Progressive Northern Insurance Company v. Peace et al
Filing
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MEMORANDUM OPINION AND ORDER TO SHOW CAUSE; Because one defendant, Ms. Peace, remains in this case, the Court DIRECTS Columbia to notify the Court on or before October 10, 2018, whether it intends to pursue the case against Ms. Peace. If the Court has not received a response by that date, the Court will dismiss Ms. Peace and close the case. Signed by Judge Annemarie Carney Axon on 10/4/2018. Associated Cases: 4:18-cv-00041-ACA, 1:18-cv-00333-ACA, 2:18-cv-00302-ACA(JLC)
FILED
2018 Oct-04 PM 01:55
U.S. DISTRICT COURT
N.D. OF ALABAMA
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ALABAMA
MIDDLE DIVISION
TAMARA JEAN PEACE, as
Administrator of the Estate of
Donald Ray Peace,
Plaintiff,
v.
KEITH ROCK, et al.,
Defendants.
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Case No.: 4:18-cv-00041-ACA
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
COLUMBIA INSURANCE
COMPANY,
Plaintiff,
v.
ROCK TRANSPORTATION ,
LLC, et al.,
Defendants.
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Case No.: 2:18-cv-00302-ACA
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ALABAMA
EASTERN DIVISION
PROGRESSIVE NORTHERN
INSURANCE COMPANY,
Plaintiff,
v.
TAMARA JEAN PEACE, et al.,
Defendants.
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Case No.: 1:18-cv-00333-ACA
MEMORANDUM OPINION
AND ORDER TO SHOW CAUSE
This matter comes before the court on Plaintiff Columbia Insurance
Company’s (“Columbia”) Motion for Default Declaratory Judgment Against
Certain Defendants. (Doc. 24). Columbia’s complaint named Rock Transportation
LLC; Rock Trans. LLC, d/b/a Rock Transportation LLC (“Rock Trans.”); Rock
Trans, LLC, d/b/a Rock Transportation LLC (“Rock Trans”); Keith Rock; RDW
Transport, LLC; Berkley Scrap Metal; William R. Moorer, III d/b/a Berkley Scrap
Metal and/or Berkeley Scrap Metal; and Tamara Jean Peace; and it sought a
declaratory judgment that it owed no party any duty to defend or indemnify under
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its commercial insurance policy with Rock Transportation LLC. 1 (Doc. 1 at 2, 7–
12).
The Clerk entered default against all of the defendants except Ms. Peace.
(Doc. 23). Columbia then moved under Federal Rule of Civil Procedure 55 for a
default judgment against those defendants who had defaulted. (Doc. 24). Because
Columbia’s well-pleaded allegations and the evidence support its claim for
declaratory judgment, the court WILL GRANT the motion for default judgment
and WILL ENTER DEFAULT DECLARATORY JUDGMENT in favor of
Columbia and against Rock Transportation, Rock Trans., Rock Trans, Mr. Rock,
RDW Transport, Berkley Scrap Metal, and Mr. Moorer.
I.
BACKGROUND
A defaulting defendant “admits the plaintiff’s well-pleaded allegations of
fact” for purposes of liability. Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir.
1987) (quotation marks omitted)). Accordingly, the court takes as true the wellpleaded allegations of Columbia’s complaint.
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The court has diversity jurisdiction under 28 U.S.C. § 1332 because the
parties are completely diverse and the amount in controversy is more than $75,000.
The plaintiff, Columbia, is a citizen of Nebraska. (Doc. 29 at 2); 28 U.S.C.
§ 1332(c)(1). The defendants are citizens of South Carolina, Florida, and Alabama.
(Doc. 29 at 2–3–8). And the underlying state court case seeks damages for wrongful
death, so the court uses its “judicial experience and common sense” to determine that
the amount in controversy is satisfied. (Doc. 24-2 at 11–17); see, e.g., Roe v. Michelin
N. Am., Inc., 613 F.3d 1058, 1065 (11th Cir. 2010).
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A.
The Insurance Policy
Columbia issued a commercial auto insurance policy with a cross-reference
number of 71 APS 070989 to Defendant Rock Transportation. (Doc. 24-1 at 9).
The policy provided coverage for a 1988 Peterbilt tractor from February 24, 2017
to February 24, 2018. (Id.).
The policy provides that Columbia “will pay all sums an ‘insured’ legally
must pay as damages because of ‘bodily injury’ or ‘property damage’ to which this
insurance applies, caused by an ‘accident’ and resulting from the ownership,
maintenance or use of a covered ‘auto.’” (Id. at 13). The policy further provides
that Columbia has “the right and duty to defend any ‘insured’ against a ‘suit’
asking for such damages.” (Id.). But the policy also includes exclusions. One
endorsement titled “Truckers – Insurance for Non-Trucking Use” provides, among
other exclusions:
This insurance does not apply while the power unit (tractor) is used
for the towing or transporting of any trailer or semi-trailer, or while
in the process of having a trailer or semi-trailer attached to or
detached from it, unless such trailer or semi-trailer is owned by you
and specifically described in the policy at time of loss.
(Doc. 24-1 at 38) (emphases in original). The only vehicle identified in the
policy is the 1988 Peterbilt tractor. (Id. at 9).
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B.
The State Court Lawsuit
In November 2017, Ms. Peace filed a lawsuit in the Circuit Court of St. Clair
County, Alabama, against, among others, Mr. Rock, RDW Transport, Rock Trans,
and Berkeley Scrap Metal. (Doc. 24-2 at 2). She alleged that on May 23, 2017,
while traveling in St. Clair County, Alabama, Donald Ray Peace and Mr. Rock
were involved in a car accident that resulted in Mr. Peace’s death. (Id. at 7–8). At
the time of the accident, Mr. Rock was driving the 1988 Peterbuilt tractor covered
under Columbia’s insurance policy. (Id. at 8–9, 13; see also Doc. 24-1 at 9). He
was towing a trailer. (Doc. 24-2 at 8–9, 13). Ms. Peace asserted various state law
torts against Mr. Rock, RDW, Rock Trans, and Berkeley Scrap Metal. (Id. at 11–
17).
C.
The Federal Lawsuit
In reaction to Ms. Peace’s state court lawsuit, Columbia Insurance Company
filed this federal lawsuit seeking a declaratory judgment that it has no obligation to
defend or indemnify any party under its policy with Rock Transportation LLC.
(Doc. 1). It timely served RDW Transport, Berkley Scrap Metal, Mr. Moorer,
Mr. Rock, Rock Trans., Rock Trans, and Rock Transportation. (Docs. 7, 15, 17,
18).
After those defendants failed to plead or otherwise defend the action,
Columbia moved for entry of default against them, which the Clerk granted.
(Docs. 22, 23). Columbia then moved for a default declaratory judgment. (Doc.
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24). Ms. Peace, the only defendant who has appeared in this case, does not oppose
the motion. (Id. at 1).
II.
DISCUSSION
Federal Rule of Civil Procedure 55 establishes a two-step procedure for
obtaining a default judgment. First, when a defendant fails to plead or otherwise
defend a lawsuit, the Clerk of Court must enter the party’s default.
Fed. R. Civ. P. 55(a). Second, if the defendant is not an infant or an incompetent
person, the court may enter a default judgment against the defendant as long as the
well-pleaded
allegations
in
the
complaint
state
a
claim
for
relief.
Fed. R. Civ. P. 55(b); Nishimatsu Contr. Co. v. Houston Nat’l Bank, 515 F.2d 1200,
1206 (5th Cir. 1975).2
Here, the Clerk has already entered default against Berkley Scrap Metal,
Mr. Moorer, RDW Transport, Mr. Rock, Rock Trans, Rock Trans., and Rock
Transportation, so the court must determine whether the well-pleaded factual
allegations support Columbia’s request for a declaratory judgment.
Columbia argues that four exclusions set out in the “Truckers – Insurance
for Non-Trucking Use” endorsement apply in this case. (Doc. 24 at 10–11). But
the court will address only one of those exclusions because, although the Peterbuilt
2
In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir.1981) (en
banc), the Eleventh Circuit adopted as binding precedent all decisions of the
former Fifth Circuit handed down before October 1, 1981.
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tractor involved in the accident is covered under the policy, that exclusion clearly
supports Columbia’s request for a declaratory judgment.
The endorsement provides that “[t]his insurance does not apply while the
power unit (tractor) is used for the towing or transporting of any trailer or semitrailer . . . unless such trailer or semi-trailer is owned by you and specifically
described in the policy at the time of loss.” The policy does not describe a trailer,
so any use of a trailer triggers the exclusion.
(See Doc. 24-1 at 11) (some
emphases removed; bold emphasis in original; italics emphases added). In her
state court complaint, Ms. Peace alleged that Mr. Rock was driving the 1988
Peterbuilt tractor and towing a trailer when he was in the accident with Mr. Peace.
(Doc. 24-2 at 7–8, 13).
Accordingly, it is clear that the exclusion relieves
Columbia of any duty to defend under the policy. The court WILL GRANT
Columbia’s motion for a default declaratory judgment and WILL ENTER
DEFAULT DECLARATORY JUDGMENT that it owes no duty to defend any
party under Policy 71 APS 070989 in relation to Ms. Peace’s underlying lawsuit.
And because the court has determined that Columbia has no duty to defend
any of the defendants, the court must also enter a default declaratory judgment in
its favor as to the duty to indemnify. See Trailer Bridge, Inc. v. Illinois Nat’l Ins.
Co., 657 F.3d 1135, 1146 (11th Cir.2011) (“[A] court’s determination that the insurer
has no duty to defend requires a finding that there is no duty to indemnify.”).
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Accordingly, the court WILL GRANT the motion for a default declaratory judgment
and WILL ENTER DEFAULT DECLARATORY JUDGMENT that Columbia
owes no duty to indemnify any party under Policy 71 APS 070989 in relation to
Ms. Peace’s underlying lawsuit.
III.
CONCLUSION
The court WILL GRANT Columbia’s motion for a default declaratory
judgment, and WILL ENTER DEFAULT DECLARATORY JUDGMENT that
Columbia owes no duty to defend or indemnify Rock Transportation, Rock Trans.,
Rock Trans, Mr. Rock, RDW Transport, Berkley Scrap Metal, and Mr. Moorer
under Policy 71 APS 070989 in relation to Ms. Peace’s underlying lawsuit in state
court. The court will enter a separate order consistent with this opinion.
Because one defendant, Ms. Peace, remains in this case, the court
DIRECTS Columbia to notify the court on or before October 10, 2018, whether
it intends to pursue the case against Ms. Peace. If the court has not received a
response by that date, the court will dismiss Ms. Peace and close the case.
DONE and ORDERED this October 4, 2018.
_________________________________
ANNEMARIE CARNEY AXON
UNITED STATES DISTRICT JUDGE
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