Blue Hill Specialty Insurance Company, Inc. v. Grinston

District Court, S.D. Mississippi·Decided September 12, 2023·No. 3:22-cv-00713·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF MISSISSIPPI NORTHERN DIVISION

BLUE HILL SPECIALTY PLAINTIFF INSURANCE COMPANY, INC.

V. CIVIL ACTION NO. 3:22-CV-713-KHJ-MTP

MARION GRINSTON, et al. DEFENDANTS

ORDER Before the Court is Plaintiff’s [60] Motion for Summary Judgment. The Court denies the motion for the following reasons. I. Background This declaratory-judgment action arises from an insurance dispute. Compl. [1]. Plaintiff Blue Hill Specialty Insurance Company, Inc., is suing various Defendants with a direct or derivative interest in an insurance policy. ¶¶ 1−10. As relevant here, those Defendants include (1) Marion Grinston, d/b/a Grinston Trucking Company, the policyholder; (2) Delta Industries, Inc., d/b/a Jackson Ready-Mix, which contracted with Grinston Trucking and contractually required Grinston Trucking to maintain at least $2 million in liability insurance; and (3) Signature Insurance Agency, LLC, which was Grinston Trucking’s appointed insurance agent. , ¶ 18; Delta Answer & Countercl. [20] at 6; Indep. Contractor Agreement [20-1] at 2; Grinston Appointment [60-5]. On May 28, 2021, Grinston Trucking’s vehicle was involved in a “tragic . . . accident.” [1] ¶ 15. The parties agree that Blue Hill insured the vehicle. But the parties disagree about the policy’s coverage limit. , ¶¶ 19, 23−31.

In a state-court case arising from the accident, Delta produced a certificate of insurance that Signature issued. ¶ 30; Cert. of Liab. Ins. [60-3]. The certificate, dated May 7, 2021, stated that it was “issued as a matter of information only” in order “to certify that the policies of insurance listed below have been issued.” [60-3]. Below that, the certificate provided that Blue Hill’s corporate parent issued a policy with a “combined single limit” of “$2,000,000,” effective April 29, 2021. ; , Blue Hill Corp. Disclosure Statement [2] (identifying Progressive as

corporate parent); Progressive Letter [20-3] (parenthetically referring to “Blue Hill” as “Progressive”). The certificate listed Signature’s Shirlene Richardson as the “contact name” and “authorized representative.” For its part, Blue Hill produced a Renewal Declarations Page reflecting a “combined single limit” of “$750,000,” effective April 29, 2021. Renewal Decls. [60-2] at 1−2. Grinston Trucking’s corporate representative, David Grinston, testified about

the discrepancy. Forks Decl. [70-1] ¶ 5. David Grinston said in his deposition: Q. Did Grinston Trucking [C]ompany have two million in insurance at the time of this wreck? A. Yes. Q. Was Grinston Trucking paying premiums for a coverage limit of two million at the time of the wreck? A. Yes. . . . Q. Do you have any idea how there’s an indication on this certificate of insurance of $2 million in coverage but the policy that’s been produced only indicates 750,000? A. Well see, that’s what I couldn’t understand. That’s what I was telling you about, we can’t figure out. . . . That’s what we turned in and that’s what we had. But [Shirlene Richardson] was talking like we had lowered it and I said . . . I couldn’t do that or nobody couldn’t do that because of Delta and them checked that every so often, and if they found out they [are] going to stop us from hauling. David Grinston Dep. [70-3] at 3, 5−6. He explained that, “as far as clearing up that discrepancy,” Shirlene Richardson would be the person to talk to. at 6.1 Blue Hill filed this declaratory-judgment action in December 2022, seeking to resolve the coverage dispute. [1]. Discovery opened on May 1, 2023, and it is set to close on December 15. Case Mgmt. Order [46] at 3. But on August 3, Blue Hill moved for summary judgment. [60].2 It requested a declaration that “no additional insurance coverage exists in favor of any of the Defendants” beyond the $750,000 figure reflected in the Renewal Declarations Page. at 5. In support of its motion, Blue Hill attached the Renewal Declarations Page reflecting a $750,000 limit; the certificate reflecting a $2 million limit; and a declaration from a Blue Hill employee stating that Grinston Trucking never had more than $750,000 in coverage, and alleging that Blue Hill never authorized or knew about a certificate reflecting more than $750,000 in coverage. [60-2] at 1−2;

1 Blue Hill acknowledges that “Rule 11 obligations [led] counsel for Blue Hill to request that a statement be secured from Shirlene Richardson” before Blue Hill filed this action. Reply [73] at 6. 2 Blue Hill emphasizes that it moved for summary judgment “more than 90 days after the Case Management Conference.” [73] at 1. But one Defendant served Blue Hill with interrogatories and a request for production just 18 days after the Case Management Conference. [48]; [49]. Blue Hill did not respond until 52 days after that. [56]; [57]. The very next day, Delta’s counsel emailed counsel for Blue Hill, requesting “the recorded statement of Shirlene Richardson” that Blue Hill referenced in its interrogatory responses. [70-1] ¶ 7. Counsel for Blue Hill did not respond to that email for 23 days—and did so only after filing this motion. ; [76-4] at 3. [60-3]; Hale Decl. [60-4] ¶¶ 8, 10, 13−18. Delta opposed the motion, attaching David Grinston’s testimony. [70]; [70-3]. II. Standard

Summary judgment is proper if “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A genuine dispute of material fact exists if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” , 830 F.3d 337, 343 (5th Cir. 2016) (quoting , 477 U.S. 242, 248 (1986)). The Court must view the evidence in the light most favorable to the

nonmoving party and construe all reasonable inferences in that party’s favor. , 18 F.4th 157, 160 (5th Cir. 2021). The Court may not evaluate witnesses’ credibility, weigh evidence, or resolve factual disputes. (citing , 477 U.S. at 253−55). III. Analysis Summary judgment is improper for two separate reasons.

First, David Grinston’s testimony creates a genuine dispute of material fact. Grinston Trucking’s corporate representative, David Grinston, testified: Q. Did Grinston Trucking [C]ompany have two million in insurance at the time of this wreck? A. Yes. Q. Was Grinston Trucking paying premiums for a coverage limit of two million at the time of the wreck? A. Yes. [70-3] at 4; [70-1] ¶ 5. Testimony that Grinston Trucking “ha[d] two million in insurance” and was “paying premiums for a coverage limit of two million” creates a genuine dispute of material fact.

Blue Hill’s response is unavailing. Blue Hill first submits that David Grinston’s testimony was an “irrelevant” statement of “belief.” [73] at 4−5. To the contrary, David Grinston testified that Grinston Trucking “ha[d]” and was “paying premiums for” $2 million in coverage. [70-3] at 4. Blue Hill next asserts that “[n]ot one . . . document supports” the testimony. [73] at 5. That is incorrect. The certificate attached to Blue Hill’s motion provided “certif[ied]” “information” that Grinston Trucking had a $2 million policy. [60-3]. Finally, Blue Hill contends that

the “self-serving” testimony “blatantly contradicts the record,” such that “‘no reasonable jury could believe it.’” [73] at 5 (quoting , 550 U.S. 372, 380 (2007)). But purportedly “‘self-serving’ . . .

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