Judge: Matthew C. Braner, Case: 37-2023-00000652-CU-PA-CTL, Date: 2024-02-23 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

DEPT.:

EVENT DATE:

EVENT TIME:

HALL OF JUSTICE

TENTATIVE RULINGS - February 22, 2024

02/23/2024  09:00:00 AM  C-60 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Matthew C. Braner

CASE NO.:

CASE CATEGORY:

EVENT TYPE:

CASE TITLE: CASE TYPE:

Civil - Unlimited  PI/PD/WD - Auto Demurrer / Motion to Strike 37-2023-00000652-CU-PA-CTL BORNYEK VS FARMERS INSURANCE [IMAGED] CAUSAL DOCUMENT/DATE FILED:

Defendant Mid-Century Insurance Company's demurrer is SUSTAINED.

Defendant's motion to strike is DENIED as moot.

Defendant's request for judicial notice of the arbitration decision rendered in USAA Casualty Insurance Co., as subrogee of Craig Bowden v. Mid-Century Insurance Company (March 23, 2021), is granted.

As a preliminary matter, the court notes that Defendant's motions are directed at a first amended complaint, but an FAC was never filed. Nonetheless, Defendant attached a copy of the FAC to each of its motions. (ROA #21, Ex. C; ROA #25, Ex. C.) In consideration of Plaintiff's pro se status, and to facilitate a timely resolution of the issues raised in Defendant's motions, the court will deem the FAC attached to Defendant's motions as filed on June 16, 2023, the date attorney Lemieux confirmed receipt of the amended pleading.

A demurrer shall be sustained if the pleading 'does not state facts sufficient to constitute a cause of action.' (Code Civ. Proc., § 430.10, subd. (e).) To test the sufficiency of a cause of action, the court treats as true 'all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law.' (Centinela Freeman Emergency Medical Associates v. Health Net of California, Inc. (2016) 1 Cal.5th 994, 1010.) The court may also consider matters that have been judicially noticed. (Id.) The court shall give the complaint a 'reasonable interpretation, reading it as a whole and its parts in their context.' (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.) Here, Defendant's demurrer is founded on the argument that neither cause of action in the FAC adequately states a claim. Defendant argues that Plaintiff's allegations cannot give rise to claims for breach of the insurance contract or insurance bad faith because the contract (which is attached to the FAC) affords Defendant the discretion to reasonably settle claims as it sees fit. The court agrees.

Defendant settled the underlying claim well within the policy limits and after arbitration of the dispute. As such, the claims cannot survive demurrer. (See New Plumbing Contractors, Inc. v. Edwards, Sooy & Byron (2002) 99 Cal.App.4th 799, 802 ['Under a policy provision giving an insurance company discretion to settle as it sees fit, the insurer is 'entitled to control settlement negotiations without interference from the insured,' and generally, it has no liability to the insured for settling within the policy limits. (Citation.) Thus, there is no cause of action where the insured claims the settlement injured its business reputation (citation), nor any where the insured claims the settlement unfairly used up its deductibles.'], quoting Western Polymer Technology, Inc. v. Reliance Ins. Co. (1995) 32 Cal.App.4th 14, 24; see also Hurvitz v. St. Paul Fire and Marine Ins. Co. (2003) 109 Cal.App.4th 918, 933-34 ['The law requires insurers to Calendar No.: Event ID:  TENTATIVE RULINGS

2995133  7 CASE NUMBER: CASE TITLE:  BORNYEK VS FARMERS INSURANCE [IMAGED]  37-2023-00000652-CU-PA-CTL settle third party claims whenever they reasonably can, in order to avoid the potential of a judgment that exceeds policy limits.'].) The court does not believe the defects with the complaint can be cured by amendment. The demurrer is therefore sustained without leave to amend. As to the motion to strike, given the court's decision to sustain the demurrer without leave to amend, the motion is moot and denied solely on that basis.

Defendant is instructed to give notice of this ruling to Plaintiff within two court days, and to provide a proposed judgment for the court's signature.

Calendar No.: Event ID:  TENTATIVE RULINGS

2995133  7