Deana Coleman v. American Commerce Insurance

MEMORANDUM

Deana Coleman appeals the district court’s summary judgment in favor of American Commerce Insurance Company in this diversity action arising from a motor vehicle accident. Coleman’s daughter was seriously injured in the accident. Coleman alleged that she suffered emotional distress from witnessing her daughter’s injuries, which resulted in post-traumatic stress disorder. At the time of the accident, Coleman had an underinsured motorist policy with American Commerce. Coleman alleged that American Commerce violated its duty of good faith and fair dealing, the Washington State Insurance Fair Conduct Act (“IFCA”), and the Washington State Consumer Protection Act (“CPA”). American Commerce cross appealed. We review de novo a district court’s order granting summary judgment. Hank v. JP Morgan Chase Bank USA, 552 F.3d 1114, 1117 (9th Cir.2009).

The district court correctly found that Coleman had no damages to support her claims against American Commerce under common law, the IFCA, or the CPA. In a first-party context, the insured’s common law damages are limited to the amount incurred as a result of the bad faith as well as general tort damages. Coventry Assocs. v. Am.…