Monarch E & S Insurance Services v. State Farm Fire & Casualty Co.

ORDER RE: CROSS-MOTIONS FOR SUMMARY JUDGMENT

I. Introduction

This matter arises out of the claim by plaintiff Monarch E & S Insurance Services (“Monarch”) and National Casualty Co. (“National”) that Monarch’s commercial general liability (“CGL”) insurer, State Farm Fire and Casualty Co. (“State Farm”) had a duty to defend and indemnify Monarch in an underlying misappropriation of trade secrets and unfair competition action brought against Monarch by Burns & Wilcox Insurance Services, Inc. (“Burns & Wilcox”). The matter is presently before the Court on the parties’ cross motions for summary judgment and summary adjudication.

II. Factual Background

A. The Underlying Litigation

Plaintiff Monarch is a wholesale insurance brokerage firm. On December 19, 1995, Monarch employed Helene. Briskin (“Briskin”), a former employee of Burns & Wilcox. On December 22, 1995, Burns & Wilcox filed a complaint in the Los Ange-les Superior Court against Monarch, styled Burns & Wilcox Insurance Services, Inc. v. Helene Briskin and Monarch E & S Insurance Services, Inc., Case No. BC 141316 (“the Burns & Wilcox litigation”), alleging that Briskin had misappropriated trade secrets from Burns & Wilcox…