Hanover Ins. Co. v. Anova Food, LLC
| Decision Date | 29 June 2016 |
| Docket Number | Civ. No. 14-00281 HG-RLP |
| Parties | THE HANOVER INSURANCE COMPANY; MASSACHUSETTS BAY INSURANCE COMPANY, Plaintiffs, v. ANOVA FOOD, LLC; ANOVA FOOD, INC. Defendants. ANOVA FOOD, LLC, Counter-Claimant, v. THE HANOVER INSURANCE COMPANY; MASSACHUSETTS BAY INSURANCE COMPANY, Counter-Defendants. |
| Court | U.S. District Court — District of Hawaii |
ORDER DISMISSING ALL CLAIMS AGAINST DEFENDANT ANOVA FOOD, INC.
and
and
GRANTING, IN PART, AND DENYING, IN PART, DEFENDANT ANOVA FOOD LLC'S MOTION FOR PARTIAL SUMMARY JUDGMENT (ECF No. 101)
Plaintiffs/Counter-Defendants The Hanover Insurance Company and Massachusetts Bay Insurance Company ("Hanover Companies") have filed a declaratory judgment action against Defendant/Counter-Claimant Anova Food, LLC and Defendant Anova Food, Inc. relating to insurance policies that were in effect between July 1, 2010 and July 11, 2014.
Defendant/Counter-Claimant Anova Food, LLC ("Anova LLC") filed a Counterclaim against the Hanover Companies for breach of contract and for bad faith relating to the insurance contracts at issue.
The Court previously ruled that the Hanover Companies owed Anova LLC a duty to defend in the underlying litigation against it in the United States District Court for the District of Hawaii, Kowalski v. Anova Food, LLC, et al., Civ. No. 11-00795HG-RLP ("Underlying Lawsuit").
The Underlying Lawsuit was brought in December 2011 against Anova LLC and Anova Food, Inc. for patent infringement and personal and advertising injury.
The Hanover Companies provided defense counsel for Anova LLC in the Underlying Lawsuit.
Anova Food, Inc. obtained separate counsel and was not defended by the Hanover Companies in the Underlying Lawsuit.
In September 2014, all claims against Anova Food, Inc. and all claims against Anova Food, LLC that occurred on or before July 1, 2010 were settled in the Underlying Lawsuit. Neither Anova LLC nor the Hanover Companies contributed toward the September 2014 settlement.
Anova Food, Inc. was dismissed from the Underlying Lawsuit pursuant to a joint stipulation.
In March 2015, Anova LLC entered into a separate settlement agreement for the remaining claims against it in the Underlying Lawsuit. Both Anova LLC and the Hanover Companies contributed to the March 2015 settlement. The following month the parties entered into a stipulation to dismiss the remaining claims against Anova LLC in the Underlying Lawsuit and the case was closed.
MOTIONS CURRENTLY BEFORE THE COURT:
The Hanover Companies' Motion for Summary Judgment
The Hanover Companies filed a Motion for Summary Judgment seeking a determination as to their duty to indemnify Anova LLC relating to the Underlying Lawsuit.
The Hanover Companies seek allocation, reimbursement, and recoupment of money from Anova LLC.
The Hanover Companies provided a defense to Anova LLC in the Underlying Lawsuit, but they argue that the defense was provided with a reservation of their rights.
The Hanover Companies assert Anova LLC was not covered by the insurance policies at issue because the Underlying Lawsuit's claims for patent infringement and personal and advertising injury were outside the scope of the policies' definition of "personal and advertising injury."
Anova LLC has filed a Motion for Partial Summary Judgment. Anova LLC asserts the Hanover Companies owed it a duty to indemnify based on the insurance policies at issue. Anova LLC seeks to recover the money it contributed to the March 2015 settlement.
In addition, Anova LLC seeks summary judgment on Count I of its Counterclaim for Breach of Contract. Anova LLC asserts that the Hanover Companies breached the terms of the insurance policies for refusing to pay all of Anova LLC's attorneys' fees in defending the Underlying Lawsuit.
At the hearing on the Motions for Summary Judgment, the Parties agreed to dismiss all claims against Anova Food, Inc.
All claims against Anova Food, Inc. are DISMISSED WITH PREJUDICE.
Plaintiffs/Counter-Defendants the Hanover Companies' Motion for Summary Judgment (ECF No. 97) is DENIED.
Defendant/Counter-Claimant Anova LLC's Motion for Partial Summary Judgment (ECF No. 101) is GRANTED, IN PART, AND DENIED, IN PART.
The Hanover Companies are not entitled to recover any attorneys' fees from Anova LLC.
The Hanover Companies' insurance polices covered Anova LLC for the personal and advertising injury claims asserted in the Underlying Lawsuit.
The March 2015 settlement pertaining to Anova LLC included both covered and non-covered claims. Neither the Hanover Companies nor Anova LLC are entitled to recover their contributions to the March 2015 settlement in the Underlying Lawsuit.
The Hanover Companies are required to pay reasonable attorneys' fees incurred by the Zobrist law firm in defendingAnova LLC in the Underlying Lawsuit between October 12, 2012 and December 10, 2013.
On June 19, 2014, the Hanover Companies filed a Complaint. (ECF No. 1).
On October 2, 2014, Anova LLC and Anova Food, Inc. filed an Answer and Counterclaim. (ECF No. 14).
On May 29, 2015, the Hanover Insurance Companies filed a First Amended Complaint. (ECF No. 39).
On June 12, 2015, Anova LLC filed a Counterclaim in Response to the First Amended Complaint. (ECF No. 40-1).
On December 23, 2015, Anova LLC filed a MOTION FOR PARTIAL SUMMARY JUDGMENT ESTABLISHING PLAINTIFFS/COUNTERCLAIM DEFENDANTS' DUTY TO DEFEND. (ECF No. 64).
On March 16, 2016, the Hanover Companies filed a MOTION FOR SUMMARY JUDGMENT (ECF No. 97) along with a Concise Statement of Facts. (ECF No. 99).
On the same date, Anova LLC filed a MOTION FOR PARTIAL SUMMARY JUDGMENT ESTABLISHING (1) HANOVER'S DUTY TO INDEMNIFY AND (2) REASONABLENESS OF ZOBRIST LAW'S ATTORNEY FEES (ECF No.
101) along with a Concise Statement of Facts (ECF No. 103).
On March 24, 2016, the Court issued an ORDER GRANTING, IN PART, AND DENYING, IN PART, DEFENDANT/COUNTERCLAIMANT ANOVA FOOD, LLC'S MOTION FOR PARTIAL SUMMARY JUDGMENT as to the duty to defend. (ECF No. 113).
On April 11, 2016, the Hanover Companies filed its Opposition to Anova LLC's Motion for Partial Summary Judgment and its Concise Statement of Facts in Opposition to Anova LLC's Motion for Partial Summary Judgment. (ECF Nos. 123, 124).
On the same date, Anova LLC filed its Opposition to the Hanover Companies' Motion for Summary Judgment and its Concise Statement of Facts in Opposition to the Hanover Companies' Motion for Summary Judgment. (ECF Nos. 118, 119).
On April 18, 2016, the Court issued a Minute Order striking Anova LLC's April 11, 2016 filings (ECF Nos. 118, 119) for failure to comply with the Local Rules of the District of Hawaii. (ECF No. 127). The Court continued the briefing schedule to allow Anova LLC to re-file its Opposition. (Id.)
On April 25, 2016, Anova LLC filed its Opposition to the Hanover Companies' Motion for Summary Judgment and its ConciseStatement of Facts in Opposition to the Hanover Companies' Motion for Summary Judgment. (ECF Nos. 129, 130).
On April 27, 2016, the Hanover Companies requested a continuance of the hearing date, which was granted. (ECF No. 136, 137).
On May 13, 2016, the Hanover Companies filed their Reply. (ECF No. 145).
On the same date, Anova LLC filed its Reply. (ECF No. 144).
On June 23, 2016, the Court held a hearing on the Hanover Companies' Motion for Summary Judgment (ECF No. 97) and Anova LLC's Motion for Partial Summary Judgment (ECF No. 101).
The Parties agreed to the dismissal of Anova Inc. with prejudice.
Defendant/Counter-Claimant Anova Food, LLC ("Anova LLC") is a company that sells and markets fish. (Declaration of Darren Zobrist, Chief Executive Officer of Anova LLC ("Zobrist Decl.") at ¶ 2, ECF No. 75).
Anova LLC began operations in May 2010 after it acquired certain assets from Anova Food, Inc., which had ceasedoperations the same month. (Zobrist Decl. at ¶ 2, ECF No. 75).
Anova LLC was covered by the four commercial liability insurance policies that were in effect between July 1, 2010 and July 11, 2014. (See Insurance Policies attached as Exs. B, C, D to Pla.'s First Amended Complaint, ECF Nos. 39-2—6).
ANOVA FOOD, INC.
Anova Food, Inc. ("Anova Inc.") is a co-defendant in this case. Anova Inc. ceased operations in May 2010, before the July 1, 2010 commencement of the insurance policies at issue. (Zobrist Decl. at ¶ 2, ECF No. 75).
Anova Inc. had separate insurers and separate counsel from Anova LLC in the Underlying Lawsuit. (Id. at ¶¶ 8-9). Anova Inc. was covered by separate insurance policies that were in effect before July 1, 2010. (Id.)
In September 2014, Anova Inc. reached a settlement in the Underlying Lawsuit. (Id. at ¶¶ 8-10; September 2014 Settlement attached as Ex. 1 to Zobrist Decl., ECF No. 75-1). The September 2014 settlement settled all claims against Anova Inc. and any claims against Anova Food, LLC that occurred on or before July 1, 2010. (Id.)
In September 2014, the Parties in the Underlying Lawsuit entered into a joint stipulation to dismiss Anova Inc.
The Hanover Companies' First Amended Complaint asserts claims against Anova Inc. (ECF No. 39).
At the hearing on the Motions for Summary Judgment held on June 23, 2016, the Parties agreed to dismiss all claims against Anova Food, Inc.
All claims against Anova Food, Inc. are DISMISSED WITH PREJUDICE.
The Declaratory Judgment action filed by the Plaintiffs/Counterclaim-Defendants The Hanover Insurance Company and Massachusetts Bay Insurance Company (hereinafter "Hanover Companies")1 concerns four commercial liability insurance policies.
The Parties agree that the Hanover Companies were responsible for four insurance policies issued to Anova Holding USA, LLC, which covered Anova LLC.
The OneBeacon Policies:
The first two policies were a primary commercial liability policy and an...
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