Colony Insurance v. Events Plus, Inc.

585 F. Supp. 2d 1148, 2008 U.S. Dist. LEXIS 83301, 2008 WL 4446700
CourtDistrict Court, D. Arizona
DecidedSeptember 30, 2008
DocketCV-07-1525-PHX-JAT
StatusPublished
Cited by10 cases

This text of 585 F. Supp. 2d 1148 (Colony Insurance v. Events Plus, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colony Insurance v. Events Plus, Inc., 585 F. Supp. 2d 1148, 2008 U.S. Dist. LEXIS 83301, 2008 WL 4446700 (D. Ariz. 2008).

Opinion

ORDER

JAMES A. TEILBORG, District Judge.

Pending before the Court are the Motion for Summary Judgment of the Targosz Defendants (“Targosz Defendants”) (Doc. # 16), Plaintiff Colony Insurance Company’s (“Colony”) Cross-Motion for Summary Judgment Against All Defendants (Doc. #27), and Plaintiff Colony’s Motion for Default Judgment (Doc. # 25).

I. FACTUAL BACKGROUND

This case is a declaratory relief action in which Colony seeks a declaration that its commercial general liability policy issued to Events Plus, Inc. (“Events Plus” or “the *1150 insured”) identified as policy number GL3368147, with a coverage period of April 25, 2006 to April 25, 2007 (“the Policy”)) provides no coverage in connection with an accident involving Gilbert Police Officer Robert D. Targosz (“Officer Targosz”) on April 29, 2006. (Complaint, Doc. # 1, ¶ 9.)

This declaratory relief action arises from an underlying state court lawsuit, Brigitte Targosz, et al. v. Red Bull North America, Inc., et al., Cause No. CV2006-018504, (“underlying suit” or “Red Bull Complaint”), in which the plaintiffs allege that, after becoming intoxicated, one Tyler Fahlman (“Mr. Fahlman”), caused a motor vehicle accident in which Officer Targosz was killed. (TDSOF ¶¶6-8, Doc. # 17, Attach. 1; CSOF ¶¶ 1-3.) Specifically, the Red Bull Complaint alleges that, while attending an event called “Flugtag” at Tempe Town Lake on April 29, 2006, Mr. Fahlman, though under Arizona’s legal drinking age of 21 at the time, was served numerous Red Bull/Vodka cocktails. (Id.) The suit alleges that Mr. Fahlman became severely intoxicated, proceeded to leave the event by car, drove his Ford Mustang through a red light at the intersection of Apache Boulevard and Price Road, and collided with a motorcycle driven by Officer Targosz. (Id.) On the following day, April 30, 2006, Officer Targosz died as a result of injuries sustained in that accident. (Id.)

As a result of that accident, the Targosz family filed suit for wrongful death against Mr. Fahlman and a number of entities including those alleged to have organized, hosted and supervised the “Flugtag” event. (Id.) Those entities include Red Bull North America, Red Bull GMBH, Global Event Management, Professional Event Management, Alliance Beverage Distributing Company, and Events Plus, Inc.—Colony’s insured. (Id.) Colony initiated this declaratory relief action to resolve certain coverage issues related to the Events Plus Policy that have been raised by the Red Bull Complaint. Specifically, the parties dispute whether the Policy’s liquor liability exclusion (“Exclusion”) bars coverage of the claims raised in the Red Bull Complaint. Colony and the Targosz Defendants have filed cross-motions for summary judgment on this issue. 1 Events Plus—Colony’s insured—has failed to serve or file any answer or responsive pleading in this action, and Colony has moved for the entry of a default judgment against Events Plus.

II. CROSS-MOTIONS FOR SUMMARY JUDGMENT A. STANDARD

Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to summary judgment as a matter of law.” Fed.R.Civ.P. 56(c). Thus, summary judgment is mandated, “... against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

Initially, the movant bears the burden of pointing out to the Court the basis for the motion and the elements of the causes of action upon which the non-movant will be unable to establish a genuine issue of material fact. Id. at 323, 106 S.Ct. 2548. The burden then shifts to the non-movant to establish the existence of material fact. *1151 Id. The non-movant “must do more than simply show that there is some metaphysical doubt as to the material facts” by “com[ing] forward with ‘specific facts showing that there is a genuine issue for trial.’ ” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting Fed.R.Civ.P. 56(e)). A dispute about a fact is “genuine” if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The non-movant’s bare assertions, standing alone, are insufficient to create a material issue of fact and defeat a motion for summary judgment. Id. at 247-48, 106 S.Ct. 2505. However, in the summary judgment context, the Court construes all disputed facts in the light most favorable to the non-moving party. Ellison v. Robertson, 357 F.3d 1072, 1075 (9th Cir.2004).

B. LIQUOR LIABILITY EXCLUSION

The Court considers first whether Colony may rely upon the liquor liability exclusion contained in the insurance contract. Because this action was brought in federal district court on the basis of diversity of citizenship, Arizona substantive law applies. See Ves tar Dev. II, LLC v. General Dynamics Corp., 249 F.3d 958, 960 (9th Cir.2001). In the absence of Arizona Supreme Court precedent, “federal courts exercising diversity jurisdiction may look to other state court decisions, well-reasoned decisions from other jurisdictions, and any other available authority to determine how the state court would resolve the issue.” Santana v. Zilog, Inc., 95 F.3d 780, 783 (9th Cir.1996) (quoting Burns v. Int’l Ins. Co., 929 F.2d 1422, 1424 (9th Cir.)).

The Policy at issue in this action is a standard commercial general liability policy issued by Colony for Events Plus. (TDSOF ¶ 1, CSOF ¶ 4.) It covers the insured for sums it is legally obligated to pay for bodily injury and property damage resulting from an occurrence. Coverage is subject to various exclusions. One such exclusion is the Liquor Liability Exclusion (“Exclusion”) that excludes insurance coverage for:

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585 F. Supp. 2d 1148, 2008 U.S. Dist. LEXIS 83301, 2008 WL 4446700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colony-insurance-v-events-plus-inc-azd-2008.