PANAPRINT, INC. v. MIDDLESEX INSURANCE COMPANY

CourtDistrict Court, M.D. Georgia
DecidedJanuary 11, 2025
Docket5:22-cv-00374
StatusUnknown

This text of PANAPRINT, INC. v. MIDDLESEX INSURANCE COMPANY (PANAPRINT, INC. v. MIDDLESEX INSURANCE COMPANY) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PANAPRINT, INC. v. MIDDLESEX INSURANCE COMPANY, (M.D. Ga. 2025).

Opinion

IFNO TRH TEH UEN MITIDEDD LSET ADTISETSR DICISTT ORFIC GTE COORUGRIAT MACON DIVISION

PANAPRINT, INC., ) ) ) Plaintiff, ) ) v. ) CIVIL ACTION NO. 5:22-cv-374 (MTT) ) MIDDLESEX INSURANCE COMPANY, ) ) ) Defendant. ) )

ORDER Plaintiff Panaprint, Inc. (“Panaprint”) filed this action against defendant Middlesex Insurance Company (“Middlesex”) claiming that Panaprint is entitled to recover insurance proceeds from Middlesex for alleged property damage resulting from hailstorms in 2019 and 2021 (the “Losses”). Doc. 1. Middlesex moved for summary judgment on both Losses. Doc. 21. At the motion hearing, the Court granted summary judgment in favor of Middlesex on the 2019 Loss. Doc. 45. For the following reasons, Middlesex’s motion for summary judgment on the 2021 Loss (Docs. 21; 46) is DENIED. I. BACKGROUND1 Middlesex issued a policy of insurance to Panaprint, which covered Panaprint’s property located in Macon, Georgia, for the period of December 31, 2018, to December 31, 2019. Docs. 21-8 ¶ 1; 30-1 ¶ 1 at 1. Middlesex issued a second renewal policy to Panaprint, which covered the same property for the period of December 31, 2020, to

1 Unless otherwise stated, these facts are undisputed and are viewed in the light most favorable to the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). December 31, 2021. Docs. 21-8 ¶ 2; 30-1 ¶ 2 at 2. Relevant here, both Policies provide that Middlesex “will pay for direct physical loss of or damage to Covered Property.” Docs. 1-3 at 22; 1-4 at 47. Under both Policies, hail damage constitutes “direct physical loss.” Docs. 30-1 ¶ 2 at 16; 36-1 ¶ 2. In May 2021, Hailsolve, Inc. inspected Panaprint’s property and found hail damage. Docs. 21-8 ¶ 5; 30-1 ¶¶ 5 at 4, 8 at 17; 36-1 ¶ 8. In June, Hailsolve conducted a more detailed inspection of the property to document hail damage on the facility’s roof, HVAC units, and other areas of the Panaprint facility. Docs. 30-1 ¶ 12 at 18; 36-1 ¶ 12 at 5. After the second inspection, Panaprint submitted a claim to

Middlesex under the Policy for purported damage to Panaprint’s property from a hailstorm in 2019. Docs. 21-8 ¶ 4; 30-1 ¶ 4 at 3. Middlesex inspected the Panaprint facility in July 2021. Docs. 23-5 at 46; 141. Middlesex’s professional engineer determined that there were spatter2 marks from hail “indicative of a recent event” on the HVAC unit fins and the roof. Docs. 49 at 6; 23-5 at 27. Middlesex’s engineer determined that “the largest impact marks at the facility were 1 inch in diameter and less than ½ inch deep.” Doc. 49 at 9. Middlesex’s engineer further determined that “the spray foam roof was damaged by the impact of hail,” and “the appropriate repair of the spray foam roofing is to scarify the top ½ inch of foam, apply a ½ inch thick layer of new foam, and a new granulated coating.” Id. at 8-9.

However, in September 2021, Middlesex denied coverage for the 2019 Loss because of Panaprint’s delay in notifying Middlesex of the Loss. Docs. 21-8 ¶ 7; 30-1 ¶ 7 at 6.

2 “Spatter,” also known as “splatter,” is “the removal of oxidation, fungus, etc., from exterior objects whether accompanied by damage or not.” Doc. 19-2 at 5-6. “Hail spatter is a temporary record of recent hail activity … [and] is typically no longer visible within a year or two.” Id. Meanwhile, Hailsolve retained professional engineer Mike Thompson to inspect the property and investigate the 2019 Loss. Docs. 30-1 ¶ 18 at 19; 36-1 ¶ 18. In December 2021, Thompson concluded that a more recent hailstorm had also caused damage to the Panaprint facility.3 Docs. 21-8 ¶¶ 9-10; 30-1 ¶¶ 9-10 at 7. Specifically, Thompson observed “[s]ome of the hail damage on the roof was approximately 1 [inch] or larger [and] was not accompanied by any spatter.” Doc. 19-2 at 8. Conversely, “[s]patter was found on HVAC units, metal panel wall coverings …, and the SPF roof system that were consistent with a hail size of ½ [inch] to 1 [inch].” Id. at 9. Therefore, Thompson determined that the larger hail damage, approximately 1 inch in diameter,

was older, whereas the smaller hail damage derived from the more recent hailstorm. Doc. 19-2 at 9. On December 22, 2021, Panaprint submitted a second claim to Middlesex for hail damage allegedly occurring in May 2021. Id. In the end, Panaprint’s experts determined the following: • The most likely date of the more recent hailstorm (the 2021 Loss) was May 4, 2021. Docs. 21-8 ¶ 12; 30-1 ¶ 12 at 9-10. • The spray foam roof at the Panaprint facility would need to be scarified, re- foamed, and recoated to properly repair the hail damage from the 2019 storm. Docs. 46 at 2-3; 30-1 ¶ 19 at 14.

• Similarly, the spray foam roof would need to be scarified, re-foamed, and recoated “as a result of the alleged hail activity in 2021.” Docs. 21-8 ¶¶ 18-19; 30-1 ¶ 18-19 at 13-14, 46 at 2-3.

3 Middlesex disputes the date Panaprint learned of the second loss, and whether Panaprint learned from Thompson or Hailsolve that the most likely date of the second loss was May 4, 2021. Doc. 36-1 ¶¶ 19, 21, 22. Middlesex conducted a second inspection of Panaprint’s property in January 2022. Docs. 23-5 at 145; 37-1. Middlesex determined that the 2021 hail event did not cause damage to the roof but agreed that the recent hail damaged the HVAC unit fins and vent caps. Doc. 53 at 3. Middlesex issued partial payment for the 2021 Loss for the cash value of damage to HVAC units on the property. Docs. 30-1 ¶ 25 at 21, 36-1 ¶ 25; 53. Panaprint filed this action against Middlesex on October 20, 2022, claiming that it is entitled to recover insurance proceeds for the 2019 and 2021 Losses. Doc 1. On January 11, 2024, Middlesex moved for summary judgment on both the 2019 Loss and

2021 Loss. Doc. 21. At a motion hearing on October 17, 2024, the Court granted summary judgment in favor of Middlesex on the 2019 Loss because Panaprint’s lawsuit was filed after the expiration of the suit limitations period set forth in the Policy. Doc. 45. Before the Court now is Middlesex’s motion for summary judgment on the 2021 Loss. Docs. 21; 44. II. STANDARD A “court shall grant summary judgment if 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). “When the moving party has the burden of proof at trial, that party must show affirmatively the absence of a genuine issue of material

fact: it ‘must support its motion with credible evidence … that would entitle it to a directed verdict if not controverted at trial.’ In other words, the moving party must show that, on all the essential elements of its case on which it bears the burden of proof at trial, no reasonable jury could find for the nonmoving party.” United States v. Four Parcels of Real Prop., 941 F.2d 1428, 1438 (11th Cir. 1991) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 331 (1986) (Brennan, J., dissenting)). “Only when that burden has been met does the burden shift to the non-moving party to demonstrate that there is indeed a material issue of fact that precludes summary judgment.” Clark v. Coats & Clark, Inc., 929 F.2d 604, 608 (11th Cir. 1991). In contrast, “[w]hen the nonmoving party has the burden of proof at trial, the moving party is not required to ‘support its motion with affidavits or other similar material negating the opponent’s claim.’” Four Parcels of Real Prop., 941 F.2d at 1437 (quoting Celotex Corp., 477 U.S. at 323). The moving party “simply may show ...

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PANAPRINT, INC. v. MIDDLESEX INSURANCE COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panaprint-inc-v-middlesex-insurance-company-gamd-2025.