Nationwide Agribusiness Ins. v. George Perry & Sons, Inc.

338 F. Supp. 3d 1063
CourtDistrict Court, E.D. California
DecidedSeptember 3, 2018
DocketNo. 2:17-cv-01910-KJM-CKD; No. 2:18-cv-0188-KJM-CKD
StatusPublished
Cited by6 cases

This text of 338 F. Supp. 3d 1063 (Nationwide Agribusiness Ins. v. George Perry & Sons, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Agribusiness Ins. v. George Perry & Sons, Inc., 338 F. Supp. 3d 1063 (E.D. Cal. 2018).

Opinion

Kimberly J. Mueller, UNITED STATES DISTRICT JUDGE

Plaintiffs in the above, related cases are insurance companies. Defendants include a commercial farming company, George Perry & Sons, Inc. (Perry); Perry's Vice President of Operations and farm manager, Paul Gomes; and Gary Mattes both individually and doing business as Gary's Apiaries (collectively, Mattes), a beekeeping business. Plaintiffs sue for a judicial determination that they owe no duty to defend or indemnify Perry and Gomes under the insurance policies issued to Perry with respect to Mattes's state court lawsuit against Perry and Gomes for alleged destruction of Mattes's beehives while the beehives were on Perry's property. See Nationwide1 Compl. at 1-2, ECF No. 1; Unigard Compl. ¶ 1, ECF No. 1. Unigard plaintiffs also seek reimbursement from Perry of all attorney's fees and costs the Unigard plaintiffs have advanced to defend the lawsuit. Unigard Compl. ¶ 1.

Plaintiffs have moved for summary judgment. Nationwide Mot., ECF No. 11; Unigard Mot., ECF No. 20. Defendants have opposed. Nationwide Opp'n, ECF No. 36; Unigard Opp'n, ECF No. 27. Plaintiffs have replied. Nationwide Reply, ECF No. 42; Unigard Reply, ECF No. 36. Plaintiffs contend both a rented (or loaned) property exclusion and a care, custody or control exclusion in their insurance policies with Perry apply as a matter of law, meaning plaintiffs have no duty to indemnify Perry or Gomes with respect to the Mattes lawsuit. See Nationwide Mot. at 4-9; Unigard Mot. at 6-11. Defendants contend genuine disputes of material fact exist that preclude determining the agreement between Mattes and Perry was a contract to rent property, not a services contract. Nationwide Opp'n at 7-10; Unigard Opp'n at 7-12. Defendants also dispute plaintiffs' contention that Perry had exclusive care, custody or control of the beehives. Nationwide Opp'n at 10-14; Unigard Opp'n at 13-15.

As explained below, the court finds genuine disputes of material fact preclude finding as a matter of law that the rented or loaned property exclusion or the care, custody or control exclusion apply. The court therefore DENIES summary judgment to plaintiffs.

I. BACKGROUND

In addition to evidence submitted by the parties and documents the court judicially notices, the court draws the following facts primarily from the following documents, *1068whose existence and content are undisputed unless otherwise noted: Nationwide plaintiffs' Statement of Undisputed Facts (NSUF), Nationwide ECF No. 11-2; defendants' Response to Nationwide plaintiffs' Statement of Undisputed Facts (NRSUF) and Statement of Disputed Facts (NSDF), Nationwide ECF No. 36-1; Unigard plaintiffs' Statement of Undisputed Facts (USUF), Unigard ECF No. 22; defendants' response to Unigard plaintiffs' Statement of Undisputed Facts (URSUF) and Statement of Disputed Facts (USDF), ECF No. 27-1; and Unigard plaintiffs' Reply to defendants' response, Unigard ECF No. 36-1.

Nationwide plaintiffs issued multiple insurance policies to Perry between 2012 to 2016. NSUF Nos. 20-26. These policies provided, in relevant part, that Nationwide will "pay those sums that the insured becomes legally obligated to pay as damages because of ... 'property damage' to which this insurance applies." NSUF No. 28. The policies included exceptions for any property the insured rents. NSUF Nos. 30-31, 36, 38. Additionally, the policies excluded property damage for "[p]ersonal property in the care, custody or control of the insured." NSUF Nos. 33, 36, 40.

Unigard plaintiffs also issued multiple insurance policies to Perry, between 2010 and 2012. USUF No. 24. These policies provided that the insured "will pay those sums that the insured becomes legally obligated to pay as damages because of ... 'property damage' ...." USUF No. 25. Similar to the Nationwide plaintiffs' insurance policies, the Unigard plaintiffs' insurance policies contained exceptions for property Perry rented, property loaned to Perry, or "[p]ersonal property in the care custody or control of the 'insured' ...." USUF No. 26.

In 2013, Mattes sued Perry and Gomes for negligence, negligence per se, intentional misrepresentation and concealment, and negligent misrepresentation and negligent concealment relating to the mass death of Mattes's pollinating bees on farm property owned by Perry. Nationwide ECF No. 12-12 ; NSUF No. 1. Mattes later filed an amended complaint containing the same four claims. NSUF No. 2; Nationwide ECF No. 12-2. In the amended complaint, Mattes alleged "Perry's operations included the commercial production of watermelons and pumpkins, for which Perry rented bee hives for pollination from Mattes during 2009, 2010, 2011 and 2012." Id. at 3. Mattes also alleged that "Perry orally contracted with Mattes to provide bee hives to pollinate Perry's crops" from 2009 to 2012. Id. at 4. According to Mattes, Perry's application of various pesticides near the location of Mattes's bees caused "catastrophic losses to his bee hives resulting in more than a 95 percent die off in 2012 alone ...." Id. at 4-5.

The parties have submitted deposition testimony taken in the Mattes state suit, and agree the court can rely on it here. Mattes was deposed in February and March of 2015, and Gomes was deposed in *1069June 2016. Mattes Decl. ¶ 14, Nationwide ECF No. 36-5; Gomes Decl. ¶ 10, Nationwide ECF No. 36-2. During his first deposition, Mattes stated Gomes first called him in April 2009 "and asked [Mattes] if [Mattes] wanted to do their melons and pumpkins." Mattes Dep. Vol. I at 98:19-22, ECF No. 36-5 Ex. A. Mattes responded, "Right," when asked if Mattes recalled Gomes's inquiring "if [Mattes was] interested in providing pollination services." Id. at 102:8-10; see also id. at 117:16-20 (Mattes responding in part, "Yeah," to a question about providing pollination services to Perry). Mattes acknowledged that "[p]rice and how many hives they need and when they need them" were the terms typically involved in an oral agreement with farmers for pollination. Id. at 103:14-17. Before contracting with Perry and Gomes, Mattes had gotten "heavier into feeding" his bees used to pollinate crops, and "[n]ow [they] supplement feed quite a bit." Id. at 93:8-21.

According to Mattes, initial hive placement "was always done at night or early morning" and did not involve anyone affiliated with Perry being there during the initial placement. Id. at 144:13-15. It was "[u]sually [Mattes's] decision" to place the bee hives: "They pretty much left it in our hands where to put them." Id. at 145:5-20. Mattes would check on hives at times "with a drive-by" without stopping if "everything look[ed] good." Id. at 150:17-21; see also id. at 151:7-12 (discussing visual inspections of "[t]he amount of bees going in and out ...."). Mattes recalled that "[w]e generally looked at [the hives] once or twice" for Perry's watermelon pollination between the time Mattes dropped off the hives and later picked them up. Id. at 150:22-151:2. In 2009, Mattes "did replace some [hives] with nukes," which were smaller versions of normal bee hives. Id. at 152:2-7, 153:19-24; see also Mattes Decl. ¶ 8 (explaining nukes or "nucs" as smaller versions of normal bee hives). At times, Mattes would be informed that Perry did not "want [Mattes] working any bees while the pickers are out here [in the field] ...." Id.

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Bluebook (online)
338 F. Supp. 3d 1063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-agribusiness-ins-v-george-perry-sons-inc-caed-2018.