Northland Casualty Co. v. Wescal Yachts, Inc.
Opinion
Opinion
Pregerson, J.
ORDER DENYING COUNTERDE-FENDANT’S MOTION TO DISMISS COUNTERCLAIM
The counterdefendant’s motion to dismiss the counterclaim came before the Court for oral argument on June 28, 1999. After reviewing and considering the materials submitted by the parties and hearing oral argument, the Court denies the motion.
BACKGROUND
Defendant Kenneth Buck (“Buck”) owned a yacht which the plaintiff North-land Casualty Company (“Northland”) insured against loss. The yacht sank in March 1996. Northland paid Buck the policy limit of $500,000.
Subsequently, Northland sued Buck and others for negligence, breach of warranty and misrepresentation surrounding the sinking of the yacht.
Buck claims that Northland’s actions constitute an attempt to rescind the insurance contract. Northland does not dispute this characterization. Buck filed a counterclaim against Northland alleging that Northland’s conduct states a claim for breach of the implied covenant of good faith and fair dealing.
Northland has moved to dismiss Buck’s counterclaim under Rule 12(b)(6). Northland argues that Buck’s counterclaim is, in effect, a claim for malicious prosecution. Northland argues that as such Buck’s counterclaim is…