Reshamwalla

MEMORANDUM AND ORDER

Plaintiffs Hussein Ali and Raheda Resh-amwalla (“plaintiffs”) bring this action against defendant State Farm Fire and Casualty Company (“State Farm”) alleging that State Farm breached the covenant of good faith and fair dealing by refusing to defend and indemnify Darrel Abruzzo (“Abruzzo”) in an underlying action by plaintiffs against Abruzzo. Plaintiffs bring these claims as assignees of Abruzzo’s rights under a homeowner’s insurance poli cy issued by State Farm. Plaintiffs also bring a direct action against State Farm as judgment creditors pursuant to Cal. Ins. Code § 11580 (b)(2).

This matter is before the court on plaintiffs’ and State Farm’s cross-motions for summary judgment. Plaintiffs move for summary judgment solely on the issue of State Farm’s duty to defend Abruzzo in the underlying action. State Farm moves for summary judgment as to each of plaintiffs’ claims. For the reasons set forth below, plaintiffs’ motion for partial summary judgment is granted in part and denied in part, and State Farm’s motion is denied in its entirety.

BACKGROUND

1.The Incident

Sometime before 9:00 p.m. on December 21, 1992, Abruzzo and several other teenagers entered…