Brandt
Brandt v. American Bankers Ins. Co. of Florida
Opinion
Opinion
Gonzalez, J.
Todd and Karen Brandt appeal the district court’s order granting American Bankers Insurance Company’s motion to set aside default judgment for excusable neglect under Fed.R.Civ.P. 60(b)(1). The Brandts argue that once the district court concluded American Bankers acted culpably in failing to respond to the complaint, it was precluded as a matter of law from setting aside the default judgment.
We hold that the district court applied the correct legal standard, and that it did not abuse its discretion.
Background
American Bankers issued a flood insurance policy to the Brandts under the National Flood Insurance Program, 42 U.S.C. §§ 4001 et seq., and its related regulations. After the Brandts’ home flooded in December of 2007, the Brandts submitted a claim to American Bankers. Although American Bankers paid a portion of the claim, the Brandts believed the payment was too low.
The Brandts brought suit against American Bankers in the U.S. District Court for the Western District of Washington, alleging breach of contract and bad faith under Washington law. The Brandts served process on American Bankers through the Office of the Insurance Commissioner for the State of…