21st Century Insurance v. Superior Court

In 2000, in response to charges of rampant mishandling of insurance claims arising out of the Northridge earthquake of 1994, the Legislature enacted Code of Civil Procedure section 340.9 (section 340.9), which revived certain previously time-barred insurance claims. In 20th Century Ins. Co. v. Superior Court (2001) 90 Cal.App.4th 1247 [ 109 Cal.Rptr.2d 611 ], we concluded the statute revived not only contract claims, but also tort claims for bad faith. We also concluded the revival statute did not destroy vested rights in violation of the due process clause.

Plaintiffs and real parties in interest James and Jobeth Schwartz (plaintiffs) filed an action against 21st Century Insurance Company (21st Century) alleging claims for damages arising out of the Northridge earthquake. Their complaint alleged causes of action for breach of contract and bad faith. They sought punitive damages incident to their cause of action for bad faith. 21st Century moved for summary adjudication of the claim for punitive damages, on the basis that revival of a claim for punitive damages violates the ex post facto clause of the United States Constitution. The motion was denied. 21st Century sought…