Universal North America Insurance Company v. Bower et al
Filing
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ORDER granting 126 Motion for Default Judgment. This order DISMISSES the case. Signed by Honorable David C Norton on August 1, 2018.(cban, )
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF SOUTH CAROLINA
CHARLESTON DIVISION
UNIVERSAL NORTH AMERICAN
INSURANCE COMPANY,
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)
)
Plaintiff,
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v.
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)
GEORGE BOWER, DANIELLE BOWER, )
SARA GIBBONS, AND LACEY
)
GIBBONS, individually and as parent and )
natural guardian and legal representative )
of LG and MG ,
)
)
Defendant.
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)
No. 2:16-cv-00693-DCN
ORDER
This matter comes before the court on Universal North America Insurance
Company’s (“Universal”) motion for default judgment against defendants George Bower
and Danielle T. Bower (the “Bowers”). ECF No. 103. For the reasons set forth below,
the court grants Universal’s motion for default judgment and dismisses the case.
I. BACKGROUND
As set forth in the complaint, Universal issued a homeowners policy to the
Bowers covering the period January 12, 2015 through January 12, 2016. The policy
excludes coverage for vehicle accidents involving an unregistered vehicle, provided the
accidents occur where the vehicle is required to be registered. The underlying claim to
this declaratory judgment action involves a November 28, 2015 incident that occurred
when a golf cart owned by the Bowers was overturned while driving in the Rivertowne
Country Club neighborhood in Mount Pleasant, South Carolina. At the time of the
incident, the cart was being driven by Danielle Bower and was occupied by passengers
Lacey Gibbons, Sara Gibbons, Logan Gibbons, Mikelyn Gibbons, and Aimee Spencer. It
is undisputed that the golf cart was not registered and that it was required to be registered
to drive on public roads in South Carolina.
Defendant Sara Gibbons filed an answer in this case but has not brought any
claims related to the matter. Defendant Aimee Spencer has executed a release of all
claims and has been dismissed from this suit without prejudice. Defendant Lacey
Gibbons filed an answer and has been actively litigating this case since its beginning.
The Bowers have not made any appearance in this case. On August 31, 2016, the clerk
entered default as to the Bowers according to Federal Rule of Civil Procedure 55, in
response to Universal’s request for entry of default and the accompanying affidavit of
default. ECF No. 38. As set forth in the affidavit of default, the Bowers are not minors
or incompetent persons or serving in the military. On July 6, 2018, nearly two and a half
years after serving the Bowers, Universal moved for default judgment as to the Bowers.
ECF No. 103. Universal independently served the motion for default on Mr. and Mrs.
Bower. ECF No. 106. A response to the motion for default was due by July 20, 2018,
and no response was received by the court. On July 30, 2018, the court held a hearing on
the motion for default judgment, and neither the Bowers nor counsel for the Bowers
appeared at the hearing.
II.
STANDARD
Rule 55(b)(2) of the Federal Rules of Civil Procedure provides for entry of default
judgment by the court. “The defendant, by his default, admits the plaintiff's well-pleaded
allegations of fact, is concluded on those facts by the judgment, and is barred from
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contesting on appeal the facts thus established[.]” Ryan v. Homecomings Fin. Network,
253 F.3d 778, 780 (4th Cir. 2001) (citation omitted).
III. DISCUSSION
Universal’s complaint requests a declaration from the court that there is no
coverage under Universal’s policy issued to the Bowers for the golf cart accident of
November 28, 2015. The court finds that the above allegations have been conclusively
admitted by virtue of the Bowers’s default. Accordingly, the court finds that the policy
provides no coverage related to the November 28, 2015 incident, and therefore coverage
is not triggered under that policy.
Although Universal only had a policy for insurance with the Bowers, it listed
several other defendants who were involved in the golf cart accident and who may have
had a claim under the policy—Aimee Spencer, Sara Gibbons, and Lacey Gibbons,
individually and on behalf of her children. Aimee Spencer was dismissed from this
action on August 16, 2016. Lacey Gibbons litigated this case fully, but has recently
informed the court that she and Universal have reached a settlement on this matter. Sara
Gibbons filed an answer but has otherwise been silent in this litigation. In defaulting, the
Bowers, as the only owners of the policy in issue, have admitted that the policy does not
provide coverage for the golf cart accident. In South Carolina, injured third parties do
not have a right to sue another person’s insurance company directly for a claim that arises
under the insured party’s policy. See, e.g., Kleckley v. Nw. Nat. Cas. Co., 526 S.E.2d
218, 219–20 (S.C. 2000), Trancik v. USAA Ins. Co., 581 S.E.2d 858, 861 (S.C. Ct. App.
2003). None of the defendants other than the Bowers could have brought suit against
Universal. Thus, the default judgment against the Bowers forecloses this action entirely
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as to all defendants. The only way this case could survive the default judgment is if any
of the defendants had filed a cross-claim against the Bowers, which they have not done.
The court therefore finds that the default judgment dismisses the case entirely. The court
makes no ruling as to the ability of Sara Gibbons to later bring suit directly against the
Bowers regarding the injury she sustained from the golf cart accident.
Universal’s complaint asks for the costs and fees associated with bringing this
declaratory judgment action and for such other remedy as is determined by the Court to
be just and reasonable. Universal indicated in its motion that it seeks no costs and fees
related to the motion for default judgment. Pursuant to Federal Rule of Civil Procedure
54(d)(1), the court awards costs to Universal, except for costs related to this motion for
default judgment. The court denies Universal’s request for any and all fees associated
with bringing this action.
IV.
CONCLUSION
For the reasons stated above, the court hereby GRANTS Universal’s motion for
default judgment and DISMISSES the case.
AND IT IS SO ORDERED.
DAVID C. NORTON
UNITED STATES DISTRICT JUDGE
August 1, 2018
Charleston, South Carolina
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