Pennsylvania National Mutual Casualty Insurance Company v. Beach Mart, Inc. et al

Filing 265

JUDGMENT in favor of Beach Mart, Inc. against Pennsylvania National Mutual Casualty Insurance Company. It is ORDERED, ADJUDGED AND DECREED for the reasons detailed in the court's September 30, 2022, order, Pennsylvania N ational Mutual Casualty Insurance Company's claims for declaration of non-coverage under the insurance policies are dismissed as to L&L Wings, Inc.'s original counterclaims, and Beach Mart, Inc.'s claim seeking a declaration of coverag e and establishing a duty to defend against L&L Wings, Inc.'s original counterclaims under the insurance policies is granted. Pennsylvania National Mutual Casualty Insurance Company was obligated under the insurance policies to defend Beach Mar t, Inc. against L&L Wings, Inc.'s original counterclaims.It is further ORDERED, ADJUDGED AND DECREED for the reasons detailed in the court's September 30, 2022, order, Pennsylvania National Mutual Casualty Insurance Company's claims for declaration of non-coverage under the insurance policies are granted as to L&L Wings, Inc.'s amended counterclaims, and Beach Mart's claim seeking a declaration of coverage and establishing a duty to defend against L&L Wings, Inc.' ;s amended counterclaims under the insurance policies is dismissed. Beach Mart, Inc.'s duty to defend under the insurance policies terminated upon the October 3, 2014, dismissal order in the underlying action, and the duty was not retriggered by L&L Wings, Inc.'s filing of its amended counterclaims on February 23, 2017.It is further ORDERED, ADJUDGED AND DECREED for the reasons detailed in the court's September 30, 2022, order, that the part of Pennsylvania National Mutual Casu alty Insurance Companys claim seeking declaratory judgment that it has no duty to indemnify is denied as moot.It is further ORDERED, ADJUDGED AND DECREED for the reasons detailed in the court's September 30, 2022, order, that the following pa rts of Beach Mart Inc.'s counterclaims are dismissed: counterclaim III (breach of the implied covenant of good faith and fair dealing); counterclaim IV (unfair and deceptive trade practices in violation of N.C. Gen. Stat. § 58-63-15(11)(e), (g), (h), (m), and (n)). It is further ORDERED, ADJUDGED AND DECREED for the reasons detailed in the court's December 28, 2022, order, Beach Mart, Inc., is realigned as plaintiff for purposes of trial, and Pennsylvania National Mutual Casualty Insurance Company is realigned as defendant for purposes of trial. JURY VERDICT. The remaining claims in this action came before the court for a trial by jury. The issues have been tried and the jury has rendered its verdict.IT IS ORDERED, AD JUDGED AND DECREED that Beach Mart, Inc. has proven by the preponderance of the evidence that Pennsylvania National Mutual Casualty Insurance Company breached its obligations to Beach Mart, Inc. under an insurance policy.IT IS FURTHER ORDERED, ADJ UDGED AND DECREED that the earliest date Pennsylvania National Mutual Casualty Insurance Company breached its obligations to Beach Mart, Inc. under an insurance policy was June 8, 2012.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, I nc. is entitled to recover from Pennsylvania National Mutual Casualty Insurance Company for the time period from June 8, 2012 to October 3, 2014 in the amount of $577,675.16.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Pennsylvania Nation al Mutual Casualty Insurance Company did not prove by the preponderance of the evidence that Beach Mart, Inc. did not comply with material terms and conditions of an insurance policy, and either did not act in good faith or materially prejudiced Penn sylvania National Mutual Casualty Insurance Company.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Pennsylvania National Mutual Casualty Insurance Company did not prove by the preponderance of the evidence that Beach Mart, Inc. failed to use ord inary care to mitigate the consequences of Pennsylvania National Mutual Casualty Insurance Company's breach. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. did not prove by the preponderance of the evidence that Pennsylvania N ational Mutual Casualty Insurance Company misrepresented facts or insurance policy provisions relating to coverage at issue, conduct referenced in verdict question 9.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. proved by the p reponderance of the evidence that Pennsylvania National Mutual Casualty Insurance Company failed to acknowledge and act reasonably promptly upon communications with respect to claims arising under an insurance policy, conduct referenced in verdict qu estion 9.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. proved by the preponderance of the evidence that Pennsylvania National Mutual Casualty Insurance Company failed to adopt and implement reasonable standards for the prompt i nvestigation of claims arising under an insurance policy, conduct referenced in verdict question 9. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. proved by the preponderance of the evidence that Pennsylvania National Mutual Casual ty Insurance Company refused to pay claims without conducting a reasonable investigation based upon all available information, conduct referenced in verdict question 9.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. did not prove by the preponderance of the evidence that Beach Mart, Inc. suffered an injury proximately caused by Pennsylvania National Mutual Casualty Insurance Company's conduct referenced in verdict question 9.QUESTION 4. This question was presented t o the jury to answer what amount of damages, if any, Beach Mart, Inc. is entitled to recover from Pennsylvania National Mutual Casualty Insurance Company for the time period from October 4, 2014, to February 23, 2017, solely with reference to Beach M art, Inc.'s December 17, 2023, request at trial for partial reconsideration of the court's September 30, 2022, order (DE 247). In light of the jury's response, finding no proof of actual damages for the time period from October 4, 201 4, to February 23, 2017, said motion for reconsideration of the courts September 30, 2022, order in this part is terminated as moot.IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Beach Mart, Inc. shall recover prejudgment interest, accruing from June 8, 2012, up to and until date of entry of judgment at the rate of eight percent (8%) per annum simple interest on the sum of $577,675.16, for a total prejudgment interest amount of $533,423.67. Beach Mart, Inc. is entitled to an d shall recover post-judgment interest on the entire amount awarded under this judgment, in an amount determined by the rate established by 28 U.S.C. § 1961, accruing as of the date of entry of judgment up to and until satisfaction in full. Signed by Peter A. Moore, Jr., Clerk of Court on 12/21/2023. (Collins, S)