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PERSHING PARK VILLAS v. UNITED PACIFIC INS.

No. 98-56261

219 F.3d 895 (2000)

PERSHING PARK VILLAS HOMEOWNERS ASSOCIATION, an unincorporated and non-profit Homeowners Association; CSP-Pershing, Ltd., a California Limited Partnership; Harry Bigham; Timothy Penkala; and Joseph John, Plaintiffs-Appellees, v. UNITED PACIFIC INSURANCE COMPANY, a Washington corporation; and Reliance Insurance Co., Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Filed July 10, 2000.

As Amended August 11, 2000.

Attorney(s) appearing for the Case

Barry R. Levy, Horvitz & Levy, Encino, California, for the defendants-appellants.

Dennis P. Riordan, San Francisco, California, for the plaintiffs-appellees.

Before: BOOCHEVER, HAWKINS, and THOMAS, Circuit Judges.

BOOCHEVER, Circuit Judge:

Reliance Insurance Company appeals a judgment entered on a multimillion-dollar jury verdict. The jury found that Reliance acted in bad faith when it withdrew its defense of insured real estate developers in a construction-defect suit brought by a homeowners' association, and refused to pay the resulting default judgment. We reverse the judgment inasmuch as it permitted the homeowners to recover directly from the insurer without establishing...

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