T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on a nd i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3.

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P la in tif f - A p p e lla n t, v . ACCE PT AN CE I ND EM NI TY I N SU RA N CE CO M PA N Y ; D O ES 1 THROUG H 1 0 , I NCLUSI VE,

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A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e S o u th e rn D is tr ic t o f C a lif o rn ia M . J a m e s L or e nz , S e ni orD i s tr i c tJudge , P r e s i di ng A r gue d a nd S ubm i tt e d F e brua ry10, 2011

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o rn ia B ef ore: H A W K IN S and F IS H E R , C i rc ui tJudg es , and W O L F , C hi ef D i stri ct Judg e. ** 

# FI LED FEB 22 2 011 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

V i l ayS i riph on e argues A cc ept ance Indem ni ty I nsurance Co m pany breac hed the i m pl i ed covenant of go od fa i th and fa i r dea l i ng and b re ac hed i t s i nsurance c o n tr a c t in d e te rm in in g th e p o lic yb e n e f its d u e to S ir ip h o n e a f

te rh is au to r e p a ir s hop w a s bur gl a r i z e d. T he di s tr i c tc ourtgr a nt e d s um m a ryj udgm e nti n f a vorof A c c e p ta n c e o n b o th o f

S ir ip h o n e ’s c la im s . W e a f f irm . 1. B r e a c h of

the i m pl i e d c ove na ntof good f a i th a nd f

a i rde a l i ng. S i r i phone c o n te n d s A c c e p ta n c e b r e a c h e dth e im p lie dc o v e n a n t b yc o n du c tin g a n in a d e q u a te i nv es t i gat i on of hi s c l ai m and u nrea sonabl y del ay i ng se tt l em ent . W e c on cl ud e, ho w ever , thatthere w as no genu i ne i ss ue of m at er i al fa ctas t o w hether A c c e pt a nc e ’ s i nve s t i ga t i on w a s r e a s onabl e . T he r e i s no e vi de nc e tha ta nye rr or A cc ept ance m ayhave m ade i n h andl i ng the cl ai m re sul t ed fr om anythi ng m ore than “ ‘ ho nestm i st ake, bad j ud gm entor negl i gence. ’ ” Chate au Cham be r ay H om e ow ne rs A s s ’ n v . A s s oc . I nt ’ l I ns . C o. , 90 C a l . A pp. 4th 335, 346 ( C a l . A pp. 2001) ( quot i ng Careau & C o. v. Sec. P ac. B us. Cre di t , Inc. , 272 C a l . Rptr . 387, 39 9-40 0 (19 90 )) . M oreover, the del ayi n sett l i ng S i riph on e’ s c l ai m w as j ust i fi ed b y g en u in e d isp u tes o v erth e in terp re tati o n o f th e p o li cy , th e v alu e o f th e s h o p ’s s ta n d in g in v e n to rya n dth e v a lu e o f th e to o ls s to le n . See G u eb a ra v. A l l sta te In s. C o. , 23 7 F . 3d 98 7, 99 5-96 (9th C i r. 20 01 ). T he di stri ctcourtcorr ec t l y c on cl ud ed th e r e w a s n o g e n u in e is s u e o f m a te r ia l f

a c t a s to A c c e p ta n c e ’s b a df a ith .3

2. B r e a c h of

c ontr a c t . S i r i phone ’ s br e a c h of c ontr a c tc l a i m i s ba s e d on the s a m e c l a i m s m i s ha ndl i ng c onduc ta s hi s c l a i m f orbr e a c h of

the i m pl i e d c ove na nt o f g o o df a ith a n df

a ird e a lin g . T h e b r e a c h o f c o n tr a c t c la im w a s th e r e f o r e p r o p e r ly d is m is s e df

o rth e s a m e r e a s o n s th e b a df a ith c la im w a s d is m is s e d . See A rc hdale v . A m e r . I nt ’ l Spe c i al t yL i nes I ns . C o. , 64 C a l . Rptr . 3d 632, 647 n. 19 ( C a l . A pp. 20 07 ). AF F I RME D.