Lily 1993, Inc. v. Spinnaker Insurance Company

I. INTRODUCTION

On October 25, 2024, plaintiffs Lily 1993, Inc. (“Lily”) and Mariana’s Zillia Chocolatte Mariana’s Furniture (“Mariana’s”) (collectively “plaintiffs”) filed this action against defendants Spinnaker Insurance Company (“Spinnaker”) and Does through 50 (collectively “defendants”) in the Los Angeles Superior Court, alleging two claims for relief: (1) breach of contract and (2) breach of the implied covenant of good faith and fair dealing. Dkt. 1-1 (“Compl.”). On November 29, 2024, defendants removed the action to this Court on the basis of diversity jurisdiction. Dkt. 1. On December 23, 2024, Spinnaker filed the instant motion to dismiss. Dkt. 13 (“Mot.”). On January 6, 2025, plaintiffs filed their opposition. Dkt. 15 (‘Opp.”). On January 20, 2025, Spinnaker filed its reply. Dkt. 16 (“Reply”). On February 3, 2025, the Court held a hearing. Having carefully considered the parties’ arguments and submissions, the Court finds and concludes as follows. Il. BACKGROUND Plaintiffs allege the following facts: In around 2012, Lily purchased a hair salon and began operating the business. Compl. 4 1. Pursuant to the terms of the lease agreement with the…