Century Surety Co. v. Casino West, Inc.

99 F. Supp. 3d 1262, 2015 U.S. Dist. LEXIS 39482, 2015 WL 1413418
CourtDistrict Court, D. Nevada
DecidedMarch 27, 2015
DocketNo. 3:07-cv-00636-RCJ-RAM
StatusPublished
Cited by2 cases

This text of 99 F. Supp. 3d 1262 (Century Surety Co. v. Casino West, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Century Surety Co. v. Casino West, Inc., 99 F. Supp. 3d 1262, 2015 U.S. Dist. LEXIS 39482, 2015 WL 1413418 (D. Nev. 2015).

Opinion

ORDER

ROBERT C. JONES, District Judge.

This case arises from a tragic accident that occurred on April 16, 2006 in which four Casino West guests were found deceased in their motel room due to carbon monoxide poisoning. Pending before the Court are Century Surety Company’s (“Century”) Motion for Summary Judgment (ECF No. 112) and Intervenor Admiral Insurance Company’s (“Admiral”) Motion for Summary Judgment (ECF No. 113). For the reasons contained herein, Century’s Motion is GRANTED and Admiral’s Motion is DENIED.

I. FACTS AND PROCEDURAL HISTORY

On April 16, 2006, Juan Pablo Chavez, Veronica Chavez, Donna N. Yega-Robles, and Phillip Doll (collectively “the victims”) were found dead in their Casino West motel room in Yerington, Nevada (“the Accident”). An autopsy of the victims revealed that they each had suffered acute carbon monoxide poisoning. (Autopsy Reports, ECF No. 112-1, Ex. 1). Further investigation at the Casino West Motel showed that “a series of problems had led to the CO exposure.” (Nev. Dep’t of Safety Report, ECF No. 113-5, at AIC 0099). The heater used to warm the Motel pool was not burning properly, a roof vent was not the proper height and the cap on the vent had been removed, the vents in the door to the pool equipment room had been covered with cardboard and sealed with duct tape, and the control panel had been altered such that there was no reasonable way to shut the heating unit off without disconnecting power. (Id.). Investigators believed that “the combination of these factors had allowed the CO gas to. build to a high level.” (Id.).

When investigators attempted to recreate the fatal conditions in the motel room where the victims passed away, they were unable to do so. (Carbon Monoxide Detection Report, ECF No. 113-6, at AIC 0411). Since one of the victims had lost consciousness while in the bathtub, running water had spilled over onto the floor of the room, which eventually caused it to buckle and seal out additional carbon monoxide fumes. Investigators believed it was for this reason that the dangerously high levels of carbon monoxide in the victims’ room could not be recreated. (Id. at AIC 0412).

On November 6, 2007 and April 14, 2008, the victims’ next-of-kin sued Casino West in state court in two different lawsuits.1 In their complaints, the plaintiffs alleged that Casino West negligently maintained and monitored the pool equipment room thereby directly causing the decedents’ deaths. (Dueñas Compl. HIVII, VIII, ECF No. 113-3; Kitamura Compl. ¶¶ XI, XII, E.CF No. 113-4). The plaintiffs also claimed that Casino West “failed and refused to observe minimal safety precautions.” (Dueñas Compl. 1X1, Kitamura Compl. 1XV). Casino West settled both of these cases as well as all other outstanding claims relating to the Accident.

[1264]*1264At the time of the Accident, Century-provided Casino West with general liability insurance (“the Policy”). The Policy requires that Century cover “bodily injury” that is caused by an “occurrence” that takes place during the Policy period. (Century Policy § 1.1.b, ECF No. 113-1, at AIC 0052). “Occurrence” is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” (Id. at AIC 0046). The Policy also limits coverage to $1,000,000 for each “occurrence.” (Id. at AIC 0034). It further states that this limit applies regardless of the number of claims made or suits brought and that the limit extends to damages for bodily injury arising out of any one “occurrence.” (Id. §§ Ill.l.b, III.5, at AIC 0060). The Policy, however, has an aggregate limit of $2,000,000 if the damages at issue arise from more than a single occurrence. (Id. at AIC 0034).

In addition to the general liability insurance, Casino West also obtained an excess policy of insurance from Admiral (“the Excess Policy”), with a limit of $5,000,000, which was in effect at the time of the Accident. The Excess Policy applies only once the aggregate amount of all limits of the insured’s “Underlying Insurance” have been exhausted “by payment of judgments, settlements, costs or expenses.” (Admiral Policy § I.l.a, ECF No. 113-2, at AIC 0013).

On July 30, 2014, Century paid the “occurrence” limit, plus interest, for a total amount of $1,153,235, to Casino West as reimbursement for settlement payments. (Galt Aff. ¶ 7, ECF No. 112-1). Century also paid $125,157 in partial satisfaction of a stipulated judgment. (Id.). Nevertheless, additional sums are owing to the plaintiffs in both lawsuits.

Century and Admiral filed cross-motions for summary judgment on the issue of whether the victims’ deaths on April 16, 2006 .arose from a single “occurrence” or more than one “occurrence” as defined by the Policy and controlling law. If the victims’ deaths arose from a single “occurrence,” then Century’s $1,000,000 limit has been met and Admiral is responsible for covering the remainder of the settlement amounts. On the other hand, if the deaths resulted from multiple “occurrences,” then Century’s aggregate limit of $2,000,000 would apply and Century would be obligated to make additional payments.

II. LEGAL STANDARD

Summary judgment is warranted where there is no genuine dispute of material facts such that the court may rule as a matter of law. Fed.R.Civ.P. 56(a); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Where there is no dispute of material fact, “the moving party must demonstrate the right to judgment as a matter of law in the context of [the] undisputed facts.” Aronsen v. Crown Zellerbach, 662 F.2d 584, 591 (9th Cir.1981). Here, the parties do not dispute the facts and they ask the Court to rule solely on whether the aggregate limit of the Policy was triggered by the Accident.

III. DISCUSSION

Nevada has adopted the “causal” approach to determining whether “a particular situation constitutes a single occurrence or multiple occurrences for the purposes of insurance liability.” Bish v. Guaranty Nat’l Ins. Co., 109 Nev. 133, 848 P.2d 1057, 1058 (1993). “Under this analysis, the inquiry is focused on whether there was one or more than one cause which resulted in all of the injuries or damages.” Id. In Bisk, a young girl was struck by a car when the car’s driver backed over her while leaving a driveway. Id. at 1057. Hearing screams and realizing what she [1265]*1265had done, the driver put the car in forward gear and drove over the child again. Id. Each time the driver struck the child, serious injuries arose. The issue was whether-the “underlying circumstances constituted one accident or two for the purposes of collecting under the insurance policy....” Id.

The Bish court held that the separate acts of negligence that each resulted in injuries to the child arose from a single occurrence.

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99 F. Supp. 3d 1262, 2015 U.S. Dist. LEXIS 39482, 2015 WL 1413418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/century-surety-co-v-casino-west-inc-nvd-2015.