Hartford Cas. Ins. Co. v. Ewan

890 F.Supp.2d 886

HARTFORD CASUALTY INSURANCE COMPANY, Hartford Underwriters Insurance Company, Plaintiffs,

v.DeShon EWAN, Patrick Ewan, John Mosley d/b/a M & W Tree Service, Defendants.

Case No. 10–02828–WGY.

United States District Court,

W.D. Tennessee,

Western Division.

Sept. 4, 2012.

Annie Tauer Christoff, John C. Speer, Bass Berry & Sims PLC, Nolan M. Johnson, Baker Donelson Bearman Caldwell & Berkowitz, Andre B. Mathis, John I. Houseal, Jr., Michael D. Tauer, Glankler Brown, PLLC, Memphis, TN, H. Lee Barfield, II, Bass Berry & Sims PLC, Nashville, TN, for Plaintiffs.

Charles Michael Weirich, Jr., Law Office of James Gulley, Daniel Frederick Peel, Law Office of Daniel Peel, Daniel Alan Seward, Law Office of Daniel Seward, Robert M. Fargarson, Fargarson & Brooke, Ted S. Angelakis, Angelakis Law Firm, Memphis, TN, for Defendants.

MEMORANDUM OF DECISION

WILLIAM G. YOUNG, District Judge.

I. INTRODUCTION

The current dispute arises out of an accident on March 25, 2005, in Collierville, Tennessee, where the driver of a 1990 Mack MR6 truck with an attached tree spade allegedly disregarded a red light and struck the driver's side of DeShon Ewan's car, causing her severe injuries. Hartford Casualty Insurance Company (“Hartford Casualty”) and Hartford Underwriters Insurance Company (“Hartford Underwriters”) (collectively the “Hartford Plaintiffs”) subsequently brought this diversity action for declaratory judgment seeking a determination whether the commercial general liability policy issued by Hartford Casualty provides coverage for the damages to DeShon Ewan and her husband, Patrick Ewan (collectively the “Ewans”) allegedly resulting from this collision. The Ewans filed a motion for summary judgment and the Hartford Plaintiffs each filed a cross-motion for summary judgment. The parties agreed to proceed on a “case stated” basis.

A. Procedural Posture

On November 18, 2010, the Hartford Plaintiffs filed a complaint for declaratory judgment against the Ewans and John Mosley d/b/a M & W Tree Service. Compl. Declaratory J., ECF No. 1. The Ewans filed an answer on December 14, 2010. Answer Defs. DeShon Ewan Patrick Ewan Compl. Declaratory J., ECF No. 15. John Mosley d/b/a M & W Tree Service (“Mosley”) filed an answer on January 11, 2011. Answer Def. John Mosley d/b/a M & W Tree Service Compl. Declaratory J., ECF No. 20.

On September 15, 2011, the Ewans filed a motion for summary judgment along with a statement of facts and a supporting memorandum. Ewan Defs.' Mot. Summ. J. (“Ewans' Mot.”), ECF No. 45; Ewans' Mot., Attach. 1, Ewan Defs.' Statement Undisputed Material Facts (“Ewans' SOF”), ECF No. 45–1; Ewans' Mot., Attach. 2, Mem. Supp. Ewan Defs.' Mot. Summ. J. (“Ewans' Mem.”), ECF No. 45–2.

On September 30, 2011, Hartford Casualty filed a cross-motion for summary judgment along with a supporting memorandum and a statement of undisputed facts. Hartford Casualty Ins. Co.'s Mot. Summ. J. (“Hartford Casualty Mot.”), ECF No. 50; Hartford Casualty Mot., Attach. 1, Mem. Supp. Hartford Casualty Ins. Co.'s Mot. Summ. J. (“Hartford Casualty Mem.”), ECF No. 50–1; Hartford Casualty Mot., Attach. 2., Statement Undisputed Material Facts Supp. Hartford Casualty Ins. Co.'s Mot. Summ. J. (“Hartford Casualty SOF”), ECF No. 50–2. On September 30, 2011, Hartford Underwriters also filed a cross-motion for summary judgment. Hartford Underwriters Ins. Co.'s Mot. Summ. J. (“Hartford Underwriters Mot.”), ECF No. 51; Hartford Underwriters Mot., Attach. 1, Hartford Underwriters Ins. Co.'s Mem. Law Supp. Mot. Summ. J. (“Hartford Underwriters Mem.”), ECF No. 51–1; Hartford Underwriters Mot., Attach. 2, Hartford Underwriters Ins. Co.'s Statement Material Facts No Genuine Issue Trial (“Hartford Underwriters SOF”), ECF No. 51–2.

On October 17, 2011, the Hartford Plaintiffs filed a joint response to the Ewans' motion for summary judgment along with a response to the Ewans' list of undisputed facts. Joint Resp. Pls. Hartford Underwriters Ins. Co. Hartford Casualty Ins. Co. Ewan Defs.' Mot. Summ. J. (“Hartford Pls.' Resp.”), ECF No. 52; Hartford Pls.' Resp., Attach. 1, Joint Resp. Pls. Hartford Underwriters Ins. Co. Hartford Casualty Ins. Co. Ewan Defs.' Statement Undisputed Material Facts (“Pls.' Resp. SOF”), ECF No. 52–1. That same day, Mosley filed a response to the Ewans' motion for summary judgment. Resp. Def. John Mosley d/b/a M & W Tree Serv. Ewan Defs.' Mot. Summ. J., ECF No. 54.

On October 31, 2011, the Ewans filed responses to the Hartford Plaintiffs' motions for summary judgment along with responses to the Hartford Plaintiffs' statements of undisputed facts.¹ Ewan Defs.' Resp. Hartford Casualty Ins. Co. Mot. Summ. J. (“Ewans' Resp. Hartford Casualty”), ECF No. 63; Ewans' Resp. Hartford Casualty, Attach. 1, Ewan Defs.' Resp. Hartford Casualty Ins. Co.'s Statement Undisputed Material Facts Statement Additional Facts (“Ewans' Resp. SOF Hartford Casualty”), ECF No. 63–1; Ewan Defs.' Resp. Hartford Underwriters Ins. Co. Mot. Summ. J. (“Ewans' Resp. Hartford Underwriters”), ECF No. 64; Ewans' Resp. Hartford Underwriters, Attach. 1, Ewan Defs.' Resp. Hartford Underwriters Ins. Co.'s Statement Undisputed Material Facts Statement Additional Facts (“Ewans' Resp. SOF Hartford Underwriters”), ECF No. 64–1. On October 31, 2011, Mosley filed his responses to the Hartford Plaintiffs' motions for summary judgment. Resp. Def. John Mosley d/b/a M & W Tree Serv. Hartford Casualty Ins. Co.'s Mot. Summ. J., ECF No. 59; Resp. Def. John Mosley d/b/a M & W Tree Serv. Hartford Underwriters Ins. Co.'s Mot. Summ. J., ECF No. 61.

On November 3, 2011, the Ewans filed a reply brief. Ewan Defs.' Reply Pls.' Resp. Mot. Summ. J. (“Ewans' Reply”), ECF No. 65. On November 17, 2011, the Hartford Plaintiffs filed their reply brief. Pls.' Joint Reply Supp. Mots. Summ. J. (“Hartford Pls.' Reply”), ECF No. 70.

On May 29, 2012, the case was reassigned to this Court through the visiting judge program. Clerk's Notes, ECF No. 77. Following a telephone conference on June 18, 2012, the parties notified the Court that they wished to proceed on a case stated basis and waived oral argument.See Clerk's Notes, June 21, 2012, ECF No. 83.

B. “Case Stated” Procedure

In lieu of summary judgment, the parties have agreed to proceed on a “case stated” basis. Derived from the procedures of the courts of the Commonwealth of Massachusetts, see, e.g., Parker v. Morrell, 59 Mass.App.Dec. 34 (Mass.Dist.Ct.1976), the “case stated” procedure is firmly established in the jurisprudence of the First Circuit. See, e.g., Continental Grain Co. v. Puerto Rico Mar. Shipping Auth., 972 F.2d 426, 429 n. 7 (1st Cir.1992); Boston Five Cents Sav. Bank v. Secretary of Dep't of Hous. & Urban Dev., 768 F.2d 5, 11–12 (1st Cir.1985); Bunch v. W.R. Grace & Co., 532 F.Supp.2d 283, 286–87 (D.Mass.2008). This is a most helpful procedural device, applicable even in the most complex cases where the parties file cross motions for summary judgment. See Aspex Eyewear, Inc. v. Altair Eyewear, Inc., 818 F.Supp.2d 348 (D.Mass.2011). The procedure has also found favor in the Southern District of New York. See J.G. v. Kiryas Joel Union Free Sch. Dist., 777 F.Supp.2d 606, 636 & n. 25 (S.D.N.Y.2011); M.F. v. Irvington Union Free Sch. Dist., 719 F.Supp.2d 302, 306 & n. 2 (S.D.N.Y.2010); Adrianne P. v. Lakeland Cent. Sch. Dist., 686 F.Supp.2d 361 (S.D.N.Y.2010); Bryant v. Europadisk, Ltd., No. 07 Civ. 3050(WGY), 2009 WL 1059777, at *1 (S.D.N.Y. Apr. 15, 2009); J.G. v. Briarcliff Manor Union Free Sch. Dist., 682 F.Supp.2d 387, 389 n. 2 (S.D.N.Y.2010); New York SMSA Ltd. P'ship v. Town of Clarkstown, 603 F.Supp.2d 715 (S.D.N.Y.2009).

“In a case stated, the parties waive trial and present the case to the court on the undisputed facts in the pre-trial record.” TLT Constr. Corp. v. RI, Inc., 484 F.3d 130, 135 n. 6 (1st Cir.2007). In contrast to summary judgment, where the Court must draw all reasonable inferences in favor of the nonmovant, in a case stated, the Court is “entitled to ‘engage in a certain amount of factfinding, including the drawing of inferences.’ ” Id. (quoting United Paperworkers Int'l Union Local 14 v. International Paper Co., 64 F.3d 28, 31 (1st Cir.1995)).

In this session of the Court, it works as follows: whenever cross motions for summary judgment reveal that the relevant facts appear without significant dispute, the courtroom deputy clerk offers the parties to treat the case as a case stated. Should they accept, as was the case here, the Court treats the undisputed facts as the established record and draws the reasonable inferences therefrom without the necessity of drawing adverse inferences against each moving party. SeeFed.R.Civ.P. 56. The facts of the case being established, the Court affords each party thirty minutes for final argument (not the usual ten minutes per party when hearing argument on a motion).² In due course, the Court enters findings and rulings as required by Rule 52(a) of the Federal Rules of Civil Procedure.

II. FINDINGS OF FACT

Mosley runs M & W Tree Service, a landscaping company which grows and transplants trees. See Ewans' Resp. SOF Hartford Casualty ¶ 5. Mosley owns a 1990 Mack MR6 truck (the “Mack truck”) with an attached tree spade. Id. ¶¶ 3–4. With the use of the Mack truck and the spade, the company creates a hole in the ground at the job site, transports the dirt to the nursery, extracts a tree from the nursery, and transports and plants the tree at the job site. Id. ¶ 6. The Mack truck is also used to transport the workers that perform the tree transplanting. Id. ¶ 8. The truck has a cab with two seats, one for the driver and one for the helper. Id.

When Mosley purchased the tree spade, he personally removed it from the truck where it had previously been located and transferred it to the Mack truck. Id. ¶¶ 10–11. Mosley attached the tree spade to the Mack truck with U-bolts and at one time, welding, which broke after approximately two weeks. Id. ¶¶ 13, 16. Mosley then...