Fernando Avila v. Century National Insurance Company

MEMORANDUM

The estate of Manuel Avila (“Estate”) appeals the district court’s grant of summary judgment to Century National Insurance Co. (“Century”) on the Estate’s breach of contract and violation of the implied covenant of good faith and fair dealing (“bad faith”) claims regarding Century’s refusal to indemnify, defend, or settle in connection with a suit brought by Dora Rodriguez against Manuel Avila. The district court found that the Estate had failed to show that it or Manuel Avila had suffered any economic or emotional distress damages caused by Century’s refusal. We review the district court’s grant of summary judgment de novo. See Balint v. Carson City, 180 F.3d 1047, 1050 (9th Cir.1999) (en banc). We reverse.

1. Regarding the breach of contract claim, we conclude that the district court erred in granting Century summary judgment on the basis that the Estate could show no economic damages. Nevada law awards expectation damages, Colo. Env’ts, Inc. v. Valley Grading Corp., 105 Nev. 464 , 779 P.2d 80, 84 (1989), and we find no authority suggesting that an insured’s financial status affects his right to be reimbursed under a liability policy like the one in this case. On…