City of Flint v. Lexington Ins Co
City of Flint v. Lexington Ins Co
Opinion
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS
81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB
7+( &,7< 2) )/,17 ; 3ODLQWLII$SSHOOHH 1R Y ! /(;,1*721 ,1685$1&( &203$1< 'HIHQGDQW$SSHOODQW 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R n*HRUJH(:RRGV'LVWULFWsXGJH $UJXHG $SULO 'HFLGHGDQG)LOHG sXQH %HIRUH 0$57,1&KLHI&LUFXLWsXGJH &2/(&LUFXLW sXGJH 6+$53'LVWULFWsXGJH
7KH +RQRUDEOH * .HQGDOO 6KDUS 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 0LGGOH 'LVWULFW RI )ORULGD VLWWLQJ E\ GHVLJQDWLRQ
7KH&LW\RI)OLQWY/H[LQJWRQ,QV&R 1R
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 5REHUW ' *ROGVWHLQ *$5$1 /8&2: 0,//(5 3& *UDQG %ODQF 0LFKLJDQ IRU $SSHOODQW (GZDUG % 'DYLVRQ *$8/7 '$9,621 3& )OLQW 0LFKLJDQIRU$SSHOOHH21%5,() 5REHUW'*ROGVWHLQ *$5$1/8&2:0,//(53&*UDQG%ODQF0LFKLJDQ :LOOLDP s %ULFNOH\ *$5$1 /8&2: 0,//(5 3& 'HWURLW 0LFKLJDQ IRU $SSHOODQW 'RQDOG * 5RFNZHOO 1,// .,5%< 52&.:(// )OLQW 0LFKLJDQ IRU $SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB *.(1'$//6+$53'LVWULFWsXGJH3ODLQWLII$SSHOOHH &LW\ RI )OLQW m)OLQWl VHHNV LQGHPQLW\ XQGHU DQ LQVXUDQFH SROLF\LVVXHGE\'HIHQGDQW$SSHOODQW/H[LQJWRQ,QVXUDQFH &RPSDQ\ m/H[LQJWRQl IRUGDPDJHVDZDUGHGDJDLQVW)OLQWLQ DFLYLOULJKWVDFWLRQ m0LGGOHWRQl 6HYHUDOZKLWH)OLQWSROLFH RIILFHUV VXFFHVVIXOO\ DUJXHG WKDW )OLQWjV DIILUPDWLYH DFWLRQ SODQ m3ODQl ZDVLOOHJDO6HH0LGGOHWRQY&LW\RI)OLQW )G WK &LU )OLQW VXEPLWWHG D FODLP WR /H[LQJWRQ IRU SD\PHQW RI WKH DGYHUVH MXGJPHQW DQG RWKHU FRVWV EXW /H[LQJWRQ UHIXVHG WR KRQRU WKH FODLP FLWLQJ WKH GHILQLWLRQV DQG YDULRXV H[FOXVLRQV VHW IRUWK LQ WKH SROLF\ /H[LQJWRQDSSHDOVIURPWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\ MXGJPHQWLQ)OLQWjVIDYRU ,%$&.*5281' $)DFWXDO%DFNJURXQG 7KHSDUWLHVVWLSXODWHGWRWKHIDFWVRIWKHFDVH 5DW %ULHIO\ )OLQW EHJDQ LQYHVWLJDWLQJ DQ DIILUPDWLYH DFWLRQ SURJUDPIRULWVSROLFHDQGILUHGHSDUWPHQWVLQ )OLQW DGRSWHGWKH3ODQLQsXO\ 2QFHWKH3ODQZDVDGRSWHG 7KH&LW\RI)OLQWY/H[LQJWRQ,QV&R 1R 1R 7KH&LW\RI)OLQWY/H[LQJWRQ,QV&R
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jVFRQWHQWLRQWKDWWKH3ODQ DUELWUDWLRQDQDUELWUDWRULPSRVHGD UDWLR RULJLQDWHG ZLWK WKH )OLQW 3ROLFH 'HSDUWPHQW LV D VWUDLQHG FRQVWUXFWLRQ RI mODZ HQIRUFHPHQWl DQG WKH &RXUW ZLOO QRW $IWHU LPSOHPHQWDWLRQ RI WKH 3ODQ HOHYHQ )OLQW SROLFH UHFRJQL]HLWLQOLJKWRIWKHXQDPELJXRXVFRQWUDFW RIILFHUVZHUHSDVVHGRYHUIRUSURPRWLRQVEHWZHHQ DQG 7KH\VXHG)OLQWFODLPLQJ WKDWEXWIRUWKHDOOHJHGO\ ,,,&21&/86,21 LOOHJDODIILUPDWLYHDFWLRQSURJUDPWKH\ZRXOGKDYHUHFHLYHG WKHLU SURPRWLRQV 7KLV &RXUW IRXQG WKDW WKH 3ODQ ZDV QRW )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHMXGJPHQWRI QDUURZO\WDLORUHGWRDFKLHYHLWVFODLPHGLQWHUHVWDQGUHYHUVHG WKHGLVWULFWFRXUW DGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWLQ)OLQWjVIDYRU 0LGGOHWRQ )GDW /H[LQJWRQLVVXHG)OLQWDSROLF\HQWLWOHGm3XEOLF2IILFLDOV DQG (PSOR\HHV /LDELOLW\ ,QVXUDQFH 3ROLF\l ZLWK D SROLF\ SHULRGRIsXO\ WRsXO\ :KHQWKH0LGGOHWRQ DFWLRQ EHJDQ )OLQW UHTXHVWHG GHIHQVH DQG LQGHPQLILFDWLRQ IURP /H[LQJWRQ &LWLQJ WKH GHILQLWLRQV DQG H[FOXVLRQV SROLF\VHFWLRQV/H[LQJWRQGHWHUPLQHGWKDWWKHFODLPmDURVH RXWRIWKHDFWLYLWLHVRIDODZHQIRUFHPHQWDJHQF\lDQGGHQLHG FRYHUDJH %3URFHGXUDO%DFNJURXQG )OLQWVXEVHTXHQWO\ILOHGDQDFWLRQIRUGHFODUDWRU\MXGJPHQW 6HQLRU sXGJH 6WHZDUW 1HZEODWW JUDQWHG SDUWLDO VXPPDU\
m,QVXUHG VKDOO PHDQ 0HPEHUV RI FRPPLVVLRQV ERDUGV RU RWKHU XQLWV RSHUDWLQJ E\ DQG XQGHU WKH MXULVGLFWLRQ RI >WKH &LW\@ SURYLGHG WKDW WKH LQVXUDQFH DIIRUGHG VKDOO QRW H[WHQG WR ODZ HQIRUFHPHQW DJHQFLHVl 5 DW
m>/H[LQJWRQ@ VKDOO QRW EH OLDEOH WR PDNH DQ\ SD\PHQW RI /RVV LQ FRQQHFWLRQ ZLWK DQ\ FODLP DULVLQJ RXW RI WKH DFWLYLWLHV RI DQ\ ODZ HQIRUFHPHQW DJHQF\ RU SHUVRQQHOl 5 DW 7KH&LW\RI)OLQWY/H[LQJWRQ,QV&R 1R 1R 7KH&LW\RI)OLQWY/H[LQJWRQ,QV&R
MXGJPHQW LQ )OLQWjV IDYRU 1RWDEO\ KH UXOHG WKDW WKH FRQVWUXFWLRQl+RVNLQJY6WDWH)DUP0XW$XWR,QV&R H[FOXVLRQXSRQZKLFK/H[LQJWRQUHOLHGZDVLQYDOLGsXGJH 1:G 0LFK VHHDOVR8SMRKQ&RY 1HZEODWWUHVHUYHGGHFLVLRQRQWKHVFRSHRIVRPHH[FOXVLRQV 1HZ +DPSVKLUH ,QV &R 1: G 0LFK KRZHYHUDQGWUDQVIHUUHGWKHFDVHWRsXGJH*HRUJH:RRGV $EVHQWDPELJXLW\WKHWHUPVRIWKHFRQWUDFWDUHmQRW sXGJH:RRGVQRWHGWKDWKHZDVQRW REOLJDWHGWRDGKHUHWR RSHQ WR FRQVWUXFWLRQ DQG PXVW EH HQIRUFHG DV ZULWWHQl sXGJH1HZEODWWjVSULRUUXOLQJsXGJH:RRGVIRXQGWKDWWKH &RFKUDQY(UQVW <RXQJ)6XSS (' LGHQWLW\RIWKH3ODQjVRULJLQDWRUZDVDPDWHULDOIDFWSUHFOXGLQJ 0LFK FRQVWUXLQJ0LFKLJDQODZ VHHDOVR(TXLWDEOH VXPPDU\MXGJPHQW)ROORZLQJDGGLWLRQDOGLVFRYHU\sXGJH /LIH$VVXUDQFH6RFj\Y3RH)G WK&LU :RRGVJUDQWHG VXPPDU\MXGJPHQWLQ)OLQWjVIDYRURQWKLV FRQVWUXLQJ0LFKLJDQODZ ([FOXVLRQDU\SROLFLHVPXVW UHPDLQLQJLVVXHWKHVROHPDWWHUDSSHDOHGWRWKLV&RXUW7KH EHVWULFWO\FRQVWUXHGDJDLQVWWKHLQVXUHU+DUURZ3URGXFWV SDUWLHVHQWHUHGDVWLSXODWHGMXGJPHQWIRU ,QFY/LEHUW\0XW,QV&R)G WK&LU FRQVWUXLQJ0LFKLJDQODZ ,,',6&866,21 7KH FRXUW DFFHSWV WKH SDUWLHVj MRLQW FRQFHVVLRQ WKDW WKH $6WDQGDUGRI5HYLHZ SROLF\ LV QRW DPELJXRXV 7KH GLVWULFW FRXUW ZHQW WR JUHDW OHQJWKVH[SODLQLQJWKHSROLF\jVJHQHVLVDQGLPSOHPHQWDWLRQ :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWGH ,QGRLQJVRWKHGLVWULFWFRXUWUHYLHZHGWKH3ODQLWVHOIDVZHOO QRYR8QLWHG1DWjO,QV&RY667)LWQHVV&RUS)G DVVXSSRUWLQJDIILGDYLWV WK&LU 6XPPDU\MXGJPHQWLVDSSURSULDWH LI WKH HYLGHQFH YLHZHG LQ WKH OLJKW PRVW IDYRUDEOH WR WKH 7KH SROLF\ LV FOHDUO\ LGHQWLILHG DV D FRQWUDFW EHWZHHQ QRQPRYDQWHVWDEOLVKHVmWKDWWKHUHLVQRJHQXLQHLVVXHDVWR /H[LQJWRQDQG)OLQWQRWDQ\VXEGLYLVLRQRI)OLQWVXFKDVWKH DQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\LVHQWLWOHGWRD )OLQW3ROLFH'HSDUWPHQW8QGHUWKHGHILQLWLRQVVHFWLRQRIWKH MXGJPHQWDVDPDWWHURIODZl)HG5&LY3 F VHHDOVR SROLF\WKHUHLVQRGRXEWWKDW)OLQWLVDQLQVXUHG7RFRQFOXGH 7HUU\%DUU6DOHV$JHQF\,QFY$OO/RFN&R )G RWKHUZLVHZRXOGLJQRUHWKHFOHDUDQGXQDPELJXRXVWHUPVRI WK&LU 7KHIDFWVLQWKLVFDVHDUHQRWGLVSXWHG WKHFRQWUDFW)XUWKHUPRUHWKHSROLF\REOLJDWHV/H[LQJWRQWR ZHDUHIDFHGVROHO\ZLWKWKHOHJDOFRQVWUXFWLRQRIDQLQVXUDQFH mSD\RQEHKDOIRIWKH>)OLQW@DOO/RVVZKLFK>)OLQW@VKDOOEH SROLF\6HH$GYDQFH:DWFK&R/WGY.HPSHU1DWjO,QV OHJDOO\ REOLJDWHG WR SD\ IRU DQ\ FLYLO FODLP RU FODLPV ILUVW &R )G WK&LU PDGHDJDLQVWWKHPEHFDXVHRID:URQJIXO$FWl 5DW 7KHUHIRUH XQGHU WKH SODLQ ODQJXDJH RI WKH FRQWUDFW %$QDO\VLV /H[LQJWRQ LV REOLJDWHG WR LQGHPQLI\ )OLQW IRU 0LGGOHWRQ XQOHVVDSROLF\H[FOXVLRQDSSOLHV 0LFKLJDQODZUHTXLUHVWKHFRXUWWRH[DPLQHWKHSROLF\DVD ZKROHDQGJLYHPHDQLQJWRDOOLWVWHUPV)UHVDUGY0LFKLJDQ 6WULFW FRQVWUXFWLRQ RI WKH H[FOXVLRQV VHFWLRQ PDQGDWHV 0LOOHUV0XW,QV&R1:G 0LFK FRYHUDJHm/DZHQIRUFHPHQWlLVQRWVSHFLILFDOO\GHILQHGLQ :H LQWHUSUHW WKH SROLF\jV WHUPV XQGHU WKHLU FRPPRQO\ WKH SROLF\ DQG DV VXFK PXVW EH FRQVWUXHG VWULFWO\ DJDLQVW FRQVWUXHGPHDQLQJVDQGZLOOQRWDSSO\DmWHFKQLFDORUVWUDLQHG /H[LQJWRQ+DUURZ3URGXFWV)GDW :HQHHGQRW UHDFK RXWVLGH WKH IRXU FRUQHUV RI WKH SROLF\ IRU DQ LQWHUSUHWDWLRQ RI mODZ HQIRUFHPHQWl WKDW VXLWV /H[LQJWRQ 3ULRU WR DGGLWLRQDO GLVFRYHU\ WKH GLVWULFW FRXUW GLG QRW SRVVHVV ZKHQ WKH FRPPRQO\ FRQVWUXHG PHDQLQJ SODLQO\ VXIILFHV D FRS\ RI WKH 3ODQ ILOHG ZLWK WKH 0LFKLJDQ &LYLO 5LJKWV &RPPLVVLRQ RU WKH 8SMRKQ1:GDW 3XWVLPSO\SROLFHGHSDUWPHQWV &LW\ 3ROLFH 'HSDUWPHQWjV FROOHFWLYH EDUJDLQLQJ DJUHHPHQW
Reference
- Status
- Published