Cajun Conti, LLC v. Starr Surplus Lines Insurance Company

CourtDistrict Court, S.D. New York
DecidedMarch 11, 2025
Docket1:23-cv-08844
StatusUnknown

This text of Cajun Conti, LLC v. Starr Surplus Lines Insurance Company (Cajun Conti, LLC v. Starr Surplus Lines Insurance Company) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cajun Conti, LLC v. Starr Surplus Lines Insurance Company, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK CAJUN CONTI, LLC, Plaintiff, 23 Civ. 8844 (KPF) -v.- OPINION AND ORDER STARR SURPLUS LINES INSURANCE COMPANY, Defendant. KATHERINE POLK FAILLA, District Judge: This case arises out of an insurance coverage dispute between Plaintiff Cajun Conti, LLC (“Plaintiff” or “Cajun Conti”) and Defendant Starr Surplus Lines Insurance Company (“Defendant” or “Starr”), in which Plaintiff alleges that Defendant failed to cover losses caused by Hurricane Ida in 2021. At the center of this dispute is a question over which state’s law applies, and before the Court now are the parties’ cross-motions for partial summary judgment on that question. Plaintiff urges the Court to apply Louisiana law, while Defendant asserts that New York law governs this action. For the reasons set forth below, the Court concludes that New York law governs the action; accordingly, it grants Defendant’s motion for partial summary judgment and denies Plaintiff’s motion for partial summary judgment. BACKGROUND1 A. Factual Background Cajun Conti is a limited liability company organized in 2008 under the laws of Louisiana, whose members and agents are domiciled in Louisiana. (Pl. 56.1 ¶ 1). Its principal place of business is also in Louisiana. (Id.). Starr is a

surplus lines insurer organized under the laws of, and domiciled in, Texas,

1 The facts set forth in this section of the Opinion are drawn from the parties’ submissions in connection with their cross-motions for partial summary judgment. The Court primarily sources facts from Plaintiff’s Local Civil Rule 56.1 Statement of Material Undisputed Facts (“Pl. 56.1” (Dkt. #70-2)), Defendant’s Responses and Counterstatement in Opposition to Plaintiff’s Local Rule 56.1 Statement of Material Facts (“Def. 56.1” (Dkt. #75)), Plaintiff’s Response to Defendant’s Local Civil Rule 56.1 Statement (“Pl. 56.1 Reply” (Dkt. #81)), and Defendant’s Reply in Response to Plaintiff’s Counterstatement of Facts (“Def. 56.1 Reply” (Dkt. #83)). Citations to a party’s Rule 56.1 Statement incorporate by reference the documents and testimony cited therein. Where a fact stated in a movant’s Rule 56.1 Statement is supported by evidence and controverted only by a conclusory statement by the opposing party, the Court finds that fact to be true. See Local Civil Rule 56.1(c) (“Each numbered paragraph in the statement of material facts set forth in the statement required to be served by the moving party will be deemed to be admitted for purposes of the motion unless specifically controverted by a correspondingly numbered paragraph in the statement required to be submitted by the opposing party.”); id. at 56.1(d) (“Each statement by the movant or opponent pursuant to Rule 56.1(a) and (b), including each statement controverting any statement of material fact, must be followed by citation to evidence which would be admissible, set forth as required by Fed. R. Civ. P. 56(c).”). Where one party agrees fully with a fact set forth in the other’s Rule 56.1 Statement, the Court cites only to the Rule 56.1 Statement of the party originally stating the fact. The Court sources additional facts from the declaration of Morton Bader (“Bader Decl.” (Dkt. #70-3)); the declaration of Jennifer Sadalski and the exhibits attached thereto (“Sadalski Decl., Ex. [ ]” (Dkt. #72)); and the declaration of Lonnie Walker and the exhibits attached thereto (“Walker Decl., Ex. [ ]” (Dkt. #73)). For ease of reference, the Court refers to Plaintiff’s memorandum of law in support of its motion for partial summary judgment as “Pl. Br.” (Dkt. #70-1); to Defendant’s memorandum of law in opposition to Plaintiff’s motion and in support of its cross- motion for partial summary judgment as “Def. Opp.” (Dkt. #74); to Plaintiff’s memorandum of law in further support of its motion and in opposition to Defendant’s cross-motion as “Pl. Reply” (Dkt. #80); and to Defendant’s memorandum of law in further support of tis cross-motion as “Def. Reply” (Dkt. #82). The Court also refers to Plaintiff’s supplemental brief in support of its motion for partial summary judgment as “Pl. Supp.” (Dkt. #90) and to Defendant’s supplemental brief in support of its motion for partial summary judgment as “Def. Supp.” (Dkt. #91). with headquarters in New York. (Id. ¶ 2). Starr is authorized to do business in Louisiana. (Id.). Starr issued an insurance policy to Cajun Conti covering the period from

June 30, 2021, to June 30, 2022 (the “Policy”). (Def. 56.1 ¶ 1). The Policy provided renewal property insurance and other coverage to Cajun Conti for two properties that are pertinent to this action: (i) 739 Conti Street in New Orleans, Louisiana (the “Restaurant”) and (ii) 1400 East Judge Perez Drive in Chalmette, Louisiana (the “Warehouse”). (Pl. 56.1 ¶ 4). The Policy had a $15,350,000 limit of liability per occurrence subject to various deductibles, including a 3% deductible per occurrence for a named windstorm. (Def. 56.1 ¶ 2). Cajun Conti listed a total insurable value of $7,025,000 for the

Restaurant, as well as combined values of $400,000 for the Warehouse. (Def. 56.1 ¶ 13). By July 21, 2021, after adding more locations to the Policy, Cajun Conti had increased the total insurable value for all locations under the Policy to $16,800,000. (Id. ¶ 14). Because Starr agreed to add certain locations and values to the Policy, including the Warehouse, for additional premiums totaling $18,224.50, the combined total annual premium for the Policy was ultimately $127,009.50. (Id. ¶ 15). The Policy contains a choice-of-law and forum-selection clause, which

states in relevant part: No suit, action, or proceeding regarding this POLICY for the recovery of any claim shall be sustainable in any court of law or equity unless the Insured shall have fully complied with all the requirements of this POLICY.… Any suit, action, or proceeding against the COMPANY must be brought solely and exclusively in New York state court or a federal court sitting within the State of New York. The laws of the State of New York shall solely and exclusively be used and applied in any suit, action, or proceeding, without regarding to choice of law or conflict of law principles. (Pl. 56.1 ¶ 21; see also Sadalski Decl., Ex. 1 at STARR_UW 000117). According to Cajun Conti, the aforementioned premises suffered significant damage from Hurricane Ida on August 29, 2021. (Pl. 56.1 ¶ 16). That damage gave rise to the present suit, wherein Cajun Conti contends that Starr failed to pay the full policy benefits that are owed for covered losses and is liable to Cajun Conti for millions of dollars under the Policy. (Def. 56.1 ¶ 19). B. Procedural Background Plaintiff filed this action initially in the United States District Court for the Eastern District of Louisiana on June 1, 2023. (Dkt. #1). On July 11, 2023, Defendant filed a motion to transfer this case pursuant to 28 U.S.C. § 1404(a), arguing that the Policy contained a mandatory forum-selection clause. (Dkt. #18). Plaintiff opposed this request (Dkt. #23), and filed an Amended Complaint on July 31, 2023 (Dkt. #24). The District Court for the Eastern District of Louisiana proceeded to schedule an oral argument on Defendant’s motion, which argument was held on October 5, 2023. (Dkt. #31). After oral argument, the court granted Defendant’s motion to transfer.

(October 5, 2023 Minute Entry). In accordance with Judge Wendy B. Vitter’s decision, this case was then transferred to the Southern District of New York. (Dkt. #40). Following the transfer of this case, the parties entered a civil case management plan and scheduling order, which the Court endorsed on February 16, 2024. (Dkt. #48). On March 15, 2024, Plaintiff filed a letter

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Cajun Conti, LLC v. Starr Surplus Lines Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cajun-conti-llc-v-starr-surplus-lines-insurance-company-nysd-2025.