Portland General Electric Company v. Pacific Indemnity Company

574 F.2d 469 PORTLAND GENERAL ELECTRIC COMPANY, an Oregon Corporation and Ralph Rokeby-Johnson, Underwriter at Lloyds, London, Plaintiffs-Appellants, v. PACIFIC INDEMNITY COMPANY, a corporation, Defendant-Appellee. No. 75-1353. United States Court of Appeals, Ninth Circuit. April 18, 1978. Rehearing and Rehearing En Banc Denied June 2, 1978. 1 William H. Morrison (argued), of Morrison, Dunn, Cohen, Miller, & Carney, Portland, Ore., for plaintiffs-appellants. 2 John Gordon Gearin (argued), of Gearin, Landis & Aebi, Portland, Ore., for defendant-appellee. 3 Appeal from United States District Court District of Oregon. 4 Before GOODWIN and SNEED, Circuit Judges, and POOLE, * District judge. 5 POOLE, District Judge. 6 Appellants Portland General Electric Company (PGE) and its excess liability insurer, Ralph Rokeby-Johnson, an underwriter at Lloyds of London (Lloyds), brought action in Oregon state court against Pacific Indemnity Insurance Company (Pacific) charging it with bad faith refusal to settle a personal injury claim within the policy limits in connection with a lawsuit in which PGE was defendant. Pacific removed the action to Federal District Court on diversity grounds,…