Samson

Samson v. Allstate Insurance

Good Law
949 F. Supp. 748·1996 WL 670641·1996 U.S. Dist. LEXIS 17057
United States District Court, Northern District of CaliforniaNovember 12, 1996No. C-96-0414 MHPCalifornia2,984 words

Opinion

lead Opinion

Patel, J.

MEMORANDUM AND ORDER

Allan Samson brought this action against Allstate Insurance Company in state court alleging breach of contract, breach of the covenant of good faith and fair dealing, fraud, negligent misrepresentation and breach of fiduciary duty. Samson seeks damages resulting from Allstate’s alleged failure to defend and indemnify plaintiff in an underlying sexual harassment claim. Defendant removed the action to this court on January 31, 1996, pursuant to the court’s diversity jurisdiction. 28 U.S.C. §§ 1832 ,1441(b).

Now before this court are cross motions for partial summary judgment on the question of Allstate’s duty to defend plaintiff in the underlying claim.

Having considered the parties’ arguments and submissions, and for the reason set forth below, the court enters the following memorandum and order.

BACKGROUND 1

I. The Underlying Claim and Extrinsic Facts

Samson hired Joyce Chan to be his legal secretary in 1991. According to plaintiff, the two engaged in a consensual romantic relationship from 1991 until 1993, when Chan ended the relationship. Chan remained employed by Samson until 1995.

In a January 24, 1995 letter an attorney for Chan informed plaintiffs…

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