Homestead Ins Co v. Tonti Dev Corp, et al, No. 2:2003cv03116 - Document 99 (E.D. La. 2009)

Court Description: ORDER AND REASONS granting Homestead Insurance Company's 79 Motion for Summary Judgment; denying Guarantee Mutual Life Company's 89 Motion for Summary Judgment. Signed by Judge Mary Ann Vial Lemmon. (ijg, )

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Homestead Ins Co v. Tonti Dev Corp, et al Doc. 99 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA HOMESTEAD INSURANCE COMPANY CIVIL ACTION VERSUS NO: 03-3116 TONTI DEVELOPMENT CORPORATION ET AL. SECTION: "S" (2) ORDER AND REASONS IT IS HEREBY ORDERED that Homestead Insurance Company’s motion for summary judgment is GRANTED. (Document #79.) IT IS FURTHER ORDERED that Guarantee Mutual Life Company’s motion for summary judgment is DENIED. (Document #89.) Guarantee argues that the assignment of Tonti Development Company’s rights to Homestead is invalid, and Homestead’s claims are barred by the doctrine of waiver and estoppel. The issues raised by Guarantee are foreclosed by the opinion of the Court of Appeals for the Fifth Circuit reversing the decision of the court that Guarantee had no obligation to defend James Payne’s tort suit against Tonti and remanding for further proceedings. Homestead Insurance Co. v. Guarantee Mutual Ins. Co., No. 07-31113 (5th Cir. July 4, 2008). The Court of Appeals held Dockets.Justia.com that “Guarantee waived its ability to raise a policy defense by defending Tonti for over twenty months without first reserving its rights.” Id. The Court of Appeals further held that “Homestead is standing in the place of Tonti based on Tonti’s assignment of its rights to Homestead.” Id. “As Guarantee waived its right to invoke its policy defense, Homestead may recover in the place of Tonti under the assignment of rights.” Id. Accordingly, there are no disputed issues of material fact, and Homestead, standing in place of Tonti, is entitled to judgment as a matter of law on the issue of liability for Tonti’s defense. 29th New Orleans, Louisiana, this _____ day of June, 2009. ____________________________________ MARY ANN VIAL LEMMON UNITED STATES DISTRICT JUDGE 2

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