Farmer Ex Rel. Hansen v. Allstate Insurance

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT.

1. Introduction

On August 14, 2003, Plaintiff Ashley L. Farmer (“Plaintiff’), by and through her Guardian ad Litem Andrea Hansen, brought this action for enforcement of a judgment pursuant to Cal. Ins.Code § 11580 and for breach of contract against Defendant Allstate Insurance Co. (“Defendant”). Plaintiff seeks damages against Defendant in the amount of $100,000, plus interest thereon, in satisfaction of a judgment rendered in an underlying lawsuit.

Now before the Court are the parties’ cross-motions for summary judgment, which each present the question whether as a matter of law Defendant had the duty to defend or indemnify its insured in an underlying lawsuit brought by Plaintiff.

II. Background

A. Facts

During the period of time relevant to this action, Nadine Varela (“Mrs. Varela”) operated a state licensed child day care business out of the home in which lived with her husband Carlos Varela (“Mr. Varela”). At such time, the Varelas were insured under an Allstate Deluxe Homeowners Policy (the “Varela Policy”), which included an endorsement for home day care…