Ferrellgas, Inc. v. Hartford Accident & Indemnity Co.

MEMORANDUM **

Hartford Accident & Indemnity Company (“Hartford”) appeals the district court’s summary judgment ruling that the primary insurance policy and its endorsements (collectively the “Policy”) issued to Penn Central Corporation and its subsidiaries obligated Hartford to pay $2 million in excess of the deductible. We review a grant of summary judgment de novo. Bal-int v. Carson City, 180 F.3d 1047, 1050 (9th Cir.1999) (en banc).

An insurance policy is a contract and interpreted in accordance “with the rules of construction applicable to contracts.” Montrose Chem. Corp. v. Admiral Ins. Co., 10 Cal.4th 645 , 42 Cal.Rptr.2d 324 , 913 P.2d 878 , 888 (Cal.1995). “The rules governing policy interpretation require us to look first to the language of the contract in order to ascertain its plain meaning or the meaning a layperson would ordinarily attach to it.” Waller v. Truck Ins. Exch., Inc., 11 Cal.4th 1 , 44 Cal.Rptr.2d 370 , 900 P.2d 619, 626 (Cal.1995) (citing Cal Civ. Code, § 1638). If the language is ambiguous, we can consider extrinsic evidence to clarify the parties’ intentions. Pac. Trans. Co. v. Santa Fe Pipelines, Inc., 74 Cal. App.4th 1232 , 88 Cal.Rptr.2d 777, 783…