Burley v. National Union Fire Insurance Company of Pittsburgh PA
Filing
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ORDER granting in part and denying in part ECF No. 31 Motion to Dismiss. Signed by Judge Howard D. McKibben on 08/22/2016. (Copies have been distributed pursuant to the NEF - DRM)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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TROY AND PAULA BURLEY AND PAUL
ACKERMAN AND JUDY ACKERMAN AS
TRUSTEES OF THE ACKERMAN FAMILY
TRUST, et al.,
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Plaintiffs,
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vs.
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NATIONAL UNION FIRE INSURANCE
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COMPANY OF PITTSBURGH PA, a
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subsidiary of AMERICAN
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INTERNATIONAL GROUP, INC., and
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DOES 1 through 100, inclusive,
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Defendants.
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_________________________________ )
3:15-cv-00272-HDM-WGC
ORDER
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Before the court is defendant National Union Fire Insurance
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Company of Pittsburgh, PA’s (“National Union”) motion to dismiss all
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causes of action in the plaintiffs’ second amended complaint pursuant
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to Federal Rule Civil Procedure 12(b)(6) as well as the claims/prayer
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for attorney’s fees and punitive damages under Rule 12(f).
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31). Plaintiffs responded (ECF No. 32) and defendant replied (ECF No.
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(ECF No.
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34). Also before the court is plaintiffs’ request for judicial notice
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in support of their response to the motion to dismiss.
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I.
(ECF No. 35).
Request for Judicial Notice
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A district court may take judicial notice of any fact not subject
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to reasonable dispute in that it is capable of accurate and ready
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determination by resort to sources whose accuracy cannot reasonably
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be questioned.
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judicial proceedings that are not subject to reasonable dispute when
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those proceedings relate to matters at issue. Harris v. Cty. of
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Orange, 682 F.3d 1126, 1131-32 (9th Cir. 2012); Holder v. Holder, 305
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F.3d 854, 866 (9th Cir. 2002); Lee v. City of Los Angeles, 250 F.3d
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668, 689-91 (9th Cir. 2001).
FED. R. EVID. 201(b).
This includes public records of
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Plaintiffs request that the court take judicial notice of the May
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10, 2016 order from the Nevada Court of Appeals affirming the state
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court judgment in favor of Troy and Paula Burley, et al.
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Ex. 1).
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objecting has expired.
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of this public record.
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II.
(ECF No. 35,
Defendant has not filed an objection and the time for
Accordingly, the court takes judicial notice
Motion to Dismiss
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In considering a motion to dismiss under Federal Rule of Civil
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Procedure 12(b)(6), the court must accept as true all material
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allegations in the complaint as well as all reasonable inferences that
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may be drawn from such allegations.
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Cederquist, 235 F.3d 1153, 1154 (9th Cir. 2000).
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the complaint also must be construed in the light most favorable to
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the nonmoving party.
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Cir. 2000).
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W. Ctr. for Journalism v.
The allegations of
Shwarz v. United States, 234 F.3d 428, 435 (9th
The court need not, however, accept as true those allegations
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that (1) contradict matters properly subject to judicial notice; (2)
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are conclusory allegations of law, mere legal conclusions, unwarranted
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deductions of fact, or unreasonable inferences; (3) are contradicted
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by documents referred to in the complaint; or (4) are internally
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inconsistent.
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696, 699 (9th Cir. 1998); Clegg v. Cult Awareness Network, 18 F.3d
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752, 754-55 (9th Cir. 1994); Branch v. Tunnell, 14 F.3d 449, 454 (9th
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Cir. 1994), rev’d on other grounds by Galbraith v. Cty. of Santa
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Clara, 307 F.3d 1119 (9th Cir. 2002); W. Mining Council v. Watt, 643
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F.2d 618, 624 (9th Cir. 1981); Response Oncology, Inc. v. MetraHealth
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Ins. Co., 978 F. Supp. 1052, 1058 (S.D. Fla. 1997).
Shwarz, 234 F.3d at 435; Pareto v. F.D.I.C., 139 F.3d
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The purpose of a motion to dismiss under Federal Rule of Civil
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Procedure 12(b)(6) is to test the legal sufficiency of the complaint.
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Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001).
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grant the motion only if it is certain that the plaintiff will not be
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entitled to relief under any set of facts that could be proven under
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the allegations of the complaint.
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80 F.3d 336, 338 (9th Cir. 1996).
The court can
Cahill v. Liberty Mut. Ins. Co.,
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A.
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On February 17, 2016, plaintiffs amended their complaint. (ECF
Analysis
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No. 30).
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(1) declaratory relief; (2) satisfaction and enforcement of judgment;
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(3) breach of duty of good faith and fair dealing; and (4) breach of
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Nevada insurance laws/statutory bad faith. Defendant moves to dismiss
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all causes of action, arguing that the plaintiffs have failed to cure
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the deficiencies noted by the court in the February 5, 2016 order.
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1.
The second amended complaint alleges four causes of action:
Declaratory Relief and Satisfaction and Enforcement of
Judgment
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The defendant, as it did in the first motion to dismiss,
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maintains that the claims for declaratory relief and satisfaction and
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enforcement of judgment is premature because it was being appealed.
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The record reflects the Nevada Court of Appeals affirmed the state
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court judgment in favor of the plaintiffs on May 10, 2016.
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35, Ex. 1).
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these claims, the court denies the defendant’s motion to dismiss
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plaintiffs’
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enforcement of judgment.
(ECF No.
As defendant asserts no other basis for dismissal of
claims
for
declaratory
relief
and
satisfaction
and
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2.
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Defendant argues that plaintiffs have not adequately shown that
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they have standing to sue for the breach of the covenant of good faith
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and
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insurance policy has not been provided, the court cannot make any
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factual or legal determinations relating to plaintiffs’ claims under
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said policies.
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record, the court will deny defendant’s motion to dismiss plaintiffs’
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breach of the covenant of good faith and fair dealing claim, without
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prejudice to renew in a motion for summary judgment at the close of
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discovery.
fair
Breach of Good Faith and Fair Dealing
dealing.
Plaintiffs
argue
that
since
the
applicable
As the applicable insurance policy is not part of the
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3.
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Defendant argues that plaintiffs have not shown that they have
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standing to sue for unfair claims practices and have pled sufficient
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facts to state a claim for unfair claims practices.
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contend that they have standing to sue for unfair claims practices “on
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the basis of judicial assignment issued and granted by the State
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Court.” (ECF No. 32 at 15). However, plaintiffs acknowledge that the
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judicial assignment only concerns the “right to pursue the Judgment
Breach of Nevada Insurance Laws/Statutory Bad Faith
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Plaintiffs
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against National Union Fire.”
(Id.).
It is well established that third party claimants have no private
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cause of action under NRS 686A.310.
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1190, 1195 (D. Nev. 1985); Crystal Bay Gen. Improvement Dist. v. Aetna
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Casualty & Surety Co., 713 F. Supp. 1371, 1376 (D. Nev. 1989) (holding
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that NRS 686A.310 creates no cause of action for a third party
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claimant against an insurer). As such, plaintiffs have failed to show
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they have standing to sue for unfair claims practices. Therefore, the
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court grants defendant’s motion to dismiss plaintiffs’ statutory bad
Tweet v. Webster, 614 F. Supp.
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faith claims.
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4.
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Defendant argues that plaintiffs’ claim and prayer for punitive
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damages should be dismissed because the only basis for recovery is
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based on causes of action that fail.
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to dismiss the breach of the covenant of good faith and fair dealing
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claim.
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plaintiffs’ prayer for punitive damages, without prejudice to renew
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in a motion for summary judgment at the close of discovery.
Punitive Damages and Attorney’s Fees
The court has denied the motion
Therefore, the court denies the defendant’s motion to dismiss
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Defendant further argues that plaintiffs’ claim for attorney’s
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fees should be dismissed because plaintiffs cannot plead a basis for
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the recovery of attorney’s fees. In response, plaintiffs contend that
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the state court awarded them $228,696.12 in attorney’s fees and costs
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in the underlying state court action and that the applicable insurance
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policy contains one or more provisions that provide for attorney’s
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fees and costs to the insured as a prevailing party forced to enforce
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the terms of the policy.
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insurance policy is not part of the record, the court will deny
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without prejudice defendant’s request to strike plaintiffs’ claim for
(ECF No. 30 at 6).
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As the applicable
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attorney’s fees, to renew in a motion for summary judgment at the
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close of discovery.
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III. Conclusion
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In accordance with the foregoing, defendant’s motion to dismiss
(ECF No. 31) is GRANTED in part and DENIED in part.
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IT IS SO ORDERED.
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DATED: This 22nd day of August, 2016.
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____________________________
UNITED STATES DISTRICT JUDGE
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