Brenner Properties, LLC v. The Charter Oak Fire Insurance Company
Filing
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MEMORANDUM OPINION, ORDER regarding MOTION to Amend/Correct 1 Notice of Removal, Attachment 2 10 filed by Brenner Properties, LLC. Signed by Magistrate Judge Robert S. Ballou on 5/13/13. (mka)
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF VIRGINIA
ROANOKE DIVISION
BRENNER PROPERTIES, LLC
Plaintiff,
v.
THE CHARTER OAK FIRE
INSURANCE COMPANY
Defendant.
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Civil Action No.: 7:12cv00597
By: Hon. Robert S. Ballou
United States Magistrate Judge
MEMORANDUM OPINION AND ORDER
This action was originally filed in the Circuit Court of Wythe County. Plaintiff, Brenner
Properties, LLC (“Brenner Properties”), sought a declaratory judgment that Defendant, The
Charter Oak Fire Insurance Company (“Charter Oak”), owed a duty to defend and indemnify it
in connection with a pending tort action against Stephanie Brenner and Brenner Properties filed
by Tiffany M. Eve (“Eve”) for injuries received from a horse riding accident on February 27,
2010. Tiffany M. Eve v. Brenner Properties, LLC and Stepahanie Brenner, CL12000034-00 (the
“Tort Action”). Charter Oak removed the declaratory action to this Court on December 5, 2012
(Dkt. No. 1) and filed a Counterclaim seeking a declaration that its liability insurance policy
provided no coverage for either Brenner Properties or Stephanie Brenner (Dkt. No. 3). Charter
Oak did not seek leave to add Stephanie Brenner as a party at that time. Thereafter, Brenner
Properties moved for leave to amend the Complaint to join Eve as a defendant and for the Court
to realign Eve as a party plaintiff (Dkt. No. 10). This Court granted the motion for leave to
amend the Complaint to add Eve and any other necessary parties (Dkt. No. 12). Brenner
Properties then filed an Amended Complaint on February 19, 2013 naming Stephanie Brenner,
Eve, and Charter Oak as defendants (Dkt. No. 15).
The issue now before the Court is Plaintiff’s request to realign the parties in accordance
with the actual issues in controversy. Both Stephanie Brenner and Eve contend that the Charter
Oak liability insurance policy provides coverage to Brenner Properties and Stephanie Brenner
individually for any liability arising from the Tort Action. “The Fourth Circuit has adopted the
principal purpose test for realignment of parties, under which the court determines the primary
issue in controversy and then aligns the parties with respect to their positions on that issue.”
Brave Ventures, LLC v. Ambrester, 854 F. Supp. 2d 356, 358 (E.D. Va. 2012) (citing U.S. Fid.
& Guar. Co. v. A & S Mfg. Co., 48 F.3d 131, 133 (4th Cir. 1995)).
Eve is not a party to the insurance agreement, but she has an interest as the plaintiff in the
Tort Action in establishing coverage for the purported tortfeasor so as to maximize her potential
recovery. Establishing coverage under the insurance policy would provide Eve with a means of
compensation if she prevails in the Tort Action. Eve, Stephanie Brenner, and Brenner Properties
thus have a shared interest in establishing insurance coverage. Realigning the parties to name
both Eve and Stephanie Brenner as plaintiffs in this declaratory judgment action is therefore
proper. See id. (realigning the parties in the same manner in a similar insurance contract
declaratory judgment action (citing Lott v. Scottsdale Ins. Co., 811 F. Supp. 2d 1220, 1224 (E.D.
Va. 2011)).
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Having carefully reviewed the record and finding realignment to be proper, it is hereby
ORDERED that the Clerk REALIGN nominal defendants Tiffany M. Eve and Stephanie
Brenner as plaintiffs and counter-defendants in this action.
Entered: May 13, 2013
/s/ Robert S. Ballou
Robert S. Ballou
United States Magistrate Judge
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