Blue Ridge Ins. Co. v. Jacobsen

Full title: BLUE RIDGE INSURANCE COMPANY, a Maryland Corporation…

Court: United States Court of Appeals, Ninth Circuit

Date published: May 30, 2001

10 F. App'x 563 (9th Cir. 2001)

Opinion

10 Fed.Appx. 563 (9th Cir. 2001) BLUE RIDGE INSURANCE COMPANY, a Maryland Corporation, Plaintiff-counter-defendant-Appellee, v. John JACOBSEN and Brigette Jacobsen, Defendants-counter-claimants-Appellants. No. 98-55052. D.C. No. CV-93-4268-IH. United States Court of Appeals, Ninth Circuit. May 30, 2001.

Argued and Submitted Oct. 6, 1999.

Submission Withdrawn Nov. 29, 1999.

Resubmitted May 22, 2001.

NOT FOR PUBLICATION. (See Federal Rule of Appellate Procedure Rule 36-3)

Appeal from the United States District Court for the Central District of California Irving Hill, District Judge, Presiding.

Before RYMER and McKEOWN, Circuit Judges, and SHEA, District Judge ^*.

* Honorable Edward F. Shea, United States District Judge for the Eastern District of Washington, sitting by designation.

ORDER

This case is resubmitted as of May 22, 2001.

SUPPLEMENTAL MEMORANDUM ^**

** This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as may be provided by 9th Cir. R. 36-3.

We earlier issued a memorandum disposition, filed November 29, 1999, in which we affirmed that "portion of the district court's order finding no coverage under either the business pursuits or professional services exclusions of the Blue Ridge homeowner's policy and that the $300,000 settlement was reasonable ...." At the same time, we certified to the Supreme Court of California the following question:

Whether an insurer defending a personal injury suit under a reservation of rights may recover settlement payments made over the objection of the insured when it is later determined that the underlying claims are not covered under the policy.

Blue Ridge Ins. Co. v. Jacobsen, 197 F.3d 1008, 1009 (9th Cir.1999). The Supreme Court of California accepted certification. On May 10, 2001 the court issued an opinion answering the certified question in the affirmative and concluding that, under such circumstances, "an insurer may be reimbursed for a reasonable settlement payment made over the objection of its insureds." Blue Ridge Ins. Co. v. Jacobsen, 25 Cal.4th 489, 492-493, 106 Cal.Rptr.2d 535, 22 P.3d 313 (2001). In view of the response from the Supreme Court of California, we affirm the district court's summary judgment granting Blue Ridge Insurance Company reimbursement in the sum of $300,000. We also affirm the district court's judgment in all other respects, including the dismissal of the Jacobsens' counterclaims.

AFFIRMED.