Pennsylvania Manufacturers' Ass'n v. Lechner

910 F. Supp. 2d 1291, 2012 WL 5830547, 2012 U.S. Dist. LEXIS 163828
CourtDistrict Court, N.D. Oklahoma
DecidedNovember 16, 2012
DocketCase No. 12-CV-273-CVE-TLW
StatusPublished
Cited by2 cases

This text of 910 F. Supp. 2d 1291 (Pennsylvania Manufacturers' Ass'n v. Lechner) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Manufacturers' Ass'n v. Lechner, 910 F. Supp. 2d 1291, 2012 WL 5830547, 2012 U.S. Dist. LEXIS 163828 (N.D. Okla. 2012).

Opinion

OPINION AND ORDER

CLAIRE V. EAGAN, District Judge.

Now before the Court are the following motions: plaintiffs Motion for Judgment on the Pleadings (Dkt. # 37); Plaintiffs Motion for Summary Judgment and Brief in Support (Dkt. # 39); and Defendants’ Cross Motion for Summary Judgment and Brief in Support (Dkt. #46). Plaintiff Pennsylvania Manufacturers’ Association Insurance Company (PMA) seeks summary judgment on its claim for declaratory relief that it has no duty to defend or indemnify defendants against a claim filed in state court by Brandon Lechner. PMA has also- filed a motion for judgment on the pleadings as to certain defendants’ counterclaims for declaratory relief, and defendants filed a motion for summary judgment on plaintiffs claim and defendants’ counterclaim for declaratory relief.

I.

Lechner was as an employee of North-Star Memorial Group, LLC, NorthStar Cemetery Services of Oklahoma, LLC, NorthStar Funeral Services of Oklahoma, LLC (collectively the NorthStar defendants), and the Floral Haven Funeral Home, Inc. (Floral Haven). Lechner claims that, on January 4, 2010, he was inflating a tire and his supervisor, Keith Kennedy, directed him to inflate the tire to a “dangerous and hazardous level.” Dkt. # 39-1, at 3. Lechner claims that the tire exploded and nearly killed him, and that he suffered severe personal injuries, mental and physical pain and suffering, and lost earning capacity as a result of the incident. Id. Lechner filed a workers’ compensation claim and he recovered over $300,000 in workers’ compensation benefits. Dkt. # 39-5.

On December 19, 2011, Lechner filed a civil case in the Tulsa County District Court, Oklahoma seeking actual and punitive. damages from the NorthStar defendants, Kennedy, and Floral Haven. Brandon Lechner v. NorthStar Memorial Group, LLC et al, Tulsa County District Court, Case No. CJ-2011-7544. Lechner alleges that the “actions of [defendants] were intentional; that they were taken with the intent to injure Plaintiff, and they were taken with the knowledge that there was a substantial certainty that serious injury or death would occur to Plaintiff and/or other Floral Haven employees similarly situated.” Dkt. # 39-1, at 3. He also alleges that defendants “intended for Plaintiff to be injured and also disregarded [1294]*1294thé knowledge that serious injury-was cer: tain or substantially certain to occur and intentionally exposed Plaintiff to that risk.” Id. ■ In support of this allegation, Lechner states that “Floral Haven and Kennedy knew or .should have known that the manner in which they required work to be performed was in violation of [Occupational Safety and Health Administration (OSHA)] standards.” Id. Lechner seeks actual and punitive damages in excess of $75,000. Id. at 4.

PMA issued a Workers Compensation and Employers Liability Insurance Policy, policy no. 200900-62-86-64-5 (the Policy) to the NorthStar defendants, and the Policy was in effect from April 28, 2009 to April 28, 2010. Dkt. # 39-2, at 7. Floral Haven and Kennedy are not named insureds in the Policy.2 The Policy contains two distinct types of coverage. Part One of the Policy provides workers’ compensation insurance and Part Two of the Policy provides employers liability insurance. Id. at 84-85. Under the workers’ compensation provisions of the Policy, PMA is obligated to indemnify the NorthStar defendants for “benefits required of you by the workers compensation law” and also to “defend at our expense any claim, proceeding or suit against you for benefits payable by this insurance.” Id. However, the duty to defend does not extend to a “claim, proceeding or. suit that is not covered by this insurance.” Id. The Policy also provides employers liability insurance for certain types of claims against the NorthStar defendants if the claim concerns a bodily injury that “arisefs] out of and in.the course of the injured employee’s employment.....” Id. at 85. PMA is obligated to defend the NorthStar defendants from “any claim, proceeding or suit against your for damages payable by this insurance,” but PMA has no duty to “defend a claim, proceeding or suit that is not covered by this insurance.” Id. Both the workers’ compensation and the employers liability provisions of the Policy state that coverage is available only for “bodily injury by accident or bodily injury by disease.” Id. at 84. The Policy does not define “accident.”

The NorthStar defendants demanded that PMA defend them against Lechner’s claim, and PMA agreed to provide a defense to the NorthStar defendants while reserving its right to contest insurance coverage. Dkt. # 39-3. PMA advised the NorthStar defendants that:

In reviewing the allegations of the Petition and the insurance policies, however, at this time it appears that there may be no coverage for this lawsuit under the policies of insurance issued by PMA to NorthStar Memorial. In particular, we wish to emphasize that there may be no coverage under the provisions of [the Policy] because:
• coverage may be precluded because the allegations that the bodily injury was caused by intentional acts of the defendants may not qualify as bodily injury by “accident” under the policy;. ...

Id. at 8. Two days after sending the reservation of rights letter to the NorthStar defendants, PMA filed this case seeking a declaratory judgment that it has no obligation to defend or indemnify the North-Star defendants against Leehner’s claim. The NorthStar defendants and Kennedy filed a counterclaim seeking a declaratory judgment that PMA is obligated to defend them against Lechner’s claim in the state court lawsuit. Dkt. # 21.

[1295]*1295II.

Summary judgment pursuant to Fed. R.CivJP. 56 is appropriate where there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Kendall v. Watkins, 998 F.2d 848, 850 (10th Cir. 1993). The plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial. Celotex, 477 U.S. at 317, 106 S.Ct. 2548. “Summary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of the Federal Rules as a whole, which are designed ‘to secure the just, speedy and inexpensive determination of every action.’ ” Id. at 327, 106 S.Ct. 2548.

“When the moving party has carried its burden under Rule 56(c), its opponent must do more than simply show that there is some metaphysical doubt as to the material facts.... Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no ‘genuine issue for trial.’ ” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (citations omitted). “The mere existence of a scintilla of evidence in support of the plaintiffs position will be insufficient; there must be evidence on which the [trier of fact] could reasonably find for the plaintiff.” Anderson, 477 U.S. at 252, 106 S.Ct. 2505.

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910 F. Supp. 2d 1291, 2012 WL 5830547, 2012 U.S. Dist. LEXIS 163828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-manufacturers-assn-v-lechner-oknd-2012.