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ZURICH AMERICAN INS. CO. v. WATTS INDUSTRIES, INC.

Nos. 03-3851, 03-3853.

417 F.3d 682 (2005)

ZURICH AMERICAN INSURANCE COMPANY, Petitioner-Appellee/Cross-Appellant, v. WATTS INDUSTRIES, INC., Respondent-Appellant/Cross-Appellee, and James Jones Company, Respondent/Cross-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided August 2, 2005.

Attorney(s) appearing for the Case

Michael M. Marick, Meckler, Bulger & Tilson, Chicago, IL, Patrick A. Cathcart (argued), Cathcart Collins & Kneafsey, Los Angeles, CA, for Petitioner-Appellee/Cross-Appellant.

Richard A. Fiore, Freeborn & Peters, Chicago, IL, David S. MacCuish (argued), Weston, Benshoof, Rochefort, Rubalcava & MacCuish, Los Angeles, CA, for Respondent-Appellant/Cross-Appellee.

Richard A. Fiore, Freeborn & Peters, Chicago, IL, Faustin A. Pipal, Jr., Keating, Keating & Pipal, Chicago, IL, Jordan S. Stanzler, Ruben Castellon (argued) Stanzler, Funderburk & Castellon, San Francisco, CA, for Respondent/Cross-Appellee.

Before FLAUM, Chief Judge, and KANNE and SYKES, Circuit Judges.

KANNE, Circuit Judge.

Zurich American Insurance Company insured Watts Industries, Inc., and James Jones Company under a program consisting of both primary liability policies and deductible agreements. Only the deductible agreements contained arbitration clauses. Watts and Jones successfully sued Zurich in California state court for defense costs in two lawsuits filed against them by other parties. Thereafter, the parties contested application of the deductible agreements...

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