Zurich Specialties London Ltd. v. Bickerstaff, Whatley, Ryan & Burkhalter, Inc.

MEMORANDUM

Bickerstaff, Whatley, Ryan & Burkhal-ter, Inc. appeals the district court’s grant of partial summary judgment in favor of Zurich Specialties London Limited. The district court concluded that Zurich has no duty to defend or indemnify Bickerstaff in a third-party contribution action filed by Spear, Safer, Harmon & Co. (the “underlying action”). We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

1. The professional liability policy Zurich issued to Bickerstaff unambiguously excludes “claims or ‘costs, charges and expenses’ for or arising out of ... the insolvency or bankruptcy of the Insured or any other person, firm or organization.” Under California law, the phrase “arising out of’ does “not import any particular standard of causation or theory of liability into an insurance policy. Rather, it broadly links a factual situation with the event creating liability, and connotes only a minimal causal connection or incidental relationship.” Acceptance Ins. Co. v. Syufy Enterprises, 69 Cal.App.4th 821 , 328, 81 Cal.Rptr.2d 557 (1999).

The underlying action arises from the insolvency of Caduceus, a medical malpractice self-insurance fund. The Florida…