Praetorian Insurance Co. v. A R Business Group, Inc.

MEMORANDUM AND ORDER

This case concerns two civil actions filed in the Sacramento County Superior Court (the “Underlying Actions”). Those suits seek to hold AR Business Group, Inc. d/b/a US Tire & Wheel (“USTW”) liable for deaths and injuries that resulted from a motor vehicle accident. USTW was insured at the time by the plaintiff in this suit, Praetorian Insurance Co. Praetorian brought this suit in federal court pursuant to its diversity jurisdiction, seeking declaratory relief that any liability attributed to USTW in the Underlying Actions is not covered by USTW’s insurance policy and that Praetorian, therefore, has no duty to defend USTW in those actions. Furthermore, Praetorian seeks reimbursement from USTW for all fees and costs it has already incurred in defending USTW in the Underlying Actions. Before the Court now are cross Motions for Summary Judgment. ECF Nos. 46, 48. For the reasons below, Plaintiffs motion is GRANTED, while Defendants’ motion is DENIED.

BACKGROUND

This suit concerns the duties and obligations of Praetorian in relation to two civil actions currently pending against USTW in the Sacramento County Superior Court. Those actions arise out of a very…