In the complaint, plaintiff also alleges that State Farm was negligent in issuing a check to the insureds that did not list plaintiff as a loss payee. Dkt. No. 1, Ex. 1, ¶ 19. According to plaintiff, State Farm’s policy required it to list plaintiff, as a mortgagee, when it paid proceeds under the policy to the insureds. Id. at ¶ 18. In its motion to dismiss, defendants argue that California' law does not recognize a cause of action for negligence based on an insurer’s handling of a claim. Docket No. 4, at 8 (citing Sanchez v. Lindsey Morden Claims Services, Inc., 72 Cal.App.4th 249, 254, 84 Cal.Rptr.2d 799 (1999) (“Negligence is not among the theories of recovery generally available against insurers.”)); see also Aceves v. Allstate Ins. Co., 68 F.3d 1160, 1166 (9th Cir.1995) (<HOLDING>). Plaintiff now appears to concede that he has
holding that the implied covenant of good faith and fair dealing is limited to performance under a contract recognizing cause of action for implied covenant of good faith and fair dealing in atwill employment contract holding that negligence alone is not sufficient to constitute a breach of the implied covenant of good faith and fair dealing owed to insureds recognizing that evidence of breach of implied covenant of good faith and fair dealing may support punitive damages holding where parties had not reached a binding contract the implied covenant of good faith and fair dealing did not apply