Delta Airlines, and Cross-Appellee v. State Farm Fire and Casualty Company, And

96 F.3d 1451 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. DELTA AIRLINES, Plaintiff-Appellant and Cross-Appellee, v. STATE FARM FIRE AND CASUALTY COMPANY, Defendant-Appellee and Cross-Appellant. No. 95-35706, 95-35759. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 6, 1996. Decided Sept. 9, 1996. Before: GOODWIN, BRUNETTI, and KOZINSKI, Circuit Judges. 1 MEMORANDUM * 2 Delta Airlines, Inc. ("Delta") brings this lawsuit under rights obtained from Ronald Downey, a former insured of State Farm Fire & Casualty Co. ("State Farm"). Delta alleges that State Farm breached its duty to defend and indemnify Downey in an action brought by Delta. The district court granted summary judgment for State Farm, finding that Downey knew about Delta's claim at the time Downey purchased his policy and that this knowledge relieved State Farm of any policy obligations under a "loss-in-progress" theory. We have jurisdiction pursuant to 28 U.S.C. § 1291 and…