Happy Valley Road LLC v. Amguard Insurance Company

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA San Francisco Division HAPPY VALLEY ROAD LLC, Case No. 3:22-cv-06115-LB

Plaintiff, ORDER DISMISSING CASE v. Re: ECF No.

AMGUARD INSURANCE COMPANY, Defendant. 16 INTRODUCTION The plaintiff, Happy Valley Road LLC, owns and rents residential properties in Orinda, California, through short-term leases. The COVID-19 pandemic disrupted the short-term-rental market, resulting in financial loss to the plaintiff. The plaintiff submitted a claim to its insurer, Amguard Insurance Company, for compensation for its business losses attributable to what it claimed was direct physical loss (which is covered by the policy). Amguard denied the claim. The plaintiff then sued Amguard for declaratory relief, breach of contract, and breach of the implied covenant of good faith and fair dealing. Amguard moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), in part…