Scottsdale Insurance Company v. 517 Illinois LLC

CourtDistrict Court, S.D. Illinois
DecidedSeptember 9, 2025
Docket3:24-cv-01903
StatusUnknown

This text of Scottsdale Insurance Company v. 517 Illinois LLC (Scottsdale Insurance Company v. 517 Illinois LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scottsdale Insurance Company v. 517 Illinois LLC, (S.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

SCOTTSDALE INSURANCE COMPANY,

Plaintiff,

v. Case No. 3:24-CV-1903-NJR 517 ILLINOIS LLC, d/b/a STIX, and JOSHUA SIMMONS,

Defendants.

MEMORANDUM AND ORDER

ROSENSTENGEL, Chief Judge: Pending before the Court is a Motion for Judgment on the Pleadings filed by Plaintiff Scottsdale Insurance Company (“Scottsdale”). (Docs. 28, 29). Scottsdale seeks a declaration that the commercial general liability insurance policy it issued to Defendant 517 Illinois LLC, d/b/a Stix (“Stix”), does not provide coverage, including a duty to defend or indemnify, for claims made against Stix in a state court action for damages. For the reasons set forth below, the Court denies the Motion for Judgment on the Pleadings. BACKGROUND A. The Underlying Action This action arises out of a personal injury lawsuit pending in Jackson County, Illinois, captioned Simmons v. 517 Illinois LLC d/b/a Stix d/b/a Stix Bar, No. 2022 LA 71 (Jackson Cty. Cir. Ct.) (“Underlying Action”). The Underlying Action alleges that around 1 a.m. on May 8, 2022, Defendant Joshua Simmons was a patron at Stix Bar and Billiards in Carbondale, Illinois, when another man, Jackson Connor, bumped into one of Simmons’s female friends. (Doc. 7-2 at p. 3). Simmons confronted Connor, and the two men began to argue. (Id. at pp. 3- 4). Simmons walked away, but Connor later attempted to instigate a fight. (Id. at p. 4). Connor, who was only 20 years old, had been seen drinking alcohol at Stix throughout the night. (Id.). As Stix closed, Simmons left the bar and began walking up the road with some of

his friends. (Id. at p. 5). Connor caught up with Simmons and dared Simmons to hit him. (Id. at p. 6). When Simmons said he would not fight Connor, Connor slammed his elbow into Simmons’s face. (Id.). The blow rendered Simmons unconscious, and he immediately fell backward and hit his head on the ground. (Id. at p. 7). Simmons suffered a traumatic brain injury that required half of his cranium to be removed. (Id.). Simmons filed a complaint in Jackson County, Illinois, against Stix alleging negligence (Count I), negligent security, respondeat superior, and negligence per se (Count II), a

violation of the Illinois Dram Shop Act (Count III), and premises liability (Count IV).1 (Doc. 7-2). Stix requested coverage under a commercial general liability insurance policy that Scottsdale issued to Stix. (“Policy”). B. Scottsdale’s Complaint for Declaratory Judgment With this action, Scottsdale seeks a declaration that the commercial general liability insurance policy it issued to Stix does not provide coverage, including a duty to defend or indemnify, for the claims made in the Underlying Action. (Doc. 7). Stix timely filed an

Answer to Scottsdale’s Amended Complaint. (Doc. 17). Jurisdiction is proper in this Court under 28 U.S.C. § 1332(a)(1) in that Plaintiff Scottsdale is a citizen of Ohio and Arizona, Defendant 517 Illinois LLC is a citizen of Illinois based on the citizenship of its single member, Casey Trusty, and Defendant Simmons is a

1 The complaint also alleges a claim of battery against Connor Jackson (Count V). citizen of Indiana. Furthermore, the amount in controversy is alleged to well exceed $75,000 exclusive of interest and costs given the damages sought in the Underlying Action related to Simmons’s brain injury and the costs of a defense in connection with the Underlying Action.

(Doc. 7). Scottsdale filed the instant Motion for Judgment on the Pleadings on February 21, 2025. (Doc. 28). Stix did not respond within its 30-day deadline to do so. See SDIL-LR 7.1(b)(1)(A). Instead, it submitted a response five months after Scottsdale filed its Motion for Judgment on the Pleadings, and without first seeking leave of court to file its response out of time. Scottsdale has moved to strike the tardy response. (Doc. 32). The Federal Rules of Civil Procedure allow a court to extend a response deadline, “for

good cause . . . on motion made after the time has expired if the party failed to act because of excusable neglect.” FED. R. CIV. P. 6(b)(1)(B). Stix has neither explained how its failure to timely respond to Scottdale’s Motion for Judgment on the Pleadings was the result of excusable neglect, nor has it even responded to Scottsdale’s Motion to Strike. The Court, therefore, GRANTS the Motion to Strike Stix’s response to Scottsdale’s Motion for Judgment on the Pleadings (Doc. 33) and STRIKES the response (Doc. 32). See Raymond v. Ameritech Corp., 442 F.3d 600, 605 (7th Cir. 2006) (Rule 6(b) “gives courts both the authority to establish

deadlines and the discretion to enforce them.”). C. Relevant Policy Terms Scottsdale asks this Court to declare that the Policy bars coverage for the Underlying Action because the allegations fall squarely within the terms of the Policy’s Liquor Liability Exclusion and Assault and/or Battery Limited Liability Coverage Endorsement (“A&B Endorsement”). Its argument within its present motion, however, is limited to the terms of the A&B Endorsement. The Policy provides:

SECTION I – COVERAGES COVERAGE A – BODILY INJURY AND PROPERTY DAMAGE LIABILITY

1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of “bodily injury” . . . to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages. However, we will have no duty to defend the insured against any “suit” seeking damages for “bodily injury” . . . to which this insurance does not apply.

* * * The Policy contains an Endorsement for Assault and/or Battery, which states: ASSAULT AND/OR BATTERY LIMITED LIABILITY COVERAGE (Limited to Designated Premises)

Designated Premises: 1 – 517 S. ILLINOIS AVE, CARBONDALE, IL 62901, JACKSON

* * * Except as provided by this endorsement, this policy does not apply to “injury,” “bodily injury,” . . . [or] “damages” . . . arising from:

1. Assault and/or Battery that occurs at any premises other than the designated premises shown in the Schedule above; or

2. Assault and/or Battery that occurs away from the designated premises caused by supervision, hiring, training, organizing, or any other activities conducted on or from the designated premises shown in the Schedule above.

3. Assault and/or Battery committed by:

a. Any insured; b. Any employee/”employee” of any insured; or c. Any other person.

4. The failure to suppress or prevent Assault and/or Battery by any person in 3.a.-c. above;

5. The selling, serving or furnishing of alcoholic beverages which results in an Assault and/or Battery; or

6. The negligent:

a. Employment; b. Investigation; c. Supervision; d. Hiring; e. Training; f. Monitoring; g. Reporting to the proper authorities, or failure to so report; or h. Retention;

of a person for whom any insured is or ever was legally responsible and whose conduct would be excluded by paragraphs 3. and 4. above.

We will have no duty to defend any “suit” against you seeking “damages” as a consequence of any such injury unless coverage is provided by this endorsement.

The coverage provided is described below:

* * * 1. COVERAGES – ASSAULT AND/OR BATTERY LIABILITY We will pay on your behalf all sums which you shall become legally obligated to pay as damages because of “injury,” “bodily injury,” [or] “damages” . . .

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Scottsdale Insurance Company v. 517 Illinois LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scottsdale-insurance-company-v-517-illinois-llc-ilsd-2025.