Aquarius Well Drilling Inc. v. American States Insurance

MEMORANDUM

California corporation Aquarius Well Drilling, Inc. (“Aquarius”), along with its sole shareholders Ray and Sharon Williamson (collectively “Appellants”), appeal the dismissal of their claims against American States Insurance Company (“Appel-lee”) for its alleged failure to defend Aquarius against a third-party lawsuit. Because Appellee had no duty to defend, the district court properly dismissed Appellants’ claims under Federal Rule of Civil Procedure 12(b)(6). See Gray v. Zurich Ins. Co., 65 Cal.2d 263 , 275 & n. 15, 54 Cal.Rptr. 104 , 419 P.2d 168 (1966).

Appellants’ policy obligated Appellee to defend against claims for “property damage” caused by an “occurrence,” which is defined as an “accident.” The negligence claim against Aquarius alleged that Aquarius performed an inadequate well test and therefore misrepresented the condition of the well. AH of Aquarius’s alleged conduct was intentional. Under California law, intentional acts are not “accidents” unless “some additional, unforeseen, unexpected, and independent happening” occurs which causes the damage. Merced Mutual Ins. Co. v. Mendez, 213 Cal.App.3d 41, 50 , 261 Cal.Rptr. 273 (Ct.App.1989). The allegations…