Carpenter v. Grinnell Mut. Reinsurance Co.
| Decision Date | 31 December 2019 |
| Docket Number | Case No. 3:18-cv-156 |
| Citation | 430 F.Supp.3d 625 |
| Parties | Jared M. CARPENTER, Plaintiff, v. GRINNELL MUTUAL REINSURANCE COMPANY, Defendant. |
| Court | U.S. District Court — District of North Dakota |
Sara M. Monson, Tatum O'Brien, Timothy M. O'Keeffe, O'Keeffe, O'Brien, Lyson & Foss Ltd, Fargo, ND, for Plaintiff.
Michael J. Morley, Sean Francis Marrin, Morley Law Firm, Grand Forks, ND, for Defendant.
ORDER GRANTING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT
Before the Court is a motion for summary judgment filed by Defendant Grinnell Mutual Reinsurance Company ("Grinnell") on October 11, 2019. Doc. No. 27. Plaintiff Jared M. Carpenter ("Carpenter") responded in opposition on November 1, 2019. Doc. No. 29. Grinnell filed a reply brief on November 15, 2019. Doc. No. 30. Grinnell requests that the Court rule as a matter of law that Grinnell is not obligated to provide coverage and benefits to Carpenter under the commercial insurance policy that it issued to Frosty's Carpet Center, Inc. ("Frosty's Carpet"), a business partly owned by Carpenter. For the reasons below, Grinnell's motion for summary judgment is granted.
This insurance coverage dispute arises out of an automobile accident that occurred on April 10, 2016, near Buxton, North Dakota. Doc. No. 1-2, ¶ 5. On that day, Carpenter planned to run a personal errand—going to Detroit Lakes, Minnesota, to purchase a snowmobile for the personal use of he and his family. Doc. No. 28-9 at 17:8–10, 17:24–18:19, 19:10–14. Carpenter asked his friend Steven Ballintine to join and drive him to Detroit Lakes because of Ballintine's knowledge about snowmobiles. Id. at 17:16–19. Two of Carpenter's children also came along. Id. at 8:25–9:2, 17:20–23.
The group headed south on Interstate 29 in Ballintine's vehicle, with Carpenter in the passenger seat. Id. at 18:20–23; Doc. No. 1-2, ¶ 5. The vehicle was owned by Ballintine, who had no ownership interest in Frosty's Carpet and was not being paid by Frosty's Carpet for assisting Carpenter in picking up the snowmobile. Doc. No. 28-9 at 18:24–19:9, 37:19–38:4. Ballintine's vehicle was not covered by any liability bond or insurance policy. Doc. No. 1-2, ¶ 14.
Near mile marker 113, Ballintine lost control of the vehicle, and it rolled into the west ditch of I-29. Id. ¶ 6. Carpenter was ejected from the vehicle and sustained serious injuries to his spine
and several internal organs. Id. ¶ 7; Doc. No. 28-9 at 23:16–25:13. Carpenter first became aware of his injuries when he regained consciousness approximately one month after the accident. Doc. No. 28-9 at 20:6–18, 58:22–59:3.
At the time of the accident, Carpenter co-owned Frosty's Carpet, a floor covering sale and installation business in Grand Forks, North Dakota, with his father, Howard Carpenter. Id. at 10:25–11:6, 12:19–13:15, 51:12–23. Frosty's Carpet held a commercial insurance policy issued by Grinnell for the policy period of December 6, 2015, to December 6, 2016. Doc. No. 28-1 at DEF000002. Relevant here are the Business Auto Coverage Form, the "North Dakota Uninsured Motorists Coverage" Endorsement ("UM Endorsement"), and the "North Dakota Personal Injury Protection Endorsement" ("P.I.P. Endorsement").
The policy lists "FROSTY'S CARPET CENTER INC" as the "Named Insured." Id. at DEF000003. The mailing address of the Named Insured is stated as:
The Business Auto Coverage Form Declarations list personal injury protection coverage subject to Covered Auto Designation Symbol Nos. 5 and 7 and uninsured motorist coverage subject to Covered Auto Designation Symbol No. 6. Id. at DEF000003. The relevant Covered Auto Designation Symbols are described as follows:
5 Owned Only those "autos" you own that are required to have No-Fault benefits
"Autos" in the state where they are licensed or principally garaged. This includes
Subject To those "autos" you acquire ownership of after the policy begins provided
No-Fault they are required to have No-Fault benefits in the state where they are
licensed or principally garaged
6 Owned Only those "autos" you own that because of the law in the state where
"Autos" they are licensed or principally garaged are required to have and cannot
Subject To A reject Uninsured Motorists Coverage. This includes those "autos" you
Compulsory acquire ownership of after the policy begins provided they are subject to
Un-Insured the same state uninsured motorists requirement
Motorists
Law
7 Specifically Only those "autos" described in Item Three of the Declarations for which
Described a premium charge is shown (and for Liability Coverage any "trailers"
"Autos" you don't own while attached to any power unit described in Item Three)
Id. at DEF000011. The Business Auto Coverage Form states, "The symbols entered next to a coverage on the Declarations designate the only ‘autos’ that are covered ‘autos.’ " Id.
The "Specifically Described ‘Autos’ " are listed in Item Three of the Declarations, Schedule of Covered Autos You Own: a 2013 Ford F-150 S/C 4x4 and a 2014 Chrysler Town & Country. Id. at DEF000004. Carpenter testified during his deposition that the Ford was his personal vehicle, which was in his father's name. Doc. No. 28-9 at 31:9–32:2. The Chrysler, meanwhile, was his wife's personal vehicle, which was in his name. Id. at 32:10–33:10, 34:20–35:4.
The words "you" and "your" in the policy refer to the Named Insured, Frosty's Carpet. Doc. No. 28-1 at DEF000011. The Business Auto Coverage Form additionally defines "insured" as "any person or organization qualifying as an insured in the Who Is An Insured provision of the applicable coverage." Id. at DEF000020.
Carpenter seeks coverage under the UM Endorsement. Under that endorsement, Grinnell agrees to "pay all sums the ‘insured’ is legally entitled to recover as compensatory damages from the owner or driver of an ‘uninsured motor vehicle.’ " Id. at DEF000023. The endorsement defines "Who Is An Insured" as follows:
Carpenter also seeks coverage under the P.I.P. Endorsement. Under that endorsement, Grinnell agrees to "pay personal injury protection benefits in accordance with the North Dakota Auto Accident Reparations Act to or for an ‘insured’ who sustains ‘bodily injury’ caused by an ‘accident’ arising out of the operation, maintenance or use of an ‘auto’ as a vehicle." Id. at DEF000031. The endorsement defines "Who Is An Insured" as follows:
Id. at DEF000032. The endorsement reiterates that "named insured" means "the person or organization named in the Declarations." Id. at 000033.
Carpenter filed an Application for Benefits with Grinnell on May 27, 2016. Doc. No. 28-2. On June 23, 2016, Grinnell sent Carpenter a letter informing him that his claim was denied because he was not an "insured" entitled to coverage under the UM Endorsement or the P.I.P. Endorsement. Doc. No. 28-6.
Having received no benefits, on July 12, 2018, Carpenter commenced this action against Grinnell in North Dakota state court. See Doc. No. 1, ¶ 2. Carpenter seeks a declaratory judgment that he is entitled to personal injury protection and uninsured motorist coverage under the policy. Doc. No. 1-2., ¶ 17. For damages, he seeks to recover a sum in excess of $50,000 for personal injury protection and uninsured motorist benefits as well as any other unpaid benefits. Id. On July 24, 2018, Grinnell removed the action to this Court. Doc. No. 1.
On October 11, 2019, Grinnell filed the motion for summary judgment that is presently before the Court. Doc. No. 27. Grinnell argues that Carpenter's claims are time-barred under North Dakota law and that no benefits are payable to Carpenter pursuant to the language of the policy. Doc. No. 28.
"In a case of actual controversy within its jurisdiction," a federal court "may declare the rights and other legal relations of any interested party seeking such declaration." 28 U.S.C. § 2201(a). Summary judgment is required "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a) ; see also Celotex Corp....
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