Ayers

MEMORANDUM **

Constance Ayers brought this case against Standard Insurance Company for breach of contract, insurance bad faith, and intentional infliction of emotional distress. Ms. Ayers claims that she is totally disabled, and that the defendant insurance company, in denying her claim, was guilty of bad faith and intentional infliction of emotional distress. Standard filed a motion for summary judgment on the bad-faith and intentional-infliction-of-emotional-distress claims, and the District Court granted this motion. After that, the underlying claim for disability benefits was settled. The judgment in favor of defendant on the two tort claims having thus become final, this appeal by the plaintiff followed.

The mere fact that an insurance company wrongfully denies a claim does not amount to bad faith. In order to establish a claim for bad faith, a plaintiff insured “must show: (1) benefits due under the policy were withheld; and (2) the reason for withholding benefits was unreasonable or without proper cause.” Guebara v. Allstate Ins. Co., 237 F.3d 987, 992 (9th Cir. 2001). A plaintiff may prevail by showing that the insurance company failed to undertake a meaningful…