A-Mark Financial Corp. v. Cigna Property & Casualty Co.

In Bank of the West v. Superior Court (1992) 2 Cal.4th 1254 [ 10 Cal.Rptr.2d 538 , 833 P.2d 545 ], the Supreme Court held that an insurance policy which by its terms protected the insured against claims for “damages” caused by “unfair competition” arising from “advertising activity” did not cover claims for unfair competition brought under California’s Unfair Business Practices Act, which does not permit recovery of damages. The issue raised by this appeal is whether the holding in Bank of the West applies where the claims arose under Idaho’s version of the Unfair Business Practices Act and the Commodity Exchange Act, both of which contain a damage remedy. We conclude that it does.

The procedural history of this case is as follows: Appellants, A-Mark Financial Corporation, and its subsidiaries Spiral Metal Company and FI Holding, Inc. (collectively A-Mark) brought an action for breach of insurance contract, breach of the duty of good faith, and declaratory relief against its former insurers: (1) Insurance Company of North America (INA), incorrectly designated as CIGNA Property and Casualty Companies—Insurance Company of North America; (2) Pacific Indemnity Company,…