Seagate Technology, Inc. v. St. Paul Fire & Marine Insurance Company

73 F.3d 370 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. SEAGATE TECHNOLOGY, INC., Plaintiff-Appellee, v. ST. PAUL FIRE & MARINE INSURANCE COMPANY, Defendant-Appellant. No. 94-16144. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 7, 1995. Decided Dec. 22, 1995. MEMORANDUM * Before: BROWNING, CANBY and HALL, Circuit Judges. 1 Under California law, when component parts incorporated into larger products like Seagate's disc drives are found to be defective, an "accident" has occurred for insurance purposes. See Hogan v. Midland National Ins. Co., 91 Cal.Rptr. 153 (Cal.1970) (in bank); Geddes & Smith, Inc. v. St. Paul-Mercury Indem. Co., 334 P.2d 881 (Cal.1959); Economy Lumber Co. v. Insurance Co. of Northern America, 204 Cal.Rptr. 135 (Cal.Ct.App.1984). 2 A duty to defend exists when the underlying suit potentially seeks damages within the coverage of the policy. La Jolla Beach & Tennis Club, Inc. v. Industrial Indemnity Co., 36…