American Family Insurance Comp v. Milo Bergeson

MEMORANDUM

Appellee American Family Insurance Company (“American Family”) sought a declaration against appellants Milo Bergeson and David and Joan Levengood (“the Levengoods”) that American Family did not have a duty to defend or indemnify the Levengoods in an underlying wrongful death suit brought by Bergeson, after his ex-wife Lynn Bergeson died from carbon monoxide intoxication in the condominium she leased from the Levengoods when an improperly wired ceiling fan ignited the insulation above her unit. Bergeson and the Levengoods (collectively, “appellants”)appeal the district court’s grant of summary judgment in favor of American Family, in which the court concluded that because American Family’s policy did not cover the Levengoods’ liability, American Family had no duty to defend or indemnify them. We have jurisdiction pursuant to 28 U.S.C. § 1291 .

We review de novo the district court’s grant of summary judgment. Sullivan v. Oracle Corp., 662 F.3d 1265, 1270 (9th Cir.2011). Under Arizona law, “an insurer typically owes a duty to indemnify the insured against liabilities covered by the policy and a duty to defend the insured against any claim ‘potentially covered by the…