Pedro Arroyo v. Unigard Ins. Co.

MEMORANDUM

Plaintiff Pedro Arroyo appeals from the district court’s decision on cross-motions for summary judgment in this insurance coverage dispute. The district court granted summary judgment in favor of Defendant Unigard Insurance Company on the ground that Unigard did not owe a duty to defend its insured, Jack Neal & Sons, Inc. and Jack Neal (collectively, “JNS”), in Arroyo’s previous state court action alleging that JNS’s improper development and management of his vineyard caused property damage. We hold that Unigard did not owe a duty to defend JNS in Arroyo’s state court action and, therefore, is not liable to Arroyo.

1. We have jurisdiction under 28 U.S.C. § 1291 . A district court’s decision on cross-motions for summary judgment is reviewed de novo. See Guatay Christian Fellowship v. Cty. of San Diego, 670 F.3d 957, 970 (9th Cir. 2011). Under California law, an insurer must provide a defense for its insured against any “suit which potentially seeks damages within the coverage of the policy.” Horace Mann Ins. Co. v. Barbara B., 4 Cal.4th 1076 , 17 Cal.Rptr.2d 210 , 846 P.2d 792, 795 (1993) (internal quotation marks omitted). Once it appears that claims against the…