SDR Capital Management, Inc. v. American International Speciality Lines Insurance

ORDER GRANTING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT

Plaintiff SDR Capital Management (“Plaintiff’), a California corporation, seeks partial summary judgment against Defendant American International Specialty Lines Insurance Company (“Defendant”), an Alaska corporation. See Fed. R. Civ. Proe. 56. Defendant opposes. All parties are represented by counsel. The Court decides the matter on the papers submitted and without oral argument. See Civ. L.R. 7.1(d.l).

For the reasons expressed below, the Court GRANTS Plaintiffs motion for partial summary judgment.

i. Background

Plaintiff purchased an Errors and Omissions (E & 0) insurance policy (“Policy”) from Defendant. The Policy period ran from April 1, 2003 to April 1, 2004. Under the Policy’s terms, any damages or defense obligations relating to (1) claims against Plaintiff or (2) Plaintiffs wrongful acts would be insured, subject to certain exceptions. On March 10, 2003 William Garland instituted an arbitration proceeding against Plaintiff regarding the investment supervisory services he received (“Garland Claim”). Although Plaintiffs Policy did not become effective until April 1, 2003, Plaintiff did not become aware of…