Ghilotti Bros., Inc. v. American Safety Indemnity Co.

MEMORANDUM

American Safety Indemnity Company (“ASIC”) appeals the district court’s order granting summary judgment in favor of Ghilotti Bros., Inc. (“Ghilotti”). The district court found that ASIC, as Ghilotti’s insurer under a commercial general liability insurance policy, has a duty to defend Ghilotti in the underlying suit filed against Ghilotti in California court.

As an initial matter, ASIC claims that Ghilotti lacks standing under Article III of the Constitution to pursue this action because there is no “case” or “controversy.” It argues that because other insurers are fully defending Ghilotti and because Ghilotti was found to have no liability in the underlying litigation in California trial court, the only harm Ghilotti has alleged from ASIC’s failure to defend it is speculative. Yet “we have consistently held that a dispute between an insurer and its insureds over the duties imposed by an insurance contract satisfies Article Ill’s case and controversy requirement,” Gov’t Emps. Ins. Co. v. Dizol, 133 F.3d 1220 , 1222 n. 2 (9th Cir. 1998) (en banc), regardless of whether there is an active underlying suit, Aetna Cas. & Sur. Co. v. Merritt, 974 F.2d 1196 , 1199 (9th…