Sentex Systems, Inc., a California Corporation v. Hartford Accident & Indemnity Company, a Connecticut Corporation

This is an action by an insured against an insurer for breach of the insurer’s duty to defend a suit which the insured claims triggered coverage under the policy provisions relating to “advertising injury.” This is a diversity action controlled by California law concerning the interpretation of insurance contracts. The district court entered sum-, mary judgment in favor of the insured, Sen-tex Systems, and the insurer, Hartford Accident and Indemnity Company, appeals.

The facts and background of this case are fully set forth in the published opinion of the district court holding the insurer liable for the costs of defending the suit, including the amount paid in settlement. Sentex Sys., Inc. v. Hartford Accident and Indem. Co., 882 F.Supp. 930, 933-35 (C.D.Cal.1995). We review the district court’s grant of summary judgment de novo. Jesinger v. Nevada Fed. Credit Union, 24 F.3d 1127, 1130 (9th Cir.1994). We affirm, although upon somewhat narrower grounds than those relied upon by the district court.

Sentex designs and manufactures telephone entry security systems for buildings and gated communities. In 1990, Electronic Security Services, Inc. (“ESSI”), a competitor, brought an…