Starr Indem. & Liab. Co. v. Union Ins. Co.

• Decision Date: 08 December 2022
• Docket Number: 4:22 CV 991 RWS
• Court: U.S. District Court — Eastern District of Missouri
• Parties: STARR INDEMNITY & LIABILITY COMPANY, et al., Plaintiffs, v. UNION INSURANCE COMPANY, Defendant.

STARR INDEMNITY & LIABILITY COMPANY, et al., Plaintiffs,
v.
UNION INSURANCE COMPANY, Defendant.

No. 4:22 CV 991 RWS

United States District Court, E.D. Missouri, Eastern Division

December 8, 2022

MEMORANDUM AND ORDER

RODNEY W. SIPPEL, UNITED STATES DISTRICT JUDGE

This case arises out of a personal injury lawsuit filed against Plaintiff Turbine Master, Inc. (“Turbine”) following a motor vehicle accident. Defendant Union Insurance Company (“Union”) was the primary liability insurer of Turbine at the time and defended Turbine in the lawsuit. Plaintiff Starr Indemnity & Liability Company (“Starr”) was the excess liability insurer of Turbine and provided insurance coverage beyond the $1 million limit of Union's primary liability policy. The case is before me on Union's motion to dismiss the claims asserted by Turbine. For the reasons discussed below, Union's motion will be granted.

BACKGROUND

In the fall of 2013, Shawn Buchanan was involved in a motor vehicle accident in St. Louis County, Missouri, when his vehicle collided with a commercial vehicle owned by Turbine and operated by one of Turbine's employees. Buchanan sustained

1

injuries due the accident and filed a lawsuit against Turbine and its employee for negligence. Turbine was insured at the time of the accident through two policies: a primary liability policy issued by Union, and an excess liability policy issued by Starr. The primary liability policy provided $1 million of auto liability coverage, and the excess liability policy provided an additional $5 million of coverage.

Union was notified of the accident and Buchanan's lawsuit because the primary liability policy reserved Union's right to contest or settle any claim against Turbine. The primary liability policy also prohibited Turbine from voluntarily assuming any liability or settling any claims without Union's consent. Upon being notified, Union retained counsel to represent Turbine and its employee. The lawsuit included motion practice, fact and expert discovery, and mediation and other alternative dispute resolution efforts. The case was tried to a jury in November 2021. The jury returned a verdict in favor of Buchanan for $2.8 million. The $2.8 million verdict was appealed, and while the appeal was pending, Starr accepted a $2.6 million settlement offer. As a result, Starr was required to pay $1,485.034.26 in excess liability coverage, plus appellate bonds and other costs and damages.

Starr and Turbine later filed...