Southern California Counseling Center v. Great American Insurance
Opinion
Lead Opinion
Collins, J.
ORDER RE: CROSS-MOTIONS FOR SUMMARY JUDGMENT
Pending before the Court are cross motions for summary judgment filed by Plaintiff Southern California Counseling Center (“SCCC,” docket no. 22) and Defendant Great American Insurance Company (“GAIC,” docket no. 20). The parties filed Oppositions and Replies. The Court will resolve the Motions without oral argument and therefore VACATES the hearing set for June 16, 2014. For the following reasons, the Court GRANTS GAIC’s Motion and DENIES SCCC’s Motion.
I. BACKGROUND
SCCC is suing GAIC for declaratory relief, breach of contract, and breach of the implied covenant of good faith and fair dealing to recover benefits due under a *1048 GAIC-issued insurance policy’s coverage for computer fraud. SCCC contends that it suffered approximately $100,000 in loss caused by computer fraud when a sham payroll company withdrew funds from SCCC’s bank accounts and converted those funds to its own use instead of using them to pay SCCC’s federal and state payroll taxes as promised. GAIC contends that the policy does not cover this loss on several grounds, not all of which the Court will reach. Both parties move for summary judgment.