Motion for Summary Judgment or Alternatively for Summary Adjudication
described above, if proven, are sufficient to show conduct which a reasonable trier of fact could find constitutes malice rather than a mistake, honest error, or negligence. (See also Tomaselli v. Transamerica Ins. Co. (1994) 25 Cal.App.4th 1269, 1288, fn. 14.)
Furthermore, "[a]n insurer is not permitted to rely selectively on facts that support its position and ignore those facts that support a claim. Doing so may constitute bad faith. [Citations.] When sufficiently egregious, an insurer's intentional disregard of facts supporting a claim also meets the standard for punitive damages." (Mazik v. Geico General Ins. Co. (2019) 35 Cal.App.5th 455, 470.)
In addition, "claims managers that exercise substantial discretionary authority to pay or deny claims exercise 'substantial discretionary authority over decisions that ultimately determine corporate policy.' [Citation.]" (Major v. Western Home Ins. Co. (2009) 169 Cal.App.4th 1197, 1221.) To the extent such agents exercise that substantial discretionary authority to pay or deny Plaintiffs' claim, they "could be managing agents." (White v. Ultramar, Inc. (1999) 21 Cal.4th 563, 577.)
For all reasons discussed above, the allegations of the complaint, if proven, are sufficient to permit a reasonable trier of fact to find that Nationwide approved or ratified conduct by its putative agents with substantial discretionary authority to pay or deny Plaintiffs' claim, and to meet the standard for an award of punitive damages. As further discussed above, the Court does not consider whether Plaintiffs can prove their allegations.
The motion also seeks an order striking allegations that Nationwide failed to continue to participate, or cancelled its participation, in the appraisal process, and that Nationwide breached the Policy by violating provisions of the Insurance Code. (Notice at p. 1, ll. 10-16.)
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Notwithstanding whether a violation of any provision of the Insurance Code is sufficient to constitute a breach of contract, or whether extrinsic evidence demonstrates that Nationwide did not refuse to participate in the appraisal process, the allegations at issue appear necessary to other causes of action. "[M]atter that is essential to a cause of action should not be struck and it is error to do so." (Quiroz v. Seventh Ave. Center (2006) 140 Cal.App.4th 1256, 1281.)
Moreover, though the February Order includes summaries of the contentions advanced by the parties in support of and in opposition to the petition to compel, wholly absent from the February Order is any factual findings in regard to whether Nationwide abandoned or refused to participate in the appraisal process. For all reasons discussed above, the Court will deny the motion to strike on the grounds stated.
Request for judicial notice: In support of its motion to strike, Nationwide requests judicial notice of the February Order. (Nationwide RJN [motion to strike], P. 2 & exhibit 2.) The same reasoning and analysis apply.
Nationwide also requests judicial notice of a declaration of Plaintiffs' counsel, Stephen White, filed with the Court in support of Plaintiffs' opposition to the petition to compel. (Nationwide RJN [motion to strike], P. 1 & exhibit 1.) Though the Court will grant the request for judicial notice of attorney White's declaration, judicial notice of that Court record "is not the same as accepting the truth of its contents or accepting a particular interpretation of its meaning." (Joslin, supra, 184 Cal.App.3d at p. 374; see also Evid. Code, Sec. 452, subd. (d)(1).)
Tentative Ruling: Mechanics Bank v. California Organic Fertilizers, Inc., et al. Tentative Ruling: Mechanics Bank v. California Organic Fertilizers, Inc., et al. Case Number
Case Type Civil Law & Motion Hearing Date / Time Wed, 06/03/2026 - 10:00 Nature of Proceedings Motion of Plaintiff Mechanics Bank for Summary Judgment or Alternatively for Summary Adjudication Tentative Ruling