Avila

MEMORANDUM OF DECISION AND ORDER

The Court has for determination the question of whether one or the other or both of defendant’s motions, respectively, for judgment on the pleadings, or, in the alternative for summary judgment should be granted.

The motions are directed against plaintiff’s claim for damages by reason of the asserted wrongful manner in which the defendant insurance company processed and settled the plaintiff’s wrongful death claim against the defendant’s then-assured.

The action is brought pursuant to this Court’s diversity jurisdiction, and the substantive law of California is applicable.

The principal issue is whether the rule of law announced in a recent decision by the California Supreme Court should be applied retroactively to the defendant here. The issue raised is one which, in reason, ought properly to be first decided by a state court appellate tribunal. However, the law is clear that this Court cannot, under the doctrine of abstention, reason or otherwise, avoid its obligation to entertain the litigation and resolve the question of California law which is now presented.

A federal court is particularly reluctant to decide a novel question of state law…