Zurich American Insurance Company v. Staffing Concepts National, Inc. et al

Filing 122

ORDER granting in part 64 --motion for summary judgment; directing the SCI defendants to respond by 12/2/2016 to Zurich's motion for summary judgment (Doc. 64). Signed by Judge Steven D. Merryday on 11/15/2016. (BK)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
ZURICH AMERICAN
INSURANCE COMPANY,
Plaintiff,
v.

CASE NO. 8:14-cv-775-T-23AAS

STAFFING CONCEPTS
NATIONAL, INC., et al.,
Defendants.
____________________________________/

ORDER
Zurich American Insurance Company sues (Doc. 47) seventeen insureds for
failing to pay deductibles allegedly due under twenty-one insurance policies. Zurich
moves (Doc. 64) for summary judgment, and an August 12, 2016 order (Doc. 119)
grants partial summary judgment for Zurich and against the LRA defendants. The
August 12 order concludes that the insurance policies required the LRA defendants
to reimburse Zurich for the deductibles and that the LRA defendants breached the
duty to reimburse.1 Because Zurich “fails to exclude every genuine issue of fact
material to the claim for over $9 million,” the August 12 order denies summary
judgment on damages. (Doc. 119 at 6)

1

The LRA defendants comprise Leasing Resources of America 2, Inc.; Leasing Resources
of America 3, Inc.; Leasing Resources of America 4, Inc.; LRA Global HR, Inc.; and LRA HR
Outsourcing, Inc.

The August 12 order withholds adjudication of Zurich’s claims against the SCI
defendants, which fail to respond to the motion, and against G & S Leasing VI, Inc.,
which argues that G & S Leasing’s current owners incur no liability because G & S
Leasing’s former owners bought the insurance.2 (Doc. 75)
DISCUSSION
1. G & S Leasing
A Zurich policy insured Leasing Resources of America 5, Inc., from
March 1, 2011, to March 1, 2012. (Doc. 47-2 at 20, identifying Leasing Resources of
America 5, Inc., as a “named insured” to policy WC 4865795-01) A November 2011
amendment changes Leasing Resources of America 5, Inc.’s name to G & S Leasing
Group VI, Inc. (Doc. 120-2 at 3)
G & S Leasing owners Marshall Glass and Steven Steinberg, who bought
Leasing Resources of America 5, Inc., through a 100% stock purchase in
October 2011 (Doc. 78-1 at 1), deny liability for the deductibles because the former
owners contracted with Zurich. However, the change in ownership that resulted
from Glass and Steinberg’s purchase of Leasing Resources of America 5, Inc.'s stock
fails to eliminate suddenly the corporation’s obligation. Corp. Express Office Prods., Inc.
v. Phillips, 847 So. 2d 406, 412 (Fla. 2003) (“[A] change in ownership of corporate
stock does not affect the corporation’s . . . liabilities.”) (quoting Sears Termite & Pest
2

The SCI defendants comprise Staffing Concepts National, Inc.; Venture Resources
Group, LLC; SC of Florida II, Inc.; HHG I, Inc.; Accountfirst Insurance Services, Inc.; Platformone
USA, Inc.; Staffing Concepts I, Inc.; Staffing Concepts II, Inc.; Staffing Concepts III, Inc.; HR
Shared Services, Inc.; and SCI Employer of Choice, Inc.

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Control, Inc. v. Arnold, 745 So. 2d 485 (Fla. 1st DCA 1999)). Nor can a name change
discharge the corporation’s liability. Corp. Express Office Prods., 847 So. 2d at 415.
Steinberg’s argument that the former owners inaccurately represented the corporation
as liability-free to Steinberg might establish a misrepresentation claim against the
former owners but fails to absolve G & S Leasing of liability to Zurich.
Also, G & S Leasing adopts (Doc. 85) the LRA defendants’ opposition
(Doc. 74). For the reasons in the August 12 order, summary judgment is granted in
part. Zurich proves that G & S Leasing contracted with Zurich and breached the
contract, but Zurich fails to exclude every factual issue as to damages.
2. The SCI Defendants
On August 31, 2015, Zurich served the motion for summary judgment on the
SCI defendants. The application of Local Rule 3.01(b) and Rule 6(d), Federal Rules
of Civil Procedure, required the SCI defendants to respond by September 17, 2015.
More than a year and a month after expiration of the deadline, no response appears.
No later than DECEMBER 2, 2016, the SCI defendants must respond. If the
SCI defendants fail to respond timely, an order will treat as undisputed the facts
marshaled in Zurich’s motion for summary judgment.
CONCLUSION
Zurich’s motion (Doc. 64) is GRANTED IN PART. G & S Leasing owes
Zurich deductibles due under an insurance policy, but Zurich fails to exclude every

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factual dispute as to damages. The order that resolves Zurich’s motion for summary
judgment against the SCI defendants will set this action on a trial calendar.
ORDERED in Tampa, Florida, on November 15, 2016.

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