HASTINGS, J.
BACKGROUND
A group of homeowners (real parties) whose homes were damaged or destroyed in the 1994 Northridge earthquake brought an action against Fire Insurance Exchange and Farmers Insurance Exchange (petitioners) to recover under their policies and for damages, alleging breach of contract, insurance bad faith, fraud, and negligence.
Real parties' first amended complaint alleges that at the time of the earthquake, their homes were insured...
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