GK Skaggs, Inc. v. Hartford Casualty Insurance

MEMORANDUM

GK Skaggs, Incorporated and Gregory Skaggs (collectively “GKS”) sued Hartford Casualty Insurance Company (“Hartford”), seeking a declaratory judgment that Hartford had a duty to defend GKS in an action filed against GKS, Cervecería Centra Americana (“CCA”), and Central Beer Import & Export (“Central Beer”) by non-party Leonel & Noel Corporation (“L & N”). GKS and Hartford filed cross-motions for summary judgment. The district court denied GKS’s motion and granted Hartford’s. Reviewing de novo, see Travelers Cas. & Sur. Co. of Am. v. Brenneke, 551 F.3d 1132, 1137 (9th Cir.2009) (summary judgment); McHugh v. United Serv. Auto. Ass’n, 164 F.3d 451, 454 (9th Cir.1999) (insurance policy interpretation), we affirm.

1. The policy language itself forecloses GKS’s argument that statements in GKS’s termination letter formed the basis for potential disparagement liability. There were no “damages because of ... injury ... arising out of’ GKS’s disparagement, because GKS sent L & N the termination letter after CCA and Central Beer had terminated their contracts with L & N. See Medill v. Westport Ins. Corp., 143 Cal.App.4th 819 , 49 Cal.Rptr.3d 570, 578-79 (2006) (noting that…