Travelers Property Casualty Co. of America v. Charlotte Russe Holding, Inc.

Plaintiff and respondent, Travelers Property Casualty Company of America (Travelers), filed this action for declaratory relief seeking a *972 determination that there was no potential for coverage under its policy, and therefore no duty to defend its insureds, Charlotte Russe Holding, Inc., Charlotte Russe Merchandising, Inc., David Mussafer, Jenny J. Ming, Advent International Corporation, Advent CR Holdings, Inc., and Advent CR, Inc. (the Charlotte Russe parties), in litigation against them by Versatile Entertainment, Inc., and its parent, People’s Liberation, Inc. (collectively, Versatile). The trial court agreed with Travelers, and granted its motion for summary judgment. We will reverse the summary judgment.

BACKGROUND

Underlying lawsuits by Versatile against the Charlotte Russe parties

The underlying litigation for which the Charlotte Russe parties sought coverage arises out of pleadings filed by Versatile in litigation against the Charlotte Russe parties. On October 26, 2009, certain of the Charlotte Russe parties sued Versatile alleging claims for fraud, breach of contract, and restitution. On October 27, 2009, Versatile filed an action against those parties,…