Iversen v. Superior Court

Opinion

THE COURT

Petitioner Iversen, a claims supervisor employed by the codefendant insurance company, seeks a writ of mandate to compel the

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Los Angeles Superior Court to grant his motion for summary judgment in an insured’s action for breach of the duty of good faith and fair dealing.

Following an adverse judgment in a cross-complaint for indemnification, Sunshield Insulation Company (Sunshield) filed an action alleging that the duty of good faith and fair dealing in an insurance contract was breached by reason of a failure to accept a settlement within policy limits and a failure to post a bond on appeal for the entire adverse judgment. The complaint asserts a second cause of action for declaratory relief.

1

Sunshield’s insurer, Insurance Company of North America, and the insurer’s claim supervisor, petitioner Iversen, are codefendants.

Iversen filed a motion for summary judgment. In his declaration in support of that motion, Iversen stated that he is a claims supervisor for Insurance Company of North America and that he is not a party to any contract with Sunshield including the liability insurance contract involved in Sunshield’s action. Iversen also declared that he had no part in the selling and underwriting of the insurance contract between Sunshield and his employer. Sunshield filed no affidavits or declarations in opposition but did submit certain writings which purportedly demonstrate the alleged bad faith. None was written by Iversen.

At the hearing on the motion for summary judgment, Sunshield contended that its allegations for punitive damages were sufficient to allege a fraud cause of action against Iversen. The lower court disagreed but took the motion under submission for 30 days in order that Sunshield might file an amended complaint or counteraffidavits. Nothing further was filed.

One month later, the trial court, in denying the motion for summary judgment, stated “at this juncture Iversen is not shown by any test to be relieved from the triable issue of just what Iversen was.” A motion for reconsideration was also denied.