Beazley Underwriting Ltd v. Jumper Man Party Rentals, LLC

District Court, D. Nevada·Decided May 3, 2024·No. 2:22-cv-01884·Unknown

Opinion

DISTRICT OF NEVADA Beazley Underwriting LTD, Case No. 2:22-cv-01884-CDS-MDC

Plaintiff Order Granting Defendants’ Motion for Summary Judgment and Closing Case v.

Jumper Man Party Rentals, LLC, [ECF No. 20] Defendant

This is an insurance action brought by plaintiff Beazley Underwriting LTD (Beazley) against Jumperman Party Rentals, LLC1 (Jumperman). Beazley brings four claims for declaratory relief under the insurance policy and one claim for recoupment/restitution/unjust enrichment. ECF No. 1. Beazley moves for summary judgment on all five counts. ECF No. 20. The motion is fully briefed. For the following reasons, I grant summary judgment in favor of Beazley and kindly direct the Clerk of Court to close this case. I. Background A. Jumperman Jumperman is a single-member limited liability company, formed in 2007, by owner and operator Gonzalo Cisneros. Cisneros Decl., Def’s. Ex. 1, ECF No. 28-1 at ¶¶ 1–2. Jumperman rents bounce houses and related entertainment equipment for parties and events throughout Clark County. Id. at ¶ 3. This includes the City of North Las Vegas, the City of Las Vegas, unincorporated Clark County, the City of Henderson, and Boulder City. Id. at ¶ 4. B. The Policy Jumperman obtained a general liability insurance policy (the “Policy”) through its broker, Zodiac Insurance Services, Inc., from “certain Underwriters at Lloyd’s, London,” which was syndicated between two Beazley entities. The Policy was effective from July 8, 2020,

1 Erroneously sued as Jumper Man Party Rentals, LLC. through July 8, 2021 (the “Policy Period”). Insurance Policy, Def’s. Ex. 7, ECF 28-8; Cisneros Decl., Def’s. Ex. 1, ECF No. 28-1 at ¶ 8. Jumperman’s municipal business licenses were all current and valid at the inception of the policy on July 8, 2020. Cisneros Decl., Def’s. Ex. 1, ECF No. 28-1 at ¶ 7. At the time of the incident that gave rise to this action, Jumperman’s license with the City of Henderson had expired. Id. at ¶¶ 9–17. Subject to the Policy’s other terms and conditions, the Policy’s relevant Insuring Agreement (Insuring Agreement A.1.) provides: 1. Bodily Injury and Property Damage The Underwriters will pay on behalf of the Insured, Damages and Claims Expenses which the Insured shall become legally obligated to pay because of any Claim or Claims for Bodily Injury or Property Damage to which the coverage applies caused by an Accident. This insurance applies only if: a) The Accident occurs on or after the Retroactive Date set forth in Item 12 of the Declarations, occurs only while the Insured is engaged in a Covered Activity and takes place in the Coverage Territory; and b) The Bodily Injury and/or Property Damage occurs during the Policy Period set forth in Item 2 of the Declarations, occurs only while the Insured is engaged in a Covered Activity and takes place in the Coverage Territory; and c) A Claim or Claims for Damages because of the Bodily Injury or Property Damage is first made against the Insured during the Policy Period and reported in writing to the Underwriters during the Policy Period or any applicable Extended Reporting Period. Insurance Policy, Def. Ex. 7, ECF No. 28-8 at 9. Policy Section XXX. LICENSURE provides that: A. It is a condition precedent to the coverage afforded under the Policy that the facilities of the Named Insured and any Insured requiring a license to practice or carry out any event shall be licensed in accordance with all relevant federal, state and local requirements. The Named Insured warrants that as of the inception date of this Policy it has secured all relevant licenses. B. If, during the Policy Period, any Insured’s licensure status is altered by withdrawal, revocation, denial, suspension or failure to renew, the Named Insured shall give written notice of such change to the Underwriters within thirty days of the change becoming effective. Following receipt of such notice, the Underwriters may elect, at their sole option, to revise any Insuring Agreements[,] Definitions, Exclusions, Endorsements or other Conditions of this Policy with respect to the Insured, with effect from such date of such withdrawal, revocation, denial, suspension or failure to renew. Such action does not waive the Underwriters’ option to invoke the provisions of Section XX Cancellation of this Policy. Furthermore, the Underwriters will have no obligation to respond to any Claim arising out of an any one fire or an Accident or an offense which took place subsequent to the date the of withdrawal, revocation, denial, suspension or failure to renew. Id. at 46–47. Further, Policy Section XXXIII. WARRANTIES provides, in relevant part: By acceptance of this policy, the Insured warrants that the Insured: a) observes and complies with the requirements of any law, ordinance, court or regulatory body of whatever jurisdiction. b) ensures that all necessary contractual arrangements have been made and confirmed in writing with the Insured and that all necessary authorisations (which for the avoidance of doubt shall include, but not be limited to, the obtaining of licences, permits, visas, copyright and patents) are obtained in a timely manner and valid for the period of the Covered Activity. c) ensures that mechanical bulls used in any Covered Activity comply with both equipment and operational standards that would be considered standard for the industry; d) basic safety rules are posted where all participants as well as bystander can see them and comply with them; … Id. at 47–48. C. The Incident On April 30, 2021, Josh Zwagil hosted a birthday party at his home in Henderson, Nevada (the “Event”). Holly Supp. Decl., ECF No. 30 at 2. Jumperman supplied a “trackless train”2 for the party. Id. The trackless train allegedly rolled over and crushed several of its occupants after Jumperman’s driver decided to take the train down a steep decline (hereinafter “the Accident”). 5/6/21 Email, Pl.’s Ex. 1, ECF No. 14-1 at 5. Zwagil requested Jumperman’s insurance information and stated that he would hand the matter over to his attorney if he did not receive the insurance information within 48 hours. Id. Counsel for the injured parties issued a demand letter dated May 13, 2022 on behalf of two of the claimants and stated that demands as to the other claimants would be submitted at a later date. Pl.’s Ex. 2, ECF No. 14-2.

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Beazley Underwriting Ltd v. Jumper Man Party Rentals, LLC, (D. Nev. 2024).

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