Continental Ins. Co. v. Ursin Seafoods, Inc.

977 F.2d 587 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. CONTINENTAL INSURANCE COMPANY, a foreign corporation; Marine Office of America Corporation, a foreign corporation, Plaintiffs-Appellants, v. URSIN SEAFOODS, INC., a foreign corporation; NORMAN URSIN, SR., an individual, Defendants-Appellees. No. 92-35023. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 18, 1992. Decided Oct. 6, 1992. Before FLETCHER, BEEZER and LEAVY, Circuit Judges. 1 MEMORANDUM * 2 We consider an insurer's duty to pay an otherwise covered loss in the face of allegations that the insured committed fraud. The district court held that no fraud occurred and that the unreasonable investigation by Continental Insurance Company and Marine Office of America Corporation (collectively Continental), which resulted in denial of Ursin Seafoods, Inc.'s (Seafoods') claim, constituted bad faith. The district court awarded Seafoods substantial lost profits and attorney fees. Continental…