Michael Kitnurse v. Marshall and Sterling and Certain Under Writers at Lloyds of London

CourtSuperior Court of The Virgin Islands
DecidedJanuary 28, 2021
DocketSX-14-CV-361
StatusPublished

This text of Michael Kitnurse v. Marshall and Sterling and Certain Under Writers at Lloyds of London (Michael Kitnurse v. Marshall and Sterling and Certain Under Writers at Lloyds of London) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Kitnurse v. Marshall and Sterling and Certain Under Writers at Lloyds of London, (visuper 2021).

Opinion

SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST CROIX MICHAEL KITNURSE

PLAINTIFF, Civil No SX 14 CV 361 v ACTION FOR DAMAGES

CERTAIN UNDERWRITERS AT LLOYDS OF LONDON SUBSCRIBING T0 POLICY i NUMBER CPS200601660 I CITE AS 2021 VI SUPER 8P DEFENDANTS i

Appearances Lee J Rohn, Esq Lee J Rohn and Associates LLC Christiansted U S Virgin Islands For Plamnfl'

James L Hymes, III, Esq Law Offices of James L Hymes [II P C St Thomas U S Virgin Islands For Defendant Marshall and Sterling

Garry Garten, Esq Law Office of Garry Garten St Thomas U S Virgin Islands For Defendant Certain Underwriters at Lloyds of London

MEMORANDUM OPINION AND ORDER

WILLOCKS Presiding Judge

‘][ I THIS MATTER came before the Court on the following filings

On May 1 l 2018 Plaintiff Michael Kitnurse (hereinafter Plaintiff ) filed a motion to amend complaint On May 24 2018 Defendant Marshall and Sterling (hereinafter M&S ) filed an opposition to Plaintiff’s motion Defendant Certain Underwriters at Lloyds of London subscribing to policy number CP8200601660 (hereinafter Lloyds of London and collectively with Defendant M&S Defendants ) did not file an opposition On June 11 2018 Plaintiff filed a reply and a motion to file Plaintiff’s reply late Defendants did not file an opposition to Plaintiff’s motion for leave to file Plaintiff’s reply late

On November 7 2018 Plaintiff and Defendant M&S filed a stipulation for dismissal with prejudice of Plaintiff’s claims against Defendant M&S Kmmrse I Marshall and Sterlmg er al sx 14 CV 3m Memorandum Opinion and Order 2021 VI SUPER 8P Page 2 0f 2|

On December 10 2018 Plaintiff filed a motion for entry of default against Defendant Lloyds of London Subsequently Defendant Lloyds of London filed an opposition and Plaintiff filed a reply thereafter

On February 20 2019 Defendant M&S filed a notice to the Court On February 22 2019 Plaintiff filed a response to Defendant M&S 5 February 20 2019 notice and motion to enforce settlement On March 7 2019 Defendant M&S filed a document that consisted of its (1) motion to strike Plaintiff’s response and motion to enforce settlement, (ii) opposition to Plaintiff’ s motion to enforce settlement (iii) motion to enforce and enter judgment on the mediated settlement agreement and (iv) notice of filing the document under seal On March 15 2019 Defendant M&S filed a motion for entry of order permitting filing under seal nunc pro tune

On December 10, 2019, Plaintiff and Defendant M&S filed a joint motion for dismissal with prejudice as to Defendant M&S On December 16 2019 Defendant Lloyds of London filed an opposition thereto On January 7 2020 Defendant M&S filed a reply to Defendant Lloyds of London 5 opposition On January 9 2020 Kayla Kimursel filed a reply to Defendant Lloyds of London 3 opposition

BACKGROUND

‘ll 2 On September 8 2014 Plaintiff as the assignee of claims from John Phuoc le d/b/a Nails

Time filed a complaint against Defendants In the complaint Plaintiff alleged inter alia, that [a]

law suit was brought in St Croix entitled Michael Kltnurse vs John Phuoc 1e d/b/a Nazis Time

and Jane Doe District Court Civil No 112/2012 ’ [a]s such John Phuoc le tendered the defense

and indemnification of the claims [0 Defendant Lloyds of London ‘ Lloyds of London denied

indemnification of the claim ’ [a]s a result of the denial and due to economic necessity John

Phuoc 1e entered into a consent judgment in favor of Kitnurse in the amount of $1,000,000 and

assigned all claims he had against [Defendants] ‘ [t]he policy is a commercial general liability

[t]he policy required [Defendant Lloyds of London] to pay those sums that Phuoc 1e may become

legally obligated to pay for bodily injury arising out of an occurrence that takes place in the

coverage territory during the policy period Phuoc le could not afford counsel to defend him in

' According to Plaintiff’s motion to amend complaint Kayla Kitnurse is the daughter 01 Plaintiff While Plaintiff s motion to amend complaint moved to substitute her as the personal representative of Plaintiff‘s estate the motion is still currently pending Thus at this juncture she is not a party to this lawsuit Kinmrse t Marshall and Sterling e! a! 5X 14 CV 36| Memorandum Opinion and Order 2021 VI SUPER 8P Page 3 01 21

a declaratory judgment action filed against him by Lloyds of London and reasonably believed he

would lose the claim of Kitnurse at trial and not be able to pay the verdict which Defendant Lloyds

of London had refused to indemnify him for On May 07 2014 Phuoc 1e assigned all his claims

against Defendants including but not limited to contractual, statutory and tort claims and [a]s a

result Phuoc 1e assigned his claims to Plaintiff and Plaintiff is entitled to recover the amount of his

Consent Judgment and Phuoc 1e damages of Attorney fees and costs and other economic losses ’

(Comp! ‘lI‘li 6 10 l6 I7 25) The complaint alleged the following counts against Defendants 7

Count I 26 The Plaintiff sets forth paragraph 1 through 24 as if fully set fonh herein 27 To the extent the Defendants contest the assignment or the validity of the terms Plaintiff seeks a declaration that (l) the assignment and each of its terms is valid and enforceable and that (2) the Defendants do not have a valid defense to enforcement of the assignment

Count II 28 The Plaintiff sets forth paragraph 1 through 26 as if fully set forth herein 29 Title 22 of the Virgin Islands code governs insurance transactions affecting subjects located in the U S V I See 22 VIC 1 Insurance carriers owe a duty of good faith and honesty and equity in all insurance matters A breach of those duties creates extra contractual, quasi contractual, and tort liability 30 Defendant Lloyds [of London] breached that duty when it failed to properly underwrite Phuoc 1e s policy and failed to reveal the same to him 31 Defendant Lloyds of London further breached that duty when it refused to reform Phuoc le 5 insurance policy to cover the claims of Kitnurse 32 The Plaintiff sets forth paragraph 1 through 30 as if fuily set forth herein 33 Marshall and Sterling was acting as agent for Defendant Lloyds of London 34 To the extent the policy as written did not cover Plaintiffs claims against Phuoc [e the Defendant Marshall and Sterling breached its contractual duties to Lloyds of London of which Phuoc 1e was a third party beneficiary 35 As a result Marshall and Sterling is liable to Phuoc 1e and by assignment to Plaintiff in the amount of one million dollars plus Phuoc 1e S Attorney fees and costs and pre and post judgment interest

COUNT IV 36 The Plaintiff sets forth paragraph 1 through 34 as if fully set forth herein 37 As agent of Lloyds of London Marshall and Sterling negligently and improperly underwrote Phuoc le 5 insurance policy

Plaintifl did not include the name of the specific cause of action for each count Thus, the statement of each cause of action provided by Plaintifl tor eaLh count is reproduced herein Kmmrse v Marshall and Sreilmg e! a! 5x 14 CV 36] Memorandum Opinion and Order 2021 VI SUPER 8? Page 4 01 21

38 Defendants failed to warn or inform Phuoc 1e that it had not properly underwritten the insurance policy in breach of its duties to do so 39 As a result Phuoc 1e suffered damages as set forth herein and which were assigned to Plaintiff

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Michael Kitnurse v. Marshall and Sterling and Certain Under Writers at Lloyds of London, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-kitnurse-v-marshall-and-sterling-and-certain-under-writers-at-visuper-2021.