Government Employees Insurance Company v. Gerjets

CourtDistrict Court, W.D. Washington
DecidedMarch 3, 2020
Docket3:19-cv-05912
StatusUnknown

This text of Government Employees Insurance Company v. Gerjets (Government Employees Insurance Company v. Gerjets) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Government Employees Insurance Company v. Gerjets, (W.D. Wash. 2020).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 6 AT TACOMA GOVERNMENT EMPLOYEES CASE NO. 19-cv-5912-RJB 7 INSURANCE COMPANY, a Maryland corporation, ORDER GRANTING DEFENDANT 8 ANDREA M. GERJETS’S MOTION Plaintiff, TO STAY 9 v. 10 ANDREA M. GERJETS, T.A.T., B.R.S., and B.S.U., 11 Defendants. 12

13 THIS MATTER comes before the Court on Defendant Andrea M. Gerjets’s (“Ms. 14 Gerjets”) Motion to Stay. Dkt. 21. The Court is familiar with the motion, materials filed in 15 support and opposition thereto, and the remainder of the record herein. For the reasons set forth 16 below, the Motion to Stay should be granted. 17 I. BACKGROUND & FACTS 18 This case is an insurance coverage dispute. Dkt. 10. Plaintiff Government Employees 19 Insurance Company (“GEICO”) argues that it has no duty to defend Ms. Gerjets against claims 20 made by plaintiffs in an underlying case. Dkts. 10; and 24. In the underlying case, the plaintiffs 21 allege, in part, that, between 2009 and 2013, while they were under the age of 18, Richard 22 Gerjets (Ms. Gerjets’s late husband) engaged in inappropriate sexual contact with them while 23 acting in his capacity as a member of the Keyport Bible Church’s congregation, for which he 24 1 frequently volunteered to lead, organize, and participate in church-related activities involving 2 children. Dkt. 22-1, at 13 et seq. The underlying plaintiffs allege further that, “[t]he inappropriate 3 sexual contact Richard Gerjets perpetrated on plaintiffs was proximately caused by or 4 proximately contributed to by Andrea Gerjets’ failure to fulfill her duty to protect plaintiffs from 5 harm when they were on her property.” Dkt. 22-1, at 16.

6 This order next provides the factual backgrounds of the insurance policy GEICO issued 7 to the Gerjets, an underlying case, a related case, and the instant Motion to Stay. 8 A. INSURANCE POLICY 9 GEICO issued Washington Family Automobile Insurance Policy number 0774-17-97-09 10 (“Policy”) to Ms. Gerjets and Richard Gerjets (referred to collectively as the “Gerjets”), in effect 11 December 10, 2008, to June 10, 2014. Dkts. 10, at 2; and 20-2 (providing a copy of the Policy). 12 The Policy apparently includes liability coverage for a trailer owned by the Gerjets. Dkt. 10, at 2. 13 The Policy provides, in part, the following terms: 14 SECTION I – VACATION LIABILITY COVERAGE-This coverage is a supplement to the Section I-Liability Coverages in 15 the GEICO automobile insurance policy.

16 DEFINITIONS

17 * * * * *

18 Occurrence means an accident or event, including continuous or repeated exposure to conditions, which results in bodily injury or 19 property damage neither expected nor intended from the standpoint of the insured and the commission of an offense, or a series of 20 similar related offenses that arise out of the ownership maintenance, or use of an owned or non-owned auto while at an 21 insured location.

22 * * * * *

23 SECTION I – VACATION LIABILITY COVERAGE – LOSSES WE WILL PAY 24 1 We will defend or pay damages under this endorsement, other than punitive or exemplary damages, which an insured becomes legally 2 obligated to pay because of bodily injury or property damage resulting from an occurrence at an insured location. 3 * * * * * 4 EXCLUSIONS 5 All exclusions in Section 1-Liability Coverages of the GEICO automobile insurance policy apply to Vacation Liability 6 Coverage. We will not pay damages or defend under this endorsement if any 7 one of the following exclusions apply.

8 Section I does not apply to:

9 * * * * *

10 G. Bodily injury transmitted by an insured through sexual contact. 11 * * * * * 12 J. Bodily injury or property damage arising out of 13 sexual molestation, corporal punishment, or physical or mental abuse. 14 Dkt. 10, at 3–4 (emphasis in original). 15 The operative complaint provides that the Policy’s liability coverage for the trailer 16 incorporates by reference all of the exclusions contained in “Section 1-Liability Coverages of the 17 Policy,” including, in part, an exclusion that “Bodily injury or property damage caused 18 intentionally by or at the direction of an insured is not covered.” Dkt. 10, at 4 (emphasis in 19 original). 20 B. UNDERLYING CASE 21 The underlying case is T.A.T., et al. v. Keyport Bible Church, et al., 18-2-02688-18 22 (Kitsap Ct. Super. Ct. 2018). The underlying plaintiffs allege claims of inappropriate sexual 23 contact against Richard Gerjets and negligence against Ms. Gerjets. Dkt. 22-1, at 13 et seq. 24 1 The operative complaint provides that GEICO was informed that the alleged 2 inappropriate sexual contact of Richard Gerjets may have occurred, at least in part, “in a vehicle” 3 insured by GEICO. Dkt. 10, at 4–5. The operative complaint notes that “GEICO performed an 4 investigation and learned that the Underlying Plaintiffs claimed that multiple incidents of abuse 5 occurred in a trailer owned by Gerjets” and that GEICO therefore “agreed to provide a defense

6 [to Ms. Gerjets for] the Underlying Lawsuit subject to a complete reservation of rights.” Dkt. 10, 7 at 5. Ms. Gerjets indicates that GEICO is sharing the cost of her defense in the underlying case 8 with two other insurers, Civil Service Employees Insurance Company (“CSE”) and Travelers 9 Insurance Company. Dkts 21; and 22, at 2. 10 Counsel for Ms. Gerjets provides that, “The underlying litigation is rapidly approaching 11 …. [with] a July 2020 trial date. The parties in the underlying matter are in the course of 12 attempting to agree to a mediation before the July 2020 trial to attempt to globally resolve the 13 underlying litigation.” Dkt. 22, at 2. 14 C. RELATED CASE

15 The related case is Civ. Serv. Employees Ins. Co. v. Gerjets, et al., 20-cv-5071-RJB 16 (W.D. Wash. 2020), another insurance coverage dispute related to the underlying case. Dkt. 22- 17 1, at 2 et seq. The related case’s complaint provides that CSE issued a homeowners insurance 18 policy to the Gerjets, effective August 1, 2008, to August 1, 2013. Dkt. 22-1, at 3. The related 19 complaint provides that plaintiffs in the underlying case alleged that “some of the inappropriate 20 sexual contact took place in the Gerjets residence, while the plaintiffs were social guests of Mrs. 21 Gerjets, and that she breached her duty to protect them from dangerous conditions on her 22 premises …, including Richard Gerjets’ proclivity for engaging in inappropriate sexual contact 23 with minor boys.” Dkt. 22-1, at 4. CSE indicates that Ms. Gerjets tendered the underlying 24 1 complaint to CSE for defense, and “CSE agreed to participate in her defense [in the underlying 2 case] subject to a reservation of CSE’s rights as to coverage.” Dkt. 22-1, at 4. 3 CSE filed the related lawsuit against Ms. Gerjets and the underlying plaintiffs. Dkt. 22-1, 4 at 2. The related complaint requests declaratory judgment that (1) CSE’s policy provides no 5 coverage to Ms. Gerjets for the underlying plaintiffs’ claims, (2) CSE has no duty to defend Ms.

6 Gerjets for the underlying plaintiffs’ claims, (3) CSE may withdraw its defense for Ms. Gerjets, 7 and (4) CSE has no duty to indemnify Ms. Gerjets in connection with a judgment or settlement 8 as to the underlying plaintiffs’ claims. Dkt. 22-1, at 10–11. 9 Ms. Gerjets indicates that she will file a forthcoming Motion to Consolidate the instant 10 case with the related case. Dkt. 21, at 3–5. 11 D. PENDING MOTION 12 Ms. Gerjets filed the instant Motion to Stay. Dkt. 21. Ms. Gerjets requests a stay until 13 final adjudication of the underlying case. Dkt. 21, at 3. In the alternative to a stay until final 14 adjudication of the underlying case, Ms. Gerjets requests a stay until resolution of her

15 forthcoming Motion to Consolidate. Dkt. 21, at 3–5. GEICO filed a response in opposition to the 16 Motion to Stay. Dkt. 24. Ms. Gerjets filed a reply. Dkt. 27. 17 II. DISCUSSION 18 A.

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Government Employees Insurance Company v. Gerjets, Counsel Stack Legal Research, https://law.counselstack.com/opinion/government-employees-insurance-company-v-gerjets-wawd-2020.