RLI Insurance Company v. Nexus Services, Inc.

Filing 80

MEMORANDUM OPINION. Signed by Chief Judge Michael F. Urbanski on 8/25/2018. (jv)

CLERK' OFFI U.S. SX COURT
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I TH E UN I
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RT '
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as J hns nv. owe t dsCo.7 5F. 5 3 5 1(t Ci.1 6.<ft u ryn
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o
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nt undue dea bad f t dia or m odve,
ly,
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undue

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t
U . a 182.
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3

note e i o t de ii w het rt al a e l e . D a sv.Pi e Aic a tCo . 615
ntr nt he c son
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s vi a( e1 9 6)mo t dimis ac mpli mus c nti s fce fc'a
ut ve Rul 2 $() éon o s s, o ant t o an ufiint a t l
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ter cc pt d s ma , o sat li o ei ha s a i e
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wh
t c tt dr w t r s bl i e e t tt def nda i la e f t nas
he out o a he ea ona e nf t nce ha he e nt s i bl or he iconduc
t

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le ' d. r or ,
o m nd e ngs s ' l f t
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Coutsf vor bl z viw m odonst a e wih f w e e
t a a y e e
o m nd t e xc pdons f iiy of
: utlt

a ndme , du dea , a fih dltr mot ,u du p eudc , rpe tdfi r t
me
ntun e ly b d at, iao y i n e êj ie oê e ae al e o
ve
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c e deûcencesby pr vi a e ent .Se Fom an,371 U . a 182. Iprm a i
ur
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y

cont t t a e
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nt uiiy ounds M lsagu
. ' r ment f lt pes
s ai o ruadet c tt
he our o

cveg fom t g ne al a c ptd p t ofpe mif a n me e ryi lt ton.
l r e r he e t l c e e ah
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r t ng me d nt al n ikai
i
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RI, fr tc endst tllnoi a Vigni 1w do notpr de f a i pende
I ts ont
ha li s nd r i a a
ovi or n nde
nt
c sm ba ed i t i pled dut ofgood f ih a f i de lng,a e i t y di N e
li
s n he m i
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4

f ist alge f ct s
al o le a s uppor i s h ac m . Att ss a oft ltgadon a a ce
tng uc bi l hi t ge he ii
nd c pdng t
he
f t a pl ta couz fndst tN e s f e l al st RI, de ande dic r e of
ac s s ed, le
ti
ha xus ufki nty lege hat I m
d s ha g
t bondsorc lt r lnoti good f ih a pa tofabr c ofconta cnm .
he
ola e a
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at s r
ea h
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1
.

Il sdoe notr cognie a i pe ntc us ofac f br a oft i pled
li
noi
s
e
z n nde nde a e
don or e ch he m i
dut ofgood f ih and f i de lng.Se e..Br
y
at
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l
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Rer e ae Do hPr .I .21 F.d3 3, 8 (t Ci. 00 ) Vo lsv. a aMo t .
fi r td u
ods nc, 2 3 7 3 1 7h r 1 0 9 e S ndi r

CP P 1 6Il d2 8 25 11De . 9 7 1N. 2 1 26 1 3 -3 (0 ) Ho ve, lnos
.I . 9 12 8 , 6 1. c 28 , 5 E.d 1 , 1 0 1 2 01. we rll i
.
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coutsha r cogni ed an a don f br ac oft i i dut w hen i i bas ilabr a
' ve e
t
z
c
or e h he mpled y
t s ed t
e ch
ofconta cnm . eLasal Bus Cr t I v.La i s N o.00 C 8145,2003 W L 722237,
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t 1 N. 11 t3, 0 3 ctn sal n t s Pas t o ris 5 8
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F. u 2 8 0 85 ( D; 1 2 08) 4 36N. h rda Co As' v. d f 20 6I
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App(s)1 20 6U,( (f d t ofg odfiha fideln i al tdo ont
1t 5 0 - !30 <
The uy o at nd ar aig s i a n he
mi
e r ie ofonepa t sbr dic ei i pe f i isoblga i unde t c r c .l
xe cs
ry' oad s r ton n ro= ng t
i tons
r he onta t t

r t st tpa t t e r ie t dic e r as bl a wih pr rm odve not
equie 'ha r y o xe c s he s t éon e ona y nd t ope
,
a bit i ca i i l ori am a ri
r tqtl prcousy, n
y,
nne nconsse w1. t pa e ' ea ona eexpec a
it nt t, he o s r s bl
1
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t éons

u rt c nta t'( ena ctto omitdlgxEn so He lh ae I . Fe .
nde he o rc. i r l iain te l; . viin atc r,nc v. d
' nt
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De ostI . .No.1 CV 6 3 , 1 R 6 9 9 , t* ( D. 1. c 3, 0 4
i ns Co ,
1
9 3 20 4
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rEn ii h sno pla d isd t - - o -at t or ( un 11 a pa t isb e c of
f v son a t q de t u y ofg od fih he y Co t 1) s r of t r a h- -

1R1Iagu t llnoi 1w a i t t pr e c m be a et pa ûe do notds et tt l m niy
. r es hatli s a ppl o he oposd bi c us he r s
es
iput ha he nde t

Ageme ts o e db telwso ll osAsdsu sdi t p ei n r ij d no iin,h p t sh v no
ze n ig v me y h a f ln i. ic se n he rl ay nl o pno te ade g e t
i
mi
mc
61 y bref d c c oflw is si tzsa do M e .Op. ECF N o.5 a 1 n. Forpt e oft sm odon,az at
1 i e hoi e a sue n li c n. m
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9, t 0 2.
upos s hi
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tlssa ofldpa n,t c utnee notde i t a i a e1 w be us t r ul i t s m e.
li t ge i do he ot
d
c de he pplc bl a ca e he es t s he a

5

c nta tclm ( un 1, siwa r ql e t d ' . e pli di Go ev. ndinaI s
o r c li Co t ) a t s e 't d o o.) As x ane n r I a n .
i
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Co.3 11App 3d28 2 6 8 N. 2 1 6 1 (00 )
, 76 1. .
2, 8 , 76 E.d 5 , 61 2 7,
I i wel e t bls d t tt dut ofgood f ih a f i deai
t s l s a ihe ha he y
a t nd a t lng
i i pled i e r c r t I spum os i t e t t tpnees
s m i n ve y ontac . t
e s o nsue ha ti
do not t ke a nt ge of e h ot r i a wa t coul not
a dva a
ac he n
y hat
d
ha bee c e plt a t tm e t c r c w a dr t d or
ve n ont m a ed t he i he ont a t s afe

do a yhn t twild sry t ohe pat rg t rci
n tig ha l eto he t r rfs iht o eeve
t be k of t c r c .Diput i vi t e r ie of
he nei
he ont a t s es nvol ng he xe c s
good f ih ats whe one pa t i gi br d dic e
at ie
n
ty s ven oa s t don i
n

pef igisobka nsu rt c nta tThed t ofg od
ro= n t l éo nde he o rc.
uy o
f ih a f i deai i a lm ia
at nd at
lng s i t don on t e r ie of t
he xe cs
hat
dic eton,r q'ii t paryvese wih cic e
s r i e ntng he t
t d t ls r don t e r ie
.
o xe cs
i r a ona y and wih pr r m odve not at tn i
t e s bl
t
ope
,
bir tl
y,
c prc ousy, oz i a m a r i onsse wih t pa e '
a ii l
n
nne nc it nt t he G s
r s bl e
ea ona e xpec a
t dons H ow e r i ge r l i i not a
.
ve , n ne a, t s
n
i pe nts c ofdudesf cont a dng pat .
nde nde our e
or
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ées

J. (i gDaa v. c nadsCo .1 511App. d9 2 9 0 ,8 11De . 5 , 6
- cén
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N. 2 95 , 7 -7 (9 4; a rv.ns a eEx ha eAg nc , 7 l12 5 3 5 , 21
E.d 8 9 1 2 1 8 ) Crme I utnc c ng e y 1 4 l d 1 , 25 2
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11De . 3 6 N. 2 8 7 9 3(9 6)
1 c 47 , 75 E.d 9 , 0 1 9 ).
.
f r e sr a i t good f ih pe f m a e t c ly a iewhe e onepa t t t
T obl m eltng o
a t t oz nc ypi al rs
r
r y o he
contac i gi n br dic e i pe f m a e.
r t s ve oad s r don n r oz nc The de nde pa t m us t r l on
pe nt ry
t hen ey
t pa t i c r t e r i et dic e
he ry n ontol o xe cs hat s r don f il 'D a a 1 11 App.3d a 990,466
arp'
n, 25 1.
t

N . 2 a 9 1 S cfc l ,f h r apat a t w11i ope mo ie bei ad st t
E.d t 7 . pe i al fg e e ry c g t1mpr r tv , t e ie o
i y wj
.
e dca ehi s l fom aconta a oblgadon by r f i t brng a
xt t m ef r
r cm l i
e usng o i bouta c
ondii
ton

pr ce ntorade ie t de i a empl
e de
sr o prve n
oyeeofr as bl a i t d be st oug
e ona y ndcpa e neht hr h
t t na
e mi don,t tpa t i e r ii contacaa dic e
ha ry s xe csng
t tzl s r don i am a ti
n
nne nconsse wih t
it nt t he
r s bl e
ea ona e xpec a
t donsoft pa desa t r f ei a tngi ba f ih. l a 991,466
he r
nd he e or s c i n d at ' d. t
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N . 2d a 972.
E. t
The m otvai c e n whe ea pa t wihhol a condii pr c
i lng onc r
r
ry t ds
ton e edenti
s

6

t T hecontoli pa t c d ha a ded i uri a c r c a oblga by
hat f
t
r lng ry oul ve voi nc lng ny onta m l i don
r u i t brng a
ef sng o i boutt r lva c
he ee nt ondi ' I
don.' d.

A lhough c t r
t
ours ecogni a i ple dut ofgood f ih a f i dea
ze n m i d y
at nd at Eng,i (
tf
doesnot
c e e a e or a el ga dut t be ni ort be ve dec nty i a ge r lwa ' and onl
r at n nf ce bl e l y o
ce o ha
e l n
ne a y'
y

f e lr gjg pat)t e e cs t eds r ion a f de t i byt . . g e me i ama e
f ql es a ry o x zie h ic e
r i
for d o t he . a r e nt n nn r
conssentwih t r as
it
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C. P 9 6F. 1 3 , 4 5lt Ci. 9 2 ( tr l ia a q a nmakso te l.
.z. 5 2d 4 6 1 4 /h r 1 9 ) i ena ction nd uotdo r mitd)
l
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Cot sc nnotsm pl fde i whe he onepa t oughtt ha e r ied prvie se es l
ut a
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r s w e i t docl e . t r f
e e d n he lm nt Ra he good f ih'i acom pa r e e e t an i ple
at s
ct ef r nc o m id
unde t ng nott t keoppor unitc a ntgei awa t tc d notha be n
raki
oa
t si dva a n
y ha oul
ve e

c tmpltd a t émeofdtfi ' rmo Pr e d s 5 8F. u 2 a 8 7 (i
on e ae t he
atnp'Paa nt o r e , 8 S pp. d t 5 céng

La ie 2 0 WL 7 22 7 a * 5(uod Kh m & NaesS e No 2,nc v. rt nk
ds 03
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a 1 41 42 4 -7 , 0 5 9 -1 4.
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,

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I v.Ca e Conce t I . 246 Va. 28-29,431
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i g ai bonds i l lngt $ 6 milon at a pad.Pr ed Countr l,ECF No.
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4 -,t 1 7
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ur

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at

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xus ufkinty le
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6 li n i e ms es tng r
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ed
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a ! 1 2, 5 . b s e Ne usd srbe isd ma sfo t s p enimsi a i rf l
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l
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g
.

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ncuci
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RLII utnc Compa p'J. a ! 1 7 Alho hpt mi msi ma ne d t pa i t ef t r
ns a e
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e csi
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r cevede
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or ul s ge
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m ilon i pr m bl s The e or sm ia t ot rca e whe ei i dut cli sar
li n e m . r f e, i lr o he s s t mpled y l m e
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dva e
xus s e t hat t d
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e ct due t R1,' a donsnott ke i good f ih.Cf Gr bi ns ,169 F.Supp.3d a
xpe ed
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t
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4. he gr e I z
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t bondsa wer notafe ed by N e 'alga
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nd
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a t y e e be
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o

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t
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ve , s le
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Is s r dona y de ii wer nott ken i good f ih a ld t s e m onetr l s
r c sons e
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t ough pad pz m i s
ht
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l

The ef e N e ha s f enty alge da a st ough ispt r m pa e st
t or , xus s ufki l le d m ge hr
t enb' ym nt o
RLI The c tnee notde i t a ia lt oft t m a ni da a att ss a oft
.
our
d
c de he valbiiy he e i ng m ges hi t ge he
léga
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C.

The c ltfndst l a t o e t c
olt i hat e ve o m nd he ount r bi i a opra e. , prm a iy
e c m s ppr it RT1 i rl
a gue t a e
r s hat m ndm entw oul be f ie W hie t r ul a ey m a be no m e i t N e '
d
utl. l he e Hm t l y
rt o xus

c
ount r nm ,t alga
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n he opos d c e c/i a e s l entt s dvet ssa
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hi t ge
1

ofléga
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r
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e

d ly ba fih, rd lt r mo ve a d do snotagu t tRTIwoud f c u u prj ie
ea , d at o iao y d , n e
r e ha , l a e nd e eudc .
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n,
S. t 82. r
en
ubs a
k he ha
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prl na yi unc n, n d s o e yh snot e c
ei r nj do a d ic v r a y t omme e be on t tr q ie byt e
mi
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i u d rl fTheei noe d nc o Ne usi e i t d lyt sa do o mo swih
njnc ve ei . r s vie e f x ntndng o ea hi c n r ve t
e
ba f ih ordia or m odve. r f e N e foughtt be a f ded a oppor u t t t s
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lt y
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