Zoller v. Zurich Am. Ins. Co.

356 F. Supp. 3d 598
CourtDistrict Court, E.D. Louisiana
DecidedDecember 10, 2018
DocketCIVIL ACTION CASE NO. 16-1837
StatusPublished

This text of 356 F. Supp. 3d 598 (Zoller v. Zurich Am. Ins. Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zoller v. Zurich Am. Ins. Co., 356 F. Supp. 3d 598 (E.D. La. 2018).

Opinion

NANNETTE JOLIVETTE BROWN, CHIEF JUDGE

Before the Court is Defendants Ray Cammack Shows' ("RCS") and T.H.E. Insurance Company's ("T.H.E.") "Motion for Summary Judgment."1 Having considered the motion for summary judgment, the memoranda in support and opposition, the record, and the applicable law, the Court will grant the motion dismissing Ray Cammack Shows and T.H.E.2 as parties in the case.

I. Background

A. Factual Background

This matter involves a motor vehicle accident that allegedly occurred on February 8, 2015. In the petition for damages, Plaintiff Ron Zoller ("Plaintiff") alleges that Defendant Charles Nikolauzyk ("Nikolauzyk") rear-ended him while traveling westbound on Interstate-12 in St. Tammany Parish, Louisiana.3 At the time of the incident, Plaintiff alleges that Nikolauzyk was driving a motor vehicle owned by Defendants Larry Newsom and Linda Newsom (collectively, "the Newsoms").4 At that time, Nikolauzyk was allegedly employed by Defendant Newsom Trucking, Inc. ("Newsom Trucking").5 Plaintiff also alleges that at the time of the accident the motor vehicle Nikolauzyk was driving was hauling a trailer ("the Trailer") owned by either Schantz Manufacturing, Inc. ("Schantz") or RCS.6

B. Procedural Background

On February 2, 2016, Plaintiff filed a petition for damages against Nikolauzyk, *601the Newsoms, and the Newsoms' insurer Zurich American Insurance, Co. ("Zurich") in the 22nd Judicial District Court for the Parish of St. Tammany.7 On March 4, 2016, Nikolauzyk and Zurich removed the case to this Court.8 On March 9, 2016, Plaintiff filed a first amending and supplemental complaint naming Newsom Trucking as a defendant.9

On November 7, 2016, Plaintiff filed a second amending and supplemental complaint naming Hallmark Specialty Insurance Company ("Hallmark") as an insurer of Newsom Trucking.10 On July 31, 2017, Plaintiff filed a third amending and supplemental complaint alleging that T.H.E., the insurer of RCS, may have provided insurance coverage for the trailer being pulled by Nikolauzyk.11 On November 21, 2017, Plaintiff filed a fourth amending and supplemental complaint against RCS, Schantz, and Shantz's insurer Selective Insurance Company of South Carolina ("Selective").12

On November 6, 2018, RCS and T.H.E. filed the instant motion for summary judgment.13 On November 8, 2018, Hallmark filed an opposition to the motion.14 On November 12, 2018, Plaintiff filed an opposition.15 On November 18, 2018, Schantz filed an opposition.16 With leave of Court, RCS and T.H.E. filed a reply on November 21, 2018.17

II. Parties' Arguments

A. RCS and T.H.E.'s Arguments in Support of the Motion for Summary Judgment

RCS and T.H.E. urge the Court to grant summary judgment in their favor because they contend that the insurance policy T.H.E. issued to RCS (the "T.H.E. Policy") does not provide coverage for Plaintiff's claim.18 First, RCS and T.H.E. argue that RCS did not own the trailer and T.H.E.'s policy only covers vehicles owned by RCS.19 Next, RCS and T.H.E. assert that RCS cannot be held vicariously liable for the negligence of Nikolauzyk.20 Finally, RCS and T.H.E. argue that T.H.E.'s policy does not cover the driver of the truck owned by Newsom.21

1. Ownership of the Trailer

RCS and T.H.E. assert that before deciding who owns the trailer, the Court must determine which state's substantive law applies.22 RCS and T.H.E. argue that under Louisiana's conflict of laws statute, Illinois law applies because it is the state whose "policies would be most seriously impaired if its law were not applied to the issue of ownership."23 RCS and T.H.E.

*602contend that Schantz and RCS's only connection to Louisiana is the motor vehicle accident at issue in this case.24 Furthermore, RCS argues that its relationship with Schantz "is centered in Illinois."25 RCS and T.H.E. allege that Illinois is where the trailer was manufactured, Schantz is domiciled, and the bill of sale was executed.26 RCS and T.H.E. further argue that the purchase agreement for the trailer provides that any dispute between them regarding the construction and sale of the trailer will be governed by Illinois law."27

RCS and T.H.E. assert that under Illinois law, "it is axiomatic that the question of when ownership has passed from one person to another for purposes of insurance coverage is a question of the intention of the parties."28 According to RCS and T.H.E., the "the undisputed facts establish that ownership of the trailer had not yet passed to RCS at the time of the accident."29 RCS and T.H.E. assert that RCS made a $ 140,000 down payment on the trailer on December 5, 2014, but it did not receive possession of the trailer, finalize payment, or receive a bill of sale until after February 10, 2015.30 RCS and T.H.E. allege that Schantz retained possession of the trailer and "transported [it] to Florida to use it in connection with the marketing of [Schantz'] business" from February 3 to February 7, 2015.31 RCS and T.H.E. contend that the incident at issue occurred on February 8, 2015, while Schantz was shipping the trailer to RCS in Houston, but RCS had not yet taken possession and had not paid the full purchase price.32 RCS and T.H.E. assert that final payment was not made until February 10, 2015, when the trailer was delivered and the bill of sale was not executed until February 17, 2015.33 RCS and T.H.E. contend that "Schantz's Bill of Sale notes that, at the time of its execution, Shantz is the 'lawful owner' of the trailer."34 Accordingly, RCS and T.H.E. argue that Schantz, not RCS, was the legal owner of the trailer at the time of the accident.35

Because RCS did not own the trailer at the time of the accident, RCS and T.H.E. argue that the T.H.E. Policy does not cover the trailer.36 According to RCS and T.H.E., its policy only provides coverage for "covered autos" under the policy, and the trailer was not listed as covered under the T.H.E. Policy.37 Further, RCS and T.H.E. assert that though the policy provides coverage for "owned autos you acquire after the policy begins," RCS had not acquired the trailer at the time of the accident so the trailer was likewise not covered under T.H.E.'s policy.38 Therefore, T.H.E.

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Cite This Page — Counsel Stack

Bluebook (online)
356 F. Supp. 3d 598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zoller-v-zurich-am-ins-co-laed-2018.