Atlantic Casualty Insurance v. Ramirez

651 F. Supp. 2d 686, 2009 U.S. Dist. LEXIS 79155, 2009 WL 2842860
CourtDistrict Court, N.D. Texas
DecidedSeptember 2, 2009
DocketNo. 3:07-CV-1297-F
StatusPublished
Cited by1 cases

This text of 651 F. Supp. 2d 686 (Atlantic Casualty Insurance v. Ramirez) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Casualty Insurance v. Ramirez, 651 F. Supp. 2d 686, 2009 U.S. Dist. LEXIS 79155, 2009 WL 2842860 (N.D. Tex. 2009).

Opinion

ORDER ADOPTING MAGISTRATE JUDGE’S FINDINGS, CONCLUSIONS AND RECOMMENDATION

ROYAL FURGESON, District Judge.

BEFORE THE COURT are Magistrate Judge Paul Stickney’s Findings, Conclusions, and Recommendation report (Docket No. 58), filed August 5, 2008; Plaintiff Atlantic Casualty Insurance Company’s Motion for Summary Judgment and Brief in Support (Docket Nos. 17 and 18), filed October 22, 2007; The LBJ Defendants’ Response to Atlantic’s Motion for Summary Judgment (Docket No. 24), filed November 27, 2007; Atlantic’s Reply to the LBJ Defendants’ Response (Docket No. 27), filed December 12, 2007; Atlantic’s Objection to and Motion to Strike LBJ Defendants’ Summary Judgment Evidence (Docket No. 29), filed December 12, 2007. LBJ Defendants’ Response to Atlantic’s Motion to Strike (Docket No. 32), filed January 2, 2008; Atlantic’s Reply to LBJ Defendants’ Response (Docket No. 33), filed January 17, 2008; Clem Defendants’ Response and Amended Response in Opposition to Atlantic’s Motion for Summary Judgment (Docket Nos. 42 and 51), filed July 9, 2008; and Atlantic’s Reply to Clem Defendants’ Response (Docket No. 53), filed July 24, 2008.

Upon consideration of the parties’ briefings, the facts, and the applicable law, the Court is of the opinion that the Magistrate Judge’s Findings, Conclusions, and Recommendation (Docket No. 58) should be ADOPTED and Plaintiff Atlantic Casualty Insurance Company’s Motion for Summary Judgment (Docket No. 17) should be GRANTED.

Background

On July 25, 2007 Atlantic Casualty Insurance Company (“Atlantic”) brought this action against Defendants Robert Ramirez (“Ramirez”), individually and doing business as LBJ Trucking Co., Inc. (“LBJ Trucking”) (collectively the “LBJ Defendants”), and Defendants Clem’s Ye Olde Homestead Farms, Ltd., Bettye Crider Clem, Clarence Truman Clem, Kelly Clem, and Clarence T. “Casey” Clem, Jr. (collectively the “Clem Defendants”). Atlantic seeks a declaratory judgment regarding defense and indemnity coverage under certain commercial general liability policies between Atlantic and the LBJ Defendants (the “Policies”). The Clem Defendants are included as parties in this Declaratory Judgment Action because they are potential judgment creditors of the LBJ Defendants in the Underlying Lawsuit.

Atlantic insured LBJ Trucking Co., Inc., of which Ramirez is either an officer or director, under commercial general liability policies. Plaintiff’s Brief in Support at ¶ 6. The Clem Defendants contracted with Briscoe Land Reclamation to supply “clean fill material” to their property on Parker Road in Carrollton, Texas. Id. at ¶ 4. The LBJ Defendants are alleged to have transported the fill material, which the Clem Defendants allege was not clean fill material but rather “solid waste (as defined under federal law and Texas law ...), including without limitation foundry sand and other foundry refuse ... as well as brush, trees, wood grindings ... other woody materials, and construction and demolition debris.” Clem Defendants’ Fourth Amended Complaint, 2008 WL 2907085, at ¶ 1. The Clem Defendants allege that the fill material is environmentally unsuitable for their land, and, “presents an imminent and substantial endangerment to individuals and the environment.” Id. at ¶ 9. The Clem Defendants have filed suit (“Underlying Lawsuit”) against the LBJ Defendants, amongst others, for violations of the federal Resource Conservation Recovery Act (“RCRA”), the Texas [689]*689Health and Safety Code, and under Texas common law, in order to “remedy the storage and disposal of Solid Waste by [the Underlying Lawsuit”] Defendants. Id. at ¶ 1-2.

The LBJ Defendants have demanded defense and indemnity coverage under the Policies against the Clem Defendants’ allegations in the Underlying Lawsuit. Plaintiffs Brief in Support at ¶ 7. Atlantic has been paying the LBJ Defendants’ defense in the Underlying Lawsuit under an express right of reservation to contest coverage and now seeks a declaratory judgment that Atlantic has no duty to defend or indemnify the LBJ Defendants because of the Total Pollution Exclusion and Claims in Process provisions in the Policies. Plaintiffs Brief in Support at ¶ 7-10. Atlantic now moves for summary judgment in this action.

Standard of Review

Summary judgment procedure is a method used by the Court to promptly dispose of an action in which there is no genuine issue of material fact. Summary judgment is proper only when “the pleadings, the discovery, and disclosure materials along with the affidavits ... show there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). (citing Fed. R.Civ.P. 56(c)).

When determining whether a genuine issue of material fact exists, the Court must consider “if the evidence is such that a reasonable jury could return a verdict for the non-moving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). When a party moves for summary judgment they bear the burden of identifying those portions of the record which they believe demonstrate that no genuine issue of material fact exists. OOIDA Risk Retention Group, Inc. v. Williams, 544 F.Supp.2d 540, 542 (N.D.Tex.2008). (citing Celotex at 322-25, 106 S.Ct. 2548).

Once the moving party has made a properly supported motion, the burden shifts to the non-moving party to demonstrate that summary judgment is inappropriate by going beyond the pleadings and providing depositions, affidavits, and competent evidence which shows that specific facts exist which demonstrate a genuine issue of material fact. See Whittaker v. BellSouth Telecomm., Inc., 206 F.3d 532, 534 (5th Cir.2000). All competent evidence and reasonable inferences must be viewed in a light most favorable to the non-moving party. Williams at 542. The Court agrees with the Magistrate Judge’s Conclusion that the material facts of this case are not in dispute. Findings, Conclusions, and Recommendation Report at ¶ 7.

Analysis

In a diversity case, a federal court must apply the substantive law of the forum state. Ideal Mut. Ins. Co. v. Last Days Evangelical Ass’n, 783 F.2d 1234, 1240 (5th Cir.1986). Under Texas Law, the Court employs the “eight corners” doctrine when determining an insurer’s duty to defend, meaning that the Court looks only to the allegations in the underlying plaintiffs pleadings and the language of the insurance policy provisions. Noble Energy, Inc. v. Bituminous Cas. Co., 529 F.3d 642 (5th Cir.2008); Nat’l Union Fire Ins. Co. Of Pittsburgh, PA v. Merchs. Fast Motor Lines, Inc. 939 S.W.2d 139, 141 (Tex.1997).

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Bluebook (online)
651 F. Supp. 2d 686, 2009 U.S. Dist. LEXIS 79155, 2009 WL 2842860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-casualty-insurance-v-ramirez-txnd-2009.