Trinity Management Services v. Travelers Property Casualty Corp.

MEMORANDUM *

Trinity Management Services (“Trinity”) sued Travelers Property Casualty and Aetna Casualty (“Travelers”) for failing to defend and provide indemnification for the lawsuit filed by John Scarry which alleged that his raft was not returned to him. Trinity argues it was entitled to coverage under three separate provisions of its Travelers-issued insurance policy (“Policy”). The district court granted Travelers’ motion for judgment on the pleadings on the ground that the Policy did not provide coverage for the Scarry suit. We review a judgment on the pleadings de novo. Nelson v. City of Irvine, 143 F.3d 1196, 1200 (9th Cir.1998). Trinity argues that Travelers was obligated to defend the Scarry suit under the Coverage A portion of the Policy. “[A]n insurer has a duty to defend an insured if it becomes aware of, or if the third party lawsuit pleads, facts giving rise to the potential for coverage under the insuring agreement.” Waller v. Truck Ins. Exchange, Inc., 11 Cal.4th 1, 19 , 44 Cal.Rptr.2d 370 , 900 P.2d 619 (1995) (citing Gray v. Zurich Ins. Co., 65 Cal.2d 263, 276 , 54 Cal.Rptr. 104 , 419 P.2d 168 (1966)). The existence of the duty turns on the facts known to the…