California Dairies, Inc. v. Rsui Indemnity Company

MEMORANDUM

Appellant California Dairies, Inc. (“CDI”) appeals from the district court’s decisions granting motions to dismiss and for summary judgment, and the resulting final judgment that rejected its insurance coverage claims against Appellee RSUI Indemnity Co. (“RSUI”). These claims arose out of a class action lawsuit by current and former employees alleging that CDI violated the California Labor Code (the “Underlying Action”). RSUI asserts that two policy exclusions bar CDI’s claims: Exclusion 4, which bars claims arising out of the Fair Labor Standards Act and similar provisions of state laws; and Exclusion 7, which bars claims arising out of lawsuits between “insured parties,” in this case CDI, and its current and former employees.

The district court held that Exclusion 4 bars coverage for some but not all claims asserted against CDI in the Underlying Action, and that Exclusion 7 independently bars all claims. We have jurisdiction under 28 U.S.C. § 1291 and review the district court’s grant of summary judgment and of motions to dismiss de novo. Travelers Cas. & Sur. Co. of Am. v. Brenneke, 551 F.3d 1132, 1137 (9th Cir.2009); Manzarek v. St. Paul Fire & Marine Ins. Co.,…