Harbison

MEMORANDUM *

Joseph F. Harbison (“Harbison”), an attorney, appeals the district court’s grant of American Motorists Insurance Company’s (AMICO) motion for summary judgment and its denial of his own motion for summary judgment in this insurance coverage dispute. The district court found AMICO did not have a duty to defend Harbison in an action brought against Harbison by former co-counsel after a joint client fired co-counsel and retained Harbison exclusively. We reverse.

In this California diversity action, we apply California law. Under California law, the existence of a duty to defend under a particular insurance policy is a question of law because it involves the interpretation of a written contract. Peters v. Firemen’s Ins. Co., 67 Cal.App.4th 808, 811 , 79 Cal.Rptr.2d 326 (1998). An insurance company “must defend a suit which potentially seeks damages within the coverage of the policy.” Gray v. Zurich Ins. Co., 65 Cal.2d 263, 275 , 54 Cal. Rptr. 104 , 419 P.2d 168 (1966). The duty to defend is therefore triggered where the complaint alleges claims covered under the *125 policy, where the complaint could be amended to allege such claims, or where the insurer is aware of…