Gayk Bagramyan v. Government Employees Insurance Company

Case No. 19STCV24949

Defendant’s Motion for Summary Judgment

Plaintiff Gayk Bagramyan (“Plaintiff”) filed this action against the Government Employees Insurance Company (“Defendant”) asserting two causes of action: (1) Breach of contract, and (2) Breach of the convent of good faith and fair dealing. Plaintiff also asserts a claim for punitive damages. Now, Defendant moves for summary adjudication of the second cause of action (breach of the covenant of good faith and fair dealing) and the related claim for punitive damages. Defendant does not seek summary adjudication of the claim for breach of contract.

The law implies in every contract, including insurance policies, a covenant of good faith and fair dealing. (Wilson v. 21st Century Ins. Co. (2007) 42 Cal.4th 713, 820.) The implied covenant of good faith and fair dealing requires an insurer to be reasonable, not flawless. (Chateau Chamberay Homeowners Ass’n v. Associated Int