New You Spa v. Citizen's Insurance Group

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 NEW YOU SPA, et al., Case No. 21-cv-02102-CRB

Plaintiffs,

ORDER GRANTING MOTION TO

v. DISMISS

CITIZEN'S INSURANCE GROUP, Defendant.

Plaintiffs New You Spa and Emilia Khajavi are suing Defendants The Hanover Insurance Group, Citizens Insurance Company of America (Citizens) and Does 1–50 for breach of contract and breach of the covenant of good faith and fair dealing. See Complaint (dkt. 1) ¶¶ 21–32. The Court accepts the allegations in the Complaint as true. Those allegations indicate that in March 2016 the insured, Elite Surgical Services, LLC, Elite Surgical Services, and Nosrat Khajavi (“Elite”) experienced a water intrusion that harmed Plaintiffs’ business, and Plaintiffs “made claim upon Elite for payment of damages.” Id. ¶¶ 3, 8. Elite tendered the claim to Citizens, which neither denied nor acknowledged coverage while repeatedly asking for more information. Id. ¶¶ 9–11. Plaintiffs and Elite…