Interstate Packaging Co. v. Century Indemnity Co.

291 F.R.D. 139, 2013 U.S. Dist. LEXIS 146777, 2013 WL 1332804
CourtDistrict Court, M.D. Tennessee
DecidedMarch 28, 2013
DocketNo. 3:11-cv-00589
StatusPublished
Cited by16 cases

This text of 291 F.R.D. 139 (Interstate Packaging Co. v. Century Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Packaging Co. v. Century Indemnity Co., 291 F.R.D. 139, 2013 U.S. Dist. LEXIS 146777, 2013 WL 1332804 (M.D. Tenn. 2013).

Opinion

ORDER

JOHN T. NIXON, Senior District Judge.

Pending before the Court is Plaintiff Interstate Packaging Company’s Motion to File Amended and Supplemental Complaint (“Motion” or “Motion to Amend”) (Doe. No. 104), filed with a Memorandum in Support (Doc. No. 105). On January 22, 2013, Magistrate Judge Knowles issued a Report and Recommendation (“R & R”), recommending that Plaintiffs Motion be denied. (Doc. No. 159.) Plaintiff filed Objections to the R & R (Doe. No. 165), to which several Defendants filed Responses (Doc. Nos. 168; 170; 172; 173.) For the reasons below, the Court ADOPTS the R & R and DENIES Plaintiff’s Motion.

I. Background

A. Factual Background1

1. Underlying Litigation

Interstate Packaging Company (“Interstate” or “Plaintiff’) manufactures packaging, labels, bags, and pouches for customers in the food and beverage, health and beauty, textile, household product, and pet product industries in Tennessee. (Doc. No. 1-1 at 3.) On October 28, 2009, Natural Resources Defense Council, Inc., Beatrice Holt, and Sheila Holt-Orsted (“NRDC Plaintiffs”) filed suit against Interstate in this District (“NRDC Lawsuit”). The Complaint in the NRDC Lawsuit (“NRDC Complaint”) alleged that Interstate disposed of waste containing trichloroethylene (“TCE”) and perehloroethy-lene (“PCE”) at a landfill owned and operated by the City of Dickson, Tennessee, in the 1970s and 1980s.

The NRDC Plaintiffs claimed that the TCE and PCE contaminated the Holts’ drinking well and the subsurface of their property. They further claimed that members of the Holt family had experienced serious health problems that they believed were related to their long-term exposure to the contaminated water supply. The NRDC Plaintiffs sought an order requiring various defendants, including Interstate, to investigate the extent of contamination, remediate the present contamination, and abate future contamination. The NRDC Plaintiffs subsequently settled their claims, and the NRDC Lawsuit was dismissed in November 2011.

2. Insurance Policies

The Defendants are insurers who — at various points relevant to the underlying litigation — insured Plaintiff. Plaintiffs insurance policies with Defendants each contained an identical exclusion to coverage for injury or property damage caused by the insured’s polluting activities. Specifically, the policies exclude from coverage:

bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, tonic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any water course or body of water; but this exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental.

(Doe. No. 1-1 at 4.) Defendants declined to defend or indemnify Plaintiff against the NRDC Lawsuit, on the basis that the NRDC [141]*141Complaint alleged polluting activities that were excluded from coverage, and did not fall within the “sudden and accidental” exception to the exclusion. (See, e.g., Doc. No. 1-5 at 637.) Defendants’ denial of coverage precipitated the instant case.

B. Procedural History

Plaintiff filed the instant action in the Chancery Court of Dickson County on May 18, 2011, seeking a declaratory judgment that coverage for the NRDC Lawsuit exists under the policies. (Doc. No. 1-1.) Plaintiffs allege generally that Defendants wrongfully denied insurance coverage for the damages alleged in the NRDC Lawsuit and that Defendants are liable for the policy limits, along with damages for their failure to defend and indemnify. (Id.) Defendants removed the action to this Court on June 17, 2011, on the grounds of diversity jurisdiction. (Doc. No. 1.)

Defendants Great American Insurance Company (“GAIC”), and Great American Insurance Company of New York (“GANY”), filed a Motion for Summary Judgment on December 5, 2011 (Doe. No. 65), which the Court granted on March 14, 2012. (Doc. No. 88.) The Court held that the exclusions contained in Plaintiffs insurance policies applied to bar coverage for the claims as alleged in the NRDC Lawsuit. (Id. at 10.) The Court therefore found that neither policy gave rise to a duty to defend or to indemnify. (Id. at 10-11.) The Court held, in the alternative, that it could not find a duty to indemnify when no “true facts” had been determined in the NRDC Lawsuit prior to the suit’s settlement. (Id. at 12.) Finally, the Court held that even if the policies gave rise to a duty to defend to indemnify, GAIC was entitled to summary judgment because Plaintiff did not create a genuine dispute of fact as to whether GAIC, rather than GANY, issued either policy. (Id.)

Less than three weeks after the Court’s summary judgment Order was entered, Defendants American Casualty Company (“ACC”) and Continental Casualty Company (“CCC”) filed a Motion for Summary Judgment on the same grounds as the earlier motion. (Doe. No. 94.) Two days later, on April 11, 2012, Plaintiff filed a Motion for Reconsideration of the Court’s Order on Summary Judgment or in the Alternative, for Certification of State Law Questions to the Tennessee Supreme Court. (Doe. No. 99.) On April 20, 2012, Plaintiff filed the instant Motion to Amend (Doc. No. 104), with a Memorandum in Support (Doc. No. 105). Defendants filed Responses in Opposition to the Motion to Amend on May 4, 2012 (Doc. Nos. 112-115), to which Plaintiff filed a Reply on May 11, 2012 (Doc. No. 122). Magistrate Judge Knowles issued the R & R on January 22, 2013 (Doc. No. 159), to which Plaintiff filed Objections on February 5, 2013 (Doc. No. 164). Defendants filed Responses to the Objections on February 19, 2013 (Doc. Nos. 168; 170; 172; 173), to which Plaintiff filed a Reply on February 28, 2013. (Doc. No. 177-1).

II. Judge Knowles’s Report and Recommendation

In his R & R, Judge Knowles explains that Plaintiff seeks to amend and supplement the original Complaint — in relevant part — in order to “[indicate] that [Plaintiff] is pursuing alternative theories of relief concerning the coverage as it applies to the claims made in the underlying case.” (Doc. No. 159 at 4 (citing Doe. No. 104 at 1-2).) The R & R explains that Plaintiff hopes to pursue “alternative theories of relief relevant to” this Court’s prior Order granting summary judgment to Defendants GANY and GAIC, and relevant to the pending Motion for Reconsideration and the remaining Defendants’ motions for summary judgment. (Id. (citing Doc. No. 105 at 3).)

Judge Knowles has recommended denying Plaintiffs Motion to Amend for several reasons. First, Judge Knowles found the Motion untimely. (Doc. No. 159 at 5-9.) The Scheduling Order in this case set a deadline of March 14, 2012, for motions to amend the pleadings. (Doc. No. 73 at 9.) Plaintiffs Motion to Amend (Doc. No. 104) was not filed until April 21, 2012, more than one month after the deadline passed, and only after the Court granted summary judgment to two Defendants. Judge Knowles rejected Plaintiffs argument that the Scheduling Or[142]*142der required only good cause for an amendment after the deadline, rather than a showing of good cause for filing the Motion to Amend after the deadline. (Doe. No.

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291 F.R.D. 139, 2013 U.S. Dist. LEXIS 146777, 2013 WL 1332804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-packaging-co-v-century-indemnity-co-tnmd-2013.