Allstate Ins. Co. v. Miller

• Decision Date: 10 August 2010
• Docket Number: CV. No. 10-00075 DAE LEK
• Citation: 732 F.Supp.2d 1128
• Parties: ALLSTATE INSURANCE COMPANY, an Illinois Corporation, Plaintiff, v. Aaron M. MILLER, Defendant, Andrea Maniago, Individually; as Special Administratrix of the Estate of Kai'o Kaumualii Kea-Fukushima, Deceased and As Next Friend for Shaiyan Maniago-Fukushima, a Minor; Jerry Maniago; and Justine K. Wallace, Individually and as Special Administratrix of the Estate of Laula Charles Seichi Wallace, Deceased, Defendant-Intervenors.
• Court: U.S. District Court — District of Hawaii

732 F.Supp.2d 1128

ALLSTATE INSURANCE COMPANY, an Illinois Corporation, Plaintiff,

v.Aaron M. MILLER, Defendant,Andrea Maniago, Individually; as Special Administratrix of the Estate of Kai'o Kaumualii Kea-Fukushima, Deceased and As Next Friend for Shaiyan Maniago-Fukushima, a Minor; Jerry Maniago; and Justine K. Wallace, Individually and as Special Administratrix of the Estate of Laula Charles Seichi Wallace, Deceased, Defendant-Intervenors.

CV. No. 10-00075 DAE LEK.

United States District Court,

D. Hawai'i.

Aug. 10, 2010.

David R. Harada-Stone, Richard B. Miller, Tom Petrus & Miller, LLLC, Honolulu, HI, for Plaintiff.

Aaron M. Miller, Kula, HI, pro se.

Anthony P. Takitani, Gilbert S.C. Keith-Agaran, Takitani & Agaran, A Law Corporation, Wailuku, HI, Joseph L. Wildman, Sibilla & Wildman, Honolulu, HI, for Defendant-Intervenors.

ORDER GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT

DAVID ALAN EZRA, District Judge.

On July 6, 2010, and August 9, 2010, the Court heard Plaintiff Allstate Insurance Company's ("Plaintiff" or "Allstate") Motion. Richard B. Miller, Esq., appeared at the hearing on behalf of Plaintiff; Joseph L. Wildman, Esq., appeared at the hearing on behalf of Defendant-Intervenors. After reviewing the motion and the supporting and opposing memoranda, the Court GRANTS Plaintiff's Motion. (Doc. # 6.)

BACKGROUND

There is no dispute as to the material facts, set forth below, leaving no genuine issue of material fact before this Court.

I. The Underlying Lawsuit

On December 2, 2009, Jerry Maniago and Andrea Maniago (individually and as administrator of the estate of Kai'o Kaumualii Kea-Fukushima, deceased, and next friend for Shaiyan Maniago-Fukushima, a minor) filed a complaint against Defendant Aaron M. Miller ("Miller" or "Defendant") in the Circuit Court of the Second Circuit, State of Hawai'i, denominated Andrea Maniago, et al. v. Aaron M. Miller, et al., Civil No. 09-1-0917(1) (the "Underlying Lawsuit"). (Plaintiff's Statement of Concise Facts "PSCS" ¶ 1, Doc. # 7.)

The facts of the Underlying Lawsuit involve the tragic deaths of two teenagers. The Complaint states that on or about July 5, 2009, Kai'o Kaumualii Kea-Fukushima ("Kai'o") and Laula Charles Seichi Wallace ("Laula") were passengers in a 1994 Honda Civic driven by Stevens Ramos ("Ramos") on Kula Highway when the vehicle was involved in an accident. Kai'o and Laula suffered severe injuries in the accident that caused their deaths. ( Id. ¶ 2; id., Ex. 1 ¶¶ 6-7.)

The complaint in the Underlying Lawsuit states that prior to the motor vehicle accident, Ramos, Kai'o, Laula and other minors attended a party at Miller's home. The Maniagos contend that alcohol was possessed and consumed by minors at the party, including Ramos, Kai'o, Laula, with Miller's knowledge. ( Id. ¶ 3; id., Ex. 1 ¶¶ 8-9.)

The Maniagos assert claims against Miller for, inter alia, wrongful death, negligence, and gross negligence. The underlying plaintiffs seek special and general damages as well as punitive damages, together with prejudgment interest, attorneys' fees and costs. ( Id. ¶ 4; id., Ex. 1 ¶¶ 10-14.)

II. The Policy

Allstate issued a Homeowners Deluxe Policy, No. 907907882, to Miller (the "Policy"). ( Id. ¶ 5; id., Ex. 2.) The Policy was in effect on the date of the subject accident and afforded Family Liability Protectionwith a limit of $300,000.00 per occurrence. ( Id., Ex. 2 at 6.) The Policy is written on Allstate Deluxe Homeowners Form AP2, which includes the following relevant insuring language as to Family Liability Protection:

Section II-Family Liability Protection and Guest Medical Protection

Coverage X

Family Liability Protection

Losses We Cover Under Coverage X:

Subject to the terms, conditions and limitations of this policy, Allstate will pay damages which an insured person becomes legally obligated to pay because of bodily injury or property damage arising from an occurrence to which this policy applies, and is covered by this part of the policy.

We may investigate or settle any claim or suit for covered damages against an insured person. If an insured person is sued for these damages, we will provide a defense with counsel of our choice, even if the allegations are groundless, false or fraudulent. We are not obligated to pay any claim or judgment or defend any suit after we have exhausted the limit of our liability.

( Id., Ex. 2 at 44 (emphasis in original).) The Policy also includes the following exclusions under Section II Coverage X-Family Liability Protection and Coverage Y-Guest Medical Protection:

Losses We Do Not Cover Under Coverage X:

1. We do not cover any bodily injury or property damage intended by, or which may reasonably be expected to result from the intentional or criminal acts or omissions of, any insured person. This exclusion applies even if:

a) such insured person lacks the mental capacity to govern his or her conduct;

b) such bodily injury or property damage is of a different kind or degree than intended or reasonably expected; or

c) such bodily injury or property damage is sustained by a different person than intended or reasonably expected.

....

5. We do not cover bodily injury or property damage arising out of the ownership, maintenance, use, occupancy, renting, loaning, entrusting, loading or unloading of any motor land vehicle or trailer. However, this exclusion does not apply to:

a) a motor vehicle in dead storage or used exclusively on an insured premises;

b) any motor vehicle designed principally for recreational use off public roads, unless that vehicle is owned by an insured person and is being used away from an insured premises.

c) a motorized wheel chair;

d) a vehicle used to service an insured premises which is not designed for use on public roads and is not subject to motor vehicle registration;

e) a golf cart owned by an insured person when used for golfing purposes;

f) a trailer of the boat, camper, home or utility type unless it is being towed or carried by a motorized land vehicle.

g) lawn and garden implements under 40 horsepower;

h) bodily injury to a residence employee.

....

( Id., Ex. 2 at 44 (emphasis in original); id. at 46 (identical exclusions for Coverage Y).)

On February 2, 2010, Allstate filed a Complaint for Declaratory Judgment asking this Court to find that it has no duty to defend and/or indemnify Miller in any capacity under the Policy for the claims asserted against him in the Underlying Lawsuit, and for, costs, reasonable attorneys' fees, and any other relief deemed just and equitable by the Court. (Doc. # 1.) On April 21, 2010, Plaintiff filed the instant Motion for Summary Judgment ("MSJ," Doc. # 6) and its Separate and Concise Statement of Facts ("PSCS," Doc. # 7). On May 10, 2010, Plaintiff and Miller stipulated through counsel to allow Andrea Maniago, Individually; as Special Administratrix of the Estate of Kai'o Kaumualii Kea-Fukushima, Deceased and As Next Friend for Shaiyan Maniago-Fukushima, a Minor; Jerry Maniago; and Justine K. Wallace, Individually and as Special Administratrix of the Estate of Laula Charles Seichi Wallace Deceased (collectively, "Intervenors"), to intervene as Defendants in the instant action. (Doc. # 13.) On May 20, 2010, Intervenors filed their Answer. (Doc. # 14.) On June 14, 2010, Intervenors filed their Opposition ("Opp'n," Doc. # 18), which was accompanied by a declaration of counsel and documentation but no separate and concise statement of facts as required by the Local Rules of this District. See Local Rule 56.1(b)-(g). On June 22, 2010, Plaintiff filed its Reply.¹ (Doc. # 22.)

At this Court's hearing on July 6, 2010, the Court ordered the parties to filed additional simultaneous briefing regarding an additional Policy provision. On July 19, 2010, Intervenors filed their additional briefing. (Doc. # 26.) On July 20, 2010, Plaintiff filed its additional briefing. (Doc. # 27.)

STANDARD OF REVIEW

Rule 56 requires summary judgment to be granted when "the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(c); see also Porter v. Cal. Dep't of Corr., 419 F.3d 885, 891 (9th Cir.2005); Addisu v. Fred Meyer, Inc., 198 F.3d 1130, 1134 (9th Cir.2000). A main purpose of summary judgment is to dispose of factually unsupported claims and defenses. Celotex Corp. v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

Summary judgment must be granted against a party that fails to demonstrate facts to establish what will be an essential element at trial. See id. at 323, 106 S.Ct. 2548. The burden initially falls upon the moving party to identify for the court those "portions of the materials on file that it believes demonstrate the absence of any genuine issue of material fact." T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass'n, 809 F.2d 626, 630 (9th Cir.1987) (citing Celotex Corp., 477 U.S. at 323, 106 S.Ct. 2548).

Once the moving party has carried its burden under Rule 56, the nonmoving party "must set forth specific facts showing that there is a genuine issue for trial" and may not rely on the mere allegations in the pleadings. Porter, 419 F.3d at 891 (quotingAnderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). If the nonmoving party produces direct evidence of a material fact, the court may not assess the credibility of this evidence nor weigh against it any conflicting evidence presented by the moving party. The nonmoving party's evidence must be taken as true. T.W. Electrical Service, Inc. v. Pacific Electrical Contractors Ass'n, 809 F.2d 626, 632 (9th Cir.1987) (internal citations omitted).

However, the nonmoving party may not rely on the mere allegations in the pleadings in order to preclude summary judgment. Instead, the nonmoving party must set forth, by affidavit or as otherwise provided in Rule 56, specific facts showing that there is a genuine issue for...