Merriam v. Nat'l Union Fire Ins. Co. of Pittsburgh, No. 08-3547
In action for breach of contract and bad faith denial of insurance benefits, district court grant of summary judgment for defendant is affirmed in part and reversed in part where: 1) the grant of summary judgment on the breach of contract claim was premature, as factual disputes remain as to whether the insured was injured while performing tasks that fell within the course and scope of his duties under the independent contractor agreement; and 2) the court did not err in denying the claim for bad faith denial of benefits, as the claim was fairly debatable and defendant had an objectively reasonable basis for its denial.
Appeal from the United States District Court for the Southern District of Iowa.
Submitted: June 9, 2009
Filed: July 17, 2009
Before MURPHY, ARNOLD, and GRUENDER, Circuit Judges.
Opinion by MURPHY, Circuit Judge.