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Selman Defeats $6M Breach of Contract and Bad Faith Claim Against Insurer Client on Motion to Dismiss

Bernstein v. Nautilus

On July 25, 2017, Judge M. James Lorenz of the United States District Court, Southern District of California granted Selman Breitman’s Motion to Dismiss a complaint for breach of contract and bad faith against the firm’s client, Nautilus Insurance. Plaintiff Zoe Bernstein sought more than $6 million.  The plaintiff was a party injured in a single-vehicle accident wherein Nautilus’ insured was driving.  She obtained a more than $6 million judgment against the insured’s employer and filed suit against Nautilus seeking the amount of the judgment.  The Nautilus policy contained an auto exclusion, but plaintiff argued a policy endorsement limited the scope of the exclusion and rendered it vague and unenforceable.  The District Court disagreed, finding the auto exclusion applied and granting Nautilus’ Motion to Dismiss without leave to amend. 

Alan B. Yuter and Rachel E. Hobbs of Selman Breitman represented Nautilus.

Andrew A. Kurz of the Law Offices of Andrew A. Kurz represented plaintiff Zoe Bernstein.