Allstate Insurance v. Oles

838 F. Supp. 46, 1993 U.S. Dist. LEXIS 16443, 1993 WL 477985
CourtDistrict Court, E.D. New York
DecidedNovember 13, 1993
DocketCV 92-0247 (ADS)
StatusPublished
Cited by3 cases

This text of 838 F. Supp. 46 (Allstate Insurance v. Oles) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Insurance v. Oles, 838 F. Supp. 46, 1993 U.S. Dist. LEXIS 16443, 1993 WL 477985 (E.D.N.Y. 1993).

Opinion

MEMORANDUM DECISION AND ORDER

SPATT, District Judge.

The plaintiff, Allstate Insurance Company (“Allstate”), commenced this action seeking a declaratory judgment that Allstate does not have to defend or indemnify the defendant Stanley J. Oles, Jr. (“Oles”) for any lawsuits arising out of the alleged sexual molestation of minors by Oles. Allstate moves for summary judgment seeking a declaration that the plaintiff Allstate “has no duty to defend *48 or indemnify the defendants for the conduct alleged in the underlying civil tort actions for which the defendant Stanley J. Oles, Jr. (“Oles”) has filed a claim under an Allstate homeowners policy and personal umbrella policy, that plaintiff be permitted to withdraw its legal defense of the defendant Oles in the underlying civil tort actions, that plaintiff have recovery of the reasonable value of the legal services already provided, and for such further relief as the Court deems proper” (Notice of Motion, dated May 27, 1993). The defendant Hicksville Union Free School District is the only defendant to oppose this •motion.

BACKGROUND

The defendant Oles was insured by an Allstate Deluxe Homeowners Policy, Form AU9601, Policy Number 043425578 (“Homeowners Policy”), which was effective as of June 19, 1985 and renewed annually. In addition ' Oles was insured by an Allstate Personal Umbrella Policy, Form AU1762 (“Umbrella Policy”), which was effective as of January 25, 1988 and renewed annually.

The Homeowners Policy specifically provided, in the section titled “Family Liability and Guest Medical Protection”, that “[w]e do not cover any bodily injury or property damage which may reasonably be expected to result from the intentional or criminal acts of an insured person or which are in fad intended by an insured ■person” (Homeowners Policy, at p. 23 [emphasis added]). Additionally, the Umbrella Policy provided that “Allstate will pay when an Insured becomes legally obligated to pay for personal injury or property damage caused by an occurrence. The personal injury or property damage must be unexpected or unintend ed” (Umbrella Policy, at p. 4).

In the present case, the defendant Oles is being sued in state court by the legal representative of minors who allege that the defendant Oles participated in their sexual abuse. It is based upon this alleged intentional conduct by Oles that the plaintiff Allstate seeks a judgment declaring that it is not required to defend or indemnify Oles in the underlying state court actions. The plaintiff moves for summary judgment.

DISCUSSION

Motion for Summary Judgment:

A court may grant summary judgment “only if the evidence, viewed in the light most favorable to the party opposing the motion, presents no genuine issue of material fact,” (Cable Science Corp. v. Rochdale Village, Inc., 920 F.2d 147, 151 [2d Cir.1990]), and the movant is entitled to judgment as a matter of law (See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 [1986]; see also Fed.R.Civ.P. 56[c] [summary judgment standard]). The Court must, however, resolve all ambiguities and' draw all reasonable inferences in the light most favorable to the party opposing the motion (See Twin Laboratories, Inc. v. Weider Health & Fitness, 900 F.2d 566, 568 [2d Cir.1990]; Liscio v. Warren, 901 F.2d 274, 276 [2d Cir.1990]; Knight v. U.S. Fire Ins. Co., 804 F.2d 9, 11 [2d Cir.1986], cert. denied, 480 U.S. 932, 107 S.Ct. 1570, 94 L.Ed.2d 762 [1987]).

According to the Second Circuit “[s]ummary judgment is a tool to winnow out from the trial calendar those cases whose facts predestine them to result in a directed verdict” (United National Ins. Co. v. The Tunnel, Inc., 988 F.2d 351, 355 [2d Cir. 1993]). Once a party moves for summary judgment, in order to avoid the granting of the motion, the non-movant must come forward with specific facts showing that a genuine issue for trial exists (Western World Ins. Co. v. Stack Oil, Inc., 922 F.2d 118, 121 [2d Cir.1990] [quoting Fed.R.Civ.P. 56[e]]; see National Union Fire Ins. Co. v. Turtur, 892 F.2d 199, 203 [2d Cir.1989]). A genuine issue, of material fact exists if “a reasonable jury could .return a verdict for the nonmoving party” (Liberty Lobby, Inc., supra, 477 U.S. at p. 248, 106 S.Ct. at 2510; see Converse v. General Motors Corp., 893 F.2d 513, 514 [2d Cir.1990]).

However, mere conclusory allegations, speculation or conjecture will not avail a ■ party resisting summary judgment (See Western World, supra, 922 F.2d at p. 121). If there is evidence in the record as to any *49 material fact from which an inference could be drawn in favor of the non-movant,, summary judgment is unavailable (see United National, supra, 988 F.2d at pp. 354-55; Rattner v. Netbum, 930 F.2d 204, 209 [2d Cir.1991]). Finally, the Court is charged with the function of “issue finding”, not “issue resolution” (Eye Assocs., P.C. v. Incomrx Sys. Ltd. Partnership, 912 F.2d 23, 27 [2d Cir.1990]).

It is within this framework that the Court addresses the grounds for the present motion for summary judgment.

Insurance Exclusion Clause:

The plaintiff bases its motion for summary judgment primarily on a decision by the New York State Court of Appeals which must be applied in this diversity ease. The plaintiff asserts that Allstate Insurance Co. v. Mugavero, 79 N.Y.2d 153, 581 N.Y.S.2d 142, 589 N.E.2d 365 (1992), holds that acts of sexual molestation committed by an insured, such as Oles, are “intentional” acts and therefore excluded from coverage under the Homeowners Policy and the Umbrella Policy. Moreover, under such circumstances, the carrier need not defend the insured in such an action (See Mugavero, supra, 581 N.Y.S.2d at pp.

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Bluebook (online)
838 F. Supp. 46, 1993 U.S. Dist. LEXIS 16443, 1993 WL 477985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-insurance-v-oles-nyed-1993.