State Farm Fire and Casualty Co. v. Diblin

CourtCalifornia Court of Appeal
DecidedOctober 7, 2025
DocketD083765
StatusPublished

This text of State Farm Fire and Casualty Co. v. Diblin (State Farm Fire and Casualty Co. v. Diblin) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Farm Fire and Casualty Co. v. Diblin, (Cal. Ct. App. 2025).

Opinion

Filed 10/7/25

CERTIFIED FOR PUBLICATION

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

STATE FARM FIRE AND CASUALTY D083765 COMPANY,

Plaintiff, Cross-defendant and Respondent, (Super. Ct. No. 37-2017- 00044935) v.

CURTIS DIBLIN et al.,

Defendants, Cross-complainants and Appellants.

APPEAL from a judgment of the Superior Court of San Diego County, Katherine A. Bacal, Judge. Affirmed. Estes Law Group and Polly J. Estes for Defendant, Cross-complainant and Appellant Curtis Diblin. Higgs Fletcher & Mack, John Morris and Steven M. Brunolli for Defendant, Cross-complainant and Appellant Monee Gagliardo. Pacific Law Partners, Jenny J. Chu, John T. Meno; Musick, Peeler & Garrett, David A. Tartaglio, Steven J. Elie and Michelle C. Ferrara for Plaintiff, Cross-defendant and Respondent. I. INTRODUCTION Appellants Curtis Diblin and Monee Gagliardo challenge a judgment entered in favor of respondent State Farm Fire and Casualty Company (State Farm) in this insurance coverage dispute. State Farm issued Diblin a homeowners policy that covered injuries arising from an “occurrence,” which the policy defined as “an accident.” While the policy was in effect, Diblin attacked Gagliardo, who was one of his housemates, by striking her over the head with a mallet multiple times. Gagliardo sued Diblin to recover economic and noneconomic damages. A jury found in her favor on two theories of liability and awarded her more than $2.5 million dollars in compensatory damages. Before the jury’s verdict in the underlying action was reduced to a judgment, State Farm filed this declaratory relief action against Gagliardo and Diblin. State Farm sought a determination that it owed no duty to indemnify Diblin for the amount of Gagliardo’s judgment. After reviewing the pleadings, the jury instructions, and the special verdict form, the trial court determined the findings of the jury in the underlying action conclusively established that Diblin’s injury-producing conduct was not the result of an “accident,” and Gagliardo’s damages therefore did not arise from a covered “occurrence” under the policy. The court entered judgment in favor of State Farm on its complaint for declaratory relief. On appeal, Diblin and Gagliardo contend the trial court erred in interpreting the findings of the jury in the underlying action and in concluding the underlying damage award is not covered by Diblin’s policy. We affirm.

2 II. BACKGROUND A. The Injury-Producing Event and Diblin’s Criminal Prosecution In May 2015, Diblin and Gagliardo were housemates and friends. On the morning of May 23, 2015, Gagliardo visited Diblin in his bedroom to use his coffee machine and computer, as she had done on other occasions. Gagliardo sat in a chair to check her e-mail while Diblin stood behind her. “All of a sudden,” Gagliardo felt something that made her think “the ceiling fell down on [her] head.” After a moment, she realized Diblin was beating her over the head with a rubber mallet. Diblin struck her multiple times. Police arrested Diblin, and he was criminally prosecuted. He ultimately pled guilty to one count of assault with intent to commit a sexual crime and admitted great bodily injury and dangerous weapon enhancements. B. The Pleadings in the Underlying Action On November 6, 2015, Gagliardo filed a civil action against Diblin in Gagliardo v. Diblin, San Diego Superior Court case No. 37-2015-00037520 (Gagliardo v. Diblin or the underlying action). In her first amended complaint, Gagliardo asserted causes of action for sexual assault, sexual battery, gender violence (Civ. Code, § 52.4), violation of the Ralph Civil Rights Act of 1976 (Civ. Code, § 51.7; the Ralph Act), violation of the Tom Bane Civil Rights Act (Civ. Code, § 52.1; the Bane Act), sexual harassment, and negligence. Each of the first amended complaint’s seven causes of action, including the claim for negligence, asserted entitlement to relief based on the same asserted conduct–Diblin’s attack on Gagliardo. For example, as to the negligence cause of action, the first amended complaint alleged Diblin “breached [the] duty of care” he owed to Gagliardo

3 “by battering and sexually assaulting” her, as set out in other paragraphs in the pleading. In those referenced paragraphs, Gagliardo alleged Diblin, “came up behind her, without provocation, and began bludgeoning her in the back of the head with a hardened rubber mallet” approximately “three [to] five times.” Gagliardo further alleged Diblin “dragged” her “from the chair and threw [her] on the floor,” after which he “punched her in the head with a closed fist.” According to the allegations, Diblin also “removed [Gagliardo’s] robe and groped her right breast,” and then “kissed [her] left cheek.” Gagliardo additionally alleged that when she attempted to get away, he “grabbed [her] in a wrestling hold and laid on top of her on the bed.” Gagliardo alleged she suffered a variety of physical and emotional injuries “due to the sexual harassment, battery, and assault she suffered at the hands of Diblin” (some capitalization omitted). In addition, she alleged Diblin’s “aforementioned conduct” “was done with malice and intent to injure,” such that she was entitled to punitive damages. The first amended complaint alleged no other factual or legal basis for the negligence cause of action. The complaint made no mention of Diblin’s use of prescription testosterone, nor did it assert a breach of due care involving the failure to monitor or warn of the side effects related to the testosterone medication Diblin was prescribed. The operative pleading at the time the jury rendered its verdict and judgment was entered was the first amended complaint. C. The Policy

Diblin tendered the underlying action to State Farm under Homeowners Policy No. 03-BZ-A489-7 (the Policy). The Policy provided Diblin liability coverage under the following language:

4 “SECTION II – LIABILITY COVERAGES

“COVERAGE L - PERSONAL LIABILITY

“If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage to which this coverage applies, caused by an occurrence, we will:

“1. pay up to our limit of liability for the damages for which the insured is legally liable; and

“2. provide a defense at our expense by counsel of our choice. We may make any investigation and settle any claim or suit that we decide is appropriate. Our obligation to defend any claim or suit ends when the amount we pay for damages, to effect settlement or satisfy a judgment resulting from the occurrence, equals our limit of liability.

The Policy defined an “occurrence” as follows: “FE-3419 DEFINITIONS

“Definitions 6. and 7. are replaced by the following:

“[¶] . . . [¶]

“7. ‘occurrence’, when used in Section II of this policy, means an accident, including exposure to conditions, which first results in:

“a. bodily injury; or

“b. property damage;

“during the policy period. All bodily injury and property damage resulting from one accident, series of related accidents or from continuous and repeated exposure to the same general conditions is considered to be one occurrence.” (Italics added.)

5 In Section II, the Policy also included an exclusion for damages caused by willful or intentional conduct: “SECTION II – EXCLUSIONS

“1. Coverage L and Coverage M do not apply to:

“a. bodily injury or property damage:

“(1) which is either expected or intended by the insured; or

“(2) which is the result of willful and malicious acts of the insured.”

State Farm accepted Diblin’s tender and agreed to provide a defense, subject to a reservation of rights. D. The Trial and Outcome in Gagliardo v. Diblin 1. The Evidence The Gagliardo v. Diblin action proceeded to trial in January 2018.

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State Farm Fire and Casualty Co. v. Diblin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-and-casualty-co-v-diblin-calctapp-2025.