First Mercury Insurance Co. v. Great Divide Insurance Co.

ORDER RE: MOTIONS FOR SUMMARY JUDGMENT

Plaintiff First Mercury Insurance Company (“Plaintiff’ or “First Mercury”) brings this action against Defendant Great Divide Insurance Company (“Defendant” or “Great Divide”). Before the Court are Defendant’s Motion for Summary Judgment, ECF No. 36 (“Great Divide Mot.”), and Plaintiffs Motion for Summary Judgment, ECF No. 37 (“First Mercury Mot.”). Having considered the submissions of the parties, the relevant law, and the record in this case, the Court DENIES Defendant’s Motion for Summary Judgment, STRIKES Plaintiffs second cause of action for breach of the implied covenant of good faith and fair dealing, and DENIES as moot Plaintiffs request for attorney’s fees under that cause of action. The Court otherwise GRANTS Plaintiffs Motion for Summary Judgment.

I. BACKGROUND

A. Factual Background

This case is a dispute between Plaintiff and Defendant regarding the insurers’ respective duties to defend an underlying state court action (“underlying action” or “state court action”) brought by Amish Patel and Kiran Patel (collectively, the “Underlying Plaintiffs”) against Elite Show Services Inc. (“Elite”), the San Francisco Forty Niners Football…