Koscinski v. Farm Family Cas. Ins. Co.

346 F.Supp.3d 248

Peter KOSCINSKI, Administrator of the Estate of Megan Koscinski, Plaintiff,

v.FARM FAMILY CASUALTY INSURANCE COMPANY, Defendant.

No. 3:17-cv-472 (MPS)

United States District Court, D. Connecticut.

Signed September 28, 2018

Gerald S. Sack, Law Offices of Gerald S. Sack, West Hartford, CT, for Plaintiff.

Kelly E. Petter, Hassett & Donnelly, PC, Hartford, CT, Scott T. Ober, Hassett & Donnelly, P.C., Worcester, MA, for Defendant.

RULING ON MOTION FOR SUMMARY JUDGMENT

Michael P. Shea, U.S.D.J.Peter Koscinski brings this action as administrator of his daughter Megan Koscinski's Estate against Farm Family Casualty Insurance Company ("Farm Family"). His claims relate to an underlying lawsuit he brought against Harold G. Skinner in Connecticut Superior Court. Koscinski alleged that Skinner negligently caused Megan's death at a party in a home that Skinner owned. Skinner sought defense and indemnification from Farm Family under a homeowner's insurance policy it had issued him. Farm Family denied Skinner's claim, concluding that the events in Koscinski's complaint fell within an exclusion in the policy for bodily injury arising out of the use of a controlled substance. Koscinski and Skinner settled the underlying lawsuit. The settlement stipulated that judgment would be entered for Koscinski in the amount of $345,000. Skinner agreed to pay $45,000 and assigned his rights under the Farm Family policy to Koscinski.

Koscinski then brought this suit against Farm Family arguing that Farm Family must pay the balance of his settlement with Skinner. Farm Family moved for summary judgment, arguing that it had no duty to defend or indemnify Skinner because Koscinski's claims against Skinner fell within the controlled substances exclusion in the policy. I find that there is no genuine dispute of material fact about the applicability of the controlled substances exclusion and that the claims in Koscinski's case against Skinner fell entirely within that exclusion. I therefore GRANT Farm Family's motion for summary judgment.

I. Factual Background and Procedural History

Peter Koscinski sued Harold Skinner in Connecticut Superior Court on December 3, 2015. His original complaint alleged that Skinner "was the owner of, and controlled, maintained, and/or possessed, a single family home located at 34 Skinner Road ... also known as 65 Highland Avenue...." (Skinner Complaint, ECF No. 15-1 at 22 ¶ 2) ("Skinner I"). Megan Koscinski, then fourteen, allegedly attended a party at the home on February 15, 2014, where "heroin and other narcotics were available and were used and/or consumed by plaintiff's decedent, among others." (Skinner I ¶ 3.) The Skinner I complaint alleged that, at the party, "[a]s a result of using heroin and other narcotics at the premises ... Megan Koscinski became ill and unconscious, ultimately resulting in her death on February 16, 2014." (Skinner I ¶ 4.) The complaint alleged that Skinner negligently and carelessly caused Megan's death in one of the following ways:

a. in that he failed to adequately supervise the plaintiff's decedent and other minors at the premises;

b. in that he permitted parties at the premises when he knew or should have known that minors using alcohol and/or narcotic drugs were in attendance;

c. in that he failed to control the conduct of those at the premises;

d. in that he did not identify or stop the narcotics and/or alcohol consumption by minors at the premises, when, in the exercise of reasonable care, he could and should have done so.

(Skinner I ¶ 5.)

Skinner held a homeowner's insurance policy from Farm Family Insurance Company—Policy No. 0602G1294 ("the Policy"), which was in effect on the dates in Koscinski's complaint. (Defendant's Local Rule 56(a)2 Statement, ECF No. 15-2 at 2 ¶ 3) ("56(a)2 Stmt."). The Policy provided the following coverage:

WE provide coverage under Section A – BODILY INJURY/PROPERTY DAMAGE, if a claim is made or a SUIT is brought against an INSURED for damages because of a BODILY INJURY or PROPERTY DAMAGE caused by an OCCURRENCE that takes place in the COVERAGE TERRITORY and to which this coverage applies.

...

WE provide coverage under Section B – MEDICAL EXPENSES for the necessary MEDICAL EXPENSES incurred and reported within three (3) years from the date of an OCCURRENCE causing BODILY INJURY, provided that the OCCURRENCE takes place in the COVERAGE TERRITORY....

(ECF No. 15-1 at 79-91.) The policy also included the following exclusion:

Sections A and B do not apply to BODILY INJURY/PROPERTY DAMAGE or MEDICAL EXPENSES

...

22. arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a controlled substance. This exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician

(ECF No. 15-1 at 84.)

On January 6, 2016, Farm Family sent Skinner a letter acknowledging Koscinski's suit. (ECF No. 19-2 at 16.) The letter explained that the incident in the complaint fell within the exclusion in the policy for injuries or medical expenses "arising out of the use" of a controlled substance. (Id. at 17.) The letter specifically noted allegations that Megan Koscinski had attended a party at Skinner's home where "heroin and other narcotics were available and used," that she had used heroin as a result of Skinner's negligence, and that she had died of a heroin overdose. (Id. at 16.) On the basis of this exclusion, Farm Family refused to defend or indemnify Skinner in Koscinski's suit.

On March 7, 2016, Koscinski filed an amended complaint against Skinner, changing only the following two paragraphs:

Paragraph 4:

• Original: "As a result of using heroin and other narcotics at the premises, the plaintiff's decedent, Megan Koscinski, became ill and unconscious, ultimately resulting in her death on February 16, 2014." (Skinner I ¶ 4.)

• Amended: "At that time, while at the party, plaintiff's Decedent, Megan Koscinski, became ill and unconscious, ultimately resulting in her death on February 16, 2014." (Amended Complaint, ECF No. 19-2 at 23 ¶ 4) ("Skinner II")

Paragraph 6:

• Original: "As a result of the conduct of defendant, the plaintiff's decedent, Megan Koscinski, used and/or consumed heroin and/or other narcotics, became ill and unconscious and ultimately expired on February 16, 2014 from a heroin overdose." (Skinner I ¶ 6.)

• Amended: "As a result of the conduct of defendant, the plaintiff's decedent, Megan Koscinski, became ill and unconscious and ultimately expired on February 16, 2014." (Skinner II ¶ 6.)

The amended complaint still alleged that "Megan Koscinski ... attended a party at the premises at which heroin and other narcotics were available and were used and/or consumed by the plaintiff's decedent ..." (Skinner II ¶ 3.) It also alleged the same four bases for Skinner's negligence, including that he "knew or should have known that minors using alcohol and/or narcotic drugs were in attendance" and that "he did not identify or stop the narcotics and/or alcohol consumption by minors...." (Skinner II ¶ 5.)

On March 8, 2016, Skinner's counsel sent a letter to Farm Family requesting reconsideration of their coverage determination in light of the amended complaint. (Id. at 20.) The letter argued that the amended complaint no longer fell within the controlled substances exclusion because it contained "multiple allegations of alleged negligence, none of which [were] exclusively predicated upon narcotics." (Id. at 22.) Farm Family again refused to defend or indemnify Skinner, noting that the amended complaint still alleged that Megan Koscinski used heroin and other narcotics at Skinner's home. (Id. at 30.)

On April 1, 2016, Skinner's counsel sent a letter to Farm Family alerting them to affidavits by Skinner and Skinner's granddaughter stating that, to their knowledge, no "party" was held and "there was no alcohol consumption ... [and] no drug use by Megan Koscinski on February 14 or February 15, 2014" at Skinner's home. (Id. at 37-38.) Counsel sent a third letter on April 22, 2016, reiterating Skinner's position that no narcotics had been used and arguing that Farm Family had a legal duty to defend and indemnify as a result of the two affidavits. (Id. at 35-36.) Farm Family once again refused Skinner's request. (Id. at 40-42.) It noted the two affidavits, but stated that the allegations of the amended complaint still brought the case within the controlled substances exclusion. (Id. at 41.)

On December 26, 2016, Skinner and Koscinski entered a stipulated judgment settling Koscinski's claims. (Id. at 44.) They agreed that judgment would enter in Koscinski's favor in the amount of $345,000. (Id. ) Skinner agreed to pay $45,000 of the judgment. (Id. at 49.) Koscinski agreed to release Skinner from any liability for the remaining $300,000 and to seek satisfaction of the judgment from Farm Family. (Id. ) Skinner also assigned all of his rights under the Policy to Koscinski in an agreement dated November 21, 2016. (Id. at 56.)

Koscinski filed this suit against Farm Family in Connecticut Superior Court on February 17, 2017 for the balance of the stipulated judgment. Farm Family removed the case to this Court on March 22, 2017, and now moves for summary judgment.

II. Legal Standards

"Summary judgment is appropriate only if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law." Tolan v. Cotton , 572 U.S. 650, 134 S.Ct. 1861, 1866, 188 L.Ed.2d 895 (2014) (internal quotation marks and citations omitted). "In making that determination, a court must view the evidence in the light most favorable to the opposing party." Id. (quotation marks omitted). On summary judgment a court must "construe the facts in the light most favorable to the nonmoving party and must resolve all ambiguities and draw all reasonable inferences against the movant." Caronia v. Philip Morris USA, Inc. , 715 F.3d 417, 427 (2d Cir. 2013). The moving party bears the burden ...