Whiteside v. Florists' Mutual Insurance
Docket: No. 00-55950; D.C. No. CV-99-02065-RAP
Court: Court of Appeals for the Ninth Circuit; December 19, 2001; Federal Appellate Court
Whiteside appeals the district court's summary judgment favoring Florists’ Mutual Insurance Company, arguing that the insurer had a duty to defend her against a claim of intentional infliction of emotional distress filed by her former employee. Whiteside also claims that Florists’ Mutual acted in bad faith by failing to respond to her claim. The court has jurisdiction under 28 U.S.C. § 1291 and reviews the summary judgment de novo. Whiteside contends that the district court incorrectly determined that Florists’ Mutual had no duty to defend her, asserting that an insurer must defend any claim that could potentially fall within the policy's coverage. However, the policy only covered “occurrences,” defined as accidents, and the underlying claim involved intentional conduct, which does not qualify as an "accident" under California law. Thus, the district court correctly found no potential coverage. Regarding her bad faith claim, Whiteside argues that the court erred in granting summary judgment because a claim for bad faith can exist even without coverage under the policy if the insurer misrepresents information that prevents the insured from adequately protecting their interests. Whiteside provided evidence that she relied on Florists’ Mutual’s assurances about handling her claim and that the insurer delayed denying coverage for over five years. This delay resulted in financial losses and hindered her ability to retain independent counsel. The court found that Whiteside’s evidence raised a genuine issue regarding whether Florists’ Mutual breached its duty of good faith and fair dealing. Consequently, the court affirms the summary judgment in part, reverses it in part related to the bad faith claim, and remands the case for further proceedings. The ruling is not designated for publication and may not be cited except as permitted by Ninth Circuit Rule 36-3.