American Guarantee & Liability, Ins. v. Del Mar Avionics, Inc.

MEMORANDUM *

Del Mar Avionics, Inc., appeals the district court’s grant of summary judgment in favor of Zurich American Insurance Company and American Guarantee and Liability Insurance Company (collectively American Guarantee). The district court determined that American Guarantee did not have a duty to defend or indemnify Del Mar because coverage was excluded by the “your product” provision of the insurance contract. We reverse.

(1) Del Mar first asserts that the district court could not rely upon the “your product” exclusion at all because it was not mentioned in American Guarantee’s initial moving papers. However, the issue was raised later, and Del Mar had a full and fair opportunity to ventilate the issue, which it used. The district court did not err in that respect. See Cunningham v. Rothery (In re Rothery), 143 F.3d 546, 549 (9th Cir.1998); Maitland v. Mitchell (In re Harris Pine Mills), 44 F.3d 1431, 1439-40 (9th Cir.1995); see also Brinson v. Linda Rose Joint Venture, 53 F.3d 1044, 1048 (9th Cir.1995).

(2) American Guarantee argued, and the district court agreed, that because the definition of “your product” included warranties regarding the product, coverage was…