Liberty Mutual Insurance Company v. Downrite Holdings, Inc. et al, No. 1:2010cv22876 - Document 46 (S.D. Fla. 2011)
Court Description: ORDER granting 18 Motion for Summary Judgment; Case is closed. Signed by Judge Patricia A. Seitz on 12/15/11. (mg)
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Liberty Mutual Insurance Company v. Downrite Holdings, Inc. et al Doc. 46 U N I D STA TES DISTR I CO U R T TE CT SO U TH ER N DI STR I O F FLO R I CT DA CA SE N O .1 228 Cl - TZ/ M ON TON 0- 76- V SEI SI LI BERTY M UTUAL I NSURAN CE COM PANY, Pl n if aitf, VS. D OW NRI H OLD W G S,I C . e al, TE N ,t . De e nt . f nda s O R D ER G R AN TI G M O TI N FO R SU M M A R Y JU D G M EN T N O Thi ma t i be or t Cour on Li ry M ut l ur nc Company' M oton f s ter s f e he t be t ual ns a e s i or S mmayJ g n g 1 ) Dee d n s J i t p lme tt TherOp o iint M oinf r u r ud me t DE- 8 , fn a t' o n Su pe n o i p sto o to o S mmayJ d me t( 3 )1 n Plitf srpl g 4 ) Th sa to a ie o to a u r u g n DE- 8, a d anif e y DE- 4 . i ci n rs s u f n i mniy ag e nte ut d b Defnda si f nde t r eme xec e y e nt n avorofPli if Li ry M ut lI tr nce antf , be t ua nsla Compa ( bet .Liery,algi t tDefnd sbrac dt i mniya e me ,flda ny Li ry) b t le ng ha e ant e he he nde t gr e nt ie sxc ntc anta i tDefnda sale ngc esofaci f : )s ii pef ma e; i ou ompli gans e nt lgi aus ton or (1 pecfc ror nc ( bra h ofc r tc rcua i mniy;( qui tme;( e tbl s ogaton;( 2) e c ontac/onta t l nde t 3) a i t 4) quia e ubr i 5) e o e ai n a ( )c mmo 1w i e iy Lie t no mo e frs mmayj d me o is x n rto ; nd 6 o n a nd mn t. b ry w v s o u r u g nt n t br c ofc r c/nde t a e m e cai .Bec us t ea e no ge nei s ofmatra ea h onta ti mniy gr e nt l m a e her r nui s ues e il f c ,Li ry' m oton i gr nt a t be t s i s a ed. l fnd nso ii l e p ns o po e s mmayj d me t c u eDe e d n sha n t Dee a t rgna r s o e p sd u r u g n be a s fn a t d o ha an o runiyt c d ppo t t o omplt dic r a t tm ePl n iffl isM oton f Summ a y e e s ove y t he i aitf ied t i or r J udgm e . 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( mp . . , S e o d.) Th ld mnt r frh ra r e t t Co lEx A.! t c n ' e n e io s u te ge d ha: s ' z f nt ha nots De enda s ve ubmit d asa e e o m aera f c s The ef e pur ua t te tt m nt f t il a t . r or , s nt o Lo a Rue5 .( ) ia 1mae ilfcsstf rhi ( b ry')sae n . . l b d e d c l l 6 1b ,$ )l tra a t e o t n Lie t s ttme t . wil e e me ( ad te ... ovi t t Cour fndst tEwbe t s sae nti s re bye de ei mitd pr ded hathe ti ha li ry') ttme s uppo td vi nc n t recor ' he d.' 2 I ( be t)d tr n s i iss ej d me t ta p tnil ib l ye itf rlse a do f Li ry eemie ,n t ol u g n ,h t oe t la ii x s o o s s n / r a t f s cossa e ns f whi t l m nior and Prnci l wilbe oblge t ee , t nd xpe es or ch he nde t s i pa s l i do id mn f ( b ry u de t etr o t i Ag e me to Ote Ag e me t,h n e iy Lie t) n r h ems f hs r e n r h r r e ns t e Id mntr a do Prn iass al e o i wih ( b ry , r mp l u nd ma d as m n e io s n / r icp l h l d p st t Lie tj p o t po e n , u y o mo e e ua t a a u td tr n dbygv e tlo c lae a s c rt o atp a d f n y q lo n mo n ee mi e ti ry r oltrl e u iy f y e n b v lestsa tr t Ewb ry ,o c v rta la ii wh t e o n t( be t)h s () au aifco y o liet) t o e h t ib ly, eh r r o Li ry a : a t etbls dori e e a y rsr ( ma a pa nt;o ()r eve a notc of sa ihe ncrasd n ee ve;b) de ny yme s r c ec i d ny ie a cli st r f . ny am he e or (d) TheI mniyAg e me alosae t t 1 nde t r e nt s ttd ha: l t e n ofa pa e tbyt Sur t t I mnio sa Prnc pa sf t ra ee n he ve t ny ym n he e y, he nde t r nd i i l urhe gr t ti an ac ountngbe wee t Sur y a t Prncpal,orbe we n t Sur t a ha n y c i t n he et nd he i i s t e he ey nd t I m nior , et rorbot oft m,t Sur t s l bee il t c r f a he nde t s or ihe h he he ey hal ntted o ha ge or ny a a ldibur e nd 1 s s ment m a by i i good f ih i a a s de t n at n nd boutt m at r he en he te s r i c e a e byt sAgr e e orOt rAgr eme sunde t be i t ti i ,o wa , ont mplt d hi e m nt he e nt r he lef ha t s r s ormi htbelabl f t s sand a oun ss dib s ort ti wa nec s r or g i e or he um m t o s ur ed ha t s es a y e dintt m a s h dibur e e s, t rornots h la lt ne s iy or xpe e o ke uc s s m nt whe he uc ibiiy, ce st e dinc e se and t tt vouc r oro he e de ofan s h pa nt m a xpe e y xit d; ha he he s t r vi nce y uc yme s de by t Sur t s lbeprma f c ee de e oft f tand a he e y hal i a i vi nc he ac moun oft la lt t t t he ibiiy o he Sur t e y. *+# ( b ry s al a terg ta iso to a ds l d srto t a j s, eteo Lie tj h lh ve h ih, t t p in n o e icein,o d u t s tl r c mp o s a ycam, e n , ut r u g n u na yBo d, nls a yId mnt r o r mie n li d ma d s io j d me t po n n u e s n n e io o Prncp lp o i igara o a elg l sst ee o , hal e u s ( b ry t ltg t r i ia, r v dn e s n bl e a ba i h r f r s lr q e t Lie t) o i ae i s hcam o d ma d o t d fnds hs to t a p a fo s c j d me ta ds l uc li r e n s r o ee uc ui, r o p e l r m u h u g n , n hal d p st t ( be t) a t etmeo s hrq e t c s o c ltr l aif co yt e o iwih Li ry , t h i f uc e u s, a h r ol ea s tsa tr o a ga ry i k n a da u t obeu e i pa i ga yj d me to j d me t rn ee o li t) n i d n mo n t be s d n yn n u g n r u g ns e d r d r t tma ber nde ed, t i e es, t , ha y e r wih nt r t coss expe e a ator 'f s i udi t eof ns s nd t neys ee , ncl ng hos ( b ry . Lie t) (d a d!dl ite t ' 1 . n l- re n h' -h ) Afe exe uton oft I mniy Ag ee nta i r la on t I mniy Ag e m e , tr c i he nde t r me nd n e ince he nde t r e nt Li rya e t is varouspa me a pef ma ebo (heBonds na ngDownzt be t gred o sue i y nt nd ror nc nds t ) mi ie En ie rn Co p. sp i ia .( mp .! 6; e g r Af. ! . Asar s t fis i t e gn e ig r a rncp l Co 1, 2 S e es f3 5) , e ulo sung h Bonds Li t ha r c vednum e ousc am sfom va i usen ii ,ncudi oblge t tha , bery s e ei r li r ro ttes i l ng i es ha ve 3 eg r A f . ef st t A fi vi of Pa Se ge s a Se orCl i s Spec a i tf r se e s f r er o he t da t ul e r , ni am i ls o Li ry, ie a D E- 9be t f l d t 1 1. 3 peror nc bond cai sbas d o Down ieEngi e i Cor ' al ge y de e i or f ma e lm e n zt ne rng p.s le dl f ctve i om plt wor a s bcontacor ,l r s m aerals ppler ,a r nt le pm e pr de s nc e e k nd u r t s abo er , t i u i s nd e a qui nt ovi r t tha m a pa e bond cli sbe aus t ha notbee pai by Downrt Engi erng ha ve de ym nt am c e he ve n d ie ne i Cor f wor pe f me f ormae il s idt Downrt Engne rngCor ( eg r p. or k ror d or tras upple o ie i e i p. Se e s Af !6. Ad to ly, i cai sha fl lws t a i tLi ryasars tof f, ) diinal varous l mant ve ied a uis gans bet e ul Do rt En i e rngCop.sfi r t f liliso lg to o tep o e t f rwh c t Bo d wn ie g n ei r ' al e o u fl t b iains n h rj cs o ih he n s u weeis e (# a ! . r su d. f . t 7) Asar s toft cli sa l uisand Downrt Eng ne rng Cor ' r f alt e ul he am nd aws t ie i e i p.s e us o r ol t cli s Li ry ha t hieaco ula a a t neyst r s es ve he am , be t d o r ns tnt nd tor o e pond t i si at o,nve tg e, d fn a ans, n r s l tev ro scams (d a ! . AsLie t rc ie c amsa an t ee d g i t a d e ove h aiu li . 1 tJ ) 8 b ry e ev d li g is t Bonds i woul pr det l m nior wih wrten no i eoft cli sa r que tt tt he ,t d ovi he nde t s t it tc he am nd e s ha he l d mnt r p o d d fns s i a y.(d. t 9. Lie t as i o dt el d mnt r t a i n e io s r vie ee e ,f n 1 a ! ) b ry lo nfnne h n e io s h t f t y wa ed Li ry t de e a oft cli s t l m nio snee d t i or Li ry s he nt be t o f nd ny he am , he nde t r de o nf m be t o Li rycoul cac a et a be t d lult he mountoft colae als c iyr quied unde t t msoft he l tr e urt e r r he er he I d mnt Ag e me t (d a :1 . Th I e io sfie t p o d Lie t wiha yv ld n e iy r e n . 1 t 1) e nd mnt r ald o r vie b ry t n ai dee est t cli .(d a !1 ) Ast ma oft camsan lws t,nde t s fns o he ams l t 2. o ny he li d a uis I mnior i or dLi ryt t yhadnodee esorrquese t tLi rypa t cams (d a !1 ) nf me bet hathe fns e td ha bet y he li . 1 t 5. Asars l, b ryp i camsttl g$ , 8 ,318 .(d a ! 6 1 ) Lie t h we e , a e ut Lie t ad li oai 3 7 60 .9 1 t !1 - 7. b ry, o v r h s n r c v rd $ 05 ,8 . i rman n c nrc p oc e fo t ev ro sp oe t f rwhc i e o ee 2, 33 043 n e ii g o ta t r e ds r m h a iu rj cs o ih t is d b .(d a !1 ) Thus ihasi un'dnetda ge of$1732, . (d) sue onds 1 t 7. ,t nc e ma s , 65146. 1 4 On Aug t4,201 a A ugus 1 201 Li ery de a us 0 nd t 6, 0, b t m nded,i m i i t t n tng, hat he l mnior i mniyLi ryf t pa nt Li ryhadma ont bonds (d a !20. nde t s nde f bet or he yme s be t de he .1 t ) Th l d mntr h vefie t id mn f Lie t (d a ! . e n e i s a ald o n e iy b ry. 1 . t 21) o 1 . Sum m ar Judgm e St I y nt andar d S mmayj dg n i a p o raewh ndh p e dng . . h w ta t r i n g nun u r u me t s p r p it e s e la i s . s o h thee s o e ie t is ea t a ymae il a t ndta temo igp ryi e tt dt aj d me t samatrof su s o n tra f c a h t h vn a t s nil o u g n a e t e lm ' An ro v fie t Lo y l .47 U. 2 2, 47( 9 6 ; a ' des n . b ry bb , nc, 7 S. 4 2 1 8 ) HCA He t Se v.o , n . al rs fGa.I c h r EmplyesHe t l .Co.240F. 982,991( 1hCi.2001.Onc t movi pa t . o r alh ns , 3d 1t r ) e he ng ry de monsr est a e ofage nei s ofm a e ilf c ,t no m ovi pary mus d om e tat he bs nce nui s ue t ra a t he nng t tt c f wa d wih Cpe ii f c ss or r t s c fc a t howi t tt r i agen nei s f ti .' M at u hia El c. ng ha he e s ui s ue or ral'' ss t e I .Co.v Ze t Radi Cor , U. 57 587( 98 ( otngFe R.Ci P.56().The ndus . nih o p.475 S. 4, 1 6) qu i d. v. e) Co tmus vi w t r or a a1f t i er nc t r fom i t lg m os f vor bl t t ur t e he ec d nd l acual nf e es he e r n he i ht t a a e o he non- ovi pa t and de i whehe Sthe e denc pr s nt as fc e dia ee ntt m ng ry c de t r st vi e e e s ufii nt s gr me o r q ies b sint aj r o wh t e i i s o esd dt a o ep rymu t rval samatr e ur u miso o u y r eh r t s o n -ie h t n a t s p e ia te of1w.' Ale p T onFoods I . 1 F. 642,646( 1h Ci.1 )( i a '' ln . ys , nc, 21 3d 1 t r 997 quotngAndeson,477 r U. a 25152:. S. t - l o po i gamo inf rs mmayj d me ,hen n mo i gpa t ma n t eys ll n p sn to o u r u g ntt o - v n ry y o r l o ey on t pladi ,bu m us s he e ngs t t how by a fdavis de ii ,a we st i e r ore ,a fi t, postons ns r o ntrogat i s nd a iso t ts ii f c sexitd dm s ins ha pecfc a t s emonsr i a g nui is f rti l SeeFe R.Ci P. tatng e ne s ue o ra . d. v. 5 () ( ) s eas Ceo e Cop. .Car t, 7U.. 1 , 2 ( 9 6 .A meei cn i a' f 6 c ,e ; e lo ltx r v tet47 S 3 7 3 4 1 8 ) r i itl 'o s l evi nc s ppori t opposng pa t sposton wilnots fce;i t ad,t r mus bea de e u tng he i ry' ii l ufi nse he e t 5 s fiin s o n t th j r c u dr a o a l fn f rta p ry.And r o , 7 U. a 2 2 u fce t h wig ha te u y o l e s n by i d o h t at es n 4 7 S. t 5 ; s eas Wale v Da b , 1F.d 1 7 ,1 7 ( 1h Ci. 9 0 . e lo k r . r y 91 2 5 3 5 7 1 t r 1 9 ) 1 Di cus on 11. s si L b rya g e ta ii e t ldt s mmayj d me tb c u et eei n g n i eis eo i e t r u s h t t s ni e o u r u g n e a s h r s o e u n s u f t ma e i f c t t I t ral a t hat he ndemnior br a hed t l m niyAgr e e and t I mnior do not t s ec he nde t e m nt he nde t s ha a vai def ns ag ns Li ry' cai .Li ry c e t ,unde t t r soft ve ld e e ai t be t s l m be t ont nds hat r he e m he l mniy Agr me ,i i e il t i mniy fom t I nde t ee nt t s ntted o nde t r he ndemnior a t y ha no t s nd he ve t p o ie i.Con e ue t Li e t a s rst tti e tte t s mmayj d me .I rs ns , r vd d t sq nl b ry se t ha i s n ild o u r u g nt n epo e y, t I mnior ma onl asngl a pl nt Li ry di notmakeade nd f c l t a he nde t s ke y i e r me ; be t d ma or olaer l s urt prort flng s ta t ,Li ryf ie t s tsy ac ton pr ede t flng s t ec iy i o ii ui nd, hus be t al d o a if ondii ec nt o ii ui. Thel mnior ,howe r ha notpoi e t a lng gei t I mniy Agr e e t t nde t s ve , ve nt d o ny a ua n he nde t e m nt ha ma s h ade nd ac ton pr e tt tlng s ta t I mnior ha pr dedno kes uc ma ondii ec den o ii ui nd he nde t s ve ovi a hort t s ut iy o uppor t i a g e t ts a de a i acondii pr ce ntt a lws t t her r um nt ha uch m nd s ton e de o a ui ba e on br ac ofa i mniy a e nt Thus whehe Li rym a s h ade a i sd e h n nde t gr eme . , t r be t de uc m nd s ir e nta doesno c e ea ge ne is ofm aeralf c pr ve i t enty ofs ma y relva nd t r at nui s ue t i a t e ntng he r um r ' J udgm e . nt Li ry hasesa ihed,a t I m nio shavenOtc ese t tLi rye e ed i o be t t bls nd he nde t r ont t d, ha be t ntr nt t I mniy Ag ee ntwih t l mnior ; ha de a havebe madeupon Li ry t he nde t r me t he nde t s t t m nds en be t o ma pay e sasa r s toft Bondsis byLi ry; ha ,a ar s toft de a , ke m nt e ul he s ued be t t t s e ul he m nds Li ry hasm a pay e sa i ure coss t Li t de nde i mnii ton fo t be t de m nt nd nc r d t ; hat bery ma d nde fcai r m he I mnior ;a t tt I m nior ha f ie t e nde t s nd ha he nde t s ve a ld o xone a ea i m niy Li ry. Thus r t nd nde f be t , Li ryhase t bls d t tt l be t sa ihe ha he ndemnior br a hedt I m niy Agr eme .Li t ha a s t s ec he nde t e nt bery s lo 6 e t bls d,a t I mnior ha notc ese t tLi ry ha m adenetpa nt i t sa ihe nd he nde t s ve ont td, ha be t s yme s n he a o tof$1732, 46.Li ry hasa s esa i he a t l mnior havenotc ese m un , 651. be t lo t bls d, nd he nde t s ont t d, ta u d rt etr o tel d mnt Ag e me tLie t i e t ldt p eu g n i ee ti h t n e h e ms f h n e iy re n , b ry s ni e o rj d me tntr s n t t a he mountof$376, 20.Li ry ha a s s 278. be t s lo hown t tunde t t m soft l mniy ha r he er he nde t Agr e e i i e ild t isr as bl i ured at ne 'f s c ula s f s e e m nt t s ntte o t e ona y nc r tor ys ee , ons tnt ' ee , xpens , es andcossi ured f i tga i de e ng a i t and r s vi t Bond c am sand f t nc r or nvesi tng, f ndi gans, e ol ng he li or pr e tng t s a ton. A c r ngl i i he e os cu i hi c i co di y, t s r by ORD ERED t : hat 1 Li t M ut lI urnceCompa sM oto frSummayJ . bery ua ns a ny' in o r udgme ( I i nt DE- 8) s G M N TED . 2 TheCo r wile trasp r t j d me , . u t l n e e a ae u g nt Thi c s i CLO SED . s ae s > DONE a dORDERED i MimiFoia ti /3 d yo De e r2 1 n n a , lrd ,hs a f c mbe, 01 . PA T Cl A .S TZ A U NI TED STATES D I I J G E STR CT UD C: C A l Couns lofRe r 1 e co d 7
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