Universal Underwriters Insurance v. M.F. Salta Co.

MEMORANDUM *

The facts are known to the parties, and we repeat them here only as necessary. We review a district court’s grant of summary judgment de novo. Buono v. Norton, 371 F.3d 543, 545 (9th Cir.2004). We must determine, viewing the evidence in *574 the light most favorable to the nonmoving party, whether there are any genuine issues of material fact and whether the district court correctly applied the relevant substantive law. Suzuki Motor Corp. v. Consumers Union of U.S., Inc., 330 F.3d 1110, 1131-32 (9th Cir.2003).

Under California law, the insurer’s duty to defend “entails the rendering of a service, viz., the mounting and funding of a defense in order to avoid or at least minimize liability.” Buss v. Superior Court, 16 Cal.4th 35, 46 , 65 Cal.Rptr.2d 366 , 939 P.2d 766 (Cal.1997) (citations omitted). Where the insurer mounts a deficient defense or fails to accept a reasonable settlement offer, it may be held liable for any judgment in excess of the insured’s coverage, but such damages arise only after the entry of an adverse judgment against the insured. Safeco Ins. Co. of America v. Superior Court, 71 Cal.App.4th 782, 788-89 , 84 Cal. Rptr.2d 43 (Cal.Ct.App.1999).…