Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca9-97-56704/USCOURTS-ca9-97-56704-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 

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O8l@lNAL

NOTFORPUBLICATION

F ILE D

JAN262222

WHYkrATERG CLRK

u.s.GOURTOFAPPFAI*

LWITEDSTATESCOURTOFAPPEAISS

FORTI!EMNTHCIRCUIT

JESUSANGLTIANO,anindividual,

Plaintif-Appelant,

ALLSTATEW SURANCECOMPANY,an

Ilinoiscomoration,

Defendant-Appelee.

No.97-56704

D.C.No.CV-97-01690-WMB

MEMORANDUM I

AppealfromtheUnitedStatèsDistrictCourt

fortheCentralDistrictofCalifornia

WiliamMathewByrne,Jr.,ChiefDistrictJudge,Presiding

ArguedandSubmitedOctober8,1999

Pasadena,California

Before'. B.FLETCX R,D.W.NELSON,andBRUNETTI,CircuitJudges.

ThirdpartyclaimantJesusAnguiano(''Anguiano''),apassengerinjuredina

cardrivenbytheinsured,LouisRomero(''Romero''),appealsthedistrictcourt's

grantofsummaryjudgmentinfavorofAlstatelnsuranceCompany(''Alstate'').

AnguianosuedAlstateforbreachofthedutyofgoodfaithandfairdealing

Thisdispositionisnotappropriateforpublicationandmaynotbecitedtoor

bythecourtsofthiscircuitexceptasmaybeprovidedby9thCir.R.36-3.

 Case: 97-56704, 01/06/2000, ID: 3822593, DktEntry: 33, Page 1 of 3
pursuanttoRomero'sassignmentofhisrightsagainstAlstatetoAnguiano. We

havejurisdictionunder28U.S.C.j1291.Reviewingthedistrictcourt'sgrantof,

summaryjudgmentdenovo,weaffirm.SeeParesiv.CityofPortland,182F.3d

665,667(9thCir.1999).

Alstatedidnotbreachthedutyofgoodfaithandfairdealingbecause

Alstate'sreasonforwithholdingpaymentforthefulpolicylimitswasnot

unreasonableorwithoutpropercause.SeeLovev.Firelns.Exchange,271Cal.

Rptr.246,255(Ca1.Ct.App.1990).Califomia'sMedi-calprogrampossesseda

lienfor$83,109.74onanysetlementproceedspaidtoAnguianobyAlstate. Asa

result,Alstatehadastatutoryobligationtoeitherdischargethelienorobtaina

hardshipwaiverbeforeAlstatecouldtenderanysetlementpaymentstoAnguiano

orhisfamily.SeeCal.Welf.&Inst.Codej14l24.71(a).Furthermore,Medi-cal

hadastatutoryrighttosueAlstateifAlstatetenderedpaymenttoAnguiano

beforedischargingtheMedi-callien.ld.Thus,Alstate'sdecisiontorejectany

oferthatfailedtoaccountfortheMedi-calliencouldnotbeconstruedasbad

faithconductonthepartofAllstate.

TheundisputedevidenceintherecordshowsthatM guianoneverpresented

AlstatewithareasonablesetlementoferbecauseAnguianoneversubmiteda

 Case: 97-56704, 01/06/2000, ID: 3822593, DktEntry: 33, Page 2 of 3
proposaltoAlstatethatincludedadischargeorwaiveroftheMedi-callien. See

Coev.StateFarmMutlalAutomobilelns.Co.,l36Cal.Rptr.331(Cal.Ct.App.

l977)(holdingthatitwasnotbadfaithforaninsurertorejectaftl1policylimits

offerthatfailedtoincludeathird-partylienholder).AlstateinformedAnguiano

aboutthenecessityofaccountingfortheMedi-callienwhenAlstaterejected

Anguiano'stirstsetlementofer.However,M guianoneversubmitedanother

offerthatcuredthedefect.Moreover,onitsowninitiative,Alstateemployeda

setlementconsultanttoresearchthepossibilityofobtainingahardshipwaiverfor

AnguianoontheMedi-callien.

Accordingly,th8districtcourtdidnoteringrantingsummaryjudgmentto

AlstateonAnguiano'sbadfaithclaimbecauseAlstatedidnotunreasonably

withholdpaymentontheclaim.

AFFIRMED.

3

 Case: 97-56704, 01/06/2000, ID: 3822593, DktEntry: 33, Page 3 of 3