George R. Chamberlain, Plaintiff-Counter-Defendant-Appellant v. Allstate Insurance Company, Defendant-Counter-Claimant-Appellee

George R. Chamberlain appeals from the district court’s summary judgments in favor of Allstate Insurance Company (“Allstate”) on Chamberlain’s bad faith claim and on Allstate’s counterclaim for declaratory relief. We affirm.

FACTS

Chamberlain’s 12y2-year relationship with Melinda Mackay ended badly. In February 1989, Mackay filed a lawsuit against Chamberlain in Los Angeles Superior Court (the “underlying suit”). This underlying suit asserted causes of action for declaratory relief, imposition of a constructive trust, breach of an implied contract and intentional infliction of emotional distress. Mackay alleged that the couple entered into an express oral or implied quasi-marital agreement to share equally all property acquired by the “community” during the relationship. Chamberlain tendered to Allstate the underlying suit and requested indemnity and a defense.

Allstate insures Chamberlain under its Deluxe Plus Homeowners’ Policy. The policy promises that

The policy also provides that Allstate will defend the insured against suit, “even if the allegations are groundless, false or fraudulent.”

On March 24, two days after being notified of the underlying suit, Allstate…