Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-01912/USCOURTS-cand-3_05-cv-01912-24/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1332 Diversity-Insurance Contract

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

UNIONAMERICA INSURANCE CO.,

LIMITED, Successor-ininterest to ST. PAUL

REINSURANCE,

Plaintiff(s),

v.

THE FORT MILLER GROUP, INC.,

THE FORT MILLER CO. and

BEECHE SYSTEMS CORP.,

Defendant(s).

)

)

)

)

)

)

)

)

)

)

)

)

)

)

)

No. C05-1912 BZ

ORDER FOR FURTHER BRIEFING

 IT IS HEREBY ORDERED that the hearing on

counterdefendant’s motion to dismiss the first amended

counterclaim is continued to October 29, 2008 at 10:00 a.m. 

IT IS FURTHER ORDERED that by no later than September

29, 2008, counterdefendant shall file a brief addressing at

least the following specific issues:

1. If the court rules that the underlying policy was

rescinded, would the insureds still be able to bring a claim

for bad faith?

2. If the court finds that the policy was not

rescinded, would the insureds be able to bring a claim for

Case 3:05-cv-01912-BZ Document 153 Filed 09/18/08 Page 1 of 2
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

bad faith?

3. Would the answers to questions 1. and 2. be

different if the insurer, who provided a defense and paid

benefits, filed the rescission action in such a fashion as to

impede the insured’s ability to defend the underlying claims?

4. Assuming that the insureds can maintain their bad

faith counterclaim, what damages may they claim?

5. Would the public policy of encouraging insurers to

comply with their insurance obligations be advanced if an

insurer could be subject to a claim based solely on the

grounds that it filed an unsuccessful rescission action in

bad faith?

IT IS FURTHER ORDERED that counterclaimant shall file an

opposition by no later than October 10, 2008. There will be

no further briefing unless specifically ordered by the court. 

All briefs shall be submitted in WordPerfect format on

diskette or may be e-mailed to the following address:

bzpo@cand.uscourts.gov

 The parties are reminded to carefully heed the

admonitions given by the court as to the focus of their

briefs. 

Dated: September 18, 2008

 Bernard Zimmerman 

 United States Magistrate Judge

G:\BZALL\-BZCASES\UNIONAMERICA V. FORT MILLER\ORDER RE FURTHER BRIEFING.MMH

DRAFT.wpd

Case 3:05-cv-01912-BZ Document 153 Filed 09/18/08 Page 2 of 2