Delta Systems, Inc., a Washington Corporation v. Federal Insurance Company, a Principal Subsidiary of the Chubb Corporation, Delta Systems, Inc., a Washington Corporation v. Federal Insurance Company, a Principal Subsidiary of the Chubb Corporation

95 F.3d 1157 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. DELTA SYSTEMS, INC., a Washington Corporation, Plaintiff-Appellant, v. FEDERAL INSURANCE COMPANY, a principal subsidiary of the Chubb Corporation, Defendant-Appellee. DELTA SYSTEMS, INC., a Washington Corporation, Plaintiff-Appellant, v. FEDERAL INSURANCE COMPANY, a principal subsidiary of the Chubb Corporation, Defendant-Appellee. Nos. 95-35795, 96-35046. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 9, 1996. Decided Aug. 28, 1996. 1 Before: BEEZER and O'SCANNLAIN, Circuit Judges; BROWNING, * District Judge. 2 MEMORANDUM ** 3 This is a consolidated appeal from two actions filed by Delta Systems, Inc. ("Delta") against Federal Insurance Company ("Federal") in connection with water damage sustained to Delta's business premises in December 1987. In the first action ("Delta I "), Delta argued that Federal demonstrated bad faith in handling its property loss claim, and now appeals the…