Criticom International Corp. v. Scottsdale Insurance

MEMORANDUM *

Appellants Criticom International Corporation and Criticom International Cor *678 poration California (“Criticom”) appeal from the district court’s grant of summary judgment to Appellee Scottsdale Insurance Company (“Scottsdale”) on Criticom’s denial of coverage and bad faith claims. We affirm.

The parties are familiar with the facts, so we do not repeat them here. We apply California law in this diversity case.

The Errors and Omissions (“E & 0”) provision of Criticom’s insurance policy with Scottsdale covered “sums that the insured becomes legally obligated to pay as ‘damages’ because of injury as a result of an ‘error or omission’.... ” “Error or omission” was defined as “any negligent act, error or omission while performing any services normal to the business of the insured described in the Declarations.” (Emphasis added). The policy declarations listed Criticom’s business as “Alarm Installation and Monitoring.” Because Criticom’s alleged sale of the alarm system retailers’ toll-free telephone lines and equipment to King Central was not a service normal to the business of alarm installation and monitoring, the alarm system retailers’ complaints did not trigger a…