STANFORD RANCH, INC., a California Corporation, Plaintiff-Appellant, v. MARYLAND CASUALTY COMPANY, Defendant-Appellee

Stanford Ranch, Inc., (“Stanford”) brought suit against Maryland Casualty Company and Northern Insurance Company of New York (collectively “Maryland”) claiming breach of insurance contracts and breach of the implied covenant of good faith and fair dealing. The parties cross-moved for summary judgment, and the district court granted the motion in favor of Maryland and denied the motion of Stanford. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

FACTS AND PROCEDURAL HISTORY

A. The Underlying Lawsuits

Stanford is a developer of a master-planned community in Rocklin, California. Stanford, acting as master developer, subdivides the development and sells large tracts of land to other developers (“sub-developers”) for separate development. Three such sub-developers, Prudential Development Company, Centex Real Estate Corporation and Covington Homes, Northern California (collectively “claimants”), filed actions in state court against Stanford (“underlying lawsuits”). All three underlying lawsuits allege actions for specific performance, breach of contract, intentional misrepresentation, negligent misrepresentation and nondisclosure.

1. Prudential…