Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company

CourtDistrict Court, W.D. Pennsylvania
DecidedJanuary 28, 2026
Docket3:24-cv-00060
StatusUnknown

This text of Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company (Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company, (W.D. Pa. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANNIA STELLA PROPERTY DEVELOPMENT _ ) AND EVENT PRODUCTION, LLC, )

Plaintiff, . vs. Civil Action No. 3:24-cv-60 ) Judge D. Brooks Smith AUTO-OWNERS INSURANCE ) COMPANY, ) Defendants.

MEMORANDUM and ORDER OF COURT Pending before me is a dispute over whether Stella Property Development and Event Production, LLC’s (“Stella”) claim for roof damage is covered under its commercial property policy issued by Auto-Owners Insurance Company (“Auto- Owners”). Stella asserts claims for breach of contract, and for bad faith under 42 Pa. C.S.A § 8371. The parties have filed cross-motions for partial summary judgment: Stella seeks a determination that coverage is owed as a matter of law while Auto- Owners seeks dismissal of Stella’s statutory bad-faith claim. Stella has also filed a Motion to Strike Auto-Owners’ belated concise statement of material facts in support of its Motion. For the reasons set forth below, I will deny Stella’s motions and grant Auto-Owners’ motion.

I. Background A. Factual Background Plaintiff Stella owns the Casimir Cultural Center located in Johnstown, Pennsylvania (the “Church”).' In September 2018, Defendant Auto-Owners issued Stella a commercial property policy (“Policy”). ECF No. 1-1, (9 9); ECF No. 19, (§ 9). The Policy provides, in relevant part, that Auto-Owners “will pay for direct physical loss of or damage to” the Church “caused by or resulting from any Covered Cause of Loss.” Appx68.” “Covered Cause of Loss” is defined by reference to a

separate “Causes of Loss Form.” /Jd.; Appx91—99. That Form, in turn, defines “Covered Causes of Loss” as “Risks of Direct Physical Loss,” unless the loss is otherwise excluded or limited by the Policy. Appx91. The Causes of Loss Form contains multiple exclusions. Two are relevant here. First Paragraph (B)(2)(d) (“wear-and-tear exclusion”) excludes loss or damage “caused by or resulting from” certain conditions, including: (1) Wear and tear; (2) Rust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself; (3) Smog; (4) Settling, cracking, shrinking or expansion;

' The building was originally constructed in 1902 as a Catholic church, Appx 169:16—22, and operated as such for over 100 years, Appx164:4—7. ? All cites to “Appx” throughout this opinion refer to the Appendix of Exhibits to Plaintiff’s Concise Statement of Undisputed Material Facts Supporting Motion for Partial Summary Judgment (ECF No. 48).

Appx92-93. Second, Paragraph (B)(3) (“maintenance exclusion”) excludes loss or damage “caused by or resulting from . . . faulty, inadequate or defective:” (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling. grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance of part or all of any property on or off the described premises. Appx94. Both exclusions, however, contain exceptions, commonly referred to as “resulting loss” or “ensuing loss” clauses. The wear-and-tear exclusion states that if an excluded cause of loss “results in a ‘specified cause of loss’ . . . [Auto-owners | will pay for the loss or damage caused by that ‘specified cause of loss.’” Appx93 (§ (B)(2)(d)). The Policy defines “Specified causes of loss” as: fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire- extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; water damage.

3 Although the exception at issue in the present case uses the wording “results in” as opposed to “ensue,” courts have frequently stated that resulting loss clauses and ensuing loss clauses are one and the same. See, e.g., Burgunder v. United Specialty Ins. Co., No. CV 17-1295, 2018 WL 2184479, at *5 (W.D. Pa. May 11, 2018) (describing identical language as the present clause as “an ensuing loss provision”); Balfour Beatty Constr, L.L.C. v. Liberty Mut. Fire Ins. Co., 968 F.3d 504, 513 (Sth Cir. 2020) (“We cannot find .. . any significant difference . . . between resulting loss provisions and ensuing loss provisions.”); Viking Constr, Inc. v. 777 Residential, LLC, 210 A.3d 654, 664-65 & n.9 (Conn. App. Ct. 2019) (“A resulting loss clause [is] also known as an ensuing loss clause.”); Erie Ins. Property & Casualty Co. v. Chaber, 801 S.E.2d 207 n.8 (W. Va 2017) (“Whether an insurance policy uses the term ensuing loss or resulting loss is of no moment . . . The distinction is simply a matter of different wording among insurance policies. There is no legal significance to using one phrase over the other.” (internal quotation marks omitted)).

Appx98 (emphasis added). Likewise, the maintenance exclusion provides that “if an excluded cause of loss [listed in that subsection] results in a Covered Cause of Loss

we will pay for the loss or damage caused by that Covered Cause of Loss.” Appx94 ((B)(3)). Thus, if an ensuing loss provision applies, it restores coverage for the loss caused by the ensuing covered cause. On June 21, 2021 a windstorm occurred near the Church, with “[e]stimated maximum wind gusts of 65 mph, for a cumulative duration of 1 hour.” Appx314. Thereafter, Stella retained James Kibler III (“Kibler’) of Rain Remodeling & Restoration Inc. (“Rain”) to inspect the roof for damage. Appx252. Kibler inspected the Church and issued a report dated July 12, 2021 (the “Rain Report”) which stated that “[e]xtensive wind damage is present on nearly all facets of the roof.” Appx251. The Rain Report also noted that the existing organic shingles were in “very poor condition” and were “defective, discontinued, and no longer available.” Jd. At this time, Kibler estimated the cost to repair the roof at $108,010.52.4 Appx253—56. Stella submitted a claim to Auto-Owners for first-party property coverage and provided the Rain Report.’ Auto-Owners’ assigned claims representative Susan Dick

4 In May 2024, Kibler re-inspected the roof and estimated the cost of repairs at $366,371.95. Appx359. > See Plaintiff’s Concise Statement of Undisputed Material Facts Supporting Motion for Partial Summary Judgment (ECF No. 47) (“Pltf. Stmt.”), at ¢ 35 Defendant Auto- Owners Insurance Company’s Response to Plaintiff’s Statement of Facts (ECF No. 53) (“Def. Stmt.”), at ¥ 35.

(“Dick”) to handle the claim, and she in turn retained Hancock Claims Consultants, Inc. (“Hancock”), to inspect the roof. See Pltf. Stmt. at YY 36-37; Def. Stmt. at qq 36-37. Hancock employee Brandon Turner (“Turner”) inspected the property on August 5, 2021 and issued a report (the “Turner Report”). ECF No. 49-4. Turner did not go onto the roof itself but observed that “the shingles appear to be over 25 years old and in very poor condition.” Jd. He concluded that “[n]o sudden loss created damages” to the roof. Jd. Dick thereafter retained engineer, Ryan Fitzgerald (“Fitzgerald”) of Rimkus Consulting Group, Inc. (“Rimkus”) to inspect the roof. Pltf. Stmt. at ¢ 41; Def. Stmt. at § 41. Fitzgerald performed a ground and aerial-drone inspection on August 25, 2021, reviewed historical aerial images and weather data, and issued a report dated September 3, 2021 (the “Rimkus Report”). Appx306—-53. The Rimkus Report concluded that the asphalt shingles “were not damaged by a single wind event” and the conditions on the roof—“flaking granules and clawing and splitting overlay tabs”—were “typical forms of long-term deterioration of organic shingles.” Appx311. It further stated that, “in their deteriorated states, individual shingles and overlay tabs had been removed by various moderate wind events,” and that the wind speeds recorded at the Church were “generally considered to be non-damaging for

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Stella Property Development and Event Production, LLC v. Auto-Owners Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stella-property-development-and-event-production-llc-v-auto-owners-pawd-2026.