American Home Assur. Co. v. Glenn Estess & Associates, Inc., 84-7116
Decision Date | 21 June 1985 |
Docket Number | No. 84-7116,84-7116 |
Citation | 763 F.2d 1237 |
Parties | AMERICAN HOME ASSURANCE COMPANY, Plaintiff-Appellee, v. GLENN ESTESS & ASSOCIATES, INC., d/b/a Sales Consultants of Birmingham, Defendants-Appellants. |
Court | U.S. Court of Appeals — Eleventh Circuit |
Alton B. Parker, Jr., Birmingham, Ala., for defendants-appellants.
Dominick, Fletcher, Yeilding, Wood & Lloyd, Terry McElheny, Birmingham, Ala., for plaintiff-appellee.
Appeal from the United States District Court for the Northern District of Alabama.
Before GODBOLD, Chief Judge, ANDERSON, Circuit Judge, and THORNBERRY *, Senior Circuit Judge.
Glenn Estess & Associates, Inc., d/b/a Sales Consultants of Birmingham ("Sales Consultants") appeals from a decision of the district court awarding summary judgment to American Home Assurance Company ("American Home"). Finding no error on the part of the district court, we affirm.
American Home issued a policy of insurance to Sales Consultants which was in effect from May 1, 1976 through May 1, 1982. The policy obligated American Home to defend Sales Consultants against all lawsuits arising under the policy and to pay all claims covered under the policy. As is generally the case, the policy required Sales Consultants to give American Home written notice of any act which might reasonably be expected to be the basis of a claim "as soon as practicable" after Sales Consultants became aware of such act. On June 12, 1981, Sales Consultants received notice of an employment discrimination charge filed with the Equal Employment Opportunity Commission by Bonnie Demaree, claiming that Sales Consultants had discriminated against Demaree because of her sex. Demaree subsequently filed suit against Sales Consultants, and Sales Consultants was served on December 2, 1981. Sales Consultants retained a private law firm to represent it in the litigation. In April of 1982, some four months after the filing of the suit, Sales Consultants notified American Home of the lawsuit and requested a defense of the action.
Upon receiving notice of the action, American Home agreed to defend the action, but American Home wished to reserve its rights to deny all liability in the case because of the late notice given by Sales Consultants. Numerous communications between American Home and Sales Consultants ensued. Sales Consultants refused to consent to American Home's proposed reservation of rights. Similarly, Sales Consultants refused to allow American Home to proceed with the defense of the action unless and until American Home waived its right to contest liability due to the late notice. American Home rejected Sales Consultants' demand and refused to waive its right to contest liability. At all relevant times, however, American Home was willing to proceed with Sales Consultants' defense under the reservation of rights.
When it became apparent that the parties could not come to a successful resolution of this issue, American Home filed this action for a declaratory judgment to determine whether Sales Consultants breached the policy by virtue of its delayed notification of the claim. Sales Consultants responded by filing a counterclaim for the expenses and attorney's fees incurred in the defense of the Demaree suit.
On appeal, Sales Consultants argues (1) that the district court should have applied New York law instead of Alabama law; and (2) that the district court erroneously interpreted Alabama law.
In the district court, both parties filed motions for summary judgment. On the motion for summary judgment, neither party claimed that foreign law was properly applicable. The district court thus applied the law of the forum and held that "Alabama law is clear: an insurer may avoid any potential liability for refusing to defend an action and the possibility of a waiver of the terms of the policy by proceeding with the defense of the claim and giving notice to the insured that it reserves its right to deny coverage." Accordingly, the district court entered summary judgment for American Home. Sales Consultants then filed a Rule 59(e) motion to amend and argued for the first time that the district court erred in applying Alabama law. Sales Consultants argued that New York law was properly applicable since the policy was a New York contract. On appeal, Sales Consultants argues that the district court's denial of its Rule 59 motion amounts to clear error. We disagree. The decision to alter or amend judgment is committed to the sound discretion of the district judge and will not be overturned on appeal absent an abuse of discretion. Futures Trading Comm'n v. American Commodities Group, 753 F.2d 862, 866 (11th Cir.1984); McCarthy v. Mason, 714 F.2d 234, 237 (2d Cir.1983); Weems v. McCloud, 619 F.2d 1081, 1098 (5th Cir.1980). 1
In the instant case, we believe the district court was well within its discretion in denying plaintiff's motion where plaintiff raised the choice of law issue for the first time after the entry of summary judgment. It was only after Sales Consultants failed to prevail in its interpretation of Alabama law that Sales Consultants argued that New York law was properly applicable. There is a significant difference between pointing out errors in a court's decision on grounds that have already been urged before the court and raising altogether new arguments on a motion to amend; if accepted, the latter essentially affords a litigant "two bites at the apple." 2 Cf. Union Planters National Leasing, Inc. v. Woods, 687 F.2d 117, 121 (5th Cir.1982) ( ); Willens v. University of Massachusetts, 570 F.2d 403, 406 (1st Cir.1978) ( ).
Moreover, we have reviewed Sales Consultants argument that New York law was properly applicable and conclude that "the only thing made clear by the ... briefs submitted by ... [the] parties to this dispute is that the legal questions presented are at least arguable." Alvestad v. Monsanto Co., 671 F.2d 908, 913 (5th Cir.), cert. denied, 459 U.S. 1070, 103 S.Ct. 489, 74 L.Ed.2d 632 (1982). In short, any error that may have been committed is not the sort of clear and obvious error which the interests of justice demand that we correct.
Sales Consultants also argues that the district court erred in interpreting Alabama law. We disagree. In Home Indemnity Co. v. Reed Equipment Co., 381 So.2d 45 (Ala.1980), the insurer, recognizing that there was a coverage issue, sought a "non-waiver agreement." The insured refused to sign. The insurer then declined to provide a defense for its insured in the underlying action (i.e., in the suit by the victim against the insured), arguing that the insured's refusal to sign the "non-waiver agreement" released it from any obligation to provide a defense. After it was determined in a separate declaratory judgment action that there was in fact coverage, the Alabama Supreme Court held that the insured was entitled to recover from the insurer...
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