White et al v. BB&T Insurance Services, Inc. et al, No. 7:2010cv00467 - Document 109 (W.D. Va. 2013)
Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 8/30/2013. (lab)
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OL ERK:OFFI U. , :T. CE S DI COURT AT * 0* ) VA FI LED I TH E UN I N TED STA TES D I STRI COU RT CT FO R THE W ESTERN DI STRI OF VI GI I CT R N A ROA N OK E DI I ON V SI AL 3û 2 1 6 03 JuL c. DU . , . BY'>: y . g' . e DE> l W HI ç g1, s TE, ! . . Pl ntf s, ai if Ci lA cton N o.7: vi i 10CV 00467 M EM O R AN D UM O PIN I N O BB& T I SUM N CE SERV I N CES,l C. N , : gL, 1- By:H on.G l E.Conrad en Chi fUnie St t D i ti tJ e t d a es s rc udge Def nda s e nt . Th sc s i p e e t b f r tec u t ntep an if' to frr le fo j dg n i a e s r s n l eo e h o r o h litfs moin o eif r m u me t y unde Rul 60( oft Fe r Rul ofCi lPr e e. Fort ras s tf t beow,he r e b) he deal es vi oc dur he e ons e orh l t m oton w ilbe de e i l ni d. Backtround Del sa LaureW hie( l tvel CheW hie ' a t rt c mi nd i t coleci y,t t ts' nd hei wo ompa es ) ni , Cor rt Cusom Homes LLC (s nesone'a Chors& M or Ha nesone t , i cor rt ' nd ) e e ndyma Sevies LLC n rc , (û es& M or' ,fl t sa tononOcobe 18 201 a s ri cli ofpr e so l t chor e' ied hi ci ) t r , 0, s etng ams ofsina ne i enc b e c offduc a y du i ,a br ac ofc r taga ns BB& T I ur nc Se v c , glg e, r a h i i r tes nd e h ontac i t ns a e r i es l (1 nc.t BB&T' a Famesl urnceExc nge(d r r '. Theplitfs camssemmed ' nd r r ns a ) ha s me s' Fa ) anif' li t f o t a t ofone o t c pa es e pl es who a l dl s ol t sa t ove t r m he c s f he om ni ' m oye , lege y t e ool nd ook r he co pa e busne sw hie t W hiesw e e outoft m ni s' i s l he t r own i Se e be of2007. The pl ntf s n pt m r ai i f as e t d t tBB& T f l d t pr ur a qua e i t a e t pr t c t c pa e f o t s r e ha aie o oc e de t ns l nc o o e t he om ni s r m he r e pl ' a tons a t tBB& T f ie t pr de a c a e a c whe t pl i if r pored m oyee s c i , nd ha a l d o ovi c ur t dvi e n he a ntf s e t t e pl he m oyee' a tons t BB& T i Oc obe of2007. s ci o n t r 1 'The W hiesobt ned t c t ai he ompani i a t ough BB&T a t rpe s es' nsur nce hr nd hei r onali ur ns ancet ough hr Far s. The cl m sagai tFar er wer vol arl dimi ed. mer ai ns m s e unt iy s ss RK ; ; ê ' , . z> Prort flng t i tnta ton, heW hiestld aCha e 7 ba u cype ii i t i o ii he nsa c i t t ie pt r nkr pt tton n he U nie St t s Ba upt y Cour f t W e t r D i ti tofVi gi a. l t ba u c t d a e nkr c t or he s e n s rc r ni n he nkr pt y pr ee ng,t w hie r pored t tt c pa esha no a s s a t tneihe t c pa es oc di he t s e t ha he om ni d s et nd ha t r he om ni nort W hie ha a l ga cl i s a i ta pa t The ba u c c te e e a or r he t s d ny e l a m ga ns ny ry. nkr pt y our nt r d n de di c r i t W hieso J 23,2008,a on D e e be 7, s ha g ng he t n une nd c m r 2008, he W hies Cha e 7 t s e t t ' pt r nz t e fl a no as e r po t The ba upt y c e w asc os d on A ugus 24,2009. ied s t e r. nkr c as l e t BB&T mo e frs mmayj d me tnt isa t cino Ap i 1 , 01 . OnJ y23 v d o u r u g n i he n tn a to n rl 1 2 2 ul , 201 t co tis d am e a 2, he ur s ue mor ndum o ni a or rgr ntng BB&T' m oton i pa t nd pi on nd de a i s i n ra de ng i pa t a s a ng t ca e f r 60 da . The cou te ai d t tt onl pa t w ih nyi t r , nd t yi he s o ys r xpl ne ha he y r y t s a ng t pur ue a oft pl i if 'c ai s wast ba upt y t us e snc t pl i t fs' t ndi o s ny he a ntf s l m he nkr c r t e, i e he a n if c ai sa c e bef e t W hie tl f ban u c a t , onge t t ba u cy esa e. l m c nz d or he t s i ed or kr pt y nd, hus bel d o he nkr pt tt Ra he t n di m i s ng t ca e f rl c ofs a ng, he c t f r d t W hiest oppor uniy t r ha s s i he s o a k t ndi t our af o de he t he t t t a k t ba o s he nknl c c tt r pe t ba u c c e t pe m i t t us e t de e m i pt y our o eo n he nkr pt y as o r t he r t e o t r ne wh t e t a o to a nd na ycamsta s r i dBB&T' mo inf rs eh r o d p r ba o n li h t uvve s to o umma yj d me t r u g n. The co tt n a e s t m e isoft c pa es cl i s a i tBB& T. The co t ur he ddr s ed he r t he om ni ' a m ga ns ur he d t tt c ai f br c offduci r dute wasba r by t a i bl t o- rs a u e of l ha he l m or ea h i a y i s r ed he pplca e w yea t t t lmi to s Th c u t loc n ld dt a BB&T wa e tte t s mmayj g n o t e i t in . e o r as o cu e h t a s nild o u r ud me t n h c pa es cl i t tBB& T br a hed a c r t du y a w a ne i nti f ii t i ur om ni ' a m ha ec ontac ual t nd s glge n a lng o ns e t tt c pani ha ade t c r f t l s s oc as o d by t e pl yee' a tons ha he om es d qua e ove age or he os e c i ne he m o s c i , s nce t pl i if pr f r d no e de e t tadd tonali ur nc e sed whi h w ou d ha i he a ntf s of e e vi nc ha ii ns a e xi t c l ve cover t eom pani l es. ed he es' oss Thecoul de e s ' nid ummayj mentont c t r udg he ompa es cli t taBB&T rpr s nttve ni ' am ha e e e ai ne i nty ad s d t pl i if t tt c pa e had no i ur nc c r f t e pl e' glge l vi e he a ntf s ha he om ni s ns a e ove age or he m oye s a tonsunde t polcest twe epr tr byBB&T. Thepl ntfscli d t ti wa no ci r he i i ha r oc led ai if a me ha t s t untl2010,w hen t began w or ng w ih a new i ur i hey ki t ns ance agent t t l ned t t , hat hey ear hat he c pa esc d ha fl c a m su rt e s i polc e , nd t tt co pa e 'c ai sw e e om ni oul ve ied l i nde he xitng i i s a ha he m ni s l m r utmaeyd n e a u t l tld. W hl BB&T a g e , ns mmayj g n ,h t h li tl e id s ni y ie me ie r u d o u r ud me tt a t e c pa es cl i s we e de e f r a onst thad not ng t do w ih t de a d r po tng a om ni ' a m r ni d or e s ha hi o t he l ye e r i nd, t us t tt pl n i f s f r d no da a ,BB& T f l t pr f e de e t s h , ha he ai t f s uf e e m ges aied o ofer vi nc o uppo tt s r hi a g e , ne t t g r lla lt polci nort e pl e di ho s y bondsw e e r um nt and iher he ene a i biiy i es he m oye s ne t r s bmitd b eihe sde. Cons quen l bas d on t r c d be or t cour on s u te y t r i e ty, e he e or f e he t ummar y j d me tt c u t su a l t c n ld t th c mp n e we en th r db sae n s u g n ,he o r wa n be o o cu e ha te o a is r o ame y ttme t a l gedl m ade by t BB& T r pr e a i le y he e es nt tve. A cc di y,t c tde e t m oton f or ngl he our ni d he i or s ummar udgme wihr pec t t tcli yj nt t es t o ha am. The c ts a t ca e f s x y da t a l t pl ntf st pr s ntt r m ai ng our t yed he s or i t ys o low he ai i f o e e he e ni c am t t ba upty tuse Afe t sxt da pe i d e r d wih no f t ra i ha ng l i o he nkr c r t e. tr he i y- y ro xpie t ' he cton vi ur be n t ke by t pl i if o t tuse t co tdi m i s d t r m a ni c a m f rl c of e a n he a ntf s r he r t e, he ur s s e he e i ng l i o a k s a ng a t r i t d t c e fom t c tsa i d ke . t ndi nd e m na e he as r he our ' ctve oc t OnJ 1 201 t pl nif fldt i tn moto u rRul 6 b) a g ngt tt une 7, 3,he aitfs ie he nsa t in nde e 0( , r ui ha he di m i s loft i c e r ule fom t ra t ne sneg i nce BB & T fl d a brefi oppos ton s sa he r as es t d r hei tor y' lge . ie i n ii t t m oton a c w ih a tona evi nc i l i t i ur nce polc espr ur d f t o he i lmg t ddii l de e, nc ud ng he ns a i i oc e or he c pa e . The c t d ahe rng on t pl ntf s m oton on J y 22,201 Them oto has om ni s our hel ai he ai i f ' i ul 3. in be n f l bref d a i rpe f rr vi w . e uly i e nd s i o e e Di scussi on Rul 60( oft Fe r lRul ofCi lPr e ea ho iesadititc toga rlef e b) he de a es vi oc dur ut rz src our t rnt ei fom asna j me f c rai e r ludg nt or et n numeae r a o i udi t sa ,na re e, ur ieo rtd e s ns ncl ng k tke i dve tnc s prs r mi e u a l n ge t'o f ri n oh rr ao t a j tse rle . Fe . Ci P. 0 b . k d r xc s be e lc, r o s y t e e s n h tusi s eif' d R. v. 6 ( ) i e ' a ' un a1t pr ii o Rul 60( ,at es d c ndiim fl gr i t rle i t tt mt nts 1 he ovsons f e b) hr hol o tt tr antng he eif , ha he wa gj s de o t a e t tg a i t r le w ilnoti t e ha bee a f ie ge t e by s i t t m nsr t ha r ntng he e i f l n he nd ve n utl s ur , how ng ha ( yh v lameio iusd fns o cam. Bo dv. ll, 05F.d7 4 7 9( t Ci.1 9 ) t ae he rt ro ee e r li ' y Bu aa 9 2 6 , 6 4h r 9 0 . ' A fe r vi w i t a tona e d nc pr de by BB& T, he c tc ude t tt pl i if l r e e ng he ddii l vi e e ovi d t our oncl s ha he a ntf s a e u bl t m a t st e hol s i r na e o ke hi hr s d how ng. A s s tf r h a e o t bove, he pl ntf s r m a ni cl i a s t d t BB& T a t d neg i nty t ai i f ' e i ng a m s ere hat ce lge l w he t W hie r pored t tone oft i e pl esha sol n f om t c pa es The n he t s e t ha he r m oye d t e r he om ni . pl ntf sa l ge t ta BB& T r pr e a i a s d t m t tno hi c d be done bec us t ai i f le d ha e es nt tve dvi e he ha t ng oul a e he c pa es ge r la lt polc e ha l ps d, nd t tt r pr e a i f ie t r ogni t t om ni ' ne al i biiy i i s d a e a ha he e es nt tve a l d o ec ze ha t ge r lla lt polc e we e oc ur e e bas d a t ,t tt pr de cove a f he ne a i biiy i i s r c r nc - e nd, hus ha hey ovi d r ge or l s st toc ured du i t polc pe i e n i t polc e r bef r t c am wa ûl os e ha c r rng he i y rod, ve f he i y xpied o e he l i s ed. Thepli if f t ral ge t tt r e enttvef ie t a s t t tt c antfs urhe le d ha he epr s a i a ld o dvie hem ha he ompa e ha nis d e pl e diho s y bondst tm i ha c r d s e oft c pa es l s s. m oye s ne t ha ght ve ove e om he om ni ' os e l rs n e pons t t i t ntm oto BB& T ha pr de ad tonale de e i l i t e o he ns a i n, s ovi d dii vi nc nc ud ng he di hone t bonds a ge r lla lt polc e i s d t Cor r t a Chor & M or I i s sy nd ne a i biiy i i s s ue o ne sone nd es e. t s cea fom t s unc r dit d s l r r he e onta c e ubmisonst tne t rt dihone t bondsnort gene a s i ha ihe he s sy he rl labiiy polc esaf o d cove ag f rt l s s a i s ,a t ,t tt pl i if c nnot i lt ii f r r e o he os e t s ue nd, hus ha he a ntf s a es a i h t tBB &T pr m a e y c us d t m a da a s Se J t bls ha oxi t l a e he ny m ge . e onasB .Cr ke l e es s I oo nt r t e nc. v.CTL En:' I , .97 1 97- 357,1 U, App. q, nc.Nos - 227, 1 999 S. LEXI 5742,a *8( h Ci. a . S t 4t rM r 29, 2009 ($ pr acai f pr e sona neglge e apl ntf mus s w t tapr e so ) iTo ove l m or ofs i l i nc , ai if t ho ha ofsinal r atons p gi ng r set a dut ofreasonabl car exit be w een t pl nt f and t def el i hi vi i o y e e s ed t he ai i f he endant , t tt def nda br a he t tdut a t t b ea h wa apr m a ec eoft pli ifs ha he e nt e c d ha y, nd hat he r c s oxi t aus he a ntf ' camedda s' (ii Grcor v.Ha ns 468S. 2d891 893( 1 ) li mage .) ctng e y ' wki , E. , Va. 996). The r or i c t st tChor & M or s dihones y bo w asc nc le s ve alm o hs ec d ndi a e ha es e' s t nd a e ld e r nt be or t pl ntf s l s oc ur e A ddii ly, he di honesy bondsi s d t Cor r t f e he ai if ' os es c r d. tona l t s t s ue o ne sone a Chor s& M or onl pr dec r gef fa e ordihone ta t t ta et s bl nd e e y ovi ove a or r udulnt s s c s ha r s puniha e u d rt ci n l o ei tej rs ito wi i whih ( ea tlo c re , a df r iha n e he rmia c d n h u idci n t n c t cs c u rd' n o wh c n h h ' e o e i Cre a dc vitdb ac u t fp o e j rs ito , ( mply e s iid n on ce y o r o r p r u idcin' BB&T Exs B & C. Th t ' . ) e r c d r ve l t tt pl ntf sw e e ad s d oft s c c i r qui e e i a l te da e e or e a s ha he ai i f r vi e hi onvi ton e r m nt n e t r t d J r 24,2008,afe s ti acam onCo nesone' ds nesybond. ( anuay tr ubmitng li r rt s iho t BB&T Ex. ) A. Li kewi e,on J nua y 1 2011, he pl i if we e a s d t tCor r t sdi honesy bond s a r 0, t a ntf s r dvi e ha ne s one' s t r quiesaci na c ci ( e r rmi l onviton. BB&T Ex. ) Ne rhees,i i undipue t tt e oye F. ve t l s t s s td ha he mpl e a cus ofs e lng t c pa e 'pr r y w a ne ra r t d o c r w ih a c i e. c ed t a i he om ni s ope t s ve r es e r ha ged t r m Cons eque l r ga dl s ofw he t c pa e r po t d t rcl i st t s e y, he a e no nty, e r e s n he om ni s e r e hei a m o he ur t t y r t entted t coverage undert di honesy bonds. il o he s t Li kewi e t undi put d e de e esa i he t tt compa es a e note il t s , he s e vi nc t bls s ha he ni r ntted o c r unde t i ge r lla lt polc e . Ther c d r ve st tChor s& M or sge r ove age r her ne a ibiiy ii s e or e al ha e e' ne al labiiy polcy lps f no i lt i a ed or npayme oft pr mi i J y of2007,welbe or t e nt nt he e um n ul l f e he ve s occ r d t tg ve r s t t pl i if 'aleg l s . Co eq ty, ha polc af o dsno ur e ha a i e o he a ntf s l ed os es ns uen l t t i y f r co r ge r ga dl s ofw he he i i an oc ur e - s d orc a m s m a polc s nc bot t ve a e r e s t rts c r nce ba e l i - de i y, i e h he occ r nce gi ng r s t t l s s a t r po tng oft l s sha ned afe t polc ur e s vi i e o he os e nd he e r i he os e ppe t r he i y expi ed. r Asf Cor rtne' ge rllabiiypolc t pl ntfsa g ons or ne so s nea i lt iy,he ai if r ued ummayj r udgme nt t tt polcy m i pr de cove a f t s sol n by t i e pl yee s nce t i ur r ha ha he i ght ovi r ge or ool t e he r m o , i he ns e d ag e d t pa f sol nt si t pa t Ther co dss it by BB&T i c t t tt i a r e o y or t e ool n he s . e r ubm ted ndi ae ha he nlnd m a i pori ofCor sone' ge r la lt polc con a nsa toaert tpr des$5, 00 rne ton nert s ne al i biiy iy t i l t ha ovi 000. i s cilco r ef C ic la ousTool. ( n pe a veag ord s elne M s' BB&T Ex. a RFD 000298. Ho vert ' lt ) we ,he polc a s c anst f l wi e l i whih e es l e ude c r gef l s s i y lo ont i he olo ng xcuson, c xpr sy xcl s ove a or os e r s li f o e pl e t f : e u tng r m m oye he t $ e' do notpa f l s orda ag i one orm or t f l i ( ' W y or os m ef e he olow ng e l i a yt t l s xc us ons ppl o he os : Crm i ,Fr i nal audul orDi hones A ct - çW e' do notpay ent s t s û ' f l sca e by o r s tng f om c i i l f a or os us d r e uli r r m na , r udul nt e , di honest oril act com m it al ori coluson s , legal s ted one n l i w ih a he by: t not r klr 5. tgOu ' ( Ot r whoha a i ees i t pr ry; 2) he s ve n ntr t n he ope t ( Ot r t whom i 'e tus t pr ry; 3) he s o d you' nr t he ope t ( ) C u 'p rn r, fie s dr co s tu te , on 4 s r' a tes o fc r, ie tr,r se sj it Yo advent s'or urer , ( Thee oye sora nt of( ) ( ,( ,or( a 5) mpl e ge s 1, 2) 3) 4) bove, whe he ornott y a e a w o k, t r he r t r Thi e l i doe no a y t a t ofde t c i by s xc us on s t ppl o c s s nz ton û l ' e pl es butC 'do no pa f t tby your' m oye , û we' t y or hef em pl ovees. ( BB&T Ex.Ia PL 0232- )(mpha i a d) Ac r ngl Cor rt ' ge rllabiiy t 233 e ss dde . co di y, ne sones nea i lt polc pr vi s no c r f t t st tw e e a l dl s ol n by t pl i if 'e pl yee. i y o de ove age or he ool ha r lege y t e he a ntf s m o l s ,becaus neihert com pani em pl n um e t he es' oyee di hones y bondsnort rgener s t hei al labiiy polci pr de cover f t l ses ati ue,r i lt i es ovi age or he os ss egardl s ofw hen t l ses wer es he os e re t t pl ntf scannotes abls t BB& T act l orpr m at y caus t pored, he ai i f t i h hat ualy oxi el ed hem any 6 da a . Cons ue l t pl i if ar t bl t ma at es d s m ges eq nty, he antfs e ma e o ke hr hol howi t tt ha a ng ha hey ve me iorouscli f ne i nc al t ,t i Rue60( metenmus bede e 2 rt i am or glge e rd,hus her l b) i t nid. C oncl on usi Fort r s sae t c twilde t pli if'moto f r i fom j he ea ons ttd,he our l ny he antfs in or elef r udgme nt unde Rul 60( . TheClr i diece t s ndc rii c e oft sme a r e b) ek s r td o e e tted opis hi morndum opi ona ni nd t a com pa ng or rt a lc ns ofr c d. he c nyi de o l ou el e or ENTER: s Z Thi d y ofAugus,201 a t 3. 1 +4 Chi fUnie St t D it i tJ e t d a es s rc udge 2 H avi g r n eached t sdecii , t cour need notaddr st addii ar ent r s i BB&T' bre hi son he t es he tonal gum s aied n s if i opposton t t pl ntfs'moton. n ii o he ai if i
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