St. Paul Fire & Marine Insurance v. "K" Line America, Inc.

MEMORANDUM **

“K” Line America, Inc. (“KAM”) appeals from the district court’s order granting summary judgment in favor of St. Paul Fire and Marine Insurance Company (“St. Paul”). We affirm.

I

This Court reviews an order granting summary judgment de novo. Cort v. St. Paul Fire & Marine Ins. Cos., Inc., 311 F.3d 979 , 982-83 (9th Cir.2002). Because this is a diversity action, this Court applies the substantive law of California. Id. at 983.

II

St. Paul issued a claims-made insurance policy to KAM in 1992. St. Paul thereafter renewed the policy, usually on an annual basis. The last such renewal covered the period January 1, 1998 through January 1, 1999. The policy provides coverage for:

The policy requires KAM to provide St. Paul with notice of any “alleged negligent act, error, or omission.”

*566 Beginning in 1995, and continuing throughout 1996 and 1997, KAM received increasingly specific information about its potential liability for alleged negligent conduct in 1995 and 1996. KAM concedes that it did not provide notice of this potential liability until 1998.

St. Paul thereafter commenced a declaratory judgment action seeking a declaration that it did not have any…