American Medical International, Inc.,plaintiff-Appellee v. National Union Fire Insurance Company of Pittsburgh,defendant-Appellant

BERZON, Circuit Judge:

In this diversity action, defendant-appellant National Union Fire Insurance Company of Pittsburgh (“National Union”) seeks reversal of a $12 million jury verdict for its breach of an insurance policy’s implied covenant of good faith and fair dealing. National Union contends that as a matter of law, the policy did not cover plaintiff-appellee American Medical International’s (“AMI”) underlying claims and therefore, under the California Supreme Court’s decision in Waller v. Truck Insurance Exchange, Inc., 11 Cal.4th 1, 44 Cal.Rptr.2d 370, 900 P.2d 619 (1995), National…