Sciolla v. West Bend Mutual Insurance

987 F. Supp. 2d 594, 2013 WL 6671488, 2013 U.S. Dist. LEXIS 178020
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 18, 2013
DocketCivil Action No. 11-5604
StatusPublished
Cited by11 cases

This text of 987 F. Supp. 2d 594 (Sciolla v. West Bend Mutual Insurance) 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
Sciolla v. West Bend Mutual Insurance, 987 F. Supp. 2d 594, 2013 WL 6671488, 2013 U.S. Dist. LEXIS 178020 (E.D. Pa. 2013).

Opinion

MEMORANDUM

EDUARDO C. ROBRENO, District Judge.

Table of Contents

I. INTRODUCTION.......................................................596

II. BACKGROUND.........................................................597

III. STANDARD OF REVIEW ...............................................598

IV. DISCUSSION...........................................................599

A. Applicable Law......................................................599

B. The Parties’ Burdens..................................................599

1. Plaintiffs Burden of Establishing Coverage..........................599

2. Insured’s Burden of Establishing the Applicability of Exclusion

CG2101 .......................................................600

a. Elements of Exclusion CG2101.................................600

b. Ambiguity of Sponsor.........................................601

C. Appropriateness of Summary Judgment ................................603

D. Defendant’s Duties to Defend and Indemnify............................604

V. CONCLUSION..........................................................604

I. INTRODUCTION

Plaintiffs Amanda Sciolla and Meredith Hopkins (collectively, “Plaintiffs”) brought this suit seeking declaratory relief against West Bend Mutual Insurance Company (“Defendant”). Plaintiffs’ Complaint relates to a previous action filed against Buckeye Donkey Ball, L.L.C. (“Buckeye”).1 See Am. Compl., Ex. E, Compl. Against Buckeye (hereinafter, “Buckeye Compl.”), ECF No. 28-5. Defendant is Buckeye’s insurance carrier. Defendant [597]*597alleges that, per its policy, Defendant has no duty to defend or indemnify Buckeye in the previously filed action. Answer Am. Compl., Feb. 20, 2013, ECF No. 29. Buckeye subsequently assigned its rights to Plaintiffs to assert claims directly against Defendant. See Am. Compl., Ex. F, Assignment of Rights, Aug. 20, 2011, ECF No. 28-2. Thus, Plaintiffs’ Complaint seeks a declaration that Defendant has a duty to defend and indemnify Buckeye against the claims that Plaintiffs filed in the previous suit. Am. Compl. Defendant answered Plaintiffs’ Complaint denying all allegations and asserting a variety of affirmative defenses. Answer Am. Compl.

Pending, before the Court are the parties’ cross-motions for summary judgment. See Def.’s Mot. Summ. J., Mar. 1, 2013, ECF No. 30-8; Pis.’ Mot. Summ. J., ECF No. 31. For the reasons that follow, the Court will grant Plaintiffs’ Motion for Summary Judgment and, correspondingly, deny Defendant’s Motion for Summary Judgment.

II. BACKGROUND

Plaintiffs are both teachers in the Pennsbury School District. Defendant is an insurance company that issued an insurance policy to Buckeye Donkey Ball, L.L.C. (“Buckeye”). See Am. Compl., Ex. B, Ins. Policy, ECF No. 28-2. Buckeye puts on Donkey Ball Shows that involve people riding donkeys while playing basketball. Relevant here, Buckeye put on a Donkey Ball Show on November 13, 2009, at the Charles Boehm Middle School in Pennsbury School District. Plaintiffs allege they participated in this show and were thrown off their donkeys, sustaining injuries. See Am. Compl. ¶¶ 6-7. Plaintiffs then filed a personal injury suit against Buckeye. See Am. Compl. ¶ 12; see also Buckeye Compl.

Prior to the incident, Buckeye purchased an insurance policy from Defendant. See Ins. Policy. Defendant, however, disclaims any duty to defend or indemnify Buckeye, citing a policy provision excluding insurance coverage. See Def.’s Mot. Summ. J., Ex. D, CG2101Sports or Athletic Participant Exclusion (hereinafter, “Exclusion CG2101”) (“With respect to any operations shown in the Schedule, this insurance does not apply to ‘bodily injury’ to any person while practicing for or participating in any sports or athletic contest or exhibition that you sponsor.”).2 In a letter to Buckeye, dated March 31, 2010, Defendant disclaimed liability under Exclusion CG2101. Am. Compl., Ex. C., Disclaimer of Duty to Defend or Indemnify (“Disclaimer Letter”), March 31, 2010, ECF No. 28-3. Thereafter, Buckeye assigned its rights under the insurance policy to Plaintiffs. See Assignment of Rights.

Plaintiffs brought this action seeking declaratory judgment, asserting that Defendant has a duty to defend and indemnify Buckeye. Following the Court’s Order Vacating its Earlier Memorandum Opinion and Order (ECF No. 26),3 Defendant [598]*598moved for summary judgment. Def.’s Mot. for Summ. J., ECF No. 30. In turn, Plaintiffs also filed for Summary Judgment and filed a response to Defendant’s Motion for Summary Judgment (ECF No. 34). Defendant has responded to Plaintiffs’ Motion for Summary Judgment (ECF No. 33). The parties’ motions are now ripe for disposition.

III. STANDARD OF REVIEW

Summary judgment is appropriate if there are no genuine disputes of material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(a). “A motion for summary judgment will not be defeated by ‘the mere existence’ of some disputed facts, but will be denied when there is a genuine issue of material fact.” Am. Eagle Outfitters v. Lyle & Scott Ltd., 584 F.3d 575, 581 (3d Cir.2009) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). A fact is “material” if proof of its existence or nonexistence might affect the outcome of the litigation, and a dispute is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248, 106 S.Ct. 2505.

In undertaking this analysis, the court views the facts in the light most favorable to the non-moving party. “After making all reasonable inferences in the nonmoving party’s favor, there is a genuine issue of material fact if a reasonable jury could find for the nonmoving party.” Pignataro v. Port Auth. of N.Y. & N.J., 593 F.3d 265, 268 (3d Cir.2010) (citing Reliance Ins. Co. v. Moessner, 121 F.3d 895, 900 (3d Cir.1997)). While the moving party bears the initial burden of showing the absence of a genuine issue of material fact, meeting this obligation shifts the burden to the non-moving party who must “set forth specific facts showing that there is a genuine issue for trial.” Anderson, 477 U.S. at 250, 106 S.Ct. 2505.

The standard for addressing cross-motions for summary judgment remains the same as if there were only one motion filed. See Lawrence v. City of Phila., 527 F.3d 299

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987 F. Supp. 2d 594, 2013 WL 6671488, 2013 U.S. Dist. LEXIS 178020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sciolla-v-west-bend-mutual-insurance-paed-2013.