E. Piphany, Inc. v. St. Paul Fire & Marine Ins. Co.

ORDER GRANTING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT ON DEFENDANT’S DUTY TO DEFEND; DENYING DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT

I. INTRODUCTION

E.piphany (“Plaintiff’) brings this diversity action against St. Paul Fire & Marine Insurance Co. (“Defendant”), alleging breach of contract and seeking declaratory relief under 28 U.S.C. § 2201 . Plaintiff insurance policyholder alleges that Defendant insurance carrier had a duty to defend Plaintiff in an underlying litigation (“Underlying Action”), pursuant to the terms of the parties’ insurance policy (“Policy”), and that Defendant violated the terms of the Policy by failing to provide a defense.

Presently before the Court are the parties’ cross-motions for summary judgment. The Court conducted a hearing on October 27, 2008. Based on the papers submitted to date and oral argument, the Court GRANTS Plaintiffs Motion for Partial Summary Judgment and DENIES Defendant’s Cross-Motion for Summary Judgment.

II. BACKGROUND

A. Undisputed Facts

Starting on June 24, 2002, Plaintiff was covered by Technology Global Companion Commercial Liability Protection, as part of an overall Policy taken out with Defendant. Coverage…