Smith v. Stonebridge Life Ins. Co.

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT AND DENYING DEFENDANTS MOTION FOR PARTIAL SUMMARY JUDGMENT

I. INTRODUCTION

Plaintiffs Terri Smith and Michelle Smith Fregoso (“Plaintiffs”) brought this action against Stonebridge Life Insurance Company (“Stonebridge”) for breach of contract and tortious bad faith. Plaintiffs’ claims arise from Stonebridge’s denial of their claim for benefits under an accidental death insurance policy following their mother’s death from an overdose of prescription pain medication.

Stonebridge filed a Motion for Partial Summary Judgment (“Defendants Motion”) on the breach of contract claim on August 13, 2008. Plaintiffs filed their own Motion for Partial Summary Judgement (“Plaintiffs’ Motion”) on the breach of contract claim on August 15, 2008. The Court held a hearing on the cross-motions on September 26, 2008 at 9:30 a.m. For the reasons stated below, Defendants’ Motion is DENIED, and Plaintiffs’ Motion is GRANTED in part and DENIED in part.

II. BACKGROUND

A. Facts

Diane Geraldine Hall-Hussain (“Hall-Hussain”) was insured under an accidental death/dismemberment policy (the “Policy”) issued to her by…