Nationwide Mutual Fire Insurance v. Warm Valley Kennels

110 F. Supp. 2d 71, 1999 U.S. Dist. LEXIS 22120, 1999 WL 33110318
CourtDistrict Court, D. Connecticut
DecidedSeptember 16, 1999
DocketCiv. 3:98CV01967(PCD)
StatusPublished

This text of 110 F. Supp. 2d 71 (Nationwide Mutual Fire Insurance v. Warm Valley Kennels) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Mutual Fire Insurance v. Warm Valley Kennels, 110 F. Supp. 2d 71, 1999 U.S. Dist. LEXIS 22120, 1999 WL 33110318 (D. Conn. 1999).

Opinion

RULING ON MOTION FOR SUMMARY JUDGMENT

DORSEY, District Judge.

Defendant Warm Valley Kennels moves for summary judgment, pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the reasons below, Defendant’s motion is granted.

I. BACKGROUND FACTS

Defendant Warm Valley Kennels (“WVK”) is a Connecticut partnership comprised of two general partners: Diane T. Wallwork and Madeline Shea. On October 18, 1996, a fire broke out in the structure occupied by WVK and subsequently spread to the adjacent home owned by Wallwork.

WVK’s business involved grooming and caring for pets. On the day of the fire, Shea used cage dryers to dry the fur of the animals. She was the only employee or partner at WVK engaged in the grooming. Plaintiff alleges that it was the cage dryer, along with its negligent design, operation, and maintenance, that caused the fire.

The fire caused significant damage to Wallwork’s home, which was insured under a policy issued by the plaintiff, Nationwide Mutual Fire Insurance Company (“Nationwide”). Plaintiff, claiming it' paid $230,838.76 to Wallwork pursuant to the policy, now seeks judgment against WVK for negligently causing the fire.

Defendant moves for summary judgment on the basis that, because a partner cannot sue the partnership, neither can the partner’s subrogee. In other words, Nationwide, as subrogee of Diane Wallwork, cannot sue WVK because Wallwork cannot sue her partnership.

II. DISCUSSION

A. Standard of Review and Applicable Substantive Law

In a motion for summary judgment, the moving party must establish that there are no genuine issues of material fact in dispute and that it is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Anderson v. Liberty Lobby, 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In determining whether a genuine issue has been raised, all ambiguities must be resolved and all reasonable inferences be drawn against the moving party. United *73 States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962) (per curiam); Quinn v. Syracuse Model Neighborhood Corp., 613 F.2d 438, 445 (2d Cir.1980).

This action was brought in federal court on the basis of diversity jurisdiction between .the parties. The substantive law of the state where the cause of action arose governs — if the highest state court has not ruled on issue, the federal court must try to approximate what its ruling would be. Cumis Ins. Society v. Windsor Bank & Trust Co., 736 F.Supp. 1226, 1230 (D.Conn.1990). Here, because the fire and resulting loss occurred in Connecticut, Connecticut law will be applied.

B. Subrogation

Under Connecticut law, a subrogee’s rights against a third party can be no greater than those of its subrogor. Orselet v. DeMatteo, 206 Conn. 542, 539 A.2d 95, 98 (1988). The relationship between insured and insuree is that of subrogor and subrogee. See id. Consequently, “ ‘the insurer as subrogee ... stands in the place of the insured and succeeds to whatever rights he may have in the matter,’ ” but may not assert any rights beyond those of the insured. Id. (citation omitted). The rights of Nationwide to sue WVK, therefore, are coterminous with those of Diane Wallwork.

C. Partnership Law

At the time the fire occurred in October 1996, the Connecticut General Statutes provided:

Where, by any wrongful act or omission of a partner acting in the' ordinary course of the business of the partnership or with the authority of his copartners, loss or injury is caused to any person, not being a partner in the partnership, or any penalty is incurred, the partnership is liable therefor to the same extent as the partner so acting or omitting to act.

C.G.S.A. § 34-51 (repealed 1995, eff. July 1,1997) (emphasis added). No authority is given by Connecticut statutes in effect at the date of the fire for a partner to sue her partnership for an action in tort. Absent specific statutory authority, the “rules of law and equity” applied. C.G.S.A. § 34-43 (repealed 1995, eff. July 1, 1997).

Connecticut’s common law strictly prohibits a partner from suing the partnership on the theory that a person cannot sue oneself. Hartford Accident and Indemnity Co. v. Sena, 42 Conn.Supp. 336, 619 A.2d 489, 493 (1992). Lawsuits by partners against the partnership prior to its winding-up create numerous administrative problems and implicate questions of fairness. Cole v. Fowler, 68 Conn. 450, 36 A. 807, 809 (1896); Bishop v. Bishop, 54 Conn. 232, 6 A. 426, 427-28 (1886). Plaintiff relies on decisions of other state courts, maintaining that the Connecticut courts have “yet to specifically address the issue at hand.” It points to Smith v. Hensley, 354 S.W.2d 744 (Ky.1961) and Norick v. Dove Construction, 204 Mont. 57, 662 P.2d 1318 (1983) to support an exception to § 34-43, thereby allowing a member of a partnership to sue the partnership.

It is true that these cases did not foreclose such lawsuits. However, Connecticut does not permit statutory construction to be based on policy rather than the unambiguous words of a statute: “Where statutory language is clearly expressed ... courts must apply the legislative enactment according to the plain terms and ‘cannot read into the terms of the statute something which manifestly is not there in order to reach what the court thinks would be a just result.’ ” Johnson v. Manson, 196 Conn. 309, 493 A.2d 846, 850 (1985) (citations omitted). Thus, even if equity dictates allowing the instant lawsuit, there is no basis for doing so since the laws of Connecticut in effect at the time of the fire clearly forbade it.

Connecticut’s later legislation informs this discussion. Effective July 1, 1997, *74 Connecticut adopted the Uniform Partnership Act of 1994 (“UPA”). 1 P.A. No. 95-341, CT Stat. § 34-300 to § 34-399.

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Related

United States v. Diebold, Inc.
369 U.S. 654 (Supreme Court, 1962)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Norick v. Dove Construction
662 P.2d 1318 (Montana Supreme Court, 1983)
Cumis Insurance Society, Inc. v. Windsor Bank & Trust Co.
736 F. Supp. 1226 (D. Connecticut, 1990)
Smith v. Hensley
354 S.W.2d 744 (Court of Appeals of Kentucky (pre-1976), 1962)
Hartford Accident & Indemnity Co. v. Sena
619 A.2d 489 (Connecticut Superior Court, 1992)
Bishop v. Bishop
6 A. 426 (Supreme Court of Connecticut, 1886)
Cole v. Fowler
36 A. 807 (Supreme Court of Connecticut, 1896)
Johnson v. Manson
493 A.2d 846 (Supreme Court of Connecticut, 1985)
Orselet v. DeMatteo
539 A.2d 95 (Supreme Court of Connecticut, 1988)
Quinn v. Syracuse Model Neighborhood Corp.
613 F.2d 438 (Second Circuit, 1980)

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110 F. Supp. 2d 71, 1999 U.S. Dist. LEXIS 22120, 1999 WL 33110318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-mutual-fire-insurance-v-warm-valley-kennels-ctd-1999.