Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-03178/USCOURTS-cand-5_05-cv-03178-24/pdf.json

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

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 This disposition is not designated for publication and may not be cited. 1

Brandt v. Superior Court, 37 Cal.3d 813 (1985). 2

Case No. C 05-3178 JF (HRL)

ORDER DENYING PLAINTIFFS’ MOTION IN LIMINE NO. 3 ETC.

(JFLC2)

**E-filed 5/14/08**

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

EDUARDO CECENA, et al.,

 Plaintiffs,

 v.

ALLSTATE INSURANCE CO., et al.,

 Defendants.

Case Number C 05-3178 JF (HRL)

ORDER DENYING PLAINTIFFS’ 1

MOTION IN LIMINE NO. 3 AND

GRANTING DEFENDANT’S

MOTION IN LIMINE NO. 2

[re: doc. nos. 189, 200]

On May 9, 2008, the Court requested supplemental briefing with respect to the parties’

cross-motions in limine regarding potential Brandt fees. The Court has reviewed the Cecenas’ 2

brief filed May 11, 2008, Allstate’s brief filed May 12, 2008, and the Cecenas’ reply filed May

12, 2008. The Court concludes that the Cecenas are not entitled to seek Brandt fees in this case

because the Court explicitly has ruled that Allstate did not breach any obligation to pay benefits

due under the policy. Order of 1/16/07, p. 9. “Attorney’s fees, while recoverable when an

insurer has acted tortiously, are limited to the amount due under the policy; fees expended on

Case 5:05-cv-03178-JF Document 221 Filed 05/14/08 Page 1 of 3
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Case No. C 05-3178 JF (HRL)

ORDER DENYING PLAINTIFFS’ MOTION IN LIMINE NO. 3 ETC.

(JFLC2)

obtaining amounts in excess of the policy, such as consequential damages, aren’t recoverable.”

Slottow v. American Cas. Co., 10 F.3d 1355, 1362 (9th Cir. 1993). In other words, the insured

may recover “only those fees incurred to obtain the policy benefits that would not have been

incurred but for the insurer’s tortious conduct, and not the fees incurred in prosecuting the

tortious breach of covenant claim.” Burnaby v. Standard Fire Ins. Co., 40 Cal. App. 4th 787,

792 (1995). 

The Court has characterized the Cecenas’ claim as an assertion that Allstate breached its

disclosure obligations by failing to inform them that they had the option to live in a comparable

rental home; the Cecenas assert that had they been informed of this option, they would have lived

in a rental home costing at least $2,000 per month and that Allstate would have been obligated to

reimburse them for these expenses. Order of 1/16/07, p. 9. The Cecenas, of course, did not

actually incur the subject rental expenses, so Allstate’s failure to pay these expenses was not a

breach of the express ALE provision, which requires reimbursement for expenses actually

incurred. The Cecenas have not cited any cases permitting recovery of Brandt fees based upon

an insurer’s bad faith breach of its disclosure obligation absent a corresponding denial of policy

benefits. 

Accordingly, the Cecenas’ motion in limine no. 3 is DENIED, and Allstate’s motion in

limine no. 2 is GRANTED.

IT IS SO ORDERED. 

DATED: 5/14/08

__________________________________

JEREMY FOGEL

United States District Judge

Case 5:05-cv-03178-JF Document 221 Filed 05/14/08 Page 2 of 3
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Case No. C 05-3178 JF (HRL)

ORDER DENYING PLAINTIFFS’ MOTION IN LIMINE NO. 3 ETC.

(JFLC2)

This Order was served on the following persons:

Michael A. Barnes mbarnes@sonnenschein.com, msaplala@sonnenschein.com 

Sonia Renee Martin smartin@sonnenschein.com, clakes@sonnenschein.com,

msaplala@sonnenschein.com 

John Arthur Shepardson johnshepardson@hotmail.com 

Jessica Lou Woelfel jwoelfel@sonnenschein.com, darthur@sonnenschein.com,

ddonner@sonnenschein.com

Case 5:05-cv-03178-JF Document 221 Filed 05/14/08 Page 3 of 3