Houston Casualty Company v. Casal Enterprises, Inc.

CourtDistrict Court, W.D. Washington
DecidedMay 21, 2026
Docket2:25-cv-00427
StatusUnknown

This text of Houston Casualty Company v. Casal Enterprises, Inc. (Houston Casualty Company v. Casal Enterprises, Inc.) 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
Houston Casualty Company v. Casal Enterprises, Inc., (W.D. Wash. 2026).

Opinion

HONORABLE RICHARD A. JONES 1

8 UNITED STATES DISTRICT COURT 9 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 10 HOUSTON CASUALTY COMPANY, a CASE NO. 2:25-cv-00427-RAJ 11 Texas corporation, ORDER 12 Plaintiff,

13 v.

14 CASAL ENTERPRISES, INC., a Washington corporation, 15 Defendant. 16 17 18 I. INTRODUCTION 19 THIS MATTER comes before the Court on Plaintiff Houston Casualty Company’s 20 (“HC”) Motion for Judgment on the Pleadings, Dkt. # 29, and Defendant Casal Enterprises, 21 Inc.’s (“Casal”) Motion to Certify State Law Questions to the Supreme Court of 22 Washington, Dkt. # 34. The Court has reviewed the motions, the submissions in support 23 of and in opposition to the motions, and the balance of the record. HC requested oral 24 argument on its Motion for Judgment on the Pleadings, but the Court finds oral argument 25 is not necessary to resolve the motion. For the reasons set forth below, the Court GRANTS 26 IN PART HC’s Motion for Judgment on the Pleadings, and DENIES Casal’s Motion to 27 Certify State Law Questions. 1 II. BACKGROUND 2 This case concerns an insurance company’s obligation to provide coverage for an 3 underlying putative class action alleging violation of the Washington Equal Pay and 4 Opportunities Act (“EPOA”). In 2022, the EPOA was amended to require employers 5 “with 15 or more employees” to disclose in “each posting for each job opening” the “wage 6 scale or salary range” and “a general description of all of the benefits and other 7 compensation to be offered to the hired applicant.” RCW 49.58.110(1)(a), (3). The 8 amendment led to numerous lawsuits for alleged violations of this pay disclosure 9 requirement, including the underlying lawsuit at issue in this case. 10 On or around September 3, 2024, a plaintiff filed a putative class action against 11 Casal in King County Superior Court captioned Okyeremah Nyannor v. Casal Enterprises, 12 Inc., No. 24-2-19872-5-SEA (the “Underlying Action”). Dkt. # 1-2. The complaint in the 13 Underlying Action begins by stating the “lawsuit follows important, recent research which 14 revealed pervasive pay disparity in Washington with respect to both women and other 15 protected classes.” Id. ¶ 4. It goes on to explain the legislative history of the recent EPOA 16 amendment, including that “[s]ome folks do not have the networks or ability to negotiate 17 salaries” and the amendment is intended to “increase the ability to negotiate pay.” Id. ¶ 5. 18 The complaint asserts a single cause of action for violation of RCW 49.58.110 because 19 “Plaintiff and the Class members applied for job openings with [Casal] where the job 20 postings did not disclose the wage scale or salary range being offered.” Id. ¶ 50. The class 21 definition includes “[a]ll individuals” who applied for a non-compliant job postings within 22 the relevant period, regardless of whether they belong to a protected class. Id. ¶ 40. 23 HC is Casal’s insurer under an Employment Practices Liability Policy (the “Policy”) 24 covering the period from March 1, 2024 to March 1, 2025. Dkt. # 1 ¶ 6; Dkt. # 1-1. As 25 described in more detail below, the Policy covers certain claims for an “Employment 26 Practices Wrongful Act,” including an act of “Discrimination,” as those terms are defined 27 in the Policy. Dkt. # 1 ¶¶ 7–9. HC agreed to pay “Defense Costs” on behalf of Casal in 1 the Underlying Action, subject to a reservation of rights. Id. ¶ 17. It advised Casal, 2 however, that it did not believe the Policy was triggered because the Underlying Action 3 did not allege an “Employment Practices Wrongful Act.” Id. 4 On March 11, 2025, HC filed this declaratory action against Casal. HC asserts three 5 counts for declaratory relief as follows: 6 (1) Count One – No Coverage for the Class Action: Declaration that 7 “violation of RCW 49.58.110 is not an Employment Practices Wrongful Act under the Policy, that HCC has no duty to defend or indemnify Casal in 8 connection with the Class Action, and that it has no obligation to pay Defense Costs in the Class Action except as may be provided for under the Wage and 9 Hour Defense Sublimit. Id. ¶ 27. 10 (2) Count Two – Definition of Loss: Declaration that “the $5,000 statutory 11 damages recoverable under RCW 49.58.070(1) is not Loss under the Policy and that HCC has no obligation under the Policy to pay that portion of any 12 settlement or judgment attributable to such amounts. Id. ¶ 36. 13 (3) Count Three – Wage and Hour Defense Sublimit: Declaration 14 regarding “whether the Class Action falls within the scope of the Wage and 15 Hour Sublimit and whether HCC is obligated to pay an aggregate sublimit of $150,000 for Defense Costs incurred in those actions.” Id. ¶ 43 16 17 III. DISCUSSION 18 A. Motion to Certify State Law Questions 19 The Court begins by addressing Casal’s Motion to Certify. Casal asks the Court to 20 certify the following questions to the Washington Supreme Court: 21 (1) does the violation of RCW 49.58.110 qualify as “discrimination” under the subject employment practices liability insurance policy or policies in 22 Washington; 23 (2) are the statutory damages provided for in RCW 49.58.070 and authorized 24 by RCW 49.58.110(5)(a) covered “loss” under the subject employment 25 practices liability insurance policy or policies; and

26 (3) is RCW 49.58.110 a “wage and hour law” under the subject employment practices liability insurance policy or policies? 27 1 Dkt. # 34 at 2. The Court declines the invitation. 2 “[T]he decision to certify a question to a state ‘rests in the sound discretion of this 3 court.’” Freyd v. Univ. of Oregon, 990 F.3d 1211, 1223 (9th Cir. 2021) (quoting In re 4 Complaint of McLinn, 744 F.2d 677, 681 (9th Cir. 1984)). “We invoke the certification 5 process only after careful consideration and do not do so lightly.” Murray v. BEJ Minerals, 6 LLC, 924 F.3d 1070, 1072 (9th Cir. 2019) (quoting Kremen v. Cohen, 325 F.3d 1035, 1037 7 (9th Cir. 2003)). Under RCW 2.60.020, a federal court may certify state law questions to 8 the Washington Supreme Court if “in the opinion” of the federal court, (1) “it is necessary 9 to ascertain the local law of this state in order to dispose of such proceeding”; and (2) “the 10 local law has not been clearly determined.” The Ninth Circuit has further identified the 11 following factors for consideration: “(1) whether the question presents ‘important public 12 policy ramifications’ yet unresolved by the state court; (2) whether the issue is new, 13 substantial, and of broad application; (3) the state court’s caseload; and (4) ‘the spirit of 14 comity and federalism.’” Murray, 924 F.3d at 1072 (quoting Kremen, 325 F.3d at 1037– 15 38).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McLINN v. FJORD
744 F.2d 677 (Ninth Circuit, 1984)
Kremen v. Cohen
325 F.3d 1035 (Ninth Circuit, 2003)
Fleming v. Pickard
581 F.3d 922 (Ninth Circuit, 2009)
Truck Ins. Exchange v. VanPort Homes, Inc.
58 P.3d 276 (Washington Supreme Court, 2002)
Panorama Village v. Allstate Ins. Co.
26 P.3d 910 (Washington Supreme Court, 2001)
U.S. Bank v. Sfr Investments Pool 1, LLC
987 F.3d 858 (Ninth Circuit, 2021)
Jennifer Freyd v. University of Oregon
990 F.3d 1211 (Ninth Circuit, 2021)
Viking Bank v. Firgrove Commons 3, LLC
334 P.3d 116 (Court of Appeals of Washington, 2014)
Westport Insurance v. Northern California Relief
76 F. Supp. 3d 869 (N.D. California, 2014)
Rli Ins. Co. v. City of Visalia
297 F. Supp. 3d 1038 (E.D. California, 2018)
Murray v. BEJ Minerals, LLC
924 F.3d 1070 (Ninth Circuit, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
Houston Casualty Company v. Casal Enterprises, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/houston-casualty-company-v-casal-enterprises-inc-wawd-2026.