Henley v. Safeco Insurance Company of America
- Richard Seeborg
- 3:21-cv-04243
- U.S. District Court · Northern District of California
- 4
In Henley v. Safeco, Judge Seeborg granted Safeco’s motion to dismiss claims about attorneys’ fees and elder abuse, allowing amendment.
Eva Jo Henley may amend her claims concerning attorneys’ fees and financial elder abuse; Safeco Insurance Company of America obtained dismissal of those claims at this stage.
What happened
In Henley v. Safeco Insurance Company of America, Eva Jo Henley alleged that Safeco owed additional benefits after water damaged her home. She brought claims for breach of contract, unfair handling of the claim, and financial elder abuse, and sought a declaration that the policy covered attorneys’ fees.
Safeco asked the court to dismiss the claims concerning attorneys’ fees and financial elder abuse. The court dismissed both claims because Henley did not identify policy language supporting attorneys’ fees and did not provide enough facts showing that Safeco’s conduct amounted to financial elder abuse or fraud.
The court granted Safeco’s motion to dismiss with leave to amend. Judge Seeborg’s order allowed Henley to revise those claims.
The detailed version
- Henley v. Safeco Insurance Company of America · No. 3:21-cv-04243
- Richard Seeborg
- Aug. 16, 2021
Background
Eva Jo Henley alleged that water intrusion severely damaged her home in 2020 while she was temporarily away at an assisted living facility. A daughter submitted an insurance claim on her behalf under Henley’s Safeco policy. Henley alleged that Safeco undervalued the claim, continued to deny some costs and expenses, and regularly denied claims made by elderly insureds.
Henley asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and financial elder abuse. She also sought declaratory relief concerning attorneys’ fees allegedly owed under the policy, along with money damages. Safeco’s motion challenged the sufficiency of the attorneys’ fees and financial elder abuse claims.
Declaratory Relief for Attorneys’ Fees
Henley sought a declaration that the policy entitled her to attorneys’ fees. Safeco attached a copy of the policy to its motion, arguing that the policy did not provide attorneys’ fee benefits. The court held that Henley had not identified any policy section or other agreement addressing attorneys’ fees and dismissed this claim with leave to amend.
Financial Elder Abuse
Under California law, financial elder abuse includes taking or retaining an elder’s property for wrongful use, with intent to defraud, or through undue influence. The court explained that allegations of intent to defraud must satisfy a heightened pleading requirement and identify the who, what, when, where, and how of the alleged misconduct.
The court found that Henley’s allegations that Safeco unreasonably and maliciously withheld benefits, refused coverage, refused to submit reasonable repair estimates, and offered an unreasonably low estimate were routine contract allegations. Henley did not provide facts showing what made Safeco’s actions unreasonable or malicious, or when, where, and how Safeco allegedly committed fraud. The court therefore dismissed the financial elder abuse claim with leave to amend.
Disposition
The court granted Safeco’s motion to dismiss with leave to amend. The opinion states that the motion challenged the claims related to attorneys’ fees and financial elder abuse; it does not state that the breach-of-contract or implied-covenant claims were dismissed. Judge Richard Seeborg signed the order on August 16, 2021.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.