Live Nation Worldwide, Inc. v. Secura Insurance

CourtDistrict Court, W.D. Kentucky
DecidedNovember 12, 2019
Docket3:17-cv-00216
StatusUnknown

This text of Live Nation Worldwide, Inc. v. Secura Insurance (Live Nation Worldwide, Inc. v. Secura Insurance) 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
Live Nation Worldwide, Inc. v. Secura Insurance, (W.D. Ky. 2019).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

LIVE NATION WORLDWIDE, INC., Plaintiff,

v. Civil Action No. 3:17-cv-00216-RGJ-CHL

SECURA INSURANCE; CITY Defendants SECURITIES INSURANCE, LLC; and ESG SECURITY

* * * * * MEMORANDUM OPINION AND ORDER This matter is before the Court on four Motions for Summary Judgment. [DE 52, 53, 59, 61]. Responses, [DE 60, 62, 67, 69], and replies were filed, [DE 64, 68, 72]. Briefing is complete, and these matters are ripe for adjudication. For the reasons below, Live Nation Worldwide Inc.’s (“Live Nation”) Motion for Summary Judgment on Coverage Claim Against Secura Insurance (“Secura”) [DE 59] is GRANTED, Live Nation’s Motion for Summary Judgment on Breach of Contract Claim Against ESG Security (“ESG”) [DE 61] is DENIED, Secura’s Motion for Summary Judgment [DE 52] is DENIED, and ESG’s Motion for Summary Judgment [DE 53] is GRANTED. BACKGROUND Live Nation operates the Louisville Palace, which among other things, is a concert venue. [DE 92, Am. Compl. at 1426, ¶1]. Live Nation contracted with ESG to provide crowd control services for the Louisville Palace. [Id. at 1427, ¶6]. Live Nation and ESG entered into a Vendor Services Agreement (“VSA”) detailing the requirements of the relationship. [Id. at ¶ 7]. ESG’s responsibilities included “direction and control of the audience to deter any crowd disturbances” for events being held at the Louisville Palace. [Id.]. The VSA requires ESG to obtain and maintain certain insurance coverage, including commercial general liability insurance of at least one million dollars per occurrence as explained in Section 3(A) of the VSA. [Id. at 1427, ¶ 7, DE 60-1 at §3(A)(ii)]. The VSA requires ESG to defend, indemnify, and hold harmless Live Nation “from and against any and all claims or loss arising out of any violation of any law, rule, regulation or order, and from any and all claims or

liabilities, including reasonable attorney’s fees, for loss, damage or injury to persons or property of whatever kind or nature arising from the acts or omissions of Vendor” as explained in Section 4(A) of the VSA. [DE 92 at 1428, ¶ 8]. ESG placed its insurance for the applicable period through City Securities Insurance, LLC (“City Securities”). [Id. at 1428, ¶ 9]. City Securities placed coverage with Secura. [Id. at 1428, ¶ 10]. Live Nation purchased another general liability policy with Starr Insurance, which contained a retained limit of one million dollars. [DE 60 at 842]. Both Live Nation and ESG were sued in the Jefferson County, Kentucky in an action styled James Mark Hays, et al., v. Live Nation Worldwide, Inc., et al., Jefferson County Circuit Court, Action No. 13CI06424 (“Hays Complaint”). [DE 92 at 1429, ¶ 14; DE 58-3, Hays Complaint at

808]. The Hays Complaint alleged injuries resulting from a fight between several patrons during a Steve Miller Band concert at the Louisville Palace. [DE 58-3]. ESG was performing crowd management services for the concert. [DE 58-3 at 809, ¶ 4]. Live Nation and the plaintiffs in the Hays Action reached a confidential settlement before trial. [DE 92 at 1429, ¶ 17]. Secura refused to pay for Live Nation’s defense costs and indemnify Live Nation for the settlement in Hays. [Id. at 1429, ¶ 16]. Live Nation filed the present complaint (the “Complaint”) against Secura Insurance, City Securities, and ESG Security, Inc., [DE 1] which they later amended (the “FAC”) [DE 92]. The FAC alleges breach of contract, bad faith, and Unfair Claims Settlement Practices Act claims against Secura. [DE 92 at 1431–33]. The FAC alleges breach of contract and indemnification claims against ESG. [Id. at 1433–34]. The FAC also alleges negligence against City Securities as respondeat superior. [Id. at 1435]. City Securities, ESG, and Secura answered. [DE 93, 94, 95]. In its answer, Secura made a counterclaim for a declaratory judgment under 28 USC §2201 and FRCP 57, to determine an actual controversy between Secura and Live Nation. [DE 95 at 1471]. Live Nation answered the counterclaim. [DE 98].

Live Nation, Secura, and ESG each filed motions for summary judgment on the various claims.1 [DE 52, 53, 59, 61]. Responses and replies were filed. [DE 60, 62, 64, 67, 68, 69, 72]. The Court heard oral argument on the motions. [DE 101]. LEGAL STANDARD Summary judgment is required when “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party bears the burden of specifying the basis for its motion and showing the lack of a genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). Once the moving party satisfies this burden, the nonmoving party must produce specific facts showing a material

issue of fact for trial. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247–48 (1986). “Factual differences are not considered material unless the differences are such that a reasonable jury could find for the party contesting the summary judgment motion.” Bell v. City of E. Cleveland, 125 F.3d 855, 1997 WL 640116, at *4 (6th Cir. 1997) (citing Liberty Lobby, 477 U.S. at 252). A district court considering a motion for summary judgment may not weigh evidence or make credibility determinations. See Daugherty v. Sajar Plastics, Inc., 544 F.3d 696, 702 (6th Cir. 2008); see also Adams v. Metiva, 31 F.3d 375, 384 (6th Cir. 1994). The Court must view the evidence and draw all reasonable inferences in a light most favorable to the nonmoving party. See

1 The motions for summary judgment were filed before the FAC. But the parties agreed that “that the amended complaint will not impact the pending motions for summary judgment.” [DE 91 at 1423]. Williams v. Int’l Paper Co., 227 F.3d 706, 710 (6th Cir. 2000). But the nonmoving party must do more than show some “metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). Instead, the nonmoving party must present specific facts showing that a genuine factual issue exists by “citing to particular parts of materials in the record” or by “showing that the materials cited do not establish the absence . . . of a genuine

dispute[.]” Fed. R. Civ. P. 56(c)(1); see also Shreve v. Franklin Cty., Ohio, 743 F.3d 126, 131–32 (6th Cir. 2014). “The mere existence of a scintilla of evidence in support of the [nonmoving party’s] position will be insufficient; there must be evidence on which the jury could reasonably find for the [nonmoving party].” Liberty Lobby, 477 U.S. at 252. Rule 56(c)(1) requires that a “party asserting that a fact . . . is genuinely disputed must support the assertion by . . . citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials.” Fed. R. Civ. P.

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Live Nation Worldwide, Inc. v. Secura Insurance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/live-nation-worldwide-inc-v-secura-insurance-kywd-2019.