Networks USA X, Inc. v. Nationwide Mutual Insurance

748 F. Supp. 2d 836, 2010 U.S. Dist. LEXIS 96086, 2010 WL 3655905
CourtDistrict Court, E.D. Tennessee
DecidedSeptember 14, 2010
Docket2:06-cv-00063
StatusPublished
Cited by2 cases

This text of 748 F. Supp. 2d 836 (Networks USA X, Inc. v. Nationwide Mutual Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Networks USA X, Inc. v. Nationwide Mutual Insurance, 748 F. Supp. 2d 836, 2010 U.S. Dist. LEXIS 96086, 2010 WL 3655905 (E.D. Tenn. 2010).

Opinion

MEMORANDUM OPINION

LEON JORDAN, District Judge.

This civil action is before the court for consideration of “Plaintiff’s Motion for Summary Judgment” [doc. 81] and “Defendant’s Motion for Summary Judgment” [doc. 91]. The parties have filed responses to the motions [docs. 92, 95], and each party has also submitted a reply [docs. 96, 95]. Oral argument is not necessary, and the motions are ripe for the court’s determination. For the reasons that follow, *838 plaintiffs motion will be denied, defendant’s motion will be granted, and the case will be dismissed.

I.

Background

In August 1991, defendant, Nationwide Mutual Insurance Company (“Nationwide”), entered into a lease with the predecessor in interest to plaintiff, Networks USA X, Inc. (“Networks”). The lease agreement was for the rental of an office building “of approximately 6,000 square [feet] ..., which includes an approximately 900 square foot drive-thru claims inspection area to be constructed by Landlord.” The property is located in Knox County, Tennessee. Networks purchased the property in March 1993 and assumed the lease. Nationwide continued to be the tenant on the premises until March 2007. Networks filed its original complaint in Knox County Chancery Court on December 29, 2005, and Nationwide removed the ease to this court on February 16, 2006. On October 24,2006, Networks filed an amended complaint [doc. 36].

The case was referred to a special master by an agreed order to answer the following question: “Whether, under the commercial lease agreement between the parties, Nationwide has underpaid or overpaid rent and/or common-area maintenance charges to Networks?” The special master concluded that he could assist the parties in determining certain amounts at issue between the parties but could not decide what if any amounts are due Networks because the disputes are primarily legal in nature. The special master, with the assistance of the parties, determined the following amounts to be appropriate for specific items identified as “operating expenses”:

roof repairs $14,370
management fees 18,096
accounting fees 5,000
security guard services 18,527
real estate tax credit (873)

Total operating expenses $55,120 The special master also concluded that Nationwide was entitled to a credit for overpayment of insurance. The case is now before the court on the parties’ cross motions for summary judgment.

II.

Summary Judgment Standard

Pursuant to Federal Rule of Civil Procedure 56(c), summary judgment “should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed. R.Civ. P. 56(c). The moving party may discharge its burden by demonstrating that the non-moving party has failed to establish an essential element of that party’s case for which he or she bears the ultimate burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party need not support its motion with affidavits or other materials negating the opponent’s claim. Id. at 323, 106 S.Ct. 2548. Although the moving party has the initial burden, that burden may be discharged by a “showing” to the district court that there is an absence of evidence in support of the non-moving party’s case. Id. at 325, 106 S.Ct. 2548 (emphasis in original).

After the moving party has carried its initial burden of showing that there are no genuine issues of material fact in dispute, the burden shifts to the non-moving party to present specific facts demonstrating that there is a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Ra *839 dio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). “The ‘mere possibility’ of a factual dispute is not enough.” Mitchell v. Toledo Hosp., 964 F.2d 577, 582 (6th Cir.1992) (citing Gregg v. Allen-Bradley Co., 801 F.2d 859, 863 (6th Cir.1986)).

In order to defeat the motion for summary judgment, the non-moving party must present probative evidence that supports its complaint. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The non-moving party’s evidence is to be believed, and all justifiable inferences are to be drawn in that party’s favor. Id. at 255, 106 S.Ct. 2505. The court determines whether the evidence requires submission to a jury or whether one party must prevail as a matter of law because the issue is so one-sided. Id. at 251-52, 106 S.Ct. 2505.

III.

Analysis

Natiomvide’s Motion for Summary Judgment

Nationwide has moved for summary judgment on all claims asserted in the amended complaint [doc. 36]. In its supporting memorandum, it has also combined its arguments in response to Networks’s motion for summary judgment, which it states are essentially the same. Nationwide has structured its brief by addressing the categories of damages sought by Networks under the asserted claims and has numbered them one through ten. For clarity, the court will address each category in the order it appears in Nationwide’s motion.

1. Roof Repairs

Networks contends it is owed $14,369.60 for replacement of roof shingles in 2005. Networks attempted to charge the roof replacement cost as an operating expense; however, Nationwide refused to pay it. Nationwide argues that under the terms of the lease it is not responsible for roof repairs or replacement. Networks contends that shingles and their replacement on the roof do not fall within the exclusionary language of “Operating Expenses” as set out in the lease.

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Bluebook (online)
748 F. Supp. 2d 836, 2010 U.S. Dist. LEXIS 96086, 2010 WL 3655905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/networks-usa-x-inc-v-nationwide-mutual-insurance-tned-2010.