Credit Suisse Lending Trust USA v. Transamerica Life Insurance Company

I. INTRODUCTION

Plaintiffs filed this action against defendant Transamerica Life Insurance Company (“Transamerica”) on March 16, 2020. Dkt. 1 (“Compl.”). Plaintiffs’ complaint asserts the following claims for relief: (1) breach of contract; (2) breach of the implied covenant of good faith and fair dealing sounding 1n contract; (3) breach of the implied covenant of good faith and fair dealing sounding in tort: (4) conversion; and (5) declaratory relief. Id. The gravamen of plaintiffs’ complaint is that Transamerica wrongfully increased the monthly deduction rates (“MDRs’”) of certain universal life insurance policies. See generally id. On May 19, 2020, Transamerica filed a motion to dismiss. Dkt. 26- (“Mot.”). Plaintiffs filed an opposition on June 22, 2020. Dkt. 34 (“Opp.”). Transamerica filed a reply on June 29, 2020. Dkt. 35 (“Reply’). The Court held a hearing on July 13, 2020. Having carefully considered the parties’ arguments, the Court finds and concludes as follows. Il. BACKGROUND A. The Parties Plaintiff Primary MasterBareAF PTC Limited is the trustee of CSSEL Guernsey Bare Trust, which is domiciled in Guernsey. Compl. § 23. Plaintiffs…