Larkin

MEMORANDUM *

Jean Larkin, Robert Ratto and Jeffrey Ratto (“Insureds”) appeal a myriad of issues, including denial of emotional distress and punitive damages, loss of opportunity damages, statute of limitations application, bad faith findings, refusal to allow discovery on privileged information, and the district court’s order to arbitrate. Insureds raise two central arguments: first, the district court failed to make a finding whether Insureds were denied a defense by Hartford’s decision to provide only a limited defense in an action brought against Insureds (the Navone action), and second, that the district court erred in finding that Hartford’s pro rata defense policy was reasonable.

First, the district court did determine that Insureds were not denied a defense. Insureds’ argument is basically that payment of a pro rata share of the defense costs is actually a denial of any defense at all. The district court rejected this argument. Both Judge Patel and Judge Breyer held that appellants’ argument, which rested on a footnote in Haskel, Inc. v. Superior Court, 33 Cal.App.4th 963 , 976 n. 9, 39 Cal.Rptr.2d 520 (1995), was without merit because the Haskel court was never asked to…