Canal Insurance v. XMEX Transport, LLC

126 F. Supp. 3d 820, 2015 U.S. Dist. LEXIS 111301, 2015 WL 5010381
CourtDistrict Court, W.D. Texas
DecidedAugust 21, 2015
DocketNo. EP-13-CV-156-KC
StatusPublished
Cited by1 cases

This text of 126 F. Supp. 3d 820 (Canal Insurance v. XMEX Transport, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canal Insurance v. XMEX Transport, LLC, 126 F. Supp. 3d 820, 2015 U.S. Dist. LEXIS 111301, 2015 WL 5010381 (W.D. Tex. 2015).

Opinion

ORDER

KATHLEEN CARDONE, District Judge.

On this day, the Court considered Plaintiff Canal Insurance Company’s (“Canal”) Motion for Summary Judgment of Canal Insurance Company on the Duty to Indemnify and All Counterclaims of Jessica Lopez as Administratrix of the Estate of Roger Franeeware and as Next Friend of A.F. and J.F. (“Canal Motion”), ECF No. 107, and the Munoz Defendants’1 Motion for Summary Judgment on Plaintiff Canal Insurance Company’s Duty to Pay Based on the MCS-90 Endorsement (“Munoz Motion”), ECF No. 109, in the above-captioned case (the “Case”). For the following reasons, the Canal Motion is GRANTED in part and DENIED in part, and the Munoz Motion is DENIED in its entirety.

I. BACKGROUND

Unless otherwise noted, the following facts are undisputed.

Canal issued auto insurance policy number PIA0603370 to XMEX Transport LLC (“XMEX”). See Ins. Policy Number PIA0603370 (the “Policy”), Compl. Ex. A, ECF No. 1-10.2 The Policy was in effect from August 6, 2010, to “Until Cancelled.” See id. at 1. On August 17, 2010, a 2007 International tractor with VIN number 2HSCNSCR57C432761 (the “Truck”) was involved in a single-vehicle accident resulting in the deaths of both Roger France-ware (“Franeeware”) and Lorenzo Munoz (“Munoz”) (collectively the “Decedents”). See Proposed Undisputed Facts ¶2 (“Canal Proposed Facts”), Canal Mot. Attach. 5, ECF No. 107-5; Def. Lopez’s Resp. to Canal’s Proposed Undisputed Facts in Connection with its Mot. for Summ. J. on the Duty to Indemnify and All Countercls. of Jessica Lopez as Administratrix of the Estate of Roger Franeeware and as Next Friend of A.F. and J.F. ¶2 (“Lopez Response to Proposed Facts”), Def. Lopez’s Resp. to Canal’s Mot. for Summ. J. on the Duty to Indemnify and All Countercls. of Jessica Lopez as Administratrix of the Estate of Roger Franeeware and as Next Friend of A.F. and J.O. Attach. 6, ECF No. 116-6; Munoz Defs.’ Resp. to Canal’s Proposed Undisputed Facts and Additional Proposed Facts ¶ 2 (“Munoz Response to Proposed Facts”), Munoz Defs.’ Resp. in Opp’n to Canal’s Mot. for Summ. J. on the Duty to Indemnify Ex. A, ECF No. 118-1.

Following the accident, on October 25, 2010, the Munoz Defendants filed Cause No. 2010-4169 in the 168th District Court of El Paso County, Texas (the “Underlying Suit”), seeking damages arising from Munoz’s death. See Munoz Defs.’ Original Pet., Canal Mot. Ex. C, ECF No. 107-2. The Munoz Defendants specifically listed the Estate of Roger Franeeware as a defendant in their October 25, 2010, petition. See id. at 36. Lopez subsequently inter[823]*823vened in the Underlying Suit as adminis-tratrix of the Estate of Roger Franceware. Nearly three years later, on May 7, 2013, Canal initiated the instant Case, seeking a declaratory judgment that it had no duty to defend or indemnify Defendants in relation to the Underlying Suit, and that the MCS-90 endorsement found in the Policy is not applicable to any of Defendants’ demands for payment. See Compl. for Declaratory J. 12 (“Complaint”), ECF No. I.3

While the instant Case remained pending, the Underlying Suit proceeded to trial in Texas state court, resulting in a verdict. Canal Proposed Facts ¶ 11; Lopez Resp. to Proposed Facts ¶ 11; Munoz Resp. to Proposed Facts ¶ 11. See also Charge of the Ct. (“Jury Verdict”), Canal Mot Ex. P, ECF No. 107-4; Corrective J. Signed June 3, 2014 (“Underlying Judgment”), Canal Mot. Ex. N, ECF No. 107-4. By their verdict, the jury found that “[i]n connection with the events giving rise to this suit” Franceware was “acting as an employee in the scope of his employment [with XMEX].” See Jury Verdict 100. The jury found, however, that Munoz was not acting as an employee in the scope of his employment with XMEX at the time of the accident. See id. at 101. On June 9, 2014, the state court entered its judgment, ordering that both Franceware and Munoz recover damages against XMEX. See Underlying J. 82-83. Neither the Underlying Judgment nor the Jury Verdict addressed the issue of whether the Truck was a covered auto under the Policy. See generally Underlying J.; Jury Verdict.

Subsequently, on September 4, 2014, this Court found that Canal had a duty to defend Franceware in the Underlying Suit. See Sept. 4, 2014, Order 34-35, ECF No. 77. As a result, on October 31, 2014, Lopez, as administratrix of the France-ware estate, filed her First Amended Answer and Counterclaim (“Lopez Counterclaims”), ECF No. 90, asserting causes of action against Canal for (1) breach of contract, (2) breach of the common law duty of good faith and fair dealing, (3) breach of the Texas Insurance Code, (4) breach of the Texas Deceptive Trade Practices Act, (5) gross negligence, and (6) claims based upon Lopez being a third-party beneficiary of the Policy. Id. at 6-10.

Canal filed the Canal Motion on April 17, 2015, praying for the Court to declare that “no duty to indemnify exists” under either the Policy’s indemnification clause or the Policy’s MCS-90 endorsement. C¿-nal Mot. 21.4 Lopez filed her response to the Canal Motion on May 1, 2015. See Def. Lopez’s Resp. to Canal’s Mot. for Summ. J. on the Duty to Indemnify and All Countercls. of Jessica Lopez as Admin-istratrix of the Estate of Roger France-ware and as Next Friend of A.F. and J.O. (“Lopez Response”), ECF No. 116. On May 4, 2015, the Munoz Defendants also filed a response to the Canal Motion. See Munoz Defs.’ Resp. in Opp’n to Canal’s Mot. for Summ. J. on the Duty to Indemnify (“Munoz Response”), ECF No. 118. Canal filed its replies to both the Lopez and Munoz Responses on May 12, 2015. See Reply of Canal Ins. Co. to the Resp. of Jessica Lopez as Administratrix of the Estate of Roger Franceware and as Next Friend of A.F. and J.F. and the Adoption of Rosa Franceware to the Mot. for Summ. J. of Canal Ins. Co. (“Canal Reply to Lo[824]*824pez”), ECF No. 123; Reply of Canal Ins. Co. to the Resp. of the Munoz Defs. to the Mot. for Summ. J. of Canal Ins. Co. (“Canal Reply to Munoz”), ECF No. 124.

The Munoz Defendants filed the Munoz Motion on April 18, 2015, seeking summary judgment that “Canal has a duty to pay the [Underlying Judgment] against XMEX based on the MCS-90 endorsement contained in the [P]olicy.” Munoz Mot. 21. Canal filed its response to the Munoz Motion on April 27, 2015. See Resp. of Canal Ins. Co. to the Mot. for Summ. J. of the Munoz Defs. (“Canal Response to Munoz”), ECF No. 111. Lopez did not respond to the Munoz Motion.

II. DISCUSSION

A. Standard

A court must enter summary judgment “if the movant shows that 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); see Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Weaver v. CCA Indus., Inc., 529 F.3d 335, 339 (5th Cir.2008). “A fact is ‘material’ if its resolution in favor of one party might affect the outcome of the lawsuit under governing law.” Sossamon v. Lone Star State of Tex.,

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Bluebook (online)
126 F. Supp. 3d 820, 2015 U.S. Dist. LEXIS 111301, 2015 WL 5010381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canal-insurance-v-xmex-transport-llc-txwd-2015.