Factory Mutual Insurance v. Northwest Aluminum Co.

MEMORANDUM *

Northwest Aluminum Company appeals the district court’s grant of summary judgment in favor of Factory Mutual Insurance Company in Factory Mutual’s declaratory judgment action. We have jurisdiction pursuant to 28 U.S.C. § 1291 and review the district court’s grant of summary judgment de novo. United States v. City of Tacoma, 332 F.3d 574, 578 (9th Cir.2003). We reverse and remand.

Northwest Aluminum argues that it came forward with sufficient facts to preclude summary judgment on its equitable estoppel affirmative defense. We agree. An insurer in Oregon may be estopped from asserting a suit limitation provision as a defense to liability if the insurance company has “done something that amounted to an affirmative inducement that would cause plaintiff to delay bringing his action.” Lyden v. Goldberg, 260 Or. 301 , 490 P.2d 181, 182 (1971). Although mere negotiations are insufficient to establish estoppel, the Oregon courts have held that promises to make payments and/or to settle claims may establish estoppel. Id. at 183; Kimball v. Horticultural Fire Relief of Oregon, 79 Or. 133 , 154 P. 578, 581 (1916); Malaer v. Flying Lion, Inc., 65 Or.App. 154 , 670 P.2d 214, 217…