Moreno v. Wells Fargo, N.A., 060216 FED9, 13-17615

Docket Nº:13-17615
Party Name:ANGEL MORENO AND CARMELITA MORENO, Plaintiffs - Appellants, v. WELLS FARGO, N.A.; AMERICAN BANKERS LIFE ASSURANCE COMPANY OF FLORIDA, FORMERLY KNOWN AS UNION SECURITY LIFE INSURANCE COMPANY Defendants-Appellees.
Judge Panel:Before: IKUTA and WATFORD, Circuit Judges, and WATSON, District Judge. WATFORD, Circuit Judge, dissenting:
Case Date:June 02, 2016
Court:United States Courts of Appeals, Court of Appeals for the Ninth Circuit
 
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ANGEL MORENO AND CARMELITA MORENO, Plaintiffs - Appellants,

v.

WELLS FARGO, N.A.; AMERICAN BANKERS LIFE ASSURANCE COMPANY OF FLORIDA, FORMERLY KNOWN AS UNION SECURITY LIFE INSURANCE COMPANY Defendants-Appellees.

No. 13-17615

United States Court of Appeals, Ninth Circuit

June 2, 2016

NOT FOR PUBLICATION

Argued and Submitted May 10, 2016 San Francisco, California

Appeal from the United States District Court for the District of Arizona, D.C. No. 2:13-cv-00972-PHX-SRB, Susan R. Bolton, District Judge, Presiding

Before: IKUTA and WATFORD, Circuit Judges, and WATSON, District Judge.[**]

MEMORANDUM[*]

Plaintiffs Angel Moreno and Carmelita Moreno appeal from the dismissal of their amended complaint, which alleged claims under Arizona law against Defendants Wells Fargo, N.A. (Wells Fargo) and American Bankers Life Assurance Company of Florida (American Bankers). The Morenos' claims included those for breach of the duty of good faith and fair dealing, breach of contract, consumer fraud, and unfair and deceptive acts and practices in the business of insurance. The Morenos also appeal from the district court's judgment awarding attorneys' fees to defendants. We have jurisdiction under 28 U.S.C. § 1291. We affirm.

1. The district court did not err in dismissing the Morenos' claims for lack of proximately caused damages. See Knievel v. ESPN, 393 F.3d 1068, 1072 (9th Cir. 2005) ("We review the district court's grant of a motion to dismiss de novo."). This case arises from a home loan that the Morenos obtained through Wells Fargo. In conjunction with this loan, the Morenos elected to purchase disability insurance coverage from Union Security Life Insurance Company, now known as American Bankers. The insurance policy at issue provided that coverage would terminate if and when: "You are considered in default under the terms of your debt agreement with the Creditor, or in default with your monthly insurance premium." It is undisputed that the Morenos failed to timely make full mortgage and insurance premium payments beginning in April 2012, several months prior to Wells Fargo's August 20, 2012 letter notifying the Morenos that their insurance coverage had ended. Accordingly, the Morenos' failure to make their payments caused them to lose their insurance coverage, not any act or omission by defendants.

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