Homecomings Financial Network v. General Star Indemnity Co.

MEMORANDUM *

Homecomings Financial Network (“HFN”), the insured, appeals the district court’s summary judgment in favor of General Star Indemnity Company (“General Star”), the insurer. The district court granted summary judgment on the ground that the policy was unambiguous and precluded HFN from increasing the insurable value of a piece of property after the property suffered a loss. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

1. Standard of Review

This court reviews a district court’s grant of summary judgment de novo. Oliver v. Keller, 289 F.3d 623, 626 (9th Cir.2002). Viewing the evidence in the light most favorable to General Star, this court must determine whether there are any genuine issues of material fact and whether the district court correctly applied the relevant substantive law. Id.

Because it is sitting in diversity, this court must apply the substantive law of California, as interpreted by the California Supreme Court. Karen Kane, Inc. v. Reliance Ins. Co., 202 F.3d 1180, 1183 (9th Cir.2000).

*708 2. The Policy is Unambiguous and Precludes HFN from Increasing the Value of the Property After a Loss Occurred

The existence of ambiguity in…

dissenting.

I dissent. After the loss occurred, HFV erroneously reported the value of the property. No-one disputes that the actual value was greater; nor does anyone suggest that there was any ulterior motive involved. The insured simply made an innocent mistake, and the insurance company simply seeks to profit from it. Under the circumstances, the defendant’s refusal to approve the corrected valuation was in bad faith. I would reverse and remand for trial.