Republic Servs. of Pa., LLC v. Caribbean Operators, LLC

301 F. Supp. 3d 468
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 14, 2018
DocketCIVIL ACTION NO. 17–03908
StatusPublished
Cited by19 cases

This text of 301 F. Supp. 3d 468 (Republic Servs. of Pa., LLC v. Caribbean Operators, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Republic Servs. of Pa., LLC v. Caribbean Operators, LLC, 301 F. Supp. 3d 468 (E.D. Pa. 2018).

Opinion

PAPPERT, J., District Judge

Republic Services of Pennsylvania, LLC sued Caribbean Operators, LLC, Caribbean Operators, Inc., Gomes Express, Inc. (collectively "Caribbean"), United Financial Casualty Company ("UFCC"), James B. Johnston, and Evanston Insurance Company seeking declaratory judgments against UFCC (Counts 1, 2) and Evanston (Count 10). (Compl., ECF No. 1.) Republic also alleges claims for bad faith against UFCC (Count 3), breach of contract against Caribbean (Counts 4 and 5) and *471negligent misrepresentation (Count 6), negligence (Count 7), breach of contract (Count 8) and breach of fiduciary duty (Count 9) against Johnston. UFCC filed a Motion to Dismiss Count 1 (UFCC Mot., ECF No. 14) and Johnston filed a Motion to Dismiss Counts 6-9 (Johnston Mot., ECF No. 25). On March 1, 2018, the Court heard oral argument on both motions. (ECF No. 37.) The Court grants UFCC's Motion (ECF No. 14) and grants in part and denies in part Johnston's Motion (ECF No. 25) for the reasons that follow. The case is stayed with respect to all remaining claims.

I

A

Republic, a waste disposal service, contracted with Caribbean to perform trash hauling services. (Compl., Ex. A.) On the morning of September 19, 2014, Roberto Jones, while in the course of his Caribbean employment, was transporting trash in a Caribbean owned 2001 tractor trailer with vehicle identification number 1FUJA6CGX1LJ39963 and an attached semi-trailer. (Id. at ¶¶ 26, 16-17.) While driving on Pennsylvania Route 340, Jones collided with a truck driven by Jacob Long. (Id. at ¶¶ 31, 36.) Long and two of his passengers, Marcus Ruff and another individual, died as a result of the accident. (Id. at ¶ 38.) Long and Ruff's estates brought separate lawsuits against Jones, Caribbean Operators, Gomes Express and Republic Services. The cases ("Underlying Action") were consolidated and are pending before the Court of Common Pleas of Lancaster County. (Compl. ¶ 15.)

B

Republic and Caribbean's business venture was governed by a January 10, 2013 Master Transportation Services Agreement ("MTSA") which was in effect on the date of the accident. (Compl. ¶¶ 22-23.) The MTSA required Caribbean to obtain insurance coverage as outlined therein. (Compl. ¶¶ 25-31; MTSA ¶ 12, Compl., Ex. B.) Specifically, Caribbean was obligated to maintain automobile liability insurance with limits of at least $2,000,000 per accident and umbrella/excess liability insurance with limits of at least $2,000,000 per occurrence. (Compl. ¶¶ 26, 29; MTSA ¶ 12.1.) Caribbean agreed that all insurance policies would be primary without the right of contribution from other insurance maintained by Republic (Compl. ¶¶ 28, 31; MTSA ¶ 12.2) and agreed to list Republic as an additional insured on each policy (Compl. ¶¶ 27, 30; MTSA ¶ 12.2).

Caribbean retained Johnston, an insurance broker, to place its insurance policies. (Compl. ¶ 47.) Caribbean informed Johnston about the MTSA requirements (Compl. ¶¶ 48-49) and relied on Johnston to obtain policies in accordance with those requirements (Compl. ¶ 50). UFCC subsequently issued two policies to Caribbean: policy number 03079347-0 (Policy 1, Compl., Ex. C) and policy number 05281021-5 (Policy 2, Compl. Ex. D). UFCC issued one policy to Gomes: policy number 07651616-3 (Policy 3, Compl. Ex. E). (Compl. ¶¶ 32-35.) Each UFCC policy was in effect during September 2014 and provided for a combined single limit of $1,000,000 per accident. (Id. ) Further, each UFCC policy provided:

We will settle or defend, at our option, any claim or lawsuit for damages covered by this Part I. We have no duty to settle or defend any lawsuit, or make any additional payments, after the Limit of Liability for this coverage has been exhausted by payment of judgments or settlements.
...

In addition to our Limit of Liability, we will pay for an insured:

*4721. all expenses that we incur in the settlement of any claim or defense of any lawsuit.

(Policy 1, at 6-8; Policy 2, at 6-8; Policy 3, at 6-8.) None of the UFCC policies explicitly list Republic as an "additional insured" (Policy 1, Policy 2, Policy 3), and only Policy 3 expressly includes the 2001 tractor trailer on its auto coverage schedule (Policy 3).

Johnston also helped Caribbean place its umbrella/excess policy with Associated International. The Associated Policy, number XOBW4307213, was also in effect in September 2014 and provides coverage up to $1,000,000 per occurrence. (Compl. ¶¶ 43-44.) Evanston assumed all rights and obligations under this policy through its merger with Associated International. (Compl. ¶¶ 46, 11.)

C

Republic acknowledges that UFCC is currently providing a defense to Republic in the Underlying Action "under one or more of the UFCC Policies" subject to a reservation of rights (Compl. ¶ 42; UFCC Mot. at 3 n.1) and no judgment has been entered against Republic (Hr'g Tr. 43:2-7). Notwithstanding these facts, Republic now seeks largely to have the Court provide Republic with more "certainty" that UFCC will continue to do that which it is already doing-defend Republic. (ECF No. 1.) UFCC moves to dismiss Count 1 for lack of subject matter jurisdiction under Rule 12(b)(1) and in the alternative, for failure to state a claim under Rule 12(b)(6). (UFCC Mot. at 4-9.) Johnston moves to dismiss Counts 6-9 for lack of subject matter jurisdiction under Rule 12(b)(1) and, also in the alternative, for failure to state a claim under Rule 12(b)(6). (Johnston Mot. at 11-28.) Republic filed a Response in Opposition to both motions. (Opp. to UFCC, ECF No. 20; Opp. to Johnston, ECF No. 29.)

II

A party's Rule 12(b)(1) motion "may be treated as either a facial or factual challenge to the court's subject matter jurisdiction." Gould Elecs. Inc. v. United States , 220 F.3d 169, 176 (3d Cir. 2000)modified , Simon v. United States , 341 F.3d 193 (3d Cir. 2003) (referencing Mortensen v. First Fed. Sav. and Loan Ass'n , 549 F.2d 884, 891 (3d Cir. 1977) ). When, as here, presented with a facial attack, the Court "must only consider the allegations of the complaint and documents referenced therein and attached thereto, in the light most favorable to the plaintiff." Id. The plaintiff bears the burden of showing that the action is properly in federal court. Samuel-Bassett v. KIA Motors Am., Inc. , 357 F.3d 392, 396 (3d Cir. 2004).

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301 F. Supp. 3d 468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-servs-of-pa-llc-v-caribbean-operators-llc-paed-2018.