John P Pringle v. Water Quality Insurance Syndicate, et al

Filing 264

JUDGMENT be formally entered in favor of WQIS and Certain EPG Underwriters, and that this case be and the same hereby is dismissed by Judge Dean D. Pregerson, (MD JS-6, Case Terminated). (lc)

1 FORREST BOOTH (State Bar No. 74166) [e-mail] 2 KATHERINE A. KNOPOFF (State Bar No. 154433) [e-mail] 3 RYAN C. DONLON (State Bar No. 229292) [e-mail] 4 SEVERSON & WERSON A Professional Corporation 5 One Embarcadero Center, Suite 2600 San Francisco, CA 94111 6 Telephone: [phone] Facsimile: [phone] 7 Attorneys for Defendants 8 CERTAIN UNDERWRITERS AT LLOYD'S, LONDON THAT SUBSCRIBED 9 TO EPG POLICIES EVIDENCED BY COVER NOTE NOS. 01-02001, 02-02001, 10 03-02001, 04-02001, 05-02001 AND 06-02001 11 12 13 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Case No.:

JS-6

14 JOHN P. PRINGLE, Bankruptcy Trustee for the Estate of San Pedro Boat Works, Inc., 15 Plaintiff, 16 vs. 17 WATER QUALITY INSURANCE 18 SYNDICATE, an unincorporated syndicate organized under the laws of the State of 19 New York; ENVIRONMENTAL POLLUTION GROUP, INC., a Corporation 20 organized under the laws of the State of New York; CERTAIN SOLVENT 21 LLOYD'S UNDERWRITERS THAT SUBSCRIBED TO ENVIRONMENTAL 22 POLLUTION GROUP, INC. POLICY NOS. 01-02001, 02-02001, 03-02001, 0423 02001, 05-02001 AND 06-02001, unknown foreign entities organized under the laws of 24 the United Kingdom; and DOES 1 through 10, Inclusive, 25 Defendants. 26 27 AND RELATED CROSS-ACTIONS. 28

CV 04-08495 DDP (RCx) JUDGMENT

JUDGMENT [Case No.: CV-04-08495 DDP (RCx)]

1

Then-Plaintiff SAN PEDRO BOAT WORKS, INC. ( SPBW ) filed a motion " "

2 for summary judgment herein on August 8, 2006 against Defendant WATER 3 QUALITY INSURANCE SYNDICATE ( WQIS ) regarding WQIS' alleged duty to " " 4 defend SPBW under its insurance policies. In the interest of judicial economy, the 5 court decided the question of rescission first, and converted SPBW's motion into a 6 motion for summary judgment by WQIS on the validity of its rescission. 7 On August 6, 2009, the court issued its Order Granting Summary Judgment 8 to WQIS and EPG; Denying Plaintiff's Motion For Summary Judgment. In it the 9 court granted WQIS' motion for summary judgment on the basis that SPBW did not 10 meet its obligations under the doctrine of uberrimae fidae when it failed to disclose 11 material facts to WQIS, which if known, would have affected WQIS' underwriting 12 decisions regarding SPBW. Specifically, SPBW did not disclose that it had been 13 under investigation by the Los Angeles Health Department and Hazardous 14 Materials Control Program for several years regarding environmental pollution at 15 SPBW's berth 57. SPBW's failure to disclose material facts entitled WQIS to 16 rescind its policy, and to summary judgment herein. The court also found that 17 WQIS never waived its right to rescind the marine insurance policies it issued to 18 SPBW and that this rescission was not time-barred or barred by the doctrine 19 of estoppel. 20 Defendants CERTAIN SOLVENT LLOYD'S UNDERWRITERS THAT 21 SUBSCRIBED TO ENVIRONMENTAL POLLUTION GROUP, INC. POLICY 22 NOS. 01-02001, 02-02001, 03-02001, 04-02001, 05-02001 AND 06-02001 23 ( Certain EPG Underwriters ) also moved for summary judgment herein on " " 24 September 18, 2006. The basis for the motion was that SPBW has no standing in 25 Case No. CV 04-08495 DDP, because SPBW has been through bankruptcy and it 26 has been determined by the bankruptcy court that SPBW has no scheduled assets 27 which are of value to the bankruptcy estate. Since Certain EPG Underwriters' 28 policies issued to SPBW are indemnity and not liability policies, and since SPBW
-2JUDGMENT [Case No.: CV-04-08495 DDP (RCx)]

1 has paid no losses, SPBW has no redressable injury in fact and lacks standing to 2 bring this action. SPBW has not shown, as it must, that some funds were actually 3 paid either by SPBW or on its behalf. The same applies to the Intervenor CITY OF 4 LOS ANGELES. There is no loss for Certain EPG Underwriters to indemnify. 5 Therefore now-Plaintiff/Trustee JOHN P. PRINGLE lacks standing to bring claims 6 against Certain EPG Underwriters, and they are entitled to summary judgment. 7 IT IS HEREBY ORDERED that judgment be formally entered in favor of 8 WQIS and Certain EPG Underwriters, and that this case be and the same hereby is 9 dismissed. 10 11 DATED: September 15, 2009 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
-3JUDGMENT [Case No.: CV-04-08495 DDP (RCx)]

By: _____________________________ The Hon. Dean D. Pregerson U.S. DISTRICT JUDGE