Beach v. Harco National Insurance

1 Cal. Rptr. 3d 454, 110 Cal. App. 4th 82
CourtCalifornia Court of Appeal
DecidedJuly 29, 2003
DocketC039243
StatusPublished
Cited by16 cases

This text of 1 Cal. Rptr. 3d 454 (Beach v. Harco National Insurance) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beach v. Harco National Insurance, 1 Cal. Rptr. 3d 454, 110 Cal. App. 4th 82 (Cal. Ct. App. 2003).

Opinion

Opinion

HULL, J.

When plaintiff Kevin Beach filed a complaint alleging breach of the covenant of good faith and fair dealing, defendant Harco National Insurance Company (Harco) responded by filing a motion to strike under the “anti-SLAPP” (strategic lawsuit against public participation) statute, Code of Civil Procedure section 425.16. (Further undesignated statutory references are to the Code of Civil Procedure.) The trial court denied the motion, and defendant appeals. (§ 425.16, subd. (j).) We affirm the judgment.

FACTS AND PROCEDURAL HISTORY

The nature of this appeal requires a detailed chronology of events.

Plaintiff was a truck driver. On the night of February 1, 1996, he pulled over his rig to the side of the road to help another truck driver who was having problems. Plaintiff’s daughter, who was riding as a passenger with her father, got out of the truck and stood by the side of the road. She was struck by a car driven by Jason Abbott, an uninsured motorist, and was seriously injured. The traffic collision report ascribed fault to Abbott but also noted that plaintiff, by leaving his headlights on high-beam and pointing them into oncoming traffic, contributed to the accident.

Plaintiff was insured with Harco. His policy included $30,000 in uninsured motorist coverage for “bodily injury.”

On January 31, 1997, plaintiff filed suit against Abbott, asserting he suffered serious emotional distress when he witnessed the accident.

In July 1997, plaintiff’s daughter filed suit against her father, Abbott, and others. Her complaint alleged, in part, that her father was negligent or reckless in parking his vehicle in an unsafe manner and in allowing his daughter to be in a position of danger.

On January 13, 1998, plaintiff’s then lawyer, Grant Pegg, wrote to Harco, demanding the $30,000 limits of his uninsured motorist policy. Pegg noted *85 that Harco should be familiar with the accident because defendant was “handling ... the lawsuit that has been filed by [plaintiff’s] daughter, Tara Beach, that arose from said accident.” He stated that plaintiff “was standing only a few feet [from] Tara when she was struck by the Abbott vehicle. As a result of the trauma of witnessing his daughter being struck by a vehicle and from witnessing the horrific injuries to his daughter, [plaintiff] has suffered from great emotional distress since the date of the accident.” Pegg concluded: “In short, I believe this is the perfect example of a Dillon vs. Legg type of claim and I am hopeful that we can resolve this matter without too much effort. I believe that our demand is completely reasonable in light of the proximity of [plaintiff] to his daughter at the time of impact, and the nature of the injuries sustained by his daughter.”

According to a declaration later filed by Pegg, plaintiff made a formal demand for arbitration in May 1998, although as late as August 1999, Harco stated it was unaware of any such demand. At some point, however, the parties selected Joe Ramsey “to act as an arbitrator and/or even as a mediator (ahead of time in advance of the arbitration), if we so choose to mediate.”

On November 6, 1998, Harco’s attorney sent Pegg a letter, stating, in part: “When we last spoke some time back, you were planning to provide me copies of the materials to document your client’s uninsured motorist claim, including his treatment records. I still have not seen those materials.” He continued: “Also, in light of the nature of the accident, I am somewhat confused about the scope of your client’s claim. Therefore, I would ask you to clarify the following in writing, to help set the parameters of the uninsured motorist claim.” Harco asked: “Is it true that [plaintiff] is not claiming that he suffered any actual physical injuries, but rather, his uninsured motorist claim is solely for a Dillon v. Legg bystander emotional distress claim?” Harco also sought to verify that plaintiff’s employer and the driver of the other truck both had “valid and collectible auto coverage, each with policy limits of $1 million.” This letter concluded: “Assuming that the answers to both of these questions is ‘yes,’ and assuming further that you provide me with the documents referred to above, it would appear that, as far as we are concerned, we could proceed with the arbitration and without depositions or discovery.”

Pegg replied 10 days later, on November 16, 1998, confirming that “[plaintiff] is making a Dillon vs. Legg claim arising from the subject accident and that the uninsured motorist is Jason Abbott.” Pegg also confirmed that the other truck driver and plaintiff’s employer carried $1 million in insurance policies. Pegg stated: “I agree that little discovery needs to be done prior to the arbitration. Other than the records from [plaintiff’s] treating physician, please let us know if you want any other documents to prepare for the arbitration.”

*86 At some point the same month, November 1998, plaintiff replaced Pegg with a new lawyer, Glenn Guenard. According to his declaration, Guenard telephoned and wrote to Harco’s attorney on November 30, 1998, to find out why policy limits had not been paid.

In December 1998, plaintiff filed a demand for the production of documents, to which Harco responded in January 1999.

Guenard wrote letters to the attorneys representing Harco in February 1999, March 1999 and June 1999 but received no reply. In a letter dated June 4, 1999, Guenard wrote that he would contact the previously selected arbitrator, Joe Ramsey “to obtain an arbitration date to resolve this case. I’ll select dates within 30-60 days from today.”

Guenard sent a follow-up letter to Harco on July 12, 1999, which resulted in further communication between the parties. Harco wrote Guenard on August 10, 1999, “to confirm our telephone conversations over the last week.” The letter stated that “Harco’s tentative position in this case remains that there is no uninsured motorist coverage available to [plaintiff] here. This position was previously communicated to Grant Pegg, [plaintiff’s] attorney before you.” Harco explained that this was based on Pegg’s confirmation that plaintiff had not suffered any physical injuries. Harco stated that coverage was available under the policy only for bodily injury or property damage, and that emotional distress without physical injury or manifestation was not bodily injury and therefore not a covered occurrence.'

This letter continued: “However, Harco has made no final determination on this issue, as we have been awaiting the receipt of the medical and psychological information requested from [plaintiff] in our November 6, 1998 correspondence .... To date, we have not received that information. Once Harco has received and evaluated that information, it will be in a position to formally decide its coverage obligation to [plaintiff] based upon this issue. In this regard, the policy requires that [plaintiff] cooperate with Harco with respect to its investigation, as well as to his medical records.”

Harco also expressed its doubt that “this case even constitutes an uninsured motorist matter given that there were other ostensibly responsible tortfeasors ...

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Bluebook (online)
1 Cal. Rptr. 3d 454, 110 Cal. App. 4th 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beach-v-harco-national-insurance-calctapp-2003.