Wausau Underwriters Insurance v. Old Republic General Insurance

122 F. Supp. 3d 44, 2015 U.S. Dist. LEXIS 103954, 2015 WL 4720285
CourtDistrict Court, S.D. New York
DecidedAugust 7, 2015
DocketNo. 14-CV-3019 (JMF)
StatusPublished
Cited by15 cases

This text of 122 F. Supp. 3d 44 (Wausau Underwriters Insurance v. Old Republic General Insurance) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wausau Underwriters Insurance v. Old Republic General Insurance, 122 F. Supp. 3d 44, 2015 U.S. Dist. LEXIS 103954, 2015 WL 4720285 (S.D.N.Y. 2015).

Opinion

OPINION AND ORDER

JESSE M. FURMAN, District Judge:

This case involves a dispute between two insurance companies over which is obligated to defend and indemnify the defendants in another lawsuit now pending in New York State Supreme Court for the County of New York, Burawski v. 170 Broadway NYC LP, et al., Index No. 154637/13 (the “Bumwski action”). Specifically, Plaintiff Wausau Underwriters Insurance Company (“Wausau”) brings suit against Defendant Old Republic General Insurance. Company (“Old Republic”) pursuant to Title 28, United States Code Section 1332 (and, presumably, Section 2201), seeking a declaratory judgment that Old Republic is obligated to defend and indemnify certain defendants in the Bu-rawski action. Wausau now moves for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the reasons that follow, the motion is granted.

BACKGROUND

On October 19, 2012, 170 Broadway NYC LP (“170 Broadway”) entered into a construction management agreement (“the CMA”) with McGowan Builders Inc. (“McGowan”), pursuant to which McGowan agreed to serve as the construction manager for a hotel being built at 170 Broadway in Manhattan, New York. (Deck Supp. Mot. Summ. J. (Docket No. 44) (“Abraham Deck”), Ex. 1 (“CMA”)). The CMA required McGowan to obtain a general liability insurance policy listing 170 Broadway [47]*47and its affiliates as “additional insureds.” (CMA at 35). McGowan apparently satisfied that requirement through a one-year general liability policy that it had already obtained in August 2012, with an effective date of August 12, 2012, from Defendant Old Republic. (Decl. Supp. Mot. Summ. J. (Docket , No- 46) (“Potashner Decl.”), Ex. 15 (“Old Republic Policy”)). Separately, 170 Broadway maintained its own general liability protection in the form of a policy.it obtained from Plaintiff Wausau. (Deck Supp. Mot. Summ. J. (Docket No. 48) (“George Deck”), Ex. 7).

In its capacity as construction manager, McGowan was responsible for overseeing several aspects of the project, including, most relevant here, hiring subcontractors and creating and maintaining a “site-specific safety plan.” (Def.’s Resp, . Pl.’s Statement Undisputed Facts (Docket No. 55) (“Def.’s 56.1 Statement”) ¶¶ 34, 36). In connection with that role, on October 23, 2012, Adam Burawski, an employee of Tyco Integrated Security. LLC (“Tyco”), came to the 170 Broadway site to. meet with representatives of McGowan about providing security services for the project. (Def.’s 56.1 Statement ¶¶ 20-21). Before the meeting began, however, Burawski allegedly tripped and fell entering a bathroom, and sustained a serious injury. (Id. ¶ 19; George Deck, Ex. 4 ¶ 25).

In May 2013, Burawski filed suit in New York State Supreme Court against 170 Broadway and two of its affiliates, Carlyle Development Group LLC and Carlyle Partners II, LP, (collectively the “Broadway Defendants”). (George Deck, Ex. 3). Although it is unclear from the record exactly when the Broadway Defendants learned about the possibility of a lawsuit, it appears Burawski’s attorney provided notice of a possible claim as early as February 2013. (McCune Aff. (Docket No. 51), Ex. 4 at 2). In any case, on June 26, 2013, the Broadway Defendants sent McGowan a letter tendering their defenses to the Burawski action and demanding indemnification under the Old Republic policy. (Def.’s 56.1 Statement ¶ 6). Old Republic was notified of the suit, in turn, between July 1, 2013 and August 2, 2013, when Wausau sent McGowan a letter formally requesting that it notify its insurer of the claim against the Broadway Defendants and indicating a belief that the claim fell within the additional insured coverage required by the CMA. (Id. ¶9; Potashner Deck, Ex. 17 at 22, 43, 45; see id.,. Ex. 8).

On August 29, 2013, Old Republic notified Wausau that the claim did not fall within the additional insured coverage in the Old Republic Policy and, therefore, that it would not defend or indemnify the Broadway Defendants pursuant to the policy covering McGowan, (George Deck, Ex. 9). In the letter, Old Republic expressly reserved the right to interpose additional reasons for denying coverage in .the future. (Id.; see Def.’s 56.1 Statement ¶¶ 14-15). Shortly thereafter, on September 4, 2013, Burawski filed an amended complaint also naming McGowan as a defendant. (George Deck, Ex. 4). In April 2014, Wausau commenced this lawsuit, seeking a declaration that Old Republic is obligated to provide the Broadway Defendants with a defense and with indemnification. (Docket No. 2). It now moves for summary judgment.

LEGAL STANDARDS

Summary judgment is appropriate where the admissible evidence and the pleadings demonstrate “no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); see also Johnson v. Killian, 680 F.3d 234, 236 (2d Cir.2012) (per curiam). An issue of fact qualifies as genuine if the “evidence is such that a reasonable jury could return a verdict for [48]*48the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); accord Roe v. City of Waterbury, 542 F.3d 31, 35 (2d Cir.2008). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. See Celotex v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “In moving for summary judgment against a party who will bear the ultimate burden of proof at trial, the movant’s burden will be satisfied if he can point to an absence of evidence to support an essential element of the nonmoving party’s claim.” Goenaga v. March of Dimes Birth Defects Found., 51 F.3d 14, 18 (2d Cir.1995) (citing Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548),

In ruling on a motion for summary judgment, all evidence must be viewed “in the light most favorable to the non-moving party,” Overton v. N.Y. State Div. of Military & Naval Affs., 373 F.3d 83, 89 (2d Cir.2004), and the Court must “resolve all ambiguities and draw all permissible factual inferences in favor of the party against whom summary judgment is sought,” Sec. Ins. Co. of Hartford v. Old Dominion Freight Line, Inc., 391 F.3d 77, 83 (2d Cir.2004). To defeat' a motion for summary judgment, the non-moving party must advance more than a “scintilla of evidence,” Anderson, 477 U.S. at 252, 106 S.Ct. 2505, and demonstrate more than “some metaphysical doubt as to the material facts,” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S.

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Bluebook (online)
122 F. Supp. 3d 44, 2015 U.S. Dist. LEXIS 103954, 2015 WL 4720285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wausau-underwriters-insurance-v-old-republic-general-insurance-nysd-2015.