Mid-Continent Ins. Co. v. Jason Coder

563 F. App'x 422
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 21, 2014
Docket13-3573
StatusUnpublished
Cited by5 cases

This text of 563 F. App'x 422 (Mid-Continent Ins. Co. v. Jason Coder) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mid-Continent Ins. Co. v. Jason Coder, 563 F. App'x 422 (6th Cir. 2014).

Opinions

BOGGS, Circuit Judge:

Appellant, Caroline Scardina, administrator of decedent Kevin Beebe’s estate, appeals the district court’s grant of summary judgment in Mid-Continent Insurance Co.’s declaratory-judgment action. For the reasons set forth below, we reverse.

I

This declaratory-judgment action, filed in federal district court by Mid-Continent Insurance Co., has its roots in a state-court wrongful-death action. Caroline Scardina, the administrator of Kevin Beebe’s estate and the appellant in the instant case, filed the underlying suit in the Court of Common Pleas of Cuyahoga County, Ohio against a negligent driver, Beebe’s insurance company, and an Ohio tavern. Though not named as a defendant in the original complaint, Mid-Continent then filed a declaratory-judgment action in federal district court seeking a declaration that it had no duty to defend or indemnify the tavern and its owners.

On March 6, 2011, Kevin Beebe went to the Inn in West Andover, voluntarily became intoxicated and, following an argument with other patrons, was asked by an employee to leave. There remains some dispute as to whether Mr. Beebe was forced off the premises by staff or whether he left voluntarily, choosing not to wait for the ride he had called. Upon leaving the Inn, Beebe walked along a rural highway and, in the limited visibility caused by the rain and the dark, was struck and killed by an allegedly drunk driver whose purported intoxication was unrelated to the Inn.

On December 15, 2011, the administrator of Beebe’s estate filed suit in the Cuya-hoga County Court of Common Pleas against the driver, the driver’s insurance company, the Inn, its owners, and the decedent’s insurance company. The complaint alleged several claims for relief, among them a wrongful-death suit against the driver and claims for recovery against two of the decedent’s auto-insurance companies based on the negligent driver’s under-insurance. The final claim for relief, and the claim that is at issue in this case, was against the Inn in West Andover alleging that the Inn and its owners: possessed a liquor license, negligently forced Beebe to leave the premises, violated the Ohio Dram Shop statute, and should have known that Beebe would likely come to harm in that night’s storm yet expelled him with from the Inn with reckless disregard for his safety.

[424]*424In February 2012, two months after the original complaint was filed in the Court of Common Pleas, and while the state-court case was in its earliest stages of litigation (the court was just about to set the date of its first case-management conference), Mid-Continent Insurance Co., the providers of the Inn’s liability-insurance policy, filed a declaratory-judgment action in the United States District Court for the Northern District of Ohio, naming the Inn, its owners, and Caroline Scardina as defendants. Mid-Continent’s complaint alleged that, although it had sold the Inn an insurance policy, and although the insurance policy included a duty to defend, the policy contained an exclusion disclaiming liability resulting from intoxication, the furnishing of alcohol, and violation of laws relating to the distribution of alcohol. Based on these allegations, Mid-Continent requested a declaratory judgment that it had no duty to defend or indemnify the Inn and its owners in the underlying action before the Court of Common Pleas.

No answers or responsive pleadings were filed by the named defendants within the time allotted, and Mid-Continent moved for, and was granted, a default judgment. Less than a week later, Caroline Scardina moved for, and was granted, leave to file an answer and counterclaim. In short order, responsive pleadings were filed by the remaining, hitherto-silent defendants. Mid-Continent, in its turn, responded to the defendants’ counterclaims.

Mid-Continent and Scardina both moved for summary judgment. Mid-Continent claimed that it was entitled to a declaration that it had no duty to defend or indemnify because the underlying complaint did not state claims that fell within the scope of the insurance contract. This was, according to Mid-Continent, because Scardina’s claim amounted to no more than a Dram Shop Act violation, a category of liability explicitly excluded by the plain language of the insurance policy. Scardina argued in response that the facts in the underlying complaint demonstrated liability independent of the Inn’s service of alcohol and that the liquor exclusion is therefore inapplicable. Her argument was that because at least one of the stated causes of action was covered by the policy and not subject to the liquor exclusion, the claim of common-law negligence, Mid-Continent is required to defend and indemnify the Inn. She further argued that, notwithstanding the inclusion of a reference to the Dram Shop Act in paragraph 18 of the complaint, the Dram Shop Act could never have served as the predicate for liability because Ohio does not recognize liability for injuries to patrons who are the direct and proximate cause of their own injuries.

In rebuttal, Mid-Continent argued that, absent an allegation of Beebe’s intoxication, there is no “occurrence” (as required by the language of the policy) and that any occurrence of intoxication is subject to the liquor exclusion. Mid-Continent further argued that the only possible cause of action available against the Inn is one based on the Dram Shop Act, since no duty is otherwise owed an intoxicated person for self-inflicted injuries.

The court granted Mid-Continent’s motion for summary judgment and denied Scardina’s, finding that Mid-Continent owed no duty to defend or indemnify the insureds in state court. In so ruling, the court rejected Scardina’s argument that, as the court put it, “the claim is one for negligence separate and distinct from liability arising under the Dram Shop Act.” The court reasoned that, since there is a clear reference to the Dram Shop Act and since, “the complaint [cannot] fairly be read to assert two claims,” the charge listed in the complaint fell squarely within [425]*425the liquor exclusion in the insureds’ policy. Scardina timely appealed.

II

A district court’s grant of summary judgment is reviewed de novo. Blackmore v. Kalamazoo, 390 F.3d 890, 894-95 (6th Cir.2004). Summary judgment is warranted when “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 moving party bears the burden of demonstrating the absence of any genuine issue of material fact, and all inferences are drawn in favor of thé non-moving party. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962). As the question of Mid-Continent’s duty to defend concerns itself entirely with the interpretation of the provisions of an insurance contract and the construction of the parties’ pleadings, it can be decided as a matter of law.

III

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563 F. App'x 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-ins-co-v-jason-coder-ca6-2014.