Bubonic v. Safeco

Plaintiffs Thomas and Mary Ann Bubonic claimed that while they were staying at the Ritz Carlton Hotel in Rancho Mirage, jewelry with a value of over $300,000 was stolen from them. Their insurer, Safeco, denied the claim based upon their lack of cooperation and based upon Safeco’s conclusion that the theft simply did not occur. The Bubonics brought suit for bad faith in superior court and Safeco removed the matter to federal court. After the trial court granted Safeco’s motion for summary adjudication on the issue of insurance bad faith, a jury returned a defense verdict on the breach of contract claim.