Bianchi

AMENDED ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ SECOND CAUSE OF ACTION AND GRANTING DEFENDANTS’ MOTIONS TO STRIKE

I. INTRODUCTION

Defendants move to dismiss Plaintiffs’ state law claim for breach of the implied covenant of good faith and fair dealing and to strike their prayers for punitive and emotional distress damages and attorneys’ fees on the ground that the National Flood Insurance Act of 1968 (“NFIA”) preempts such a state law claim. The Court finds that the state law claim is barred by the NFIA and dismisses it from this case. In addition, remedies sought by Plaintiffs are disallowed by NFIA and thus, the Court orders the prayer for punitive damages, emotional distress damages and attorneys’ fees stricken.

II. BACKGROUND

In February 1997, Plaintiffs Robert and Janet Bianchi purchased flood insurance from Defendant State Farm and Casualty Company through its authorized agent Ron Emilio. The policy was issued pursuant to the National Flood Insurance Act (“NFIA”) of 1968. Ron Emilio sold to Plaintiffs a standard State Farm flood insurance policy which insured the “dwelling” of Plaintiffs’ home at 1530 Dana Avenue, Palo Alto, California, against loss of…