United States District Court, E.D. California
ORDER DENYING STAY MOTIONS
GARIAND E. BURRELL, Jr., Senior District Judge.
Defendants Wayne, Deborah, and Patrick Penaranda ("the Penaranda Defendants") and Defendants Mo Foods, LLC and Manish Patel move for an order staying this declaratory judgment action based on a lawsuit pending in "the Superior Court of the State of California, County of El Dorado, entitled Wayne Pernaranda, et al., Plaintiffs v. Mo's Place, Inc., et al., Case No. SC20130043." (Mot. to Stay 20:3-4, 3:8-9, ECF No. 48.) Defendants argue the state-court lawsuit should be resolved before this federal action proceeds to judgment. Plaintiff Century Surety Company ("Century Surety") opposes the motion.
The factual context concerning the motion follows. The Penaranda Defendants allege in their state-court lawsuit that on the evening of May 19, 2012, an altercation occurred at a bar operated by Mo Foods, LLC during which brothers Patrick and Derek Penaranda suffered injuries. (Pl.'s Opp'n, Decl. of H. Douglas Galt Ex. 1, First Amend. Compl. ("FAC") ¶¶ 4, 28-43, ECF No. 57-1.) The Penaranda Defendants allege Derek Penaranda died five months later as a result of the injuries he sustained. (Id. ¶ 49.) The Penaranda Defendants allege in their state lawsuit against Mo Foods and other defendants claims of assault, battery, negligence, negligent infliction of emotional distress, intentional infliction of emotional distress, negligent hiring/supervision, and wrongful death.
When the altercation occurred, Mo Foods, LLC was insured under a Century Surety general liability policy that excludes from coverage any
bodily injury'... or personal... injury' arising out of or resulting from:
(a) any actual, threatened or alleged assault or battery;
(b) the failure of any insured or anyone else for whom an insured is or could be held legally liable to prevent or suppress any assault or battery;
(e) the negligent: