Great American Insurance v. Moye

733 F. Supp. 2d 1298, 2010 U.S. Dist. LEXIS 76601, 2010 WL 3125948
CourtDistrict Court, M.D. Florida
DecidedJuly 29, 2010
Docket6:10-cv-00330
StatusPublished
Cited by4 cases

This text of 733 F. Supp. 2d 1298 (Great American Insurance v. Moye) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great American Insurance v. Moye, 733 F. Supp. 2d 1298, 2010 U.S. Dist. LEXIS 76601, 2010 WL 3125948 (M.D. Fla. 2010).

Opinion

ORDER ON PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AND DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT

ELIZABETH A. KOVACHEVICH, District Judge.

This cause came before this Court pursuant to both parties’ motions for summary judgment. (Doc. 18 & 24). A review of the record indicates that, for the following reasons, the Plaintiffs motion for summary judgment should be DENIED, and the Defendant’s motion for summary judgment should be GRANTED.

Factual and Procedural Background

The facts of the case are as follows. Great American, Plaintiff, is an Ohio Corporation engaged in the business of issuing federally reinsured crop insurance policies. Plaintiff issued the subject Multi-Peril Crop Insurance (MPCI) Policy to the Defendant, Ronald Moye, a resident of Hardee Florida. The Federal Crop Insurance Corporation (FCIC), an entity created by Congress as part of the Federal Crop Insurance Act (see 7 U.S.C. § 1501), sets forth the MPCI policy terms. These terms are codified at 7 C.F.R. § 457. After the policy took effect, the Defendant suffered a loss to his tomato crop and filed a claim with the Plaintiff. In the claim, the Defendant maintained that his loss was due to excessive moisture. The Plaintiff investigated the claim and denied indemnity because it believed that the Defendant’s loss was due to disease, which was not a “covered peril” under the policy.

After being denied indemnity, the Defendant demanded arbitration, in accordance with MPCI Basic Provisions ¶ 20, to resolve disputes related to the Plaintiffs determinations about the claim. The parties employed F. Steven Herb to arbitrate the dispute, and the hearing was held November 17-19, 2009. The parties did not hire a court reporter to produce a transcript of the arbitration hearing, a fact that has provided an impediment for the Court and the parties throughout the disposition of this case. The Arbitrator found that the Defendant planted tomatoes on fifty acres of his land that previously held pepper and watermelon crops. He prepared the soil by mowing the remaining plants and vines, applying the herbicides “Round Up” and Paraquat. The Arbitrator found that this was “an acceptable, good farming practice” (Doc. 1-1 at 4). The Defendant then covered the soil with black plastic mulch to concentrate the summer heat into the soil, which the Arbitrator also found was “an acceptable good farming practice.” (Doc. 1-1 at 4). The Defendant followed this with a post-planting application of “Vydate L”, an insecticide/nomaticide. Further, the Arbitrator found that a tropical depression brought heavy rain to the Defendant’s farm.

The Defendant subsequently filed a notice of probable loss due to excessive moisture. The claim was denied. After hearing evidence from the parties, the Arbitrator found for the Defendant and awarded him indemnity in the amount of $117,670.67. The Arbitrator issued his “Findings of Fact, Issues in Dispute, Conclusions of Law” (Doc. 1-1) (hereinafter “Arbitrator’s Findings of Fact”) which included the following determinations: 1) excessive moisture was the cause of Defendant’s loss; 2) the Plaintiffs alternative cause was not supported by the evidence; 3) the Defendant’s treatment of the soil was proper treatment; and 4) the Defendant was not required to re-plant his tomatoes.

*1301 Thereafter, the Plaintiff commenced this action by filing a complaint (Doc. 1) seeking declaratory relief, nullification of the award, and vacation of the award. The Defendant answered denying many of the Plaintiffs allegations and counterclaimed seeking confirmation of the arbitration award. (Doc. 10). Thereafter, Plaintiff responded to the counterclaim (Doc. 14); the parties filed cross motions for summary judgment (Docs. 18 & 24).

Standard of Review

If the pleadings, discovery materials, and affidavits show there is no genuine issue as to any material fact, the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c). The moving party bears the burden of showing there is not genuine issue of fact for trial. Celotex Carp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party may discharge the burden by showing that the opposing party is missing an essential element of their case. Id. at 331, 106 S.Ct. 2548. The evidence must be considered in a light most favorable to the nonmovant. Once an absence of genuine issues of fact has been shown, the nonmovant must show that there is an actual issue of fact not merely a scintilla of evidence supporting the nonmovant’s position. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A genuine issue for trial exists only if there is sufficient evidence to allow a jury to return a verdict for the nonmoving party. Id. at 249, 106 S.Ct. 2505. When a nonmoving party cannot make an adequate showing on a necessary element of the case on which that party bears the burden of proof, the moving party is entitled to judgment as a matter of law. Celotex, 477 U.S. at 322, 106 S.Ct. 2548.

Judicial review of arbitration awards is extremely limited. See AIG Baker Sterling Heights, LLC v. Am. Multi-Cinema, Inc., 579 F.3d 1268, 1271 (11th Cir.2009). District Courts hearing Arbitration appeals will not re-examine the merits or factual determinations of the underlying arbitration award. See Faimon v. Farmers Crop Insurance Alliance, 2006 WL 463856, *2 (D.Neb.2006); Farmers Crop Insurance Alliance v. Laux, 422 F.Supp.2d 898, 902 (S.D.Ohio 2006). Great deference must be given to the Arbitrator’s decision. Borden v. Hammers, 941 F.Supp. 1170, 1173 (M.D.Fla.1996). “[A]s long as the arbitrator is even arguably construing or applying the contract and acting within the scope of his authority, that a court is convinced he committed serious error does not suffice to overturn his decision.” United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29, 38, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987) (emphasis added).

The Federal Arbitration Act limits the scope of judicial review of arbitration decisions. See 9 U.S.C. §§ 9-11. Although deference is given to an Arbitrator’s decision, an Arbitrator’s power is not unlimited, and in certain circumstances, a decision may be vacated or modified. See 9 U.S.C. §§ 10-11. A Federal Court may not vacate an arbitration award under 9 U.S.C.

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733 F. Supp. 2d 1298, 2010 U.S. Dist. LEXIS 76601, 2010 WL 3125948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-insurance-v-moye-flmd-2010.