Hartford Casualty Insurance Company v. Crum & Forster Specialty Insurance Company

Filing 195

Final Summary Judgment Signed by Senior Judge James Lawrence King on 6/15/2012. (jw)

U NI
TED STATES DI
STRICT CO U RT
SO UTH ERN D I
STRI O F FLO RIDA
CT
M I M ID I SIO N
A
VI
CASE NO .1 24590- V- I G
0CI K N
HA RTFORD ACCI EN T AN D I DEM NI
D
N
TY
COM PAN Y,a f ei c por i a equiabl
or gn or aton, s
t e
s ogee a r pa t i i e es on be fof
ubr
nd eal ry n nt r t
hal
M il & Sol on G e alContac or ,l ,
ler
om
ner
r t s nc.

Pl ntf ,
ai if

CRUM & FO RSTER SPECI LTY I SUM N CE
A
N
CO M PAN Y,a f ei c por i
or gn or aton,
Def nt
enda .
/
HARTFORD A CCI
DEN T AN D I DEM NI
N
TY
CO M PAN Y,a f ei c or i asequiabl
or gn om aton,
t e
s ogee a r pa t i i e es on behal of
ubr
nd eal ry n nt r t
f
M il & Sol on G ener Contac or ,l ,
ler
om
al
r t s nc.

Pl ntf ,
ai if

W ESTCH ESTER SU RPLU S LI ES I SURAN CE
N
N
CO M PAN Y,a f ei c or i
or gn om aton,

Def nt
enda .
/
FI L SUM M A RY JU DG M ENT
NA
TH I M A TTER com esbef e t Cour upon Def
S
or he
t
endantCr & For t
um
ser

Sp cat I u a eCompa y' M o i f rSu may J g e ( #1 1,fld
e ily ns r nc
n s ton o m r ud m nt DE 3 ) ie
Fe ua y 24,201 and Pl ntf H arf d A c dentand l m niy Company'
br r
2,
ai if tor
ci
nde t
s

(il rf r ' M o in f rSu r J dg n ( /1 ) fld Fe r ay 2 201 Th
i-a to d' to o mma y u me t DE / 20 , ie b u l 4, 2. e
l
)
Cour i f l br ef d on bot t em otons 1Thi m a t i t r or rpe f
t s uly i e
h hes
i ,
s ter s he ef e i or
det m i i The Cour alo pr dsw ih t be i ofor ar enton t pa tes'
er naton.
t s ocee
t he neft
al gum
he ri

co smoto f rs mmayj g n, c wa h l i o e c ur onAp i l ,2 2.
r s ins o u r ud me twhih s ed n p n o t
rl 9 01
A fercar ulc i aton oft e de on r d a f t r onsdet l bel ,
t
ef ons der i
he vi nce ecor nd or he eas
aied ow

teCou tfndst ts mmayj d n s ul b grne i fv ofDe e a tCr &
h
r i ha u r u gme t ho d e a td n a or
fnd n um
Fo se Sp c at l u a e Co n (k u & Fortr'.
rtr e ily ns r nc mpa y ' m
cr
se '
)
1
.

Fact Backgr
ual
ound

The r cor bef e t Cour r l t t f l ng undiput f t Thi i a s t
e d or he
t etec s he olowi
s ed ac s. s s ui
f decl at y a i or i t alem a i br h ofconta ,wher n H arf d s ekst
or
ar or cton , n he t tve, eac
r ct
ei
tor e
o

r oup a t ne cos sand f si r i t def e ofM il & Sol on G e r
ec
tor y t
ee ncur ed n he ens
ler
om
ne al

Con r co s l c (i ilr& Soomo ' i as pa ae lws i t tr s le i va i us
ta tr , n . i le
M
l n' n e r t a u t ha e u td n ro
)
s tl ent . The cl m s a ns Cr & For t i t s a i r at t t consr ton of
e tem s
ai gai t um
s er n hi cton el e o he
tuc i
ac
ondom i um buidi known ast O ce G r
ni
l ng
he
an ande Be a M arna Condom i um i
ach nd
i
ni n

Hilb oBe c , ord (hed e nGrnd Prj c'.M ilr& Solmonsr e a
ls or a h Fl ia t i a a e oe t' le
oc
)
o
ev d s
ge r l o ta trf tePrj c.Hato d, ss rt,is e pa me a p ro ma e
nea c nrco or h oe t rfr a u ey su d y nt nd e fr nc
bo dsf tePrjc onbe afofM ilr& S omo Cr & Fo se is da
n or h oe t
hl
l
e
ol n. um
rtr sue
c mme ca g nea la lt polc t M ilr& So o (he1 iy' , c c ve e
o r il e r l ibiiy iy o le
l mon t 1 c ' whih o r d
Pol )

1Pli iffldaRes e( #1 t Dee antsM otonon Mach9,201 t whi
antf ie
pons DE 52) o fnd '
i
r
2,o ch
Dee ntr id( #1 2)onM arh 1 201 Defnda fl aRes e( /1 )t
fnda eple DE 7
c 9, 2. e nt ied
pons DE /58 o
Pl ntf sMotononM ac 1 20l t whihPl nifr i ( /1 onM ac 21 201
ai if
i
rh 2, 2,o c aitf epled DE / 78)
rh , 2.

t pe i ofDece be 31,2002 t Dece be 31,2003.Pur ua t t i urng
he r od
m r
o
m r
s nt o he ns i
a eem e i t Polc Cr & For t ra eed t
gr
nt n he i y, um
s e gr
o

i y t e s st t i ur be e l l oblga ed t
i hos um hat he ns ed com s egaly i t o
pa

p ya da ge be a s o t diyij r 'orir pet
a s ma s c u e f bo l nu y p o ry
dam a t whi t s i ur
ge' o
ch hi ns ance apples.W e w ilhave t
i
l
he
rghtand dut t def t i ur a ns any Cui's ki
i
y o end he ns ed gai t
s t ee ng
t
hose dam a .H ow e r w ew ilhave no dut t def t
ges
ve ,
l
y o end he
i ur d aga ns any 'ui's ng da age f ...S ope t
ns e
i t
s t eeki
m s or
pr ry
da age't w hi h t si ur nce doe nota y.
m
o
c hi ns a
s
ppl '
'

On J
anuar 5,2006,t deve ope notsed Ha tor ofvarouscons r ton def
y
he
l r i
rf d
i
t uc i
ect

camsb t eOc a Gr n Be c & M a i aCo o i u Asoca i l . t
li y h e n a de a h
rn nd m nim s iton, nc (he

i s c ai ' ,ncudig c amsofwa e i r in r s tng fo Hu rc neW imai
i o iton' i l n li
As
)
tr ntuso e uli r m ria
l n
Oct
ober2005,a dem anded t Harf d r pond underisbond. Harf d r ai d t
nd
hat tor es
t
tor et ne he

Ca lo Fil lw fr (e r s n e b at r e ParcaTho o a d,ltr Ti
rt n eds a im r p e e t d y to n y ti i
mps n, n a e , m
Ta l r t r pr s nti a d t e is ve M ilr& Solmon.
y o ) o e e e t n h n ol nt le
o
On J y 21,2006,M s.Thom ps ofCa lon Fi dspr ded notce a
ul
on
rt
el
ovi
i nd

doc e aton t Cr & For t ofm uli e l s t agai tM il & Sol on
um nt i o um
ser
tpl aw uis
ns ler
om

i ol ngvai sc do nim prj cs a r q se i e fc to a adee s fr
nv vi rou on mi u oe t, nd e uetd nd mniiain nd fn e o
M ilr& Sol on. The notce alo advied Cr & For t t tpr ltgaton cl m shad
le
om
i s
s
um
ser ha e-ii i
ai

be nma ea is M ilr& Soomo wi rs c t t Oc a GrndePrj c. swa
e d gan t le
l n t epe t o he e n a
h
oe tThi s
Cr & For er sfr tnotce ofany oft e cl m sorl uis Cover couns f
um
st ' is
i
hes ai
aws t .
age
el or

Cr m & Fo se ,Tho n o Da s& Fen, A.(t 'r q se a ton li o ma i
u
rt r r t n vi
i P. û
TDF' e ue t d ddii a nf r ton
)
fom Cart Fi dsr a i t t e va i cl m sand l w s t On Se em ber 1
r
lon el el tng o hes rous ai
a uis.
pt
5,

2006,M s.
Thom ps s ntTDF a copy ofisG e r I m niy Agr m entw ih M il &
on e
t ne al nde t
ee
t
ler
Sol on.
om
TheA s oci ton tl a com pl nti Fl i s a e c ta ns a num berof
s a i ied
ai n orda t t our gai t

def nt i udi M il & Sol on on Oct
enda s, ncl ng ler
om
ober3,2006.The l s talo aleged
aw ui s l

cl m sagai tHarf d on t pe f m a bond. On Oc ober25,2006,TD F ator y
ai
ns
tor
he r or nce
t
t ne
Thom ps couns f M il r& Sol on,t nderng isdef e a a si t Cr
on,
el or le
om
e
i t
ens nd dvi ng hat um

& For t w a i tga i t Ocea Gr nde cl m unde a f lr e vaton ofr ght,
s er s nves i tng he
n a
ai
r ul es r i
i s
i udi t rghtt de cover f c ai st w e e notcl m s f dam ages r uli
ncl ng he i o ny
age or l m hat r
ai or
es tng
fom pr t da a orw er f pr t da a t tdi notoccurdurng t polc
r
opery m ge
e or opery m ge ha d
i he i y
pe i orf pr ry dam age t orars ng f om any pa tofM il r& Sol on' w or
r od, or ope t
o
ii r
r
le
om s k

( c e c mpa sdt e ieOc a Grn prj c)a i lde i t
whih n o se he ntr e n a de oe t nd ncu d n he
pr
oduct - pl ed oper i ha d.TDF,r es ntng D ef nda Cr & For t r
s com et
atons zar
epr e i
e nt um
se

Speci t I ur nce Company,r
aly ns a
equesed copi ofal s
t
es
l ubcontac ,per or a bonds
r t f m nce
,
c tfcat sofi ur e fom s
erii e
ns anc r
ubcontact car i st twoul e denc polci t
r or rer ha
d vi e i es hat
m i covercontac uallabiiy cl m sby M il & Sol on agai ts
ght
r t i lt ai
ler
om
ns ubcontac or ,and
r t s
doc e sr atvet t cl i e da age
um nt el i o he a m d m s.

On Novem ber30,2006,51 Thom ps ofCa lon Fi dsr ponded t cover
s.
on
rt
el es
o
age
couns ' l te dat d Oc ober25,2006.Shenotsed TDF t t A s oci i had fl
els e t r e
t
i
hat he s aton
ied
s ton Oc obe 4,2006,pr ded a co oft As oci i scom pl nt a advi e t
ui
t r
ovi
py he s aton'
ai , nd
s d hat
Ca lon Fi dswaspr i cr s cl m sa t r pary cl m sagai tr ponsi e
rt
el
eparng os - ai nd hid- t ai
ns es
bl

4

s
ubcont a or a t rs etes w hih w oul bepr ded upon com pl ton.M s
r ct s nd hei ur i , c
d
ovi
ei
.
Thom ps alo a s t ts had a ked f a1 ofM il & Sol on' s
on s dvi ed ha he
s
or l
ler
om s ubcontact s
r or
t pr de copi s oft rc m e ci gener labiiy i ur e polc es a t s
o ovi
e
hei om r al
al i lt ns anc
i i , nd hat he

woudc p a p o dealc re p de ergadi t alge dee t o t p oe t
l o y nd r vi l or s on nc e r ng he le d fcs n he rjc .
O n December l 2006,Cart Fi dsf
4,
lon el onvar a copy oft A s aton' expe t
ded
he soci i s
r
r porsand cor es
e t
r ponde fom isgener c
nce r t
al ouns r di iscl i s al w ih
el egar ng t a m , ong t
r pors is by M i iCurai W al Cons t sCor and W il tEngi i l
e t s ued
am
tn
l
ulant
p.
lcot
neerng, nc.
l ea l 2007 M r Ta ort overha i oft cas f Ca lon Fi ds.
n ry
. yl ook
ndlng he e or rt
el

TDF is d alte (h l l f ns Ag e me t' onAprl30, 00 t M ilr&
s ue etr t e d e e e r e n '
l
)
i 2 7 o le
Sol on i ca e ofM s Thom ps advi i t tCr & For t rw oul agr e t
om
n r
.
on
sng ha um
se
d e o
pa tci t wih H a tor i t def e ofM il r& Sol on a ns a lcl m s as ered
r i pa e t r f d n he ens
le
om
gai t l ai
s t

i t Asocain' c an ,ube tt af lrs r ainofrg sa s tf t i t
n he s ito s omplit s j c o ul e e v to
iht s e orh n he
Oct
ober25,2006 l te ,asw el ast rghtt r oup any a ount i pai f t def e
etr
l he i o ec
m
s t d or he ens

ofnoncover cl m s The l t a s hi i ed t Cons r ton Def t excl i
ed ai .
eter l o ghlght he
tuc i
ec s
uson
a s a ed t Cr & For t rwoul cons t Cart Fi ds'contnui t r pr e
nd t t hat um
se
d
ent o lon el
i ng o e es nt

M il r& Sol on i t l w s t pr ded t Ca lon Fi dsagr t com pl w ih
le
om n he a ui, ovi hat rt
el
eed o
y t
Cr & For t r' ltgaton gui i ,whi wer encl ed. TDF as Ca lon Fi ds
um
s e s ii i
delnes
ch e
os
ked rt
el
t confr is c entt t et m sby s gni and r t ni t l t .
o
im t ons o hes er
i ng
e ùr ng he eter
The ltga i gui i r r Cart Fi dst s i t Cr & For t rand
ii ton delnes equied lon el o ubm t o um
se
t M il r& Sol on c t n r pors,i udi a i egr t def epl n a cas
o le
om
erai e t ncl ng n nt a ed ens a nd e

5

eva uaton,s ii s a usr t wihi 1 da ofany deposii t
l i pec fc t t epors t n 4 ys
ton aken i t cas and
n he e,
sgnii antde opm entr porson s m at sass tl entoptonsa dipostve
i fc
vel
e t
uch ter
e tem
i
nd s ii

m otons,
i upda ed la lt and dam agesanal es asw el asa det l d r ta
t i biiy
ys ,
l
aie epor nd
s em e alca e anal i atl t30 da prort a s dul t i dat The
uppl nt s
ys s eas
ys i o ny che ed ral e.

gui i al o r quie def ns couns pr de t Cr & For t c esofal
delnes s e r d e e
el ovi o um
ser opi
l
pl adi ,r s ch m e or
e ngs e ear
m anda,m oton paper l galbref ,deposton tans i s e r
i
s, e
i s
ii r crpt , xpe t

r t,and r e esordimis s,a t couns tmel s pi t Cr & For t al
epors
elas
s s al nd hat
el i y ubl t o um
ser l
bil f f and e ns .Furher t gui lnese es l pr ded t ti def e
ls or ees
xpe es
t , he de i
xpr sy ovi
ha f ens
c
ouns wer i ved i s te entne i tons s tl m entaut iy m us be obt ne
el e nvol
n etl m
gota i , e te
hort
t
ai d
fom Cr & For t a r
r
um
ser nd eques sf a hort m us be m a tm el and w el prort
t or ut iy
t
de i y
l i o

couns ' a nc entofa ofer'
els dva em
ny f .'
M s Thomps s gned Cr & For t r sD ef ns Agr e and s i t Ca lon
.
on i
um
se '
e e
eem nt
ent t o rt

Fi ds f handlng. On M a 23,2007, r Ta orf
el or
i
y
M . yl axed t e ut d Def e
he xec e
ens
Agr e back t Cr & For t r scove a couns . M r.
eem nt
o um
se '
r ge
el
Tayl stm e r dss
or' i ecor how
t tei da l e ,on M a 31 2007, cor es
ha ght ys at r
y ,
he r ponded die l w ih Luann M ello,t
r cty t
il he

a j tra Cr & Fortrwhowa h ndi t c s
duse t um
se
s a lng he a e.
I t t o and a hal yea sf l i accept nce ofCr & For t r sdef e i
n he w
f r olow ng
a
um
se '
ens n
M a 2007 a t oughoutt r ai roft unde l ng lw s t Cart Fi dsneve
y
nd hr
he em nde
he
ryi a ui, lon el
r
s it any i cesf l s vi orexpe est Cr & For t .Nordi Cart
ubm ted
nvoi or egal er ces
ns o um
ser
d lon
Fi dss i any r t t Cr & For t r.Cart Fi dsdi notpr de Cr &
el ubm t
epors o um
se
lon el d
ovi
um

6

Fo se wi a y p e di s(nc u n M ilr& Sol n' c o sc amsa t r pa t
rtr t n la ng i l dig l
h
e
omo s r s - l i nd hid- ry

c amsme i e b M s Th mps n) o a moto , mo a o b if fld b a
li
nton d y . o o , r ny i ns me r nda r re s ie y ny
oft pari orany r eas ors te entagr m ent ent ed i o i t ltga i
he tes
el es etl m
ee
s er nt n he ii ton.
O n Oct
ober 1 2007,Luann M ello fom Cr & For t wr e t M r Tayl
,
il r
um
ser ot o .
or

r i ng hi t Cr & For erw a pari patng i M il & Sol on' def e of
em ndi m hat um
st
s tci i n ler
om s ens
t c e and r
he as
eques i a com pl e ca e anal i i udi a dam age m ati and cur ent
tng
et s
ys s ncl ng ny
rx
r
s a usoft cas M r Ta ordi notr pond t M s M ello' r
tt
he e. , yl d
es
o . il s eques .I t ad,on
t ns e

J n r 8, 00 h s nt s Me il ( ndot rM ilr& Sol mo c mme ca ge e a
a uay 2 8, e e M . llo a he le
o n o ril n rl
la lt c ni r )abre lte a vii g t t heAs o a in woul b c du tn
ibii a e s i f etr d sn ha t
y
s cito
d e on c ig

detucietsi o t prjc duigls t we k o J n r a da kigCr &
sr tv e tng n he oe t rn at wo e s f a uay n s n um
For t rt pa tci t i obs vi phot a ng a orvi api i.l r s
s e o r i pa e n er ng,
ogr phi nd/ deot ng t n e pons t
eo

M r Tayl ' l te ,Cr & For t rr
.
or s e t r um
s e equesed t tTD F s an a t ne t obs v t
t ha
end
tor y o er e he
t tng.
esi

A ferM r Ta or sand M s.M ello' diec cor es
t
. yl '
il s r t r ponde i M a and O c obe
nce n y
t r
2007,Cart Fi ds'com m uni i t Cr & For t t oughoutt r ai
lon el
catons o um
ser hr
he em nderoft
he
c e conss e ofM r.Ta or' J
as
it d
yl s anua y 2008 notc oft t tng a O c Gr
r
i e he es i t ean ande and t
he

f l n sx lte sdie td t Cr Fortrsc ve a ec un e :1 A onepa e lte
ol g i etr r ce o um se ' o r g o s l )
owi
- g et r
s ntSe em ber30,2008 i tuc i Cr & For t t ate a Decem ber2,2008
e
pt
nsr tng um
ser o t nd

me a in; A on - gelte d t dJ ne4, 09 wh c sa e t tt u ryig
dito 2)
e pa etr a e u
20 , i h t td ha he nde l n
Oce Gr nde ca e w ass tf ti on r m ai ng unr ol i s a advi ed t t
an a
s
e or r al e ni
es ved s ues nd
s ha

7

M il r& Sol on had been a w oul contnue t atem ptr ach s tem ent w ih varous
le
om
nd
d
i
o t
e
etl
s t
i

s b o r co sa d p ri s 3 A on - gelte s n J ne 1 20 i tuc i Cr &
u c nta t r n a te ; )
e pa et r e t u 2, 09 nsr tng um

Fo se t a pe ra aJ e 1 2 09me a in; )A t - g lte dae J ne 1 , 09
rt r o p a t un 9, 0
dito 4 wo pa e etr t d u 8 20
i rs
n e pons t Cr & For t r sr ques f a pr m edi i a ot r pors s a i
e o um
s e ' e t or e
aton nd her e t , t tng,

w ihoute anaton,t t9 da ageiem son an atac 4t
xpl i ha
m
t
t hed page s eads tha be
pr hee d en

r lae 5 A o - gelte d tdJ l 23, 00 a viigCr m & Fo se ta j y
ee sd; ) nepa etr ae uy 2 9 d sn u
rtr h tur
s lci nwa t be n o Au s 3, 00 o r mani g is si t u e l n c s 6)A
ee to s o gi n gu t 2 9 n e i n sue n he nd ryi g a e;
onepage lte s Augus 3,2009,s a i t tt cas ha be s ces f l r ol
e t r ent
t
t tng ha he e d en uc s uly es ved
w ih t pa tesr hi a gl
t he ri eac ng
obals te e , a t thew oul be f war ng copi sof
etl m ntz nd ha
d
or di
e
Cart Fi ds'i cesf s vi r
lon el nvoi or er ces ender i t cas by t e oft week.
ed n he e he nd he
I none oft e com m uni i di Cart Fi dsadvie Cr & For t t ti
n
hes
catons d
lon el
s um
ser ha t
had c m e d s tl m entnegota i i Oct r2007,ort tM il r& Sol on had
om nce e te
i tons n
obe
ha le
om
r l s cl m sf def e cos sa f a ns s
e ea ed ai or ens
t nd ees gai t ubcontact sa t ri ur sand
r or nd hei ns er

s e i .l addii durng t underyi ltga i Ca lon Fi dsne pr de Cr
ur tes n
ton, i he
l ng ii ton, rt
el
ver ovi d um
& For t wih a cas a ysi orpl ngsi t cas i udi t varous
ser t ny e nal s
eadi n he e, ncl ng he i
c os - a m sand t r pary com pl i s c pl t copi ofa oft s
r s cl i
hid- t
a nt , om e e
es ny he ubcontact ,
r s
copi oft i ur nce c tfca esors
es he ns a
erii t
ubcont a orpolci s t Cr & For t rcoul
r ct
i es o hat um
se
d
as erai whatcl m sM il r& Sol on ac ualy m a havehad agai tiss
c tn
ai
le
om
t l y
ns t ubcontac or
r t s
2Ca lon Fil 'wor c m i t d i t Aug t24,2009 gl ls tl
rt
eds
k ul na e n he
us
oba e temen a ee nti
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s e s ii he
t l
es t na i s ue ai d
t pa tes
he r i .
l .
V

C oncl i
uson

Accor ngl havi consder t pari tlngsand be ng ot rwie advi e i
di y, ng
i ed he tes' i i
i
he s
s d, t
i he e ORD ER ED,AD JUD GED,and DECREED t :
s r by
hat
Def ndantCr & For t rSpe aly l ur nce Com pa s M oton f
e
um
se
ci t ns a
ny'
i or
Summ a y J
r udgm e a ns H a tor A cci and l
nt gai t r f d
dent
ndemniy Com pany
t

( #1 )be a d t s mei he e y GRANTED.
DE 31 , n he a s r b
2.

Pl ntf H a tor A c de and I
ai if r f d ci nt
ndem niy Com pa sM oton f Summ a y
t
ny'
i or
r

J d nta a n tCr m & Fo se S ca t I u a eComp n ( #1 )
u gme g i s u
rt r pe ily ns r nc
a y DE 20
be,and t s e i her DENI
he am s eby
ED.
3.

TheCo trtisj idcino t sa to t e trf t ror r t tae
ur ean urs ito f hi cin o ne urhe des ha r
pr ,i udi m oton f cossand ator ys f s,i any.
oper ncl ng
i or t
t ne ' ee f

4.

The above- t e cas i D I I
s yld e s SM SSED W I PREJUD I E a t t
TH
C s o he
Def
endantCr & For t rSpe aly l ur nce Com pa
um
se
ci t ns a
ny.

D ON E A ND O RDERED i Cham ber a t J esLawr nce Ki Fede al
n
s t he am
e
ng
r

16

Jus i Buidi and Unied St e Courhous ,M im i Fl i t s 15t da ofJ ,
tce l ng
t
at s
t e a , orda, hi h y
une
201
2.
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y- w
ES LAW REN CE K I
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TED STA TES D I
STRI J G
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SOUTH ERN D I
STRI OF FLORI
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17

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