Sheila Boggs, Now Known as Sheila Mayes v. Nancy Lewis Safeco Insurance Companies

863 F.2d 662 57 USLW 2380 Sheila BOGGS, now known as Sheila Mayes, Plaintiff-Appellant, v. Nancy LEWIS; Safeco Insurance Companies, Defendants-Appellees. No. 87-4073. United States Court of Appeals, Ninth Circuit. Argued and Submitted Oct. 5, 1988. Decided Dec. 15, 1988. Edward G. Beaudett, Knight, Dahood, McLean & Everett, Anaconda, Mont., for plaintiff-appellant. P. Keith Keller, Keller, Reynolds, Drake, Sternahgen & Johnson, P.C., Helena, Mont., Shelton C. Williams, Williams Law Firm, P.C., Missoula, Mont., for defendants-appellees. Appeal from the United States District Court for the District of Montana. Before FLETCHER, BOOCHEVER and TROTT, Circuit Judges. FLETCHER, Circuit Judge: 1 This case arises out of an automobile collision between cars driven by Sheila Boggs-Mayes (Boggs) and Nancy Lewis (Lewis). Boggs sued Lewis for negligence and sued Lewis' insurer, Safeco Insurance Company ("Safeco"), for its bad faith refusal to settle a claim in violation of Montana Code Annotated (M.C.A.) Sec. 33-18-201(6), which imposes liability on insurers who "neglect to attempt in good faith to effectuate proper, fair, and equitable settlements of claims in which liability has…

This case arises out of an automobile collision between ears driven by Sheila Boggs-Mayes (Boggs) and Nancy Lewis (Lewis). Boggs sued Lewis for negligence and sued Lewis’ insurer, Safeco Insurance Company (“Safeco”), for its bad faith refusal to settle a claim in violation of Montana Code Annotated (M.C.A.) § 33-18-201(6), which imposes liability on insurers who “neglect to attempt in good faith to effectuate proper, fair, and equitable settlements of claims in which liability has become reasonably clear.” The jury awarded zero damages against Lewis. The district court then granted Safeco’s motion for summary judgment. Boggs appeals on a number of grounds. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We affirm.

I

On July 7, 1981, Boggs’ and Lewis’ vehicles collided in Butte, Montana. Lewis has always conceded that she was responsible for the accident.

Boggs filed suit against Lewis and Safe-co in state court in Montana on January 26, 1984. Boggs and Lewis are both citizens of Montana. Safeco is an out-of-state corporation.

Safeco removed the entire case to the United States District Court for the District of Montana pursuant to 28 U.S.C. § 1441 (c). The district court…

dissenting:

There is no issue here as to the nature of the underlying claims; a garden variety automobile negligence claim coupled with a claim against the insurance company for bad faith in refusing to settle. The troublesome question, whether those claims are separate and independent, is one of federal law. Thus in Charles Dowd Box Company, Inc. v. Fireman’s Fund Insurance Company, 303 F.2d 57, 60 (1962), the First Circuit stated:

See also, Gardner and Florence Call Cowles Foundation v. Empire Inc., 754 F.2d 478, 481 , 482 n. 4 (2d Cir.1985); Moore v. United Services Auto. Assn., 819 F.2d 101, 104 (5th Cir.1987).

The majority states that the case of Klaudt v. Flink, 202 Mont. 247 , 658 P.2d 1065 (1983) is controlling. While that case may be of some relevance in describing the claims, Montana law does not apply to our decision whether the claims are separate and independent.

I agree, that the seminal case is American Fire & Casualty Co. v. Finn, 341 U.S. 6 , 71 S.Ct. 534 , 95 L.Ed. 702 (1951). Finn emphasizes:

Id. at 9 & 10, 71 S.Ct. at 537 & 538.

Finn concludes that:

Id. at 14, 71 S.Ct. at 540 . Here there is an interlocked series of transactions, the alleged bad faith…