General Star Indemnity Company v. Louisville Area Governmental Self Insurance Trust

CourtDistrict Court, W.D. Kentucky
DecidedNovember 20, 2024
Docket3:21-cv-00206
StatusUnknown

This text of General Star Indemnity Company v. Louisville Area Governmental Self Insurance Trust (General Star Indemnity Company v. Louisville Area Governmental Self Insurance Trust) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Star Indemnity Company v. Louisville Area Governmental Self Insurance Trust, (W.D. Ky. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION CIVIL ACTION NO. 3:21-CV-00206-GNS-CHL

GENERAL STAR INDEMNITY COMPANY, Plaintiff,

v.

LOUISVILLE AREA GOVERNMENTAL SELF INSURANCE TRUST, et al., Defendants.

MEMORANDUM OPINION AND ORDER

Before the Court is the Motion to Compel filed by Plaintiff General Star Indemnity Company (“General Star”). (DN 102.) Defendant Louisville Area Governmental Self Insurance Trust (“LAGIT”) filed a response in opposition (DN 109), and Defendants Jeffrey Dewayne Clark (“Clark”) and Garr Keith Hardin (“Hardin”) filed a motion to join LAGIT’s response (DN 113), which the Court granted (DN 126). General Star filed a reply. (DN 116.) Therefore, the Motion to Compel (DN 102) is ripe for review. I. BACKGROUND This action centers on a coverage dispute related to another pending action in this Court. In the underlying action, Clark and Hardin initiated a civil rights action against Meade County, Kentucky; several Meade County law enforcement officers; Louisville Jefferson County Metro Government (“Louisville Metro”); the City of Louisville; several Louisville law enforcement officers; and a Kentucky State Police Crime Lab forensic serologist alleging that they “lost 22 years of their lives wrongfully incarcerated for a heinous 1992 murder they did not commit” due to police misconduct. DN 38, at PageID # 182, Clark v. Louisville Jefferson County Metro Government, No. 3:17-cv-419-GNS (filed May 1, 2018); DN 39, at PageID # 240, Clark v. Louisville Jefferson County Metro Government, No. 3:17-cv-419-GNS (filed May 1, 2018). Separate actions were initially filed by the two men and later consolidated into one action. DN 1, Clark v. Louisville Jefferson County Metro Government, No. 3:17-cv-419-GNS (filed July 12, 2017); DN 1, Hardin v. Louisville Jefferson County Metro Government, No. 3:17-cv-420-CRS (filed July 12, 2017); DN 34, Clark v. Louisville Jefferson County Metro Government, No. 3:17- cv-419-GNS (ent’d Nov. 22, 2017). The Court will refer to Clark and Hardin’s consolidated civil

rights action herein as “the wrongful conviction action.” On April 1, 2021, General Star filed the instant action seeking a declaratory judgment that the Special Excess Liability Policy No. IXG 358532 issued by General Star to LAGIT for the policy period of July 1, 1998, to July 1, 2000, (the “Policy”) does not provide defense or indemnity coverage for the wrongful conviction action. (DN 1, at ⁋⁋ 1-2.) Specifically, General Star asserted in its Complaint that “there is no coverage for the [wrongful conviction action] because no covered bodily injury, personal injury, or wrongful act occurred or took place during the July 1, 1998[,] to July 1, 2000[,] policy period.” (Id. at ⁋ 3 (emphasis omitted).) General Star also asserted that if the Policy is trigged, it also sought “a declaration that coverage is barred or limited on other

grounds.” (Id.) Later in the Complaint, it specified, “coverage may be barred or limited based on other grounds, including, but not limited to, application of Sections II.O[], II.U, III.B[], III. C[], III.D[], V.A.1[], V.A.16, V.A.18, and VI.J of the General Star Policy, and the applicable terms of the 1998-99 and 1999-00 LAGIT Contracts, as explained in General Star’s coverage letters to LAGIT.” (Id. at ⁋ 53; see also id. at ⁋ 61.) The specified provisions of the Policy relate to the definition of the term “occurrence,” the definition of the term “Retained Limit,” three provisions from the section of the Policy regarding “Limits of Insurance,”1 a wrongful act exclusion, an

1 Those three provisions state as follows: B. Our duty to pay any sums that you become legally obligated to pay arises only after there has been a complete expenditure of your retained limit by means of payments for exclusion for criminal/dishonest/fraudulent/malicious acts, an exclusion for personal or advertising injury, and a provision of the policy relating to “Other Insurance.”2 (DN 1-2.) It named as Defendants in its suit LAGIT, Louisville Metro, the City of Louisville, the Louisville law enforcement officers named in the wrongful conviction action, and Clark and Hardin themselves. (DN 1.)

In response, on May 28, 2021, LAGIT, Louisville Metro, the City of Louisville, and the named Louisville law enforcement officers except for Defendant Mark Handy (“Handy”) filed an answer, and LAGIT also filed a counterclaim. (DN 30.) In its counterclaim LAGIT itself sought a declaratory judgment that “General Star follows the fortunes of LAGIT with respect to any settlement made of the [wrongful conviction action], in an amount up to and including the full

judgments, settlements, or defense costs. We will then be liable only for that portion of damages in excess of your retained limit up to our Limits of Insurance. C. The Per Occurrence or Wrongful Act Limit of Insurance is the most we will pay for the sum of all damages because of bodily injury, property damage, personal injury, or advertising injury arising out of a single occurrence or all losses arising out of a single wrongful act. D. All occurrences arising out of continuous, repeated, or related occurrences shall be treated as one occurrence. All wrongful acts arising out of continuous, repeated, or related wrongful acts shall be treated as one wrongful act. The Limits of Insurance in effect when the first claim is made and reported to us shall apply. (DN 1-2, at § III.B-D (emphasis omitted).) 2 That provision states as follows: J. Other Insurance If other valid and collectible insurance is available to you for ultimate net loss we cover under this policy, our obligations under this policy are limited as follows: 1. As this insurance is excess over any other insurance, whether primary, excess, contingent or on any other basis, except such insurance as is specifically purchased to apply in excess of this policy’s Limits of Insurance, we will pay only our share of the amount of ultimate net loss, if any, that exceeds the greater of: a. The sum of: i. The total amount that all such other insurance would pay for the loss in the absence of this insurance; and ii. The total of all deductible and self-insured amounts or participations under such other insurance; or b. The retained limit as shown in the Declarations. 2. We have no duty to defend any claim or suit whether or not any other insurer has a duty to defend. If no other insurer defends. we may exercise our right to do so, but we will be entitled to your rights against all other insurers. (DN 1-2, at § VI.J (emphasis omitted).) limit(s) of the General Star Policy”; LAGIT also brought a breach of contract claim against General Star alleging that General Star had “materially breached their duties and obligations under the Policy by wrongfully denying coverage and causing damages in an amount to conform to proof at trial.” (Id. at ⁋⁋ 23-29.) Handy, Clark, and Hardin filed answers to General Star’s Complaint but not counterclaims. (DNs 35, 36.)

In its Answer to LAGIT’s counterclaim, General Star specifically listed as affirmative defenses that “there is no coverage because all bodily injury, personal injuries, and wrongful acts took place before the policy period,” “LAGIT has no contractual obligation to indemnify [Louisville] Metro under the LAGIT 1998-99 and 1999-00 Contracts given that coverage under those contracts is not triggered or is otherwise precluded or limited by the July 1, 1998 retroactive dates,” the provisions of the Policy cited above as other grounds for denial of coverage, the fact that the Policy is not a reinsurance contract, the “Policy is not subject to the follow-the-fortunes doctrine,” LAGIT failed to satisfy conditions precedent under or otherwise breached the terms of the Policy, the terms of the Policy preclude LAGIT’s counterclaim, and the counterclaim failed to

state a claim upon which relief can be granted.

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Bluebook (online)
General Star Indemnity Company v. Louisville Area Governmental Self Insurance Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-star-indemnity-company-v-louisville-area-governmental-self-kywd-2024.