Milazo

In this case, a duplicitous partner seeks to obtain indemnification under a partnership liability policy for the damages caused to his innocent copartners by his misappropriation of a partnership opportunity.

We are presented with the appeal of the cross-defendant Gulf Insurance Company (Gulf) which challenges a summary judgment granted in favor of cross-complainant Michael P. Milazo (Milazo). That summary judgment was based upon the trial court’s determination that a partnership liability policy provided individual coverage for the wrongful acts of one of the partners. However, we conclude that the comprehensive general liability policy issued in this case did not provide individual coverage for the partners, but only for their acts as partners, and we therefore reverse the judgment.

Factual and Procedural Background

Milazo’s cross-complaint was filed in an action brought against him by Julia and Morley Pingle, persons with whom he was in partnership in a retail meat market business entitled “Alexander’s Choice Meats” (hereinafter, the Alexander partnership or Alexander’s). Milazo and another person, Millard Ellis, were the limited partners and the Pingles were…