Hairabedian

MEMORANDUM *

Mado Hairabedian and Avak Avakian (“plaintiffs”) appeal from the district court’s grant of summary judgment in favor of defendant Allstate Insurance Company (“Allstate”) in their diversity insurance bad faith action against Allstate for failure to defend Hairabedian against a libel claim brought by Avakian against Hairabedian and two other defendants. The district court held that Allstate did not have a duty to defend Hairabedian because there was no potential for coverage of the libel claim under Hairabedian’s homeowner’s insurance policy. We have jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.

Under Hairabedian’s homeowner’s insurance policy, Allstate would “pay damages which an insured person becomes legally obligated to pay because of bodily *3 injury or property damage arising from an occurrence to which this policy applies .... ” (bold in original). “Occurrence” was defined as “an accident [.]” While not defined in the policy, under California law an accident occurs for insurance coverage purposes “when any aspect in the causal series of events leading to the injury or damage was unintended by the insured and a matter of fortuity.” Merced Mut. Ins. Co.…