Gevork Payaslyan v. Allstate Indemnity Co.

MEMORANDUM

Gevork Payaslyan appeals the district court’s grant of summary judgment in favor of Allstate Indemnity Company. We affirm.

“An insurer denying or delaying the payment of policy benefits due to the existence of a genuine dispute with its insured as to the existence of coverage liability or the amount of the insured’s coverage claim is not liable in bad faith.” Wilson v. 21st Century Ins. Co., 42 Cal.4th 713 , 68 Cal.Rptr.3d 746 , 171 P.3d 1082, 1088-89 (2007) (quoting Chateau Chamberay Homeowners Ass’n v. Associated Int’l Ins. Co., 90 Cal.App.4th 335 , 108 Cal.Rptr.2d 776, 784 (2001)). Under California law, a bad faith claim can be dismissed on summary judgment if the insurer can show that there was a genuine issue as to the insurer’s liability. Guebara v. Allstate Ins. Co., 237 F.3d 987, 992 (9th Cir.2001). Here, there was a genuine dispute as to the amount owed to Payaslyan. There was a difference of opinion among experts as to whether Payaslyan needed epidural cortisone injections as a result of the covered accident. See id. at 993 .

Allstate’s delay in obtaining an independent medical evaluator and in paying the policy limits was not unreasonable under all the…