Shelter Island Inc. v. St. Paul Fire & Marine Insurance

MEMORANDUM *

Shelter Island, Inc. (“Shelter Island”) appeals from the district court’s order dis *244 missing its claims. We affirm. Because the parties are familiar with the factual and procedural history of this case, we will not recount it here.

I

The district court correctly held that United States Fidelity and Guaranty Company (“USF & G”) 1 did not breach its contractual obligation to defend and indemnify Shelter Island against lawsuits alleging that Shelter Island maintained restaurant premises that are inaccessible to the disabled in violation of the Americans with Disabilities Act (“ADA”) and related state laws.

An insurer breaches its insurance contract if it withholds benefits due under the contract. Love v. Fire Ins. Exch., 221 Cal.App.3d 1136 , 271 Cal.Rptr. 246 , 255 n. 10 (1990). An insurer has a duty to defend against lawsuits brought against its insured which potentially seek covered damages; an insurer has a duty to indemnify its insured when the insured has been found liable for damages actually covered by the policy. Collin v. Am. Empire Ins. Co., 21 Cal.App.4th 787 , 26 Cal.Rptr.2d 391, 399 (1994). The insured has the burden of establishing that the…