EFG Bank AG, Cayman Branch v. Transamerica Life Insurance Company

I. INTRODUCTION AND BACKGROUND

The Court previously set out the factual and procedural background of this case in its February 10, 2020 order. Dkt. 181 (“MTD Order”). Accordingly, the Court only sets forth those facts necessary to resolve defendant Transamerica Life Insurance Company’s (“Transamerica”) present motion. On February 10, 2020, the Court granted in part and denied in part Transamerica’s motion to dismiss plaintiffs’ fifth amended complaint. See MTD Order. The Court dismissed without prejudice plaintiffs’ claim for tortious breach of the implied covenant of good faith and fair dealing. Id. at 11-18. The Court reasoned “that challenges to Transamerica’s MDR increases based on allegations regarding a reduction in Accumulation Values and guaranteed interest based upon those values do not give rise to a claim for breach of the implied covenant sounding in tort.” Id. at 12. That is because “Accumulation Values and the guaranteed interest on those values are not insurance benefits” and therefore “do not implicate the ‘special relationship’ between insureds and insurer that animate the narrow exception providing a …