United General Title Insurance v. American International Group, Inc.

MEMORANDUM *

United General Title Insurance Company appeals the district court’s grant of summary judgment in favor of defendants. The district court found that the fidelity bond issued by National Union Fire Insurance Company, an American International Group subsidiary, did not provide coverage for United General’s required contribution to a California Insurance Code § 12376 fund.

This court has jurisdiction under 28 U.S.C. § 1291 . The grant of summary judgment is reviewed de novo. Delta Sav. Bank v. United States, 265 F.3d 1017 , 1021 (9th Cir.2001). Summary judgment may be affirmed on any ground supported by the record, even if not relied upon by the district court. Guidroz-Brault v. Missouri Pac. R.R. Co., 254 F.3d 825, 829 (9th Cir.2001).

Factual Background

In June 1999, National Union issued Financial Institution Bond 859-00-60 to United General. The applicable portion of the National Union bond is Rider # 1 (Title Agents Rider), which provides coverage to United General for a “[l]oss resulting directly from dishonest or fraudulent acts committed by a Title Agent.”

On February 8, 2000, the California Department of Insurance (“DOI”) obtained a court order placing…