Kiernan

Plaintiff Christopher Kiernan suffered bodily injuries while parasailing from a boat owned by Capistrano Parasail, Inc. 1 Kiernan sued Capistrano for damages. In 1994, a jury returned a verdict in Kiernan’s favor for $100,000. His costs of suit were $11,038.72. Capistrano failed to pay the judgment. Kier-nan then filed an action in state court against Capistrano’s insurer, Zurich Companies, to recover on the judgment. Kiernan brought his action against Zurich under California Insurance Code § 11580(b)(2), which permits a judgment creditor to bring a direct action against an insurer to collect a judgment awarded against an insured. The action was removed to federal court on grounds of diversity.

The parties agreed to a stipulated trial on the issue whether Kiernan could bring a direct action against Zurich . under § 11580(b)(2). The district court found that Kiernan could bring such an action and entered judgment for Kiernan in the amount of $136,412.77, which included additional costs and interest. Zurich appeals. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

I. KIERNAN’S RIGHT TO DIRECTLY SUE ZURICH

Disputes arising under marine insurance contracts are governed…