Chemstar, Inc. v. Liberty Mut. Ins. Co.

42 F.3d 1398 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. CHEMSTAR, INC., Plaintiff-Appellee, v. LIBERTY MUTUAL INSURANCE COMPANY, Defendant-Appellant, and Genstar Corporation; National Union Fire Insurance Company of Pittsburgh, PA.; Industrial Insurance Company of Hawaii, Ltd.; American Home Assurance Company; Employers Insurance of Wausau, Defendants. No. 92-55472. United States Court of Appeals, Ninth Circuit. Argued and Submitted March 7, 1994. Decided Nov. 16, 1994. Before: O'SCANNLAIN, FERNANDEZ, and T.G. NELSON, Circuit Judges. 1 MEMORANDUM * 2 In this appeal of Phase I of this case, Liberty Mutual Insurance Company ("Liberty") argues that the district court erred in granting summary judgment in favor of Chemstar, Inc., ("Chemstar") on the issues of Liberty's duty to defend and the sufficiency of the evidence in support of the jury's finding that Liberty acted in bad faith when it breached this duty. Liberty also contests the award of compensatory and punitive…