JESSE MELENDREZ v. HISCOX INSURANCE COMPANY INC (2024)

ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND

Plaintiff Jesse Melendrez (“Plaintiff”) filed the instant breach of contract and bad faith insurance action against Defendant Hiscox Insurance Company, Inc. (“Hiscox”), as a result of Hiscox's refusal to defend Plaintiff in an earlier third-party lawsuit. ECF No. 1 (“Compl.”). Plaintiff alleges that Hiscox's refusal to defend and indemnify him in the third-party lawsuit breached both a commercial general liability and an umbrella policy, and that in doing so, Hiscox breached the implied covenant of good faith and fair dealing. Hiscox filed a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). ECF No. 14. Plaintiff filed an opposition to the motion, arguing that Hiscox was obligated to provide him with a defense because he qualified as an insured under the commercial general liability policy, and that the exclusion cited by Hiscox did not bar coverage. Plaintiff also asserted that there “appear[ed] to be no dispute as to the umbrella policy, which constitute[d] an independent contractual obligation.” ECF No. 18 at 2; see also Compl., ¶¶ 9, 24, 27, 31.

At hearing, Plaintiff acknowledged certain ambiguities and omissions in the complaint, indicated the existence of the umbrella policy was in question, and asked that he be permitted leave to amend.

“The court should freely give leave [to amend a pleading] when justice so requires.” Fed. R. Civ. P. 15(1)(2). Given that Plaintiff has not yet amended the complaint and that this case is in its early stages, the Court finds that the interest of justice and judicial economy would be served by allowing Plaintiff to amend his complaint. In doing so, the Court reminds Plaintiff's counsel that by presenting pleadings to the Court, they certify that “the factual contentions have evidentiary support,” and that Plaintiff's “claims ․ and other legal contentions are warranted by existing law[.]” Fed. R. Civ. P. 11(b).

Accordingly, Hiscox's motion to dismiss is GRANTED with leave to amend. The amended complaint must clearly state Plaintiff's theory of liability and allege facts that have evidentiary support. Plaintiff is cautioned that if Hiscox moves to dismiss Plaintiff's amended complaint for failure to state a claim, the Court will expect Plaintiff to have included the facts necessary to support his claims. Failure to do so may result in dismissal without leave to amend.

IT IS SO ORDERED.

Eumi K. Lee United States District Judge