C.V. v. American Family Mutual Insurance Company, S.I.

No. 6:25-cv-01055-MC (D. Or. Jan. 28, 2026) · United States District Court for the District of Oregon, Eugene Division · January 28, 2026 · No. 6:25-cv-01055-MC

Summary

The United States District Court for the District of Oregon partially granted and partially denied an insurer’s motion to dismiss claims arising from an underinsured motorist insurance claim. The court held that emotional distress damages are unavailable for breach of the implied covenant of good faith and fair dealing because that claim is contractual, but concluded that the plaintiff adequately pleaded a negligence per se claim based on alleged violations of Oregon’s unfair claim settlement practices statute. The contractual emotional-distress claim was dismissed with prejudice, while the negligent-performance claim survived.

Court
United States District Court for the District of Oregon, Eugene Division
Jurisdiction
United States District Court for the District of Oregon, Eugene Division
Decision date
January 28, 2026
Docket number
6:25-cv-01055-MC
Disposition
other

Questions Presented

  1. Whether Oregon law permits recovery of emotional-distress damages for breach of the implied covenant of good faith and fair dealing in an insurance contract.
  2. Whether the complaint adequately pleaded a negligence-per-se or negligent-performance claim based on alleged violations of Oregon's unfair claim settlement practices statute, ORS 746.230, including a claim for emotional-distress damages.

Holdings

  1. Under Oregon law, a claim for breach of the implied covenant of good faith and fair dealing is contractual, and emotional-distress damages are not recoverable for that claim.
  2. The complaint adequately pleaded a negligence-per-se claim based on alleged violations of ORS 746.230 and plausibly alleged entitlement to emotional-distress damages; the negligent-performance claim therefore survives the Rule 12(b)(6) motion.

Court Document

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