KM Strategic Management, LLC v. American Casualty Co.

Proceedings: PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT REGARDING AMERICAN CASUALTY’S DUTY TO DEFEND (Dkt. 12, filed on November 18, 2015)

I. INTRODUCTION

On September 11, 2015, plaintiffs KM Strategic Management, LLC (“KM”) and Hemet Community Medical Group, Inc. (“HCMG”) (collectively, “plaintiffs”) filed the instant action against defendant American Casualty Company of Reading, PA (“American Casualty”). See Dkt. 1 (Complaint). Plaintiffs’ complaint asserts five claims stemming from defendant’s denial of its duty to defend plaintiffs in two separate lawsuits. Specifically, in relation to defendant’s denial of a defense in the first lawsuit, plaintiffs assert claim one for breach of contract (defense costs) and claim two for tortious breach of the implied covenant of good faith and fair dealing; in relation to defendant’s denial of a defense in the second lawsuit, plaintiffs assert claim three for breach of contract (defense costs), claim four for breach of contract (settlement costs), and claim five for tortious breach of the implied covenant of good faith and fair dealing. Id. ¶¶ 22-43.

On November 18, 2015, plaintiffs filed the instant motion for partial summary…