Bialo

Ari and Flora Bialo appeal from the summary judgment dismissing their first party insurance bad faith case against Western Mutual Insurance Company (Western), their homeowners insurer during the Northridge earthquake. The case arose from Northridge earthquake damage to the Bialos’ home. Western obtained summary judgment solely on statute of limitations grounds. Specifically, the case involves the applicability of newly enacted Code of Civil Procedure section 340.9 (Stats. 2000, ch. 1090, § 1), which extends the limitations period for some Northridge-related cases. (All further undesignated section references are to the Code of Civil Procedure.)

The Bialos timely submitted a claim for earthquake damage, which Western paid. Later, the Bialos found additional damage. The Bialos eventually filed a second claim with Western, but not within the reporting period required by their policy. When Western rejected the second claim, the Bialos brought this case. The Bialos filed their case, the summary judgment was issued, and the Bialos timely appealed, all before January 1, 2001, section 340.9’s effective date.

Section 340.9 states: “(a) Notwithstanding any other provision of law…