Screen Actors Guild-American Federation of Television & Radio Artists v. Federal Insurance

MEMORANDUM

Screen Actors Guild-American Federation of Radio and Television Artists (SAG) appeals the district court’s decision denying its motion for summary judgment and granting defendant-Appellee Federal Insurance Company’s (Federal) motion for summary judgment. Because SAG has not identified a covered Loss for which Federal breached its duty to indemnify, SAG’s claims for breach of contract and for breach of the covenant of good faith and fair dealing fail. See Davis v. Farmers Ins. Grp., 134 Cal.App.4th 100 , 105, 35 Cal.Rptr.3d 738 (2005) (explaining that “[t]he first step in any insurance coverage dispute is to determine whether the insuring provisions of the policy afforded coverage for the alleged losses”).

SAG is not entitled to coverage based solely on a claim for attorneys fees untethered to any insurable Loss. See Health Net, Inc. v. RLI Ins. Co., 206 Cal.App.4th 232, 257 , 141 Cal.Rptr.3d 649 (2012) (holding that “the claim for attorney’s fees is covered only to the extent it arises out of the covered wrongful acts.”) Under California law, a pre-existing obligation is not a covered loss. See August Entm’t, Inc. v. Philadelphia Indem. Ins. Co., 146 Cal.App.4th 565,…