St. Paul Fire & Marine Insurance v. Vadnais Corp.

MEMORANDUM

Plaintiff St. Paul Fire & Marine Insurance Company (“St. Paul”) appeals from the district court’s grant of summary judgment to Steadfast Insurance Company (“Steadfast”). We have jurisdiction pursuant to 28 U.S.C. § 1291 and reverse. Because the parties are familiar with the history of the case, we will not recount it here. We review a grant of summary judgment de novo. New Hampshire Ins. Co. v. Vieira, 930 F.2d 696, 697 (9th Cir. 1991).

A claim for equitable contribution “arises when several insurers are obligated to indemnify or defend the same loss or claim, and one insurer has paid more than its share of the loss or defended the action without any participation by the others.” Maryland Cas. Co. v. Nationwide Mut. Ins. Co., 81 Cal.App.4th 1082 , 97 Cal. Rptr.2d 374, 378 (2000) (internal quotation marks omitted).

“An insurer must defend its insured against claims that create a potential for indemnity under the policy.” Scottsdale Ins. Co. v. MV Transp., 36 Cal.4th 643 , 31 Cal.Rptr.3d 147 , 115 P.3d 460, 466 (2005). “The duty to defend is broader than the duty to indemnify, and it may apply even in an action where no damages are ultimately awarded.” Id. “The defense…