Everett Associates, Inc. v. Transcontinental Insurance

*451 MEMORANDUM *

Transcontinental Insurance Co. (“Trans-con”) appeals the district court’s partial summary judgment for Everett Associates, Inc. and Donald Payne (“Payne”) (collectively “Everett”) holding that Trans-con breached its duty to defend Everett. Everett cross-appeals the district court’s partial summary judgment for Transcon dismissing Everett’s claims for indemnification, bad faith, emotional distress and economic injury damages, negligence, and negligent infliction of emotional distress. We have jurisdiction pursuant to 28 U.S.C. § 1291 . 1 We reverse the district court’s partial summary judgment for Everett and its denial of partial summary judgment for Transcon on Transeon’s duty to defend. We affirm the judgment in all other respects.

I

The district court held as a matter of law that Transcon breached its duty to defend Everett against allegations of patent infringement. Transcon argues that it had no duty to defend Everett against these allegations under the provisions of Everett’s commercial general liability policy. We agree. Everett’s policy cannot be interpreted to create a potential for coverage.

We apply California law as we predict the California…