Tankovich

ORDER

INTRODUCTION

We are presented with concurrent motions for summary judgment and application for default judgment by plaintiff Allstate Insurance Company (“Allstate”). The defendants in this action are Frank Tankovich, an Allstate Homeowner's Policy holder, and the Ahls, who have received a civil judgment in State Court against Mr. Tankovich for injuries caused by his racially motivated hate crimes. The Ahls claim that Mr. Tankovich’s homeowners insurance policy should be used to satisfy their judgment. Allstate seeks a declaration that it owes neither a duty to defend nor indemnify the insured, Mr. Tankovich, for any losses suffered by the Ahls. In addition, Allstate seeks a default judgment against Mr. Tankovich who has failed to appear in this action.

BACKGROUND

This case is the product of a series of tragic events. Defendant Frank Tankovich and defendants James Ahl, his wife, Deborah Ahl, and his daughter, Victoria Ahl (the “Ahls”), were next door neighbors in Concord, California for a period of several months. The Ahls rented their house and Mr. Tankovich owned his house. The Ahls were victims of hate crimes perpetrated by Mr. Tankovich which forced them to change…