Steadfast Insurance v. Corporate Protection Security Group, Inc.

554 F. Supp. 2d 1335, 2008 U.S. Dist. LEXIS 27473, 2008 WL 878936
CourtDistrict Court, S.D. Florida
DecidedMarch 28, 2008
Docket07-21159-CIV
StatusPublished
Cited by1 cases

This text of 554 F. Supp. 2d 1335 (Steadfast Insurance v. Corporate Protection Security Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steadfast Insurance v. Corporate Protection Security Group, Inc., 554 F. Supp. 2d 1335, 2008 U.S. Dist. LEXIS 27473, 2008 WL 878936 (S.D. Fla. 2008).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS WITHOUT PREJUDICE

MARCIA G. COOKE, District Judge.

This matter is before me on Defendant Corporate Protection Security Group’s Motion to Dismiss Plaintiffs Complaint [D.E. 6], filed June 19, 2007. Plaintiff filed a Response [D.E. 7-1] on July 2, 2007. Defendant filed its Reply [D.E. 9] on July 25, 2007. After reviewing the Motion, I find, for the reasons stated below, that Defendant’s Motion should be granted without prejudice.

I. BACKGROUND

Steadfast Insurance Company (“Steadfast”) advances causes of action for negligence and breach of contract against Corporate Protection Security Group (“Corporate”) as a subrogee of Dufry America, Inc. (“Dufry”). Compl. ¶¶ 8, 16-18. According to the Complaint, a theft occurred while Corporate was retained to provide security services for Dufry America. Compl. ¶ 9. Steadfast alleges that the theft occurred as a result of Corporate’s failure to investigate an alarm that sounded on the insured property at the time of the theft and that it was contacted to investigate. Compl. ¶ 10-12. As a result, Dufry sustained approximately $200,000.00 in damages. Compl. ¶¶ 13-18.

Dufry America, however, is not a party to the Service Agreement attached by Steadfast to the Complaint. Exhibit “A” at 1. Furthermore, the location specified in the contract for Corporate’s security services is 107th Avenue and 19th Street, whereas, according to the Complaint, the *1337 location insured by Steadfast is 10300 NW 19th Street, Suite 114, Miami, Florida 33172. Compl. ¶¶ 3, 8; Exhibit “A” at 1. In light of these discrepancies, Corporate moves to dismiss.

II. MOTION TO DISMISS STANDARD

In a Rule 12(b)(6) motion to dismiss, “the pleadings are construed broadly,” Levine v. World Fin. Network Nat’l Bank, 437 F.3d 1118, 1120 (11th Cir.2006), and the allegations in the complaint are viewed in the light most favorable to Steadfast, Hawthorne v. Mac Adjustment, Inc., 140 F.3d 1367, 1370 (11th Cir.1998). Nonetheless, “a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, — U.S. -, -, 127 S.Ct. 1955, 1965, 167 L.Ed.2d 929 (2007). While Rule 12(b)(6) does not permit dismissal of a well-pleaded complaint simply because “actual proof of those facts is improbable,” the “[fjactual allegations must be enough to raise a right to relief above the speculative level.” Id. To survive a motion to dismiss, a complaint must plead enough factual matter, that, if taken as true, suggests that the elements of the cause of action will be met. Watts v. Florida Int’l Univ., 495 F.3d 1289, 1296 (11th Cir.2007). Thus, the well-pleaded factual allegations must be taken as true, and the alleged facts must suggest the required elements of the causes of action on which Plaintiff can recover.

III. ANALYSIS

Corporate moves to dismiss this case because the Service Agreement does not support Steadfast’s causes of action. Mot. to Dismiss at 2. Corporate argues specifically that, since Dufry was not a party to the Service Agreement, and the security service location was not Dufry’s business address, the asserted causes of action cannot stand. Id. Steadfast responds that, even though it is not a party to the security agreement, it has a claim against Corporate because it is a third party beneficiary to the Agreement. Response at 4. Under the presented allegations, Steadfast has not stated a cause of action to recover for breach of contract and/or negligence.

A. The Service Agreement

The Service Agreement attached to the Complaint is central to my determination of the sufficiency of Steadfast’s pleadings. Corporate argues that, on a motion to dismiss, a court may consider not only the pleadings, but also the exhibits attached thereto. Mot. to Dismiss at 2. See Grossman v. Nationsbank, N.A., 225 F.3d 1228, 1231 (11th Cir.2000). Furthermore, it asserts that, where there is a conflict between allegations in a pleading and the exhibits thereto, the exhibits control. Wydler v. Bank of America, N.A., 360 F.Supp.2d 1302, 1306 n. 1 (S.D.Fla.2005). See also Tucker v. Nat’l Linen Serv. Corp., 200 F.2d 858, 864 (5th Cir.1953); Simmons v. Peavy-Welsh Lumber Co., 113 F.2d 812, 813 (5th Cir.1940), cert. denied, 311 U.S. 685, 61 S.Ct. 63, 85 L.Ed. 442 (1940). Corporate contends that here the Service Agreement is in conflict with the pleadings because of the discrepancies in the party’s name and address. Mot. to Dismiss at 2. Steadfast seems to agree that the Service Agreement is controlling to its action, but responds that it is not in conflict with the pleadings because, even though Dufry is not a named party to the agreement, it is a third party beneficiary and, as such, has a cause of action against Corporate. Response at 4.

B. Third Party Beneficiary Status

In its Response, Steadfast supports its causes of action for breach of contract and negligence against Corporate, asserting that Dufry is a third party beneficiary to the agreement. Response at 4. Steadfast does not, however, plead sufficient *1338 factual allegations to sustain that contention. Generally, to maintain a cause of action for breach of a third party beneficiary contract, the party asserting the third party beneficiary status must prove (1) the existence of the contract; (2) clear or manifest intent of the parties that the contract primarily and directly benefits the third party; (3) breach of a contact by a contracting party; and (4) damages to the third-party resulting from the breach. Jenne v. Church & Tower, Inc., 814 So.2d 522, 524 (Fla. 4th DCA 2002).

Steadfast has alleged the first, third and fourth elements of the third party beneficiary cause of action, but it failed to provide sufficient factual allegations to satisfy the intent element. Steadfast rightfully states that, in order to infer intent, the third party beneficiary need not necessarily be named in the contract. See Florida Power & Light Co. v. Mid-Valley, Inc., 763 F.2d 1316, 1321 (11th Cir.1985). The intent .may be inferred by the precontract and post-contract actions of the parties. Id. If the contract does not expressly provide for the third party beneficiary, however, the litigant must clearly show that both parties to the contract intended its beneficiary status.

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Bluebook (online)
554 F. Supp. 2d 1335, 2008 U.S. Dist. LEXIS 27473, 2008 WL 878936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steadfast-insurance-v-corporate-protection-security-group-inc-flsd-2008.