Siemens Industry, Inc. v. Paynecrest Electric, Inc.

CourtDistrict Court, E.D. Missouri
DecidedAugust 12, 2025
Docket4:24-cv-01638
StatusUnknown

This text of Siemens Industry, Inc. v. Paynecrest Electric, Inc. (Siemens Industry, Inc. v. Paynecrest Electric, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Siemens Industry, Inc. v. Paynecrest Electric, Inc., (E.D. Mo. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

SIEMENS INDUSTRY, INC., and ) HDI GLOBAL INSURANCE COMPANY, ) ) Plaintiffs, ) ) ) v. ) Case No. 4:24-CV-01638-SPM ) PAYNECREST ELECTRIC, INC., and ) AMERISURE MUTUAL INSURANCE ) COMPANY, ) ) Defendants. )

MEMORANDUM OPINION This matter is before the Court on Defendants PayneCrest Electric, Inc., and Amerisure Mutual Insurance Company’s Joint Motion to Dismiss, or in the Alternative, Motion to Stay Proceedings (ECF No. 12), and Plaintiffs Siemens Industry, Inc. and HDI Global Insurance Company’s Cross-Motion for Partial Judgment on the Pleadings Against Defendant Amerisure Mutual Insurance Company (ECF No. 19). The motions have been fully briefed. The parties have consented to the jurisdiction of the undersigned United States Magistrate Judge pursuant to 28 U.S.C.§ 636(c)(1). ECF No. 22. For the following reasons, both motions will be denied. I. BACKGROUND

This is an action arising out of Amerisure Mutual Insurance Company’s (“Amerisure’s”) refusal to defend and indemnify Siemens Industry Inc. (“Siemens”), Siemens employee Gabriel Espinosa (“Espinosa”), and Siemens customers CBRE, Inc., and CBRE Managed Services Ltd. (together, “CBRE”) in connection with multiple personal injury actions filed in state court (the “Underlying Actions”). Plaintiffs Siemens and HDI Global Insurance Company (“HDI”) (an insurer currently providing a defense to Siemens, Espinosa, and CBRE under a reservation of rights) seek a declaration that Amerisure has a duty to defend and indemnify Siemens, Espinosa, and CBRE in the Underlying Actions because they are “additional insureds” under an insurance

policy issued by Amerisure to Defendant PayneCrest Electric, Inc. (“PayneCrest”). Siemens also asserts breach of contract claims against Amerisure and PayneCrest, and HDI asserts an equitable subrogation and contribution claim against Amerisure. In the instant motion, Defendants Amerisure and PayneCrest ask the Court to abstain from exercising jurisdiction over this matter and dismiss this suit in its entirety because of the presence of parallel state court proceedings—the Underlying Actions. In the alternative, Defendants ask the Court to stay the action until the state courts resolve the question of who is liable for the injuries alleged in the Underlying Actions. Plaintiffs oppose the motion. Plaintiffs also move for partial judgment on the pleadings on Siemens’ claims that Amerisure has a duty to defend Siemens, Espinosa, and CBRE in the Underlying Action.

A. The Underlying Actions The Court begins with a brief discussion of the Underlying Actions and the events leading up to them. Siemens had a contract with CBRE Managed Services Ltd. (the “Master Services Agreement”) under which Siemens was to perform work on electrical equipment at a jobsite. PayneCrest was a subcontractor who had a contract with Siemens (the “Master Subcontract” and a corresponding “Purchase Order”) to perform work at the jobsite. On September 15, 2022, Siemens employee Gabriel Espinosa and PayneCrest employee Jason Lee were working at the jobsite when an electrical arc flash/explosion occurred that injured both of them. Siemens employee Espinosa and his wife filed three state court actions related to this incident, two of which are currently pending: Cause No. DC-24-13622, in Dallas County District Court, Texas, and Cause No. 24SL-CC04361 in St. Louis County Circuit Court, Missouri (collectively, the “Espinosa 2 Actions”).1 ECF Nos. 1-7 & 1-8. The defendants in the Espinosa 2 actions are Siemens Corporation,2 CBRE, Inc., PayneCrest, and Jason Lee. Espinosa alleges that

the negligence and gross negligence of Lee and CBRE caused the situation that led to the arc flash that injured him. PayneCrest employee Lee also filed an action related to the incident: Cause No. 23SL- CC02092, in St. Louis County Circuit Court, Missouri (the “Lee Action”). ECF No. 1-9. The defendants in the Lee Action are Siemens, CBRE Inc., CBRE Managed Services, Inc., Espinosa, and other defendants not relevant to the instant motions. Lee alleges that the negligence of Espinosa and the other defendants caused the arc flash that injured him. In the Lee Action, Siemens filed a third-party complaint against PayneCrest (the “Lee Third-Party Complaint”). ECF No. 1-10. Siemens asserts two claims: (1) a claim of contractual

defense and indemnification alleging that the Master Subcontract and Purchase Orders between Siemens and PayneCrest require PayneCrest to defend, indemnify, and hold harmless Siemens; and (2) a claim seeking a declaratory judgment finding that PayneCrest is obligated to defend Siemens, Espinosa, and Siemens customer CBRE, Inc., in the Lee Action. These third-party claims are based on two contractual provisions. The first is a provision in the Master Subcontract that requires PayneCrest to indemnify and defend Siemens, its customers, and agents, from liabilities arising from “any negligent or wrongful act or omission of [PayneCrest]” or its employees. See

1 Another action, referred to in the Complaint as “Espinosa 1,” was voluntarily dismissed. 2 Plaintiff Siemens is a division of Siemens Corporation. ECF No. 1-12, at p. 15 (Master Subcontract, Ex. C, Article 17.1). The second is a provision in the Purchase Order requiring PayneCrest to indemnify and Defend Siemens and its representatives from liabilities “arising or resulting from (a) [PayneCrest] or its Representative’s negligence or willful misconduct, or (b) the Goods/Services furnished hereunder.” See ECF No. 1-10, at p. 84

(Terms and Conditions of Purchase Order, ¶ 9(A)(i)). Siemens alleges that Lee’s Petition alleges liabilities that arose from the goods and services he and PayneCrest provided at the jobsite. Siemens further alleges that Lee’s claims arise from Lee’s and PayneCrest’s negligence. Specifically, Siemens alleges that Lee and PayneCrest breached their duty of care by, inter alia, failing to supervise work, creating an unsafe worksite, stating that the electrical equipment was de-energized, failing to lock-out/tag-out the electrical equipment, and failing to ensure a safe work area.3 B. Plaintiffs’ Claims in This Action Plaintiffs allege in this action that the Master Subcontract and Purchase Order between PayneCrest and Siemens, in addition to requiring PayneCrest to indemnify and defend Siemens

and its employees and customers, required PayneCrest to obtain insurance naming Siemens and its employees and customers as additional insureds. See ECF No. 1-12, at pp. 17, 20 (Master Subcontract at Ex. C, Article 25.1, and Ex. D, Articles 1.5 & 2.3); ECF No. 1-13, at pp. 24-25 (Terms & Conditions of Purchase Order, Ex. E). Plaintiffs further allege that Amerisure issued a policy in PayneCrest’s favor that provides such coverage (the “Amerisure Policy”). The Amerisure Policy provides, in relevant part, that any person or organization whom PayneCrest is required to add as an additional insured under a written contract related to its business is an “additional

3 In the Petition filed in the Lee Action, Lee does not allege that Lee or PayneCrest were negligent. The allegations of Lee’s and PayneCrest’s negligence are made in Siemens Industry’s Third-Party Complaint. insured,” but “[t]hat person or organization is an additional insured only with respect to liability caused, in whole or in part, by: . . . ongoing operations performed by [PayneCrest] or on [PayneCrest’s] behalf.” ECF No. 19-1, at p. 69 (Amerisure Policy, Contractor’s Blanket Additional Insured Endorsement). Plaintiffs argue that the allegations in the Underlying Actions show

potential liability caused, in whole or in part, by ongoing operations performed by PayneCrest or on its behalf.

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Siemens Industry, Inc. v. Paynecrest Electric, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/siemens-industry-inc-v-paynecrest-electric-inc-moed-2025.