Ouimet

MEMORANDUM *

John and Jan Ouimet appeal from the grant of summary judgment in favor of USAA Casualty Insurance Company (“USAA”). The district court found that USAA had not breached its duty to defend, and accordingly, granted its motion for summary judgment. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse.

In California, a duty to defend is triggered if the third party complaint against the insured “alleges the insured’s liability for damages potentially covered under the policy, or if the complaint might be amended to give rise to a liability that would be covered under the policy.” Montrose Chem. Corp. v. Superior Court, 6 Cal.4th 287, 299 , 24 Cal.Rptr.2d 467 , 861 P.2d 1153 (1993) (emphasis in original). An insurer is relieved of its duty to defend only if the third party complaint at issue “can by no conceivable theory raise a single issue which could bring it within the policy coverage.” Id. at 300 , 24 Cal.Rptr.2d 467 , 861 P.2d 1153 . Any doubt as to whether the facts establish the existence of the defense duty must be resolved in the insured’s favor. Id.

USAA has failed to prove that there is no conceivable theory under which the lawsuit at issue…