Southern California Counseling Center v. Great American Insurance Co.

MEMORANDUM

Southern California Counseling Center (“SCCC”) appeals the grant of Great American Insurance Company’s (“GAIC”) motion for summary judgment and the denial of its own motion for partial summary judgment in a case arising out of the rejection of SCCC’s reimbursement claim under a GAIC-issued insurance policy’s coverage for losses due to computer fraud. The district court found that the policy’s exclusion for losses caused by “authorized representatives”—here, SCCC’s payroll-services agent, Ben Franklin Payroll Service, and/or its principal, Richard Zakari-an—applied. We affirm.

Section D.l.c of the policy excludes from coverage losses caused by the dishonest acts of “authorized representatives.” Black’s Law Dictionary defines “to authorize” as “[t]o give legal authority; to empower,” and “representative” as “[s]ome-one who stands for or acts on behalf of another.” Black’s Law Dictionary (10th ed. 2014). Webster’s Dictionary presents substantially similar definitions. Webster’s Third New International Dictionary (Unabridged) 146-47, 1926-27 (1981). As a result, authorized representatives are “in essence, those whom the insured empowers to act on its behalf.” Stanford…