Arizona Civil Constructors, Inc. v. Colony Insurance Company

Opinion

3 Arizona Civil Constructors, Inc., Case No.: 2:20-cv-0010-JAD-DJA

4 Plaintiff

5 v. Order Denying Motion for Good-faith Settlement & 6 HDI Global Specialty SE, fka International Vacating Hearing Insurance Company of Hannover SE, et al., 7 [ECF No. 19] Defendants 8

9 In this insurance-coverage action, contractor Arizona Civil Constructors, Inc. (ACC) sues 10 its three insurers for failing to indemnify and defend it in a lawsuit brought by a client—the 11 owner of the Gipsy nightclub, which ACC remodeled. ACC has settled with one of those 12 insurers, HDI Global Specialty Insurance Company for $150,000 and moves this court for a 13 determination that the settlement is in “good faith,” such that HDI’s co-defendants’ rights against 14 HDI are cut off under Nevada Revised Statute § 17.245.1 Defendant Midwest Family Mutual 15 Insurance Company opposes the motion.2 16 To determine whether a claim resolution is in good faith and deserves the protections of 17 NRS 17.245, courts evaluate the five factors developed in the MGM Grand Hotel Fire Litigation: 18 “(1) [t]he amount paid in settlement, (2) the allocation of the settlement proceeds among 19 plaintiffs, (3) the insurance policy limits of settling defendants, (4) the financial condition of 20 settling defendants, and (5) the existence of collusion, fraud[,] or tortious conduct aimed to injure 21 22

23 1 ECF No. 19. 2 ECF No. 27. 1|| the interests of non-settling defendants.”* Unfortunately, ACC has not provided the court 2|| enough information in its motion to determine—based on an analysis of the MGM factors or otherwise—whether its settlement with HDI is a good-faith one under Nevada law. Its analysis of these factors is just ten sentences long, covering about two-thirds of a page.* And those sentences contain more conclusory assertions about these factors than facts on which the court can evaluate those factors. Though ACC provides more details and reasoning in its reply brief,” waiting until the reply to offer even a scintilla of analysis, ACC has deprived Midwest of the 8]| opportunity to respond to its main points, and this court of meaningful briefing. In short, ACC has failed to meet its burden to demonstrate the good-faith nature of the HDI settlement. 10 IT IS THEREFORE ORDERED that Arizona Civil Constructors, Inc.’s Motion for 11|| Determination of Good-faith Settlement [ECF No. 19] is DENIED without prejudice to ACC’s 12|| ability to file a full and complete renewed motion seeking this relief. 13 IT IS FURTHER ORDERED that the December 1, 2020, hearing on that motion is 14| VACATED as moot. 15 Dated: November 30, 2020 16 _ 7k US. District Juage Jenniter A. Dorsey 17 18 19 20 21 27 3 The Doctors Co. y. Vincent, 98 P.3d 681, 686 (Nev. 2004) (quoting In re MGM Grand Hotel Fire Litig., 570 F. Supp. 913, 927 (D. Nev. 1983)). ECF No. 19 at 4. See ECF No. 34.