Smith v. Allstate Insurance
Opinion
Opinion
Rhoades, J.
ORDER GRANTING DEFENDANT ALLSTATE’S MOTION TO DISMISS PLAINTIFFS’ SECOND CAUSE OF ACTION FOR FRAUD
I. Overview
Plaintiffs Christopher and Laura Smith (“Plaintiffs”) filed suit in California state court against Defendants Allstate Insurance Company and Does 1-30 alleging three .causes of action: (1) breach of duty of fair dealing and good faith; (2) fraud; and (3) declaratory relief. Defendant Allstate Insurance Company (“Allstate”) removed this action to federal court under 28 U.S.C. § 1441 (a) and then moved to dismiss Plaintiffs second cause of action for fraud. The Court has jurisdiction under 28 U.S.C. § 1332 . For the reasons state below, the Court grants Allstate’s motion.
II. Background
On May 1, 2000, Plaintiffs purchased a homeowner’s insurance policy from All state. (Compl.¶ 3, Ex. A.) The policy stated that Allstate would indemnify Plaintiff for fire damage to their home and that Plaintiffs would be “in good hands” with Allstate if they suffered a loss. (Compl.¶ 12.) On May 6, five days after purchasing the insurance policy, Plaintiffs’ home suffered extensive fire damage. (Compl.¶ 5.) The next day, Plaintiffs made a claim for indemnification. (Compl.¶…