National Union Fire Insurance Co. of Pittsburgh v. Seagate Technology, Inc.

MEMORANDUM

Seagate Technology, Inc. (“Seagate”) appeals and its insurers, National Union Fire Insurance Company of Pittsburgh, PA (“National”), American International Underwriters Insurance Company (“AIU”), and American International Specialty Lines Company (“AISLIC”), cross appeal the district court’s September 2, 2010 Judgment Pursuant to Federal Rule of Civil Procedure 54(b) and the orders that underlie the judgment. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse the district court’s rulings that AIU owed a duty to defend and that the other insurers’ duty to defend terminated. We affirm all remaining issues appealed.

“We review a grant of summary judgment de novo.” Hudson Ins. Co. v. Colony Ins. Co., 624 F.3d 1264, 1266 (9th Cir.2010). In addition, a district court’s interpretation of state law is reviewed de novo. Trishan Air, Inc. v. Fed. Ins. Co., 635 F.3d 422, 426-27 (9th Cir.2011). “When interpreting state law, federal courts are bound by decisions of the state’s highest court. In the absence of such a decision, a federal court must predict how the highest state court would decide the issue using intermediate appellate court decisions, decisions from…