California Capital Insurance Company v. Maiden Reinsurance North America, Inc.

I. INTRODUCTION

19 Defendant Maiden Reinsurance North America, Inc. (“MRNA”) moves to 20 dismiss Plaintiffs California Capital Insurance Company, Eagle West Insurance 21 Company, Monterey Insurance Company, and Nevada Capital Insurance Company’s 22 (collectively, “CIG”) second cause of action for breach of the covenant of good faith 23 and fair dealing. Alternatively, MRNA moves to strike CIG’s second cause of action 24 including the request for attorneys’ fees and statutory penalties. For the reasons that 25 26 27 28 1 follow, the Court GRANTS MRNA’s Motion to Dismiss and GRANTS in part and 2 DENIES in part MRNA’s Motion to Strike.1 II. BACKGROUND From 2006 through 2016, MRNA reinsured CIG, and in 2012, the insurance 5 companies formalized their agreement by signing a Multiple Line Excess of Loss 6 Reinsurance Agreement, which delineates the terms of the reinsurance. (Notice of 7 Removal Ex. A (“Compl.”) ¶ 11, ECF No. 1-3.) In 2018, Enstar Insurance Company 8 (“Enstar”), which purchases failing insurance companies, purchased MRNA. (Compl. 9 ¶ 12.) After Enstar acquired MRNA, CIG alleges MRNA began …