Crystal Bay General, a Governmental Agency With Jurisdiction in Washoe County, State of Nevada v. Aetna Casualty & Surety Company

959 F.2d 239 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. CRYSTAL BAY GENERAL, a governmental agency with jurisdiction in Washoe County, State of Nevada, Plaintiff-Appellee, v. AETNA CASUALTY & SURETY COMPANY, Defendant-Appellant. No. 90-16417. United States Court of Appeals, Ninth Circuit. Argued and Submitted Nov. 8, 1991. Decided April 7, 1992. Before FLETCHER, WIGGINS and KOZINSKI, Circuit Judges. 1 MEMORANDUM * 2 Aetna Casualty and Surety Company ("Aetna") appeals from the District Court's order granting declaratory relief to the Crystal Bay General Improvement District ("CBGID") on the issue of CBGID's obligation to repay money advanced to it by Aetna to fund a settlement reached by CBGID with third parties who had sued it. Aetna also appeals from the district court's denial of its motion for judgment notwithstanding the verdict ("JNOV") on the issue of its bad faith in dealing with CBGID. 3 We reverse the denial of Aetna's JNOV motion, reverse in part the…