Somera Capital Management, LLC v. Twin City Fire Insurance Company

I.

FACTUAL AND PROCEDURAL BACKGROUND

On December 14, 2018, Plaintiff filed a complaint in the Superior Court of the State of California, County of Santa Barbara, against Defendant Twin City Fire Insurance Company (“Twin City”), alleging: (1) breach of contract, and (2) breach of the covenant of good faith and fair dealing. Jackson Decl., Ex. A (“Compl.”) at ¶¶ 43–51 [Doc. # 10-3]. Plaintiff purchased professional liability coverage from Twin City through Defendant The Swett & Crawford Group, Inc. (“Swett”), an insurance broker. Id. at ¶ 16. When Plaintiff was sued by a third-party for breach of contract and other claims, it tendered the lawsuit to Twin City for coverage. Id. at ¶¶ 12–13, 28. Plaintiff’s allegations arise from Twin City’s denial of coverage based on two exclusions: (1) a property management exclusion, and (2) a breach of contract exclusion. See Id. at ¶¶ 30–32. Plaintiff also brought three causes of action against Swett, for: (1) negligence, (2) negligent misrepresentation, and (3) declaratory relief. Compl. at ¶¶ 52–68. Twin City filed an Answer to the initial Complaint on January 22, 2019. Notice of Removal, Ex. 2 at 29–41 [Doc. # 1]. Plaintiff…