Robert Young v. Illinois Union Insurance Company

MEMORANDUM

The district court properly determined that no potential for coverage was available to Young under the Directors and Officers Coverage Section of the insurance policy issued to TRI by Illinois Union (“the Policy”). Exclusion q excludes all claims “based upon, arising out of, directly or indirectly resulting from or in consequence of, or in any way relating to any act, error or omission in connection with performance of any professional service.” California courts, and this court applying California law, have interpreted similar language broadly. See, e.g., Cont’l Cas. Co. v. City of Richmond, 763 F.2d 1076, 1080-81 (9th Cir.1985). The allegations brought against Young by Raybern plainly “arise out of’ or “relat[e] to” Young’s provision of services as an attorney for Raybern. Accordingly, there is no potential for coverage of these claims, and the district court properly granted summary judgment to Illinois Union.

The district court also properly determined that no coverage was available to Young under the Employment Practices Coverage Section of the Policy. No potential for coverage existed for claims brought by TRI against Young, because this section of the policy…