Agrakey Solutions, LLC v. Mid-Continent Casualty Company

MEMORANDUM

AgraKey Solutions, LLC and John Reitsma (collectively, “AgraKey”) appeal the district court’s grant of summary judgment to Mid-Continent Casualty Company (“Mid-Continent”) on AgraKey’s claim that Mid-Continent breached its contractual duty to defend AgraKey. We review the entry of summary judgment de novo, applying Idaho law and, in the absence of a governing decision from the Idaho Supreme Court, “using intermediate appellate court decisions, decisions from other jurisdictions, statutes, treatises, and restatements as guidance.” Trishan Air, Inc. v. Fed. Ins. Co., 685 F.3d 422, 426-27 (9th Cir.2011). We affirm.

Mid-Continent had no duty to defend AgraKey against allegations made by BioMagic, Inc. (“BioMagic”) in an underlying arbitration action, because those allegations did not “reveal[] a potential for liability that would be covered by [Agra-Key’s insurance] policy.” Idaho Cntys. Risk Mgmt. Program Underwriters v. Northland Ins. Cos., 147 Idaho 84 , 205 P.3d 1220, 1224 (2009) (quoting Hoyle v. Utica Mut. Ins. Co., 137 Idaho 367 , 48 P.3d 1256, 1264 (2002)) (internal quotation marks omitted).

Specifically, the arbitration action revealed no potential for liability…