Hanover Insurance v. Poway Academy of Hair Design, Inc.

ORDER DENYING DEFENDANTS’ MOTION TO DISMISS OR . STAY

On August 10, 2015, Defendants Poway Academy, of Hair Design, Inc. (“Poway Academy”), and Beauty Botique, Inc. (“BBI”) (collectively “Defendants”), filed a motion to dismiss or in the alternative stay the claims for declaratory relief and reimbursement alleged in Plaintiff Hanover Insurance Company’s Complaint. For the reasons discussed below, Defendants motion is DENIED.

FACTUAL BACKGROUND

Plaintiff Hanover Insurance Company (“Hanover”) is incorporated in New Hampshire with its principle place of business in Massachusetts. (Compl. ¶ 6, ECF No. 1.) Defendant Poway Academy owns and operates “Bellus Academy,” a beauty college in Poway, California. (Defs.’ Mot. 3, ECF No. 20.) Defendant BBI owns and operates *1233 two additional beauty colleges under the “Bellus Academy” name in National City, California, and El Cajon, California. (Defs.’ Mot. 3-4.)

I.Insurance Policies

Plaintiff issued insurance policies to BBI for a period from June 2014 to June 2015 and to Poway Academy for a period from July 2014 to July 2015. (Compl. ¶¶ 37, 43.) The policies contain identical “Employment Practices Liability Insurance” clauses which…