Christian Dichter & Sluga recently secured victory for a client insurance company before the Ninth Circuit in an appeal over coverage for a $1,500,000 Morris Agreement. Appellant, as the assignee of a putative insured, alleged claims for breach of contract, waiver/estoppel and insurance bad faith arising from the insurer’s denial of adjustment of an automobile incident. CDS first represented this client before the U.S. District Court in Arizona, prevailing on a Motion for Summary Judgment on all claims. The court found Appellant was not entitled to coverage under the Policy, and CDS’ client was not estopped from asserting various coverage defenses. CDS also prevailed on Appellant’s Motion for Reconsideration.
Appellant pursued an appeal to the Ninth Circuit, where CDS convinced the Court to uphold the District Court’s Order in the client’s favor. The Order was issued following the briefing, without need for oral argument. Appellant then filed a Petition for Rehearing and CDS responded to the Petition. CDS once again prevailed against Appellant’s Petition for Rehearing.
The matter turned on established principles of Arizona insurance law, specifically, that claims of bad faith, waiver and/or estoppel of coverage defenses, all require a showing of resultant harm or prejudice to the party asserting these type of claims.
