Michael Taylor Designs, Inc. v. Travelers Property Casualty Co. of America

MEMORANDUM

This is a civil dispute governed by California law regarding an insurer’s duty to defend. The district court entered summary judgment for Michael Taylor Designs, Inc. (“Taylor”), holding that Travelers Property Casualty Company of America (“Travelers”) breached its contractual duty to defend Taylor against accusations of trade libel, which is a false statement disparaging the quality of another’s goods. Michael Taylor Designs, Inc. v. Travelers Prop. Cas. Co. of Am., 761 F.Supp.2d 904, 912 (N.D.Cal.2011). We have jurisdiction over Travelers’s appeal pursuant to 28 U.S.C. § 1291 and review de novo the district court’s entry of summary judgment for Taylor. Arakaki v. Hawaii, 314 F.3d 1091, 1094 (9th Cir.2002). We now affirm.

Ivy Rosequist filed a complaint against Taylor in March 2008 seeking relief for trade dress infringement. Travelers declined to defend Taylor in the Rosequist action because Rosequist’s complaint did not specifically state a claim for trade libel. Rosequist’s successor-in-interest later amended the complaint to expressly state a cause of action for trade libel in addition to trade dress infringement. Travelers stepped in to defend Taylor against…