Friday, September 7th, 2007...9:26 am
9th Cir: Alaska Insurance Law
The 9th Circuit has reversed Judge Timothy Burgess, and held that a commerical liability carrier breached its duty of good faith and fair dealing to its insured by issuing an inadequate denial of coverage. The Court of Appeals held:
The denial letter made no reference to any specific law or facts relating to Lutz’s dispute with [the insured], and the policy provisions it did reference did not include the assertion that the damage to Lutz’s home occurred outside the coverage period - the defense upon which [the carrier] now primarily relies. The only specific legal explanation provided in the denial letter, as [the carrier] acknowledges, constitutes a material misstatement of Alaska law.
Lutz v. First Financial Ins. Co., Inc., No. 06-35804 (9th Cir. Sept. 7, 2007)(unpub. op.).
Paul Brattos, Jr. and Tim Cook represent the insured’s assignee. Andrew Guidi of Delaney Wiles, Inc. represents the carrier.
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