Promote Mexico v. Monster Energy Company CA2/1

CourtCalifornia Court of Appeal
DecidedJuly 1, 2024
DocketB328413
StatusUnpublished

This text of Promote Mexico v. Monster Energy Company CA2/1 (Promote Mexico v. Monster Energy Company CA2/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Promote Mexico v. Monster Energy Company CA2/1, (Cal. Ct. App. 2024).

Opinion

Filed 7/1/24 Promote Mexico v. Monster Energy Company CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

PROMOTE MEXICO, LLC, B328413

Cross-complainant and (Los Angeles County Appellant, Super. Ct. No. 19STCV28457)

v.

MONSTER ENERGY COMPANY,

Cross-defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Bruce G. Iwasaki, Judge. Affirmed in part and reversed in part. Procopio, Cory, Hargreaves & Savitch, Kendra J. Hall, John D. Alessio, Sean M. Sullivan and Zagros S. Bassirian for Cross-complainant and Appellant. Shook, Hardy & Bacon, M. Kevin Underhill, Marc P. Miles and Kristy A. Schlesinger for Cross-defendant and Respondent. ____________________________ Promote Mexico, LLC (Promote Mexico) appeals from a summary adjudication order finding Promote Mexico has a duty to defend Monster Energy Company (Monster) in a lawsuit alleging injuries to a Monster spokesmodel at an off-road racing event promoted by Promote Mexico. The order directed Promote Mexico to pay Monster’s future defense costs as well as past costs retroactive to January 15, 2019, the date Monster invoked the relevant indemnity provision in an e-mail to Promote Mexico.1 Promote Mexico argues other language in the agreements containing the indemnity provision supersedes its duty to defend, as does a general waiver signed by six drivers from Monster’s off- road racing team. Promote Mexico further argues to the extent a duty to defend exists, Monster failed to prove that duty was triggered on January 15, 2019, seven months before the spokesmodel filed her complaint. Finally, Promote Mexico argues the order directing it to pay Monster’s past and future defense costs and setting deadlines for such payment exceeds the scope of Monster’s summary adjudication motion. We hold, as did the trial court, that Promote Mexico has a duty to defend Monster. We disagree with Promote Mexico that other language in the relevant agreements overrides Promote Mexico’s duty to defend, or that the general waiver, signed by Monster’s drivers as individuals, binds Monster.

1 In the written decision granting Monster’s summary adjudication motion, the trial court also granted the parties’ motion to seal filings. This appeal does not challenge the grant of the sealing motion, which we regard as a separate order from the summary adjudication order. Nothing in this opinion should be read to affect the grant of the sealing motion.

2 We agree with Promote Mexico, however, that Monster failed to provide evidence that as of January 15, 2019, its spokesmodel had made a claim or demand triggering Promote Mexico’s duty to defend Monster. The issue of when Promote Mexico’s duty arose therefore remains a question for trial. We also agree with Promote Mexico that Monster’s summary adjudication motion requested a ruling only as to Promote Mexico’s duty to defend, and did not request an order directing payment of past and future legal costs and setting a deadline for doing so. The trial court thus erred in adjudicating these payment issues. Accordingly, we affirm in part and reverse in part.

BACKGROUND

1. The sponsorship agreements Promote Mexico is a Nevada limited liability company that “markets SCORE-branded off-road racing events.” In 2016 and 2017, Monster and Promote Mexico executed two agreements, retroactive to January 1, 2016, entitled “Television Sponsorship Agreement” and “Sponsorship Agreement.”2 The agreements concerned Monster’s involvement in SCORE World Desert Championship off-road race series and related events, including the Baja 1000. These events are referred to in the agreements as “Events” or, in the singular, “Event.” The agreements contain materially identical provisions under paragraph 6.01 stating, in relevant part, “[Promote

2Promote Mexico is identified in the agreements and elsewhere in the record as Score International, the name under which Promote Mexico was doing business.

3 Mexico] shall indemnify, protect, defend and hold harmless [Monster] . . . from and against any and all claims, liabilities, losses, damages, injuries, demands, actions, causes of action, suits, proceedings, judgments and expenses . . . arising from or connected with: (i) any breach by [Promote Mexico] of any provision of this Agreement or any representation or warranty made by it herein; (ii) any negligent act or omission to act of [Promote Mexico], its employees, servants and agents; and/or (iii) any death or injury to any person or damage to any property related to the Event by the actions of [Promote Mexico], its respective employees, servants, and agents.” The agreements each contain another provision in paragraph 6.11 stating, in relevant part, that Monster “will be solely responsible for all wages, income taxes, worker’s compensation and any other requirements for all personnel it supplies pursuant to this Agreement.” The television sponsorship agreement contained additional language in paragraph 6.01 requiring Monster to indemnify and defend Promote Mexico under specified circumstances. That language is not at issue in this appeal.

2. Complaint and cross-complaints On August 12, 2019, Magda Angel filed a complaint against Monster and others arising from injuries she allegedly suffered at the 2018 Baja 1000 race when she was struck by one of the race vehicles. Angel alleged that at the time of the accident, she was an independent contractor working at the race as one of Monster’s spokesmodels. Angel alleged Monster had been negligent for “fail[ing] to adopt safety policies, procedures, rules and/or guidelines; fail[ing] to provide safety training, instruction, warnings, security, supervision and/or staffing; and fail[ing] to

4 protect [Angel] from unexpected and hidden risks, hazards and dangers associated with the 2018 Baja 1000 events.” Angel did not name Promote Mexico in the complaint. On October 28, 2019, Monster filed a cross-complaint against Promote Mexico (identified as Score International) and others for express indemnity, breach of contract, implied equitable indemnity, comparative indemnity, contribution, apportionment, and declaratory relief. Monster sought, inter alia, defense and indemnity from Promote Mexico for Angel’s claims, citing the sponsorship agreements. On January 7, 2020, Promote Mexico cross-complained against Monster and others, also seeking defense and indemnity from Monster under the sponsorship agreements. On August 18, 2020, Angel filed an amendment to her complaint substituting Promote Mexico as a Doe defendant. A year later, on August 29, 2022, Angel filed her first amended complaint, which, unlike her original complaint, included allegations that Promote Mexico had negligently failed to protect her from the accident.

3. Motion for summary adjudication On January 5, 2023, Monster moved for summary adjudication of one issue: whether Promote Mexico has a duty to defend Monster under paragraph 6.01 of the agreements against Angel’s claims. Monster contended the duty arose on January 15, 2019, seven months before Angel filed her complaint, when Monster claimed to have tendered defense of the “anticipated lawsuit.” Monster asked for “an order finding that [Promote Mexico] has an immediate duty to defend Monster in this action.” As evidence, Monster submitted an e-mail dated January 15, 2019, from Monster’s counsel to a representative of

5 Promote Mexico.

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Bluebook (online)
Promote Mexico v. Monster Energy Company CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/promote-mexico-v-monster-energy-company-ca21-calctapp-2024.