Bullpen Distribution, Inc. v. Sentinel Insurance Company

MEMORANDUM

Bullpen Distribution, Inc. (“Bullpen”) appeals the district court’s grant of Sentinel Insurance Co., Ltd.’s (“Sentinel’s”) motion to dismiss Bullpen’s suit for breach of insurance contract, bad faith failure to defend, and declaratory relief. California’s substantive insurance law governs this diversity case. Freeman v. Allstate Life Ins. Co., 253 F.3d 533, 536 (9th Cir.2001). We review the district court’s order de novo, Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir.2010), and we affirm.

1. The business liability insurance that Bullpen purchased from Sentinel provided that Sentinel would defend Bullpen against any suit seeking damages for “personal and advertising injury.” The policy defined “personal and advertising injury” as injury arising out of “[o]ral, written or electronic publication of material that ... disparages a person’s or organization’s goods, products or services.” Bullpen was sued by A.Y. International, Inc. (“AYI”) for a number of causes of action including intentional interference with prospective economic advantage, untrue and misleading advertising, and unfair competition. In its complaint, AYI alleged, among other…