Aaa Nevada Insurance Company v. Vinh Chau

MEMORANDUM

Because the Buenaventuras are not parties to the insurance contract between AAA and Chau, and do not have a judgment against Chau, they have no standing to sue AAA for a declaration of coverage. Knittle v. Progressive Cas. Ins. Co., 112 Nev. 8 , 908 P.2d 724, 726 (1996). A tort claimant’s rights against the tortfeasor’s insurer do not mature until the tort claimant recovers a judgment. Roberts v. Farmers Ins. Co. 91 Nev. 199 , 533 P.2d 158, 159 (1975). Nevada law, which applies to this diversity action, does not recognize a right of action on the part of a third-party claimant against an insurance company for bad-faith refusal to settle. Tweet v. Webster, 610 F.Supp. 104, 105 (D.Nev.1985); see Hunt v. State Farm Mut. Auto. Ins. Co., 655 F.Supp. 284, 286-88 (D.Nev.1987).

Parties need not have standing to intervene in this circuit, see State of California Dep’t of Soc. Servs. v. Thompson, 321 F.3d 835 , 846 n. 9 (9th Cir.2003), but must have standing to appeal, see Diamond v. Charles, 476 U.S. 54, 68 , 106 S.Ct. 1697 , 90 L.Ed.2d 48 (1986). Because the Buena-venturas do not have standing to sue AAA, they do not have standing to appeal. The only exception is the…