Ashot Khatchatrian v. Continental Casualty Company

Ashot Khatchatrian filed this diversity action against Continental Casualty Company (“CNA”), alleging breach of contract and the implied covenant of good faith and fair dealing under California law. CNA had refused to pay Khatchatrian benefits as the beneficiary of an accidental death and dismemberment policy. The policy provides accidental death benefits when “a covered injury results in loss of life ... within 365 days after the accident.” “Injury” is defined as “bodily injury caused by an accident ... that results, directly and independently of all other causes, in loss covered by the policy.” The policy does not define “accident.” The district court granted summary judgment in favor of CNA, taking the view that the cause of the insured’s death, a stroke, was not an “accident” within the meaning of the policy as interpreted under California law. Khatc hatrian v. Cont’l Cas. Co., 198 F.Supp.2d 1157 (C.D.Cal.2002).

We affirm the summary judgment because we agree with the conclusion of the district court. We issue this opinion in order to resolve conflicting interpretations in our district courts of the meaning of “accident” under California law. The district court in this case…