Charles Dunn Co. v. Tudor Insurance

MEMORANDUM ***

Charles Dunn Company, Inc. (“CDCI”) brought this action after Tudor Insurance Company (“Tudor”) declined coverage under a “claims made and reported” professional liability policy for an action brought by the DuLaurence Trust against CDCI for “flipping” real estate. CDCI alleged claims for breach of contract and breach of the implied covenant of good faith and fair dealing. The district court granted summary judgment and CDCI timely appealed. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I.

We review the grant of summary judgment de novo. Olympic Pipe Line Co. v. City of Seattle, 437 F.3d 872 , 877 n. 11 (9th Cir.2006). Viewing the facts in the light most favorable to CDCI, we must determine whether a genuine issue of material fact exists and whether the district court applied the law correctly. See id. No disputed issues of fact exist. Because federal jurisdiction is based on diversity of citizenship, we apply California law. Burns v. Int'l Ins. Co., 929 F.2d 1422, 1424 (9th Cir.1991).

II.

On October 21, 2005, counsel for the DuLaurence Trust by mail and fax sent a letter to CDCI. The letter charged CDCI with fraudulent misconduct and breach of…