CertainTeed Corporation v. Mayfield

District Court, E.D. Louisiana·Decided September 28, 2020·No. 2:19-cv-00400·Unknown

Opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

CERTAINTEED CORPORATION CIVIL ACTION

VERSUS NO. 19-400-WBV-KWR

DOROTHY MAYFIELD SECTION: D (4)

ORDER AND REASONS Before the Court is DBMP LLC’s Motion for Summary Judgment,1 which is opposed by defendant, Dorothy Mayfield. 2 Also before the Court is Dorothy Mayfield’s Motion for Summary Judgment,3 which is opposed by DBMP LLC.4 After careful consideration of the parties’ memoranda and the applicable law, DBMP LLC’s Motion for Summary Judgment is DENIED, Dorothy Mayfield’s Motion for Summary Judgment is GRANTED, and this matter is DISMISSED WITH PREJUDICE. I. FACTUAL AND PROCEDURAL BACKGROUND This case concerns the scope of an indemnity provision contained in a release agreement executed by the parties. On January 18, 2019, CertainTeed Corporation filed a Complaint for Declaratory Judgment in this Court, asking that the defendant, Dorothy Mayfield, be required to indemnify CertainTeed for any damages awarded against it in an action pending in Louisiana state court for the alleged wrongful death of CJ Mayfield, brought by his adult children, and to reimburse CertainTeed’s

1 R. Doc. 31. 2 R. Doc. 42. 3 R. Doc. 40. 4 R. Doc. 45. attorney’s fees, court costs and related litigation expenses incurred as a result of the state court proceeding.5 CertainTeed asserts that Mrs. Mayfield is the surviving spouse of CJ Mayfield, who was diagnosed with malignant squamous cell carcinoma

in March 2015.6 On April 29, 2015, Mr. and Mrs. Mayfield sued several defendants in Louisiana state court, including CertainTeed, alleging that Mr. Mayfield’s cancer was caused by exposure to asbestos-containing products manufactured, sold or distributed by several entities, including CertainTeed.7 CertainTeed asserts that Mr. and Mrs. Mayfield resolved their claims against it on February 23, 2016, and signed a release (the “Release”), which contains the indemnity clause at issue in this case.8 CertainTeed claims that, by signing the Release, Mr. and Mrs. Mayfield agreed to

indemnify CertainTeed for any all future claims brought against CertainTeed that relate to or may arise out of Mr. Mayfield’s exposure to asbestos-containing products that were manufactured, distributed, supplied or sold by CertainTeed.9 Mr. Mayfield subsequently died on November 22, 2016.10 CertainTeed asserts that on May 19, 2017, it was served with an amended state court petition, in which Mr. Mayfield’s surviving adult children seek wrongful death damages from the

defendants, including CertainTeed, as a result of Mr. Mayfield’s death. 11 CertainTeed claims that Mrs. Mayfield also asserted wrongful death claims against

5 R. Doc. 1. 6 Id. at ¶¶ 6 & 7. 7 Id. at ¶ 8 (citing R. Doc. 1-1). 8 R. Doc. 1 at ¶¶ 10-12 (citing R. Doc. 1-2 at p. 1). 9 R. Doc. 1 at ¶ 12 (quoting R. Doc. 1-2 at p. 1). 10 R. Doc. 1 at ¶ 13. 11 Id. at ¶ 14 (citing R. Doc. 1-3); R. Doc. 1 at ¶ 16. some of the defendants, but did not assert such claims against CertainTeed.12 Relying on terms of the Release, on August 15, 2018 CertainTeed sent a written demand for indemnification and payment to Mrs. Mayfield, through her counsel, for

the wrongful death claims asserted against CertainTeed by her adult children.13 Mrs. Mayfield had not responded to CertainTeed’s request as of the date CertainTeed filed its Complaint for Declaratory Judgment on January 18, 2019.14 On March 14, 2019, Mrs. Mayfield filed a Motion to Dismiss or, Alternatively, Stay Proceedings, asking the Court to either dismiss the case under Fed. R. Civ. P. 12(b)(6) or stay the case until the conclusion of the pending state court litigation.15 Mrs. Mayfield argued that the Complaint fails to state a claim upon which relief can

be granted because the purported indemnity agreement, on its face, does not apply to the wrongful death claims brought by the Mayfield’s adult children. CertainTeed opposed the Motion to Dismiss, asserting that the Court should deny the Motion and exercise its authority to grant summary judgment in CertainTeed’s favor under Fed. R. Civ. P. 56(f)(1) because the parties agree that the applicability of the indemnity provision is a question of law.16 On April 23, 2020, the Court issued an Order and

Reasons, denying Mrs. Mayfield’s request to dismiss or, alternatively, stay this matter, and denying CertainTeed’s request for summary judgment.17 Accepting CertainTeed’s allegations as true, as the Court was bound to do, and because Rule

12 R. Doc. 1 at ¶ 17. 13 Id. at ¶ 18. 14 Id. at ¶ 19. 15 R. Doc. 12. 16 R. Doc. 16. 17 R. Doc. 65. 12(b)(6) motions to dismiss are generally disfavored and rarely granted, the Court concluded that CertainTeed had stated a plausible claim for relief. The Court did not, nor was it appropriate at the time to, make a ruling on the merits of the claim.

Before the Court now are cross motions for summary judgment filed by Mrs. Mayfield and DBMP LLC, the legal successor to CertainTeed.18 The parties agree that the only dispute before the Court is a legal one: whether the indemnification provision contained in the Release signed by Mr. and Mrs. Mayfield covers the wrongful death action brought by their adult children.19 The indemnification provision provides, in pertinent part, the following: In further consideration of the above-described payment, Releasors [CJ Mayfield and Dorothy Mayfield] agree, individually and jointly, to indemnify, hold harmless, and defend the Releasee(s) [including CertainTeed Corporation and its successors] from and against any and all claims, demands, causes of action, lawsuits (including the lawsuit identified above) and/or judgments for contribution or indemnity which are or may be related to, or may result from or arise out of, any injuries or losses sustained by CJ Mayfield or Releasors because of CJ Mayfield’s inhalation or ingestion of, contact with, exposure to or use of . . . asbestos-containing products . . . manufactured, distributed, . . . sold or marketed by the Releasee(s) . . . .20

DBMP LLC argues that it is entitled to a declaratory judgment that the indemnification provision covers the wrongful death claims asserted by Mrs.

18 DBMP LLC asserts that on October 23, 2019, CertainTeed went through an internal, corporate restructuring, the result of which is that CertainTeed ceased to exist and a new entity, DBMP LLC, was formed. R. Doc. 31-2 at p. 4. DBMP LLC asserts that, as a result of the allocation of CertainTeed’s assets and liabilities, all of the asbestos-related assets and liabilities of CertainTeed that are at issue in this case, including the right to indemnification, are now the assets and liabilities of DBMP LLC. Id. (citing R. Doc. 31-5 at ¶ 2). 19 R. Doc. 31-2 at p. 6; R. Doc. 40-1 at pp. 4 & 5; R. Doc. 42 at p. 3. 20 R. Doc. 42 at pp. 2-3 (citing “Release at 1”); R. Doc. 31-2 at p. 3 (citing “Ex. 2”). The Court notes that there is no “Exhibit 2” attached to DBMP LLC’s Motion. This language seems to be copied from CertainTeed’s Complaint for Declaratory Judgment. R. Doc. 1 at pp. 3-4 (citing Ex. 2). Exhibit 2 to CertainTeed’s Complaint is a copy of the Release. R. Doc. 1-2. Mayfield’s adult children because the wrongful death suit, filed as a supplemental petition in the same docket number as the original personal injury case, is, as a matter of law, related to, results from, and arises out of Mr. Mayfield’s exposure to

asbestos from products manufactured, sold, or distributed by CertainTeed.21 DBMP LLC asserts that the indemnification agreement is not limited to claims brought by Mr. or Mrs.

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