Americas Insurance v. Engicon, Inc.

894 F. Supp. 1068, 1995 U.S. Dist. LEXIS 11332
CourtDistrict Court, S.D. Texas
DecidedAugust 7, 1995
DocketCiv. A. G-95-179
StatusPublished
Cited by7 cases

This text of 894 F. Supp. 1068 (Americas Insurance v. Engicon, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Americas Insurance v. Engicon, Inc., 894 F. Supp. 1068, 1995 U.S. Dist. LEXIS 11332 (S.D. Tex. 1995).

Opinion

ORDER

KENT, District Judge.

Pending before the Court is Defendant Chevron Corporation’s (hereinafter “Chevron”) Motion to Dismiss pursuant to Fed. R.Civ.P. 12(b)(2). Also before the Court is Defendant Chevron Nigeria Ltd.’s (hereinafter “CNL”) Motion to Transfer Venue to the United States District Court for the Southern District of Texas, Houston Division. For the reasons set forth below, Defendant Chevron Corporation’s Motion to Dismiss and Defendant Chevron Nigeria Ltd.’s Motion to Transfer Venue are GRANTED.

I. Background

Plaintiff brings this action for a declaration of rights relative to defense and indemnification obligations allegedly arising from a policy of insurance (No. 27981) issued by Plaintiff in favor of Defendant Engieon. The policy at issue is a comprehensive general liability policy that provides $1,000,000.00 coverage per occurrence with a deductible of $5,000 per occurrence on land and $10,000.00 per occurrence not on land.

The dispute arises from the settlement of a lawsuit for personal injuries filed in this Court on November 18, 1993, by Willie W. Tanner, Jr., Jo Ann Tanner, and Stevenson Holmes against Defendant Chevron and Defendant Engieon. These Plaintiffs’ claims were ultimately settled for an amount in excess of the jurisdictional limits of this Court.

At the time of these Plaintiffs’ injuries in the above-mentioned ease, the Plaintiff in the current case, Americas Insurance Company, provided coverage for certain conduct of Defendant Engieon. Defendant Engieon entered into a contract with Defendant Chevron in which Defendant Engieon allegedly agreed to indemnify Defendant Chevron for certain losses.

*1070 According to Plaintiff, letters dated May 4, 1994, May 18,1994, and May 23,1994, served to tender a defense by Plaintiff to Defendant Chevron pursuant to the aforementioned contract. Plaintiff, however, contends that it expressly reserved various rights to limit its indemnity obligations and possibly its defense obligations. Plaintiff also allegedly informed Defendant Engicon of Exclusion Q of the Comprehensive General Liability Policy. Exclusion Q excludes “any liability arising due to the rendering of or failure to render any professional services.”

A further provision with respect to contractual liability coverage contained in the Broad Form Comprehensive General Liability Endorsement under sub-section (B) provides that:

(B) The insurance afforded with respect to liability assumed under an incidental contract is subject to the following additional exclusions:
(2) If the insured is an architect, engineer, or surveyor to bodily injury ... arising out of the rendering of or the failure to render professional services by such insured, including
(a) the preparation or approval of maps, drawings, opinions, reports, surveys, change orders, designs, or specifications, and
(b) Supervisory, inspection, or engineering services.

According to Plaintiff, the evidence in the underlying personal injury case demonstrated that liability arose from a design of stairs by Defendant Chevron. Therefore, Plaintiff argues that it had no contractual obligation to provide a defense or to indemnify either Defendant Engicon or Defendant Chevron.

Plaintiff now seeks a declaration that its insurance coverage relative to Defendant Engicon does not provide for defense and indemnity obligations based on the claims and lawsuits of the Tanners and Mr. Holmes due to an applicable exclusion contained within the policy of insurance.

On May 31, 1995, Defendant CNL filed a Motion to Transfer Venue to the Houston Division of the United States District Court for the Southern District of Texas. In support thereof, Defendant argues: (1) the underlying personal injury suit by the Tanners and Mr. Holmes was settled by mediation in Houston; (2) Defendant CNL is not subject to the general in personam jurisdiction of Courts in the State of Texas; (3) most if not all of the supporting documents required by all parties are in Houston; (4) most of the witnesses required by all parties are located in Houston; (5) all attorneys are located in Houston; and (6) the interest of justice would be served by transferring this action to Houston.

In response thereto, Plaintiff asserts the following: (1) since this litigation arises from the defense and settlement of the underlying suit in the Galveston Division of the Southern District of Texas, the Galveston Division is the place where the wrong occurred; (2) Plaintiff has chosen the Galveston Division in which to pursue a remedy; (3) given that Defendant CNL has failed to identify and outline the testimony of key witnesses, Defendant CNL has failed to show that the location of witnesses compels the transfer of this case to Houston; (4) Defendant CNL has failed to describe either the volume or the general subject matter of the relevant documents to meaningfully show trying this ease in Galveston would be burdensome; (5) the location of counsel is of minimal importance in the resolution of a Motion to Transfer; and (6) a transfer of this case may result in delay.

On May 31, 1995, Defendant Chevron filed a Motion to Dismiss Plaintiffs First Amended Complaint for Declaratory Judgment for lack of in personam jurisdiction.

II. Defendant Chevron’s Motion to Dismiss

Defendant Chevron moves for the dismissal of this case on the grounds that this Court lacks personal jurisdiction.

The Due Process Clause of the United States Constitution limits the exercise of personal jurisdiction over non-resident defendants to jurisdictions with which the defendant has purposefully established “certain minimum contacts such that the maintenance of a [law suit] does not offend traditional notions of fair play and substantial justice.” *1071 International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945); Wilson v. Belin, 20 F.3d 644, 647 (5th Cir.), cert. denied, — U.S. -, 115 S.Ct. 322, 130 L.Ed.2d 282 (1994).

In Federal Court, personal jurisdiction over a non-resident defendant is proper if: (1) the long-arm statute of the state in which the District Court sits authorizes such jurisdiction, and (2) exercising personal jurisdiction over the defendant would be consistent with due process. Villar v. Crowley Maritime Corp., 780 F.Supp. 1467, 1476-77 (S.D.Tex.1992), aff'd, 990 F.2d 1489 (5th Cir. 1993), cert. denied, — U.S. -, 114 S.Ct. 690, 126 L.Ed.2d 658 (1994). The Texas long-arm statute, Tex.Civ.Prac. & Rem.Code Ann. § 17.042, reaches as far as Federal Constitutional requirements will allow. Guardian Royal Exch. Assur., Ltd. v. English China Clays, P.L.C., 815 S.W.2d 223, 226 (Tex.1991); e.g., Schlobohm v. Schapiro,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Buckley v. Abuzir
2014 IL App (1st) 130469 (Appellate Court of Illinois, 2014)
Spiegelberg v. Collegiate Licensing Co.
402 F. Supp. 2d 786 (S.D. Texas, 2005)
Reed v. Fina Oil & Chemical Co.
995 F. Supp. 705 (E.D. Texas, 1998)
Conner v. Conticarriers & Terminals, Inc.
944 S.W.2d 405 (Court of Appeals of Texas, 1997)
Seariver Maritime Financial Holdings, Inc. v. Pena
952 F. Supp. 455 (S.D. Texas, 1996)
Andrade v. Chojnacki
934 F. Supp. 817 (S.D. Texas, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
894 F. Supp. 1068, 1995 U.S. Dist. LEXIS 11332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/americas-insurance-v-engicon-inc-txsd-1995.