Taurus Holdings, Inc. v. U.S. Fidelity and Guar., No. 03-14720.

• Court: United States Courts of Appeals. United States Court of Appeals (11th Circuit)
• Writing for the Court: Per Curiam
• Citation: 367 F.3d 1252
• Parties: TAURUS HOLDINGS, INC., Taurus International Manufacturing, Inc., Plaintiffs-Appellants, v. UNITED STATES FIDELITY AND GUARANTY COMPANY, Pacific Insurance Company, Limited, Federal Insurance Company, Great Northern Insurance Company, United National Insurance Company, Fireman's Fund Ins., Defendants-Appellees, Nautilus Insurance Company, Defendant.
• Docket Number: No. 03-14720.
• Decision Date: 29 April 2004

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367 F.3d 1252 TAURUS HOLDINGS, INC., Taurus International Manufacturing, Inc., Plaintiffs-Appellants,
v.
UNITED STATES FIDELITY AND GUARANTY COMPANY, Pacific Insurance Company, Limited, Federal Insurance Company, Great Northern Insurance Company, United National Insurance Company, Fireman's Fund Ins., Defendants-Appellees,
Nautilus Insurance Company, Defendant. No. 03-14720. United States Court of Appeals, Eleventh Circuit. April 29, 2004.

John W. Harbin, Simon H. Bloom, Powell, Goldstein, Frazer & Murphy, Atlanta, GA, Christopher Edson Knight, Fowler, White, Burnett, Hurley, Banick & Strickroot P.A., Miami, FL, for Plaintiffs-Appellants.

Zorian Ihor Sperkacz, Ponzoli, Wassenberg & Sperkacz, P.A., Miami, FL, Charles M.P. George, Carlton, Fields, Ward, Emmanuel, Smith & Cutler, P.A., Mitchell L. Lundeen, Coral Gables, FL, Jonathan A. Constine, Hogan & Hartson, Washington, DC, Richard Hodyl, Jr., Alyssa M. Campbell, Chicago, IL, Michael S. Levine, Walter J. Andrews, Amy K. Savage, McLean, VA, Thomas J. Morgan, Coconut Grove, FL, for Defendants-Appellees.

Appeal from the United States District Court for the Southern District of Florida (No. 01-02236-CV-AJ); Adalberto Jordan, Judge.

Before ANDERSON, CARNES and FAY, Circuit Judges.

PER CURIAM:

Certification from The United States Court of Appeals for the Eleventh Circuit to the Supreme Court of Florida, pursuant to Article V, section 3(b)(6) of the Florida Constitution.

Plaintiffs-Appellants Taurus Holdings, Inc. and Taurus International Manufacturing, Inc. (collectively "Taurus") appeal a final judgment in favor of Defendants-Appellees United States Fidelity and Guaranty Company, Pacific Insurance Company, Limited, Federal Insurance Company, Great Northern Insurance Company, and United National Insurance Company (collectively "Insurance Providers"). Taurus filed suit against Insurance Providers, seeking, among other things, a declaratory judgment that insurance policies issued by Insurance Providers required them to contribute to the defense costs of about 30 lawsuits pending against Taurus. The district court found that the "products-completed operations hazard" provision contained in these insurance policies excluded coverage for defense of these lawsuits and dismissed Taurus' complaint. Because we find that this case turns on an important question of state law for which there is no controlling precedent, we defer our decision pending certification of the question to the Supreme Court of Florida.

BACKGROUND

Taurus is in the business of manufacturing, selling, and distributing firearms. Government municipalities have sued Taurus and other handgun manufacturers seeking compensation for expenses allegedly incurred as a result of gun violence in their communities. These suits allege, among other things, negligence, negligent supervision, negligent marketing, negligent distribution, negligent advertising, negligent entrustment, public and private nuisance, failure to warn, false advertising,

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and unfair and deceptive trade practices. As a result of Taurus' actions, the municipalities claim they have spent substantial sums of money toward police operations, emergency medical costs, and legal prosecutions relating to gun violence and crimes committed involving handguns. Although most of these lawsuits seek compensatory damages, some request only equitable relief. When Taurus initiated this suit against Insurance Providers, Taurus had already notified them of about 30 such lawsuits pending against it.

Insurance Providers issued commercial general liability insurance policies to Taurus between the years 1991 and 1999. Under these policies, Insurance Providers have the duty to defend Taurus against lawsuits seeking damages for bodily injury, property damage, advertising injury, or personal injury. These policies, however, do not afford coverage for damages included within the "products-completed operations hazard" provision. The Federal Insurance Company policy¹ defines a products-completed operations hazard as follows:

[A]ll bodily injury and property damage occurring away from premises you own or rent and arising out of your product or your work except:

a. products that are still in your physical possession; or

b. work that has not yet been completed or abandoned.

The policy then defines "your product" as follows:

[A]ny goods or products, other than real property, manufactured, sold, handled, distributed or...