Omega Products Corp. v. Liberty Mutual Insurance

MEMORANDUM **

Appellant Omega Products Corporation (Omega) manufactures building supphes, *746 including Akroflex, which is a line of acrylic-based exterior coatings used in residential and commercial construction. Appellee Liberty Mutual Insurance Company (Liberty) issued a commercial general liability (CGL) policy to Omega.

Omega sued a company called ATCO. ATCO counterclaimed, alleging that Omega had altered the Akroflex formula and improperly warranted and sold defective Akroflex to ATCO, which it in turn had supplied to others.

Omega informed Liberty of the ATCO counterclaim, seeking coverage under the CGL policy. Liberty denied coverage. Omega sued Liberty in district court. Eventually, the court dismissed Omega’s Fourth Amended Complaint without further leave to amend.

Omega contends that its allegations, if proven, will show that the information provided in its tenders of defense was sufficient to trigger Liberty’s duty to defend. Under California law, an insurer has a duty to defend its insured against all claims that potentially seek damages covered by the policy, even if no liability ultimately results from those claims. Montrose Chem. Corp. of Cal. v. Superior…