(Judgment for Breach of Contract Reversed as Trial Court
Should Have Granted Leave to Amend Complaint For Bad
Faith)
(August 2020) - In Eghtesad v. State Farm
Gen. Ins. Co., 51 Cal.App.5th 406 (June 29, 2020), the
California Court of Appeal reversed the trial court's entry
of judgment in favor of State Farm General Insurance Company
(“State Farm”) based on an order sustaining a demurrer
without leave to amend regarding a complaint filed by Nader
Eghtesad. Mr. Eghtesad, representing himself, filed a form
complaint checking a box for breach of contract. The complaint
alleged two paragraphs contending that State Farm had acted in bad
faith and concealed benefits due under a policy issued to a former
tenant who rented space in a building owned by Eghtesad. Eghtesad
was an additional insured under the tenant's policy. In that
regard, the building was damaged during the time that the building
was rented and Eghtesad tendered a claim under the State Farm
policy contending
