Accelerant Specialty Insurance Company v. Z & G Boat and Jet Ski Rentals, Inc.

CourtDistrict Court, M.D. Florida
DecidedJune 11, 2024
Docket8:23-cv-02148
StatusUnknown

This text of Accelerant Specialty Insurance Company v. Z & G Boat and Jet Ski Rentals, Inc. (Accelerant Specialty Insurance Company v. Z & G Boat and Jet Ski Rentals, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accelerant Specialty Insurance Company v. Z & G Boat and Jet Ski Rentals, Inc., (M.D. Fla. 2024).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

ACCELERANT SPECIALTY INSURANCE COMPANY,

Plaintiff,

v. Case No: 8:23-cv-2148-KKM-CPT

Z & G BOAT AND JET SKI RENTALS, INC. d/b/a BLIND PASS BOAT AND JET SKI RENTAL,

Defendant. ___________________________________ ORDER Accelerant Specialty Insurance Company sues Z & G Boat and Jet Ski Rentals, Inc., (hereinafter Blind Pass) seeking a declaratory judgment that Accelerant’s liability-only commercial yacht insurance policy issued to Blind Pass did not cover a July 2022 incident that seriously injured a Blind Pass customer. Am. Compl. (Doc. 18). Accelerant designated its suit as an admiralty or maritime claim under Federal Rule of Civil Procedure 9(h). Blind Pass then counterclaimed for declaratory judgment and breach of contract, asserting diversity jurisdiction, demanding a jury trial, and including a claim for attorney’s fees under Florida law. Am. Answer (Doc. 21). Accelerant moves to dismiss Count I of the counterclaim, (Doc. 24), and to strike the demand for a jury trial and the request for attorney’s fees, (Doc. 23). After careful consideration, I deny the motion to dismiss but

grant the motion to strike in full. I. BACKGROUND Between April 1, 2022, and April 1, 2023, Accelerant insured Blind Pass under a

“liability-only commercial yacht insurance policy” with policy number CSRYP/211513. Am. Compl. ¶ 17; Ins. Policy (Doc. 18-8). On July 26, 2022, Kristin Birdsey executed an agreement with Blind Pass to rent a power boat. Am. Compl. ¶¶ 9–11; Rental

Agreement (Doc. 18-1). Two days later, Birdsey had an accident while piloting the power boat, resulting in a serious injury to her hand. Am. Compl. ¶¶ 12–13; Incident Rept. (Doc. 18-2).

On March 20, 2023, Birdsey sued Blind Pass for negligence in the Sixth Judicial Circuit in and for Pinellas County, Florida. Am. Compl. ¶¶ 14–15; State Ct. Compl. (Doc. 18-3). Accelerant was notified of Birdsey’s accident and the resulting suit on July 21,

2023, in an email from Blind Pass’s agent. Am. Compl. ¶ 16; (Docs. 18-5, 18-6, 18- 7). Roughly two months later, Accelerant sued in federal court seeking a judicial determination that its policy did not cover the incident and that it had no duty to defend

or indemnify Blind Pass for Birdsey’s claims. Compl. (Doc. 1) (initially filed Sept. 22, 2024); Am. Compl. (amended Dec. 21, 2023). Blind Pass counterclaimed for declaratory judgment and breach of contract. Answer (Doc. 14) at 8–15 (initially filed

Nov. 28, 2023); Am. Answer at 9–16 (amended Dec. 21, 2023). After both sides amended their pleadings, Accelerant moved to dismiss Count I of Blind Pass’s counterclaim (the declaratory judgment count) and to strike Blind Pass’s

demand for a jury trial and request for attorney’s fees. MTD (Doc. 24); Mot. to Strike (MTS) (Doc. 23). II. LEGAL STANDARDS A. Rule 12(b)(6) Motions to Dismiss

Federal Rule of Civil Procedure 8(a)(2) requires “a short and plain statement of the claim showing that the pleader is entitled to relief.” This pleading standard “does not

require ‘detailed factual allegations,’ but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” , 556 U.S. 662, 678 (2009) (quoting , 550 U.S. 544, 555 (2007)). “A pleading that

offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action

will not do.’ ” (quoting , 550 U.S. at 555). “Nor does a complaint suffice if it

tenders ‘naked assertion[s]’ devoid of ‘further factual enhancement.’ ” (quoting , 550 U.S. at 557). “To survive a motion to dismiss” for failure to state a claim, a plaintiff must plead sufficient facts to state a claim that is “plausible on its face.” (quoting , 550 U.S. at 570). A claim is plausible on its face when a “plaintiff pleads factual content that

allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” When considering the motion, I accept the complaint’s factual allegations “as true and construe them in the light most favorable to the plaintiff.”

, 516 F.3d 1282, 1284 (11th Cir. 2008). I limit my “consideration to the well-pleaded factual allegations, documents central to or referenced in the complaint, and matters judicially noticed.” ., 358 F.3d 840, 845

(11th Cir. 2004), , 550 U.S. at 544. B. Rule 12(f) Motions to Strike Rule 12(f) provides that a “court may strike from a pleading an insufficient defense

or any redundant, immaterial, impertinent, or scandalous matter.” FED. R. CIV. P. 12(f). But “it is well settled among courts in this circuit that motions to strike are generally disfavored and will usually be denied unless it is clear the pleading sought to be stricken is

insufficient as a matter of law.” , No. 07-cv-1200, 2008 WL 4059786, at *1 (M.D. Fla. Aug. 27, 2008) (collecting cases); , No. 20-cv-1470, 2020 WL 7419663, at *1 (M.D. Fla. Sept. 28, 2020) (noting

that courts have “broad discretion” to rule on a motion to strike but emphasizing that such motions are “drastic” and are often considered “time wasters” (quotation omitted)). A pleading is “insufficient as a matter of law” only if (1) it is “patently frivolous” on

its face or (2) “it is clearly invalid as a matter of law.” , 2020 WL 7419663, at *1 (quotations omitted). This Court “will not exercise its discretion under the rule to strike a pleading unless the matter sought to be omitted has no possible relationship to the

controversy, may confuse the issues, or otherwise prejudice a party.” , 881 F. Supp. 574, 576 (M.D. Fla. 1995). III. ANALYSIS

Accelerant’s motions raise three issues: (1) whether Count I of the counterclaim should be dismissed as duplicative, (2) whether Blind Pass is entitled to a jury trial, and (3) whether Blind Pass can recover attorney’s fees under Florida law. MTD at 2–6; MTS

at 3–7. I address each in turn. A. For Now, Count I of the Counterclaim Is Not Dismissed Subject to exceptions inapplicable here, the Declaratory Judgment Act allows “any court of the United States, upon the filing of an appropriate pleading,” to “declare the rights

and other legal relations of any interested party seeking such declaration” in a “a case of actual controversy within [that court’s] jurisdiction.” 28 U.S.C. § 2201(a). Count I of the counterclaim seeks a declaratory judgment determining coverage under the insurance

contract, as well as rulings on Accelerant’s duty to defend and indemnify Blind Pass in Birdsey’s underlying lawsuit. Am. Answer at 13–14. Count I “respectfully request[s] that [I] adjudge and declare that the insurance policy provides coverage for the claims asserted

by Birdsey and her [c]omplaint against [Blind Pass] and that timely notice [to Accelerant] was provided, and the plain language of the policy provides coverage, accordingly, [Accelerant has] a duty to defend and indemnify [Blind Pass] with respect to the claims

asserted by Kristin Birdsey.” Am. Answer at 14. In Accelerant’s view Count I should be dismissed for two reasons. MTD at 1–7. First, Accelerant argues that Count I “is redundant and serves no useful purpose” because

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