Valley Imaging Partnership Medical Group LP v. RLI Insurance

MEMORANDUM **

Valley Imaging Partnership Medical Group, L.P. (“VIP”) and Donald D. Kaiser-man (“Kaiserman”) (collectively “the appellants”) appeal the district court’s grant of RLI Insurance Co. (“RLI”)’s summary judgment motion. VIP asserts that Maria Hernandez (“Hernandez”) was a VIP “employee” and, therefore, RLI should have defended Hernandez’s lawsuit against VIP and covered its liability arising out of that lawsuit.

In determining whether the duty to defend is triggered, one looks to the policy, the complaint, and all facts known to the insurer from any source. Montrose Chem. Corp. of Cal. v. Superior Court, 6 Cal.4th 287 , 24 Cal.Rptr.2d 467 , 861 P.2d 1153, 1161 (1993) (citing Gray v. Zurich Ins. Co., 65 Cal.2d 263 , 54 Cal.Rptr. 104 , 419 P.2d 168, 176-77 (1966)). Additionally, the mutual intention of the parties at the time the contract was formed governs the interpretation of an insurance contract. AIU Ins. Co. v. Superior Court, 51 Cal.3d 807 , 274 Cal.Rptr. 820 , 799 P.2d 1253, 1264 (1990).

Id.

“Employee” is defined in the insurance contract as “any person who receives *646 wages or a salary from the Entity for work that is directed and controlled by the Entity,…