation. However, they assert "McBride has made no efforts to begin repairs to the interior of her home, which have now been festering at this point for over four years."
Potential Fraudulent Activity
Another significant allegation concerns McBride’s handling of temporary housing funds and rent paid to her mother. Defendants claim McBride submitted invoices from her mother for monthly rent payments in cash ranging between $500 and $600, including an additional fee for dog-sitting services. These invoices were not initially disclosed to the insurance companies.
Furthermore, the defendants argue McBride has not demonstrated clear intentions to repair her property, an essential condition required to claim additional funds for property depreciation or further reimbursement for personal belongings. "(McBride) has made no indication that she intends to relocate permanently, but if she has tacitly elected to do so through her inaction to this point, four years is more than enough time for her to settle and adjust to her new living situation."
“McBride has allowed her residence to sit fallow and allowed the mold to proliferate during this litigation,” the memorandum reads.
It is noteworthy to mention that Sharon McBride has consistently retained the "homestead credit" on this property, even during the period when she resided at her mother's residence. If found in violation, McBride may owe back taxes and penalties associated with this property per IC 6-1.1-36-17. We Will Update As We Get More Information
Related Story
Read the Full Memorandum Below:
Read the McBride Deposition:
Delores Walker's (McBride's Mother) Housing Invoices:
AirBNB Invoice