Aurafin-OroAmerica, LLC v. Federal Insurance

MEMORANDUM **

Aurafin-OroAmerica, LLC (“OroAmerica”) appeals the district court’s grant of summary judgment to Federal Insurance Company (“Federal”). We affirm in part, and reverse in part. Because the parties are familiar with the facts and procedural history of this case, we will not recount it here.

I

The district court erred when it held that D & W’s counterclaims against OroAmeriea did not state a potential libel claim. The facts alleged in D & W’s counterclaims, taken together, could potentially allege a claim for true libel because an allegation that D & W was a patent infringer—a pejorative allegation of shady business practices—was implicit in OroAmerica’s statement to QVC that D & W’s gold chains infringed its patents. See Atlantic Mut. Ins. Co. v. J. Lamb, Inc., 100 Cal.App.4th 1017 , 123 Cal.Rptr.2d 256, 269 (2002).

To the extent that the district court found that D & W’s counterclaims alleged each element of libel, but that the facts did not support a libel claim as a matter of law, the district court applied the wrong legal standard and impermissibly considered the merits of the libel claim. The viability of the underlying claim against the insured does not…