Judge: Michael Small, Case: 20STCV03925, Date: 2024-12-10 Tentative Ruling

Inform the clerk if you submit on the tentative ruling. If moving and opposing parties submit, no appearance is necessary.

Case Number: 20STCV03925    Hearing Date: December 10, 2024    Dept: 57

The Court is denying Defendant California Fair Plan's motion for judgment on the pleadings as to the claim in the Second Amended Complaint ("the SAC") of Plaintiff Trancas Canyon, LLC for bad faith denial of insurance coverage and prayer for relief in the SAC for an award of punitive damages against California Fair Plan on the bad faith claim.  The allegations in the SAC are sufficient to state a claim against California Fair Plan that its denial of insurance coverage that is the subject of the FAC was done in bad faith.  The allegations in the SAC also are sufficient to support an award of punitive damages against California Fair Plan on the bad faith claim.  . 

The Court's statement of decision following the Phase 1 bench trial in this case that California Fair Plan's interpretation of the insurance policy on which the denial of coverage rested was a reasonable one does not, as a matter of law, overcome the sufficiency of the allegations in the SAC supporting the bad faith claim and the prayer for a punitive damages award.  . Put another way, the Statement of Decision does not compel the conclusion that California Fair Plan's motion for judgment on the pleadings must be granted.