Abilio F. Colaco Rita F. Colaco v. State Farm Fire and Casualty Company

993 F.2d 882 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Abilio F. COLACO; Rita F. Colaco, Plaintiffs-Appellants, v. STATE FARM FIRE AND CASUALTY COMPANY, Defendant-Appellee. No. 92-55050. United States Court of Appeals, Ninth Circuit. Submitted April 8, 1993. * Decided May 6, 1993. Before WALLACE, Chief Judge, and O'SCANNLAIN and FERNANDEZ, Circuit Judges. 1 MEMORANDUM ** 2 Abilio F. Colaco and Rita F. Colaco appeal the district court's grant of summary judgment in favor of insurer State Farm Fire and Casualty Company (State Farm) in their action which alleged breach of their insurance contract and breach of the covenant of good faith and fair dealing. We reverse and remand. 3 The Colacos own a duplex which was insured by State Farm. In 1986, Mr. Colaco and his tenant, Keith Reimer, discovered a broken water pipe buried under the soil where it entered the duplex. A plumber repaired the water line by digging a hole in the front yard and replacing the pipe. No part of…