Evergrow Industrial Co. v. Travelers Insurance

MEMORANDUM **

Evergrow Industrial Co., Inc. and His & Her Hair Goods Co. (collectively “Evergrow”) appeal the district court’s dismissal for failure to state a claim of their complaint alleging that the Travelers Insurance Company (“Travelers”) and Hartford Insurance Company of the Midwest (“Hartford”) (collectively “insurers”) breached their contractual obligations and violated their duty of good faith and fair dealing by refusing to defend and indemnify Evergrow. We have jurisdiction pursuant to 28 U.S.C. § 1291 , 1 and we affirm. Because the parties are familiar with the factual and procedural history of this case, we will not recount it here.

I

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 (Ct.App.1990). An insurer has a duty to defend against lawsuits brought against its insured that 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 (Ct.App.1994). The insured has…