Chandler v. State Farm Mutual Automobile Insurance

ORDER

We affirm for the reasons stated by the district court in its published opinion at 596 F.Supp.2d 1314 (C.D.Cal.2008), attached as Appendix A.

AFFIRMED.

APPENDIX A

UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA

Stuart Chandler, Plaintiff, v. State Farm Mutual Automobile Insurance Company, Defendant.

Case No. CV 08-03184 GAF (Ex)

ORDER & MEMORANDUM REGARDING MOTION TO DISMISS

I. INTRODUCTION

This putative class action presents the Court with the question whether an insur er is permitted to recoup a payout from a third-party tortfeasor’s insurance company before the insured has sued the third-party tortfeasor, and without first making the insured whole. Plaintiff Stuart Chandler purchased from defendant State Farm Mutual Auto Insurance Company an automobile insurance policy that reimburses policyholders for 80% of them out-of-pocket rental car costs while their automobiles are being repaired following covered accidents. Plaintiff suffered such an accident in March 2007 when his car was rear-ended by the driver of another card Plaintiff rented a card, which cost him approximately $300, and State Farm reimbursed him 80% of those costs. Then, State…