Arbo v. Tower Group, Inc.

CourtSuperior Court of Maine
DecidedFebruary 26, 2019
DocketYORcv-17-150
StatusUnpublished

This text of Arbo v. Tower Group, Inc. (Arbo v. Tower Group, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arbo v. Tower Group, Inc., (Me. Super. Ct. 2019).

Opinion

STATE OF MAINE SUPERIOR COURT YORK, ss. CIVIL ACTION DOCKET NO. CV-2017-0150

DANIEL ARBO and LISA ARBO, 1 ) ) Plaintiffs, ) ) V. ) ORDER ON PLAINTIFFS' ) MOTION FOR RECONSIDERATION TOWER GROUP, INC. d/b/a TOWER ) GROUP COMPANIES, and MAINE ) INSURANCE GUARANTY ) ASSOCIATION, ) ) Defendants. )

Pending before the Court is Plaintiffs' Motion for Reconsideration of the Court's Order

granting Defendant Maine Insurance Guarantee Association's Motion for Summary Judgment on

all counts of the Plaintiffs' Complaint. Plaintiffs contend the Court erred by granting summary

judgment against them on their breach of contract claim on an issue not raised by either party.

"A defendant moving for a summary judgment has the burden to assert those elements of

the cause of action for which the defendant contends there is no genuine issue to be tried."

Corey v. Norman, Hanson & DeTroy, 1999 ME 196, ,r 9, 742 A.2d 933. Plaintiffs contend

MIGA's sole argument with respect to their breach of contract claim was "that there were no

disputed facts relevant to the analysis of whether the corporate veil separating York and Tower

should be disregarded ...." (Pis.' Mot. Reconsideration, at 1.)

1 Subsequent to the filing of the present Motion for Reconsideration, Plaintiffs' counsel filed a Notice of Death

pursuant to M.R. Civ. P. 25(a)(2) infmming the Court ofthe untimely passing of plaintiff Lisa Arbo. Daniel Arbo did not move to substitute parties pursuant to M.R. Civ. P. 25(a)(l) because he had not been appointed personal representative of Lisa Arbo's estate, and therefore the parties named in the caption have not been changed. Mr. Arbo may file such motion, ifhe desires, within the timeframe prescribed by M.R. Civ. P. 25(a)(I}.

1 To the contrary, MIGA argued "the Arbos claims are not 'covered claims existing prior

to the determination of the insolvency,' and MIGA has no obligation to pay any money to the

Arbos. 24-A M.R.S. § 4438(1)." (Def.'s Mot. Summ. J., at 11.) MIGA noted that its obligation

is to "stand[] in the shoes ofan insolvent insurer when assessing claims against [an] insolvent

insurer." (Id at 11.) MIGA asserted a number of facts which established that York Insurance

Company of Maine, and not Tower Group, Inc., was the only company that could be considered

an "insurer," "member insurer," or "insolvent insurer" such that the Arbos' claim would be

considered a "covered claim" under the Maine Insurance Guarantee Association Act. (See

DSMF ,r,r 34-44); 24-A M.R.S. § 4435. Plaintiffs were therefore put on notice that they would

have to demonstrate that there was a legitimate factual dispute as to whether their claims were

both "covered" and timely.

The Arbos responded to MIGA's Motion for Summary Judgment by arguing the doctrine

of alter ego liability should apply such that the finder of fact could disregard the separate

corporate identities of York Insurance Company of Maine and Tower Group, Inc. Plaintiffs did

not supportably refute MIGA's factual averments pertinent to the question of whether their claim

was a timely, covered claim. Plaintiffs simply demonstrated that a finder of fact might be able to

disregard the separateness of two corporate entities, one foreign and one domestic, without any

elaboration as to how that, in turn, would transmute the Tower/York corporate amalgam into a

foreign, insolvent, member insurer such that their claims would be both timely under the Maine

Insurance Code and "covered" under the Maine Insurance Guarantee Association Act.

Based on the factual record and the arguments presented in the parties' memoranda of

law, the Court granted summary judgment to MIGA on the Arbos' breach of contract claim

because Plaintiffs could not demonstrate their policy was issued by an "insurer" that was

2 requisitely "foreign," "insolvent," and a "member" of the Maine Insurance Guarantee

Association such that their claim would not be time-barred by the applicable statute of

limitations, or for which MIGA would be obligated to pay as a "covered claim."

Accordingly, the entry shall be:

"Plaintiffs' Motion for Reconsideration of the Order on Maine Insurance Guarantee

Association's Motion for Summary Judgment Dated December 4, 2018 is DENIED."

The clerk shall incorporate this order on the docket by reference pursuant to M.R. Civ. P.

79(a).

SO ORDERED.

Dated:

Justice, Superior Court

3 STATE OF MAINE SUPERIOR COURT YORK, ss. CIVIL ACTION DOCKETNO. CV-17-150

DANIEL ARBO and LISA ARBO ) ) Plaintiffs, ) ) v. ) ORDER ON DEFENDANT MAINE ) INSURANCE GUARANTEE TOWER GROUP, INC. d/b/a TOWER ) ASSOCIATION'S MOTION FOR GROUP COMPANIES, and ) SUMMARY JUDGMENT MAINE INSURANCE GUARANTY ) ASSOCIATION, ) ) Defendants. )

This case concerns Defendants' liability for certain losses sustained by Plaintiffs Daniel

and Lisa Arbo as a result of a fire that destroyed their home on May 3, 2013. Defendant Maine

Insurance Guaranty Association ("MIGA") now moves for summary judgment on all counts in

the Plaintiffs' complaint, arguing the Arbos' claims are time-barred by the statute of limitations

provided for in their insurance policy.

I. Background

A. Procedural History

Plaintiffs filed a three-count complaint on June 15, 2017, naming Tower Group and

MIGA as defendants and seeking recovery under theories of breach of contract and unfair claim

settlement practices. (Pl.'s Compl. ,r,r 52-57.) Plaintiffs further sought to estop Tower Group

from asserting contract provisions that are inconsistent with certain provisions of the Maine

Insurance Code. (See id. ,r,r 50-51.)

1 On March 15, 2018, MIGA moved for summary judgment on all counts in Plaintiffs'

complaint, supported by a Statement ofUndisputed Material Facts ("SUMF"). Plaintiffs filed an

opposition and submitted a Statement of Additional Material Facts ("SAMF").

B. Factual Record

This case arises out of a fire that destroyed the Arbos' home located at 41 Oak Terrace in

Kittery, Maine on May 3, 2013. (SUMF ,r,r 1, 10.) At the time of the fire, the Arbos had an

insurance policy that provided home and automobile coverage. (SUMP ,r,r 2-4.) Section I of the

Arbos' insurance policy provided the necessary conditions for submitting a claim. (SUMF ,r 7.)

Another provision of the insurance policy provided: "No action can be brought against us unless

there has been full compliance with all of the terms under Section I of this policy and the action

is started within two years after the date of loss." (SUMP ,r 9.)

Part of Arbos' claim based on the fire was paid in June and July of 2013. (SAMF ,r 4.)

The remainder of the Arbos' claim was denied on June 16, 2015. (SUMF ,r 26.) The parties

dispute whether the claim was rightfully denied under the terms of the policy, particularly

whether the Arbos complied with the terms of Section I of the policy.

York Insurance Company of Maine was a domestic insurer formed under the laws of the

State of Maine, was domiciled in Maine, and was identified as such in its 2013 Annual Statement

filed with the Maine Secretary of State. (SUMP ,r,r 34-36.) Tower Group, Inc. was a publicly

traded insurance holding company organized under the laws of the state of New York that,

between March 2013 and June 2015, owned York Insurance Company of Maine.

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