St. Mary's Foundry v. Employers Ins

Court of Appeals for the Sixth Circuit·Decided June 16, 2003·No. 01-4183·Published

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   6W0DU\V)RXQGU\Y 1R (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU (PSOR\HUV,QVRI:DXVDX )LOH 1DPH DS

0LQQHVRWD IRU $SSHOOHH  21 %5,()  *DU\ 0 *ODVV 81,7('67$7(6&28572)$33($/6 .LPEHUO\(5DPXQGR7+203621+,1(//3&LQFLQQDWL 2KLRIRU$SSHOODQW0HO,'LFNVWHLQ0LFKDHO30F1DPHH )257+(6,;7+&,5&8,7 52%,16 .$3/$1 0,//(5  &,5(6, 0LQQHDSROLV BBBBBBBBBBBBBBBBB 0LQQHVRWDIRU$SSHOOHH

67 0$5<6 )281'5< ,1& ; BBBBBBBBBBBBBBBBB 3ODLQWLII$SSHOODQW   23,1,21  1R BBBBBBBBBBBBBBBBB Y  ! &/$<&LUFXLWsXGJH3ODLQWLII6W0DU\V)RXQGU\DSSHDOV  IURP DQ RUGHU DZDUGLQJ VXPPDU\ MXGJPHQW WR 'HIHQGDQW (03/2<(56 ,1685$1&( 2)  :$86$8 (PSOR\HUV ,QVXUDQFH RI :DXVDX DIWHU 3ODLQWLII ILOHG D  FRPSODLQW LQ IHGHUDO GLYHUVLW\ MXULVGLFWLRQ XQGHU  86& 'HIHQGDQW$SSHOOHH  † IRU GHFODUDWRU\ MXGJPHQW SXUVXDQW WR  86&  †† VHHNLQJDGHFODUDWLRQWKDWLWZDVHQWLWOHGWR 1 LQVXUDQFH FRYHUDJH IRU ORVW LQFRPH IROORZLQJ D ZDUHKRXVH $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW ILUH)RUWKHUHDVRQVVHWIRUWKEHORZZH$)),50WKHGLVWULFW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW7ROHGR FRXUWjVRUGHU 1Rn'DYLG$.DW]'LVWULFWsXGJH )$&76 $UJXHG0DUFK 3ODLQWLIILVORFDWHGLQ6W0DU\V2KLRDQGPDQXIDFWXUHV 'HFLGHGDQG)LOHGsXQH PHWDOFDVWLQJVIRUFXVWRPHUVLQDZLGHYDULHW\RILQGXVWULHV 7KHFDVWLQJVUDQJHLQVL]HIURPWRSRXQGVDQG %HIRUH&/$<DQG52*(56&LUFXLWsXGJHV&2))0$1 3ODLQWLIIPDNHVWKHPE\SRXULQJPROWHQLURQLQWRVDQGPROGV 'LVWULFWsXGJH 7KH VDQG PROGV DUH IRUPHG IURP ZRRG mSDWWHUQVl  (DFK SDWWHUQ LV FXVWRP PDGH WR SURGXFH D SDUWLFXODU FDVWLQJ BBBBBBBBBBBBBBBBB 3ODLQWLIIFDQQRWPDQXIDFWXUHFDVWLQJVZLWKRXWSDWWHUQV7KH SDWWHUQV 3ODLQWLII XVHV WR PDNH FDVWLQJV DUH RZQHG E\ &2816(/ 3ODLQWLIIjV FXVWRPHUV  &RQVLVWHQW ZLWK LQGXVWU\ SUDFWLFH 3ODLQWLIIVWRUHVWKHSDWWHUQVZKHQQRWXVLQJWKHP3ODLQWLII $5*8('  *DU\ 0 *ODVV 7+203621 +,1( //3 VWRUHGDSSUR[LPDWHO\SDWWHUQVLQDZDUHKRXVHNQRZQDV &LQFLQQDWL 2KLR IRU $SSHOODQW  5REHUW s *LOEHUWVRQ WKH3DWWHUQ6WRUDJH:DUHKRXVH 52%,16 .$3/$1 0,//(5  &,5(6, 0LQQHDSROLV 2Q)HEUXDU\'HIHQGDQWLVVXHG%XVLQHVV3URSHUW\ 3ROLF\ 1R  mWKH 3ROLF\l  WR 3ODLQWLII

7KH +RQRUDEOH sHQQLIHU % &RIIPDQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU SURYLGLQJLQVXUDQFHFRYHUDJHIRUYDULRXVLQWHUHVWVLQFOXGLQJ WKH (DVWHUQ DQG :HVWHUQ 'LVWULFWV RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ WKH 3DWWHUQ 6WRUDJH :DUHKRXVH  7KH 3ROLF\ SURYLGHG

 1R 6W0DU\V)RXQGU\Y   6W0DU\V)RXQGU\Y 1R (PSOR\HUV,QVRI:DXVDX (PSOR\HUV,QVRI:DXVDX

FRYHUDJHIRU3ODLQWLIIjVSURSHUW\LQWHUHVWVGXULQJWKHSHULRG H[FHVVRI3ODLQWLIIFRQFHGHVWKDWWKH3ROLF\GRHV IURP)HEUXDU\WR)HEUXDU\$VGUDIWHGDQG QRW FRYHU WKH YDOXH RI LWV FXVWRPHUVj SDWWHUQV EXW FODLPV LVVXHGE\ 'HIHQGDQWWKH3ROLF\SURYLGHGVHSDUDWHXQLWVRI HQWLWOHPHQWWRFRYHUDJHIRULWVEXVLQHVVORVVHVWKDWUHVXOWHG LQVXUDQFHIRUVHSDUDWHSURSHUW\LQWHUHVWVLQFOXGLQJFRYHUDJH IURPWKHORVVRIWKHSDWWHUQV IRUUHDOSURSHUW\SHUVRQDOSURSHUW\ORVVRILQFRPHDGGLWLRQDO H[SHQVHDQGHTXLSPHQWEUHDNGRZQ7KHXQLWKDVWHUPVVHW :KHQ 'HIHQGDQW GLVDJUHHG ZLWK 3ODLQWLIIjV WKHRU\ RI IRUWKLQVHSDUDWHFRYHUDJHIRUPV FRYHUDJH3ODLQWLIIILOHGDFRPSODLQWIRUGHFODUDWRU\MXGJPHQW LQ2KLRjV$XJODL]H&RXQW\&RXUWRI&RPPRQ3OHDVVHHNLQJ 7KH3ROLF\EHJLQVZLWKD'HFODUDWLRQVVHFWLRQZKLFKVHWV DGHFODUDWLRQWKDWLWZDVHQWLWOHGWRFRYHUDJHIRUORVWLQFRPH IRUWKWKHWRWDODQQXDOSUHPLXPDORQJZLWKWKH3ROLF\OLPLWV 3XUVXDQWWR86&††DQG'HIHQGDQWUHPRYHG DQGGHGXFWLEOHV,PPHGLDWHO\IROORZLQJWKH'HFODUDWLRQVDUH WKHDFWLRQWRWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ WKH VHSDUDWH FRYHUDJH IRUPV  7KH /RVV RI ,QFRPH )RUP 'LVWULFWRI2KLR SURYLGHVLQSHUWLQHQWSDUW %RWKSDUWLHVILOHGFURVVPRWLRQVIRUVXPPDU\MXGJPHQWRQ  &29(5$*( WKHLVVXHRI3ODLQWLIIjVFRYHUDJHIRUORVVRILQFRPHXQGHUWKH 3ROLF\  2Q 6HSWHPEHU   WKH GLVWULFW FRXUW GHQLHG :HZLOOSD\IRU 3ODLQWLIIjVPRWLRQDQGJUDQWHG'HIHQGDQWjV $ /RVVRILQFRPHRU 2Q 2FWREHU   3ODLQWLII ILOHG D WLPHO\ QRWLFH RI DSSHDO % 1HFHVVDU\H[SHQVHVZKLFK\RXLQFXUWRUHVXPHRU WR PDLQWDLQ \RXU DELOLW\ WR UHVXPH QRUPDO ',6&866,21 RSHUDWLRQV QRW H[FHHGLQJ WKH DPRXQW E\ ZKLFK \RXUORVVRILQFRPHLVUHGXFHG :HUHYLHZVXPPDU\MXGJPHQWGHQRYR(DVWPDQ.RGDN &RY,PDJH7HFKQLFDO6HUYV,QF86Q WKDW\RXVXVWDLQGXULQJDSHULRGRIUHFRYHU\UHVXOWLQJ  sRKQVRQY(FRQ'HY&RUS)G WK IURPDFRYHUHGORVVXSWRWKHOLPLWRIOLDELOLW\VKRZQ &LU %XFNH\H&PW\+RSH)RXQGY&LW\RI&X\KDRJD RQWKH'(&/$5$7,216 )DOOV)G WK&LU 6XPPDU\MXGJPHQW LVDSSURSULDWHZKHQWKHUHLVQRJHQXLQHLVVXHRIPDWHULDOIDFW s$ DW   HPSKDVLV LQ RULJLQDO   8QGHU WKH 3ROLF\ VXFK WKDW WKH PRYLQJ SDUW\ LV HQWLWOHG WR D MXGJPHQW DV D mFRYHUHGORVVlPHDQVDmORVVWRFRYHUHGSURSHUW\DWDFRYHUHG PDWWHURIODZ.RFVLVY0XOWL&DUH0JPW,QF)G ORFDWLRQUHVXOWLQJIURPDSHULOLQVXUHGDJDLQVWl7KH3ROLF\  WK &LU    7KH 6XSUHPH &RXUW UHVWDWHG WKH DOVRLQFOXGHVDm3URSHUW\1RW&RYHUHG(QGRUVHPHQWl m31& IUDPHZRUN JRYHUQLQJ PRWLRQV IRU VXPPDU\ MXGJPHQW LQ D (QGRUVHPHQWl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

>W@KHPHUHH[LVWHQFHRIDVFLQWLOODRIHYLGHQFHLQVXSSRUW )DUP1(G 2KLR 2KLRFRXUWVJLYHWKH RIWKHSODLQWLII VSRVLWLRQZLOOEHLQVXIILFLHQWWKHUHPXVW WHUPVRIWKHFRQWUDFWWKHLUSODLQDQGQDWXUDOPHDQLQJ%XUGHWW EHHYLGHQFHRQZKLFKWKHMXU\FRXOGUHDVRQDEO\ILQGIRU 2[\JHQ&RY(PSOR\HUV6XUSOXV/LQHV,QV&R)G WKHSODLQWLII7KHMXGJH VLQTXLU\WKHUHIRUHXQDYRLGDEO\   WK &LU   (VVH[ +RXVH Y 6W 3DXO )LUH DVNV ZKHWKHU UHDVRQDEOH MXURUV FRXOG ILQG E\ D 0DULQH,QV&R)6XSS 6'2KLR  SUHSRQGHUDQFHRIHYLGHQFHWKDWWKHSODLQWLIILVHQWLWOHGWR )ROORZLQJ 2KLR ODZ ZH PXVW JLYH PHDQLQJ WR HYHU\ DYHUGLFW SDUDJUDSKFODXVHSKUDVHDQGZRUG$IILOLDWHG)0,QV&R Y2ZHQV&RUQLQJ)LEHUJODVV&RUS)G WK 86  7KHmPHUHSRVVLELOLW\lRIDIDFWXDO &LU )LQDOO\ZHFDQQRWORRNWRHYLGHQFHRXWVLGHRIWKH GLVSXWHFDQQRWFUHDWHDWULDEOHFDVH*UHJJY$OOHQ%UDGOH\ SROLF\ZKHUHWKHFRQWUDFWLVFOHDUDQGXQDPELJXRXV.HOO\Y &R)G WK&LU 7RDYRLGVXPPDU\ 0HG/LIH,QV&R1(G 2KLR  MXGJPHQW WKH SODLQWLII mPXVW FRPH IRUZDUG ZLWK PRUH SHUVXDVLYHHYLGHQFHWRVXSSRUW>

Free access — add to your briefcase to read the full text and ask questions with AI

St. Mary's Foundry v. Employers Ins, (6th Cir. 2003).

St. Mary's Foundry v. Employers Ins (St. Mary's Foundry v. Employers Ins) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.