AKN Holdings, LLC v. Great American E&S Insurance Co.

Hon. Stanley Blumenfeld, Jr.

Action Filed: March 11, 2021

JUDGMENT IN FAVOR OF DEFENDANT

Hon. Stanley Blumenfeld, Jr.

The Motion to Dismiss First Amended Complaint [Doc. 21] (“Motion”) filed by Defendant Great American E&S Insurance Company (“GAIC”) came on regularly for hearing on May 14, 2021. After consideration of the papers filed in connection with the Motion and the court record, in accordance with the Federal Rules of Civil Procedure, Rule 12(b)(6), the Court finds as follows (as more fully set forth in its separate of dismissal):

1. GAIC has no duty to defend Plaintiff AKN Holdings, LLC (“AKN”) in the action entitled Finsa Portafolios, S.A. DE C.V., et al. v. OpenGate Capital, LLC, et al., Central District of California, Case No. 2:17-cv-04360-SB-E (“Underlying Lawsuit”) under Private Equity Liability Insurance Policy No. PEP2788708 to OpenGate Capital Management, LLC, for the period of June 25, 2016 to June 25, 2017 (“Policy”);

2. GAIC has no duty to indemnify AKN in the Underlying Lawsuit under the Policy;

3. As there is no coverage for AKN's defense or indemnity of the Underlying Lawsuit under the Policy, AKN's first cause of action for declaratory relief in the First Amended Complaint [Doc. 14] (“FAC”) must be decided in favor of GAIC as a matter of law;

4. As there is no coverage for AKN's defense or indemnity of the Underlying Lawsuit under the Policy, AKN's second cause of action for breach of contract fails as a matter of law;

5. As there is no coverage for AKN's defense or indemnity of the Underlying Lawsuit under the Policy, AKN's third cause of action for tortious breach of the implied covenant of good faith and fair dealing fails as a matter of law; and

6. GAIC is entitled to an award of costs in its favor as the prevailing party.

Judgment with prejudice is hereby entered in favor of GAIC on AKN's FAC.

IT IS SO ORDERED.