Maryland Casualty Co. v. Integration Concepts, Inc.

119 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 106904, 2015 WL 4747539
CourtDistrict Court, S.D. Florida
DecidedJune 24, 2015
DocketCASE NO: 14-cv-14231-MIDDLEBROOKS
StatusPublished

This text of 119 F. Supp. 3d 1322 (Maryland Casualty Co. v. Integration Concepts, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Casualty Co. v. Integration Concepts, Inc., 119 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 106904, 2015 WL 4747539 (S.D. Fla. 2015).

Opinion

ORDER GRANTING MOTION FOR SUMMARY JUDGMENT

DONALD M. MIDDLEBROOKS, UNITED STATES DISTRICT JUDGE

THIS CAUSE comes before the Court upon a Motion for Final Summary Judgment (DE 37), filed by Plaintiff Maryland Casualty Company (“Maryland Casualty”) on April 8, 2015. On May 11, 2015, Defendants Bowe Williams - and Rebecca Williams filed a Response (DE 47), and Defendants Integration Concepts, Inc. (“Integration”) and Brian K. Callahan (“Callahan”) also filed a-Response (DE 48). On May 28, 2015, Maryland Casualty filed a Reply (DE 51). For reasons stated below, Maryland Casualty’s Motion for Summary Judgment is granted.

BACKGROUND1

On- June 6, 2014, Maryland Casualty commenced this action -for declaratory relief for the purpose of determining its rights and obligations under a commercial general liability insurance policy.2 (DE 1). Maryland Casualty issued an insurance policy to the named insured, -Integration, under policy number' PPS 03320423, for a policy period effective from December 31, 2009 to December 31, 2010 (the “Policy”). (DE 1 at ¶ 33). Under the Policy, Maryland Casualty must pay, on behalf of Integration, all sums Integration is “obligated to pay as damages because of ‘bodily injury’ or ‘property damage’ to which th[e] insurance applies.” (DE 37-2, Policy at 92). The Policy also requires that Maryland Casualty defend against - any suit seeking damages for bodily injury. (Id,). In-this action, Maryland Casualty seeks a judgment that it’ has no duty to defend [1324]*1324and, therefore, no duty to indemnify, the named insured, Integration, and its president, Callahan, in connection with an underlying lawsuit — Bowe and Rebecca Williams v. Integration Concepts, Inc., et al, pending in the Circuit Court of the Nineteenth Judicial Circuit in and for St. Lucie County, Florida, Case No. 56-2014-CA-000776 (the “underlying suit”).

In the underlying suit, Bowe Williams alleges he sustained bodily injuries when he attempted to remove a flow meter from a water pipe. (DE 37-1, Second Amended Complaint from underlying suit, at ¶ 8). Approximately one year prior to the incident, Integration and Callahan installed a new software program to monitor the flow of water through the reclaimed water system. (DE 37 at 3, ¶ 3). Sometime thereafter, the water flow began registering inaccurate readings. (Id.). To determine the cause of the problem, Bowe Williams, Integration, and Callahan held several meetings. (Id.). At the meetings, Bowe Williams repeatedly suggested that Callahan analyze the software to make sure it was not the cause of the problem, but each time Callahan refused. (Id.).

At the insistence of Integration and Callahan, Bowe Williams replaced the flow meters on four different occasions. (Id. at ¶ 4). Each -time, the new flow meters registered the same inaccurate readings as the prior ones. (Id.). Additional meetings followed, but Callahan continued to refuse to consider the software as the cause of the problem. (Id. at ¶ 5). At a meeting one day before the incident, Integration and Callahan suggested a new theory— that the flow meter was causing the problem because it was not properly calibrated by releasing pressurized air. (Id. at ¶ 6). At that meeting, Integration and Callahan once again refused to analyze the software. (Id.).

On June 16, 2010, Bowe Williams and Darren Stone, an Integration employee, went to repair the flow meter. (Id.). Bowe Williams sustained injuries after the flow meter detached from its moorings and struck him in the face. (Id.). In the underlying suit, Bowe and Rebecca Williams allege a claim for negligence against both Integration (Count I) and Callahan (Count II). (DE 37-1, Second Amended Complaint).

Maryland Casualty now moves for summary judgment arguing that it has no duty to defend or indemnify Integration, or its president, Callahan, in the underlying suit. (DE 37). Specifically, Maryland Casualty argues that the Policy bars coverage based on three exclusions: (1) “Professional Liability Exclusion — Computer Software ” (the “Computer Software Exclusion”), (2) “Professional Liability Exclusion — Electronic Data Processing Services and Computer Consulting or Programming Services,” and (3) the Professional Services exclusion provided in exclusion o. (DE 37 at 2). Generally, these exclusions preclude coverage for claims based on bodily injury arising out of Integration and Callahan’s “professional services as computer consultants,. programmers or advisors and/or professional services in connection with the furnishing of computer software programs and instructions.” (DE 51 at 6).

LEGAL STANDARD

“The court shall grant summary judgment if the movant shows that 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 movant “always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of ‘the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,’ which it believes demonstrate the absence of a genuine issue of material [1325]*1325fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (quoting Fed. R. Civ. P. 56(c)(1)(A)). Where the non-moving party bears the burden of proof on an issue at trial, the movant may simply “[point] out to the district court that there is an absence of evidence to support the nonmoving party’s case.” Id. at 325,106 S.Ct. 2548.

After the movant has met its burden under Rule 56(c), the burden shifts to the non-moving party to establish that there is a genuine issue of material fact. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 585, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Although all reasonable inferences are to be drawn in favor of the non-moving party, Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986), he “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita, 475 U.S. at 586, 106 S.Ct. 1348. The non-moving party may not rest upon the mere allegations or denials of the adverse party’s pleadings, but instead must come forward with “specific facts showing that there is a genuine issue for trial.” Id. at 587, 106 S.Ct. 1348 (citing Fed. R. Civ. P. 56(e)). “Where the record taken as a whole could not léad a rational trier of fact to find for the non-moving party, there is ño ‘genuine issue for trial.’” Id. “A mere ‘scintilla’ of evidence supporting the opposing party’s position will not suffice; there must be enough of a showing that the jury could reasonably find for that party.” Walker v. Darby, 911 F.2d 1573, 1577 (11th Cir.1990).

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Bluebook (online)
119 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 106904, 2015 WL 4747539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-integration-concepts-inc-flsd-2015.