United States District Court, N.D. California, San Jose Division
GOLDEN EAGLE INSURANCE CORPORATION and PEERLESS INSURANCE COMPANY, Plaintiffs,
DRAIN DOCTOR INC. and GHC OF SUNNYVALE, LLC, dba CEDAR CREST NURSING & REHAB CENTER Defendants.
ORDER GRANTING MOTION TO STAY PROCEEDINGS
LUCY H. KOH, District Judge.
Plaintiffs Golden Eagle Insurance Corporation ("Golden Eagle") and Peerless Insurance Company ("Peerless") (collectively, "Plaintiffs") have filed the instant lawsuit seeking declaratory relief that they owe neither a duty to defend nor a duty to indemnify Defendant Drain Doctor ("Drain Doctor") in an underlying state court lawsuit brought against Drain Doctor. Before the Court is Drain Doctor's Motion to Dismiss, or in the Alternative, to Stay Proceedings pending resolution of the underlying state court lawsuit. ECF No. 18 ("Mot."). Plaintiffs have opposed the motion, ECF No. 19 ("Opp."), and Drain Doctor has replied, ECF No. 21 ("Reply").
The Court finds this matter suitable for decision without oral argument under Civil Local Rule 7-1(b) and hereby VACATES the motion hearing set for March 19, 2015, at 1:30 p.m. Having considered the submissions of the parties, the relevant law, and the record in this case, the Court hereby GRANTS Drain Doctor's Motion to Stay Proceedings.
A. Insurance Policies
Plaintiffs have issued two separate insurance policies to Drain Doctor that provided liability coverage. ECF No. 1 ("Compl.") ¶ 9. First, Peerless issued to Drain Doctor a commercial general liability insurance policy, policy number CBP 8932754, effective December 15, 2012, to December 15, 2013 (the "Peerless Policy"). Id. ¶ 10. As relevant here, the Peerless Policy provides as follows:
SECTION I - COVERAGES
COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY
1. Insuring Agreement
a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result.
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b. This insurance applies to "bodily injury" and "property damage" only if:
(1) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the "coverage territory";
(2) The "bodily injury" or "property damage" occurs during the policy period;
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SECTION V - DEFINITIONS
13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same ...