Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Scottsdale Insurance Co. v. Horowitz

United States District Court, D. Oregon, Medford Division

September 21, 2017

SCOTTSDALE INSURANCE COMPANY, Plaintiff,
v.
JAY HOROWITZ; KIM HOROWITZ; ELITE MOVING SYSTEMS, INC., Defendants.

          OPINION & ORDER

          ANN AIKEN UNITED STATES DISTRICT JUDGE.

         This matter comes before the Court on Defendants Jay and Kim Horowitz's Motion for Summary Judgment. ECF No. 10. For the reasons set forth below, the motion is DENIED.

         BACKGROUND

         I. The Policy

         This is an action for declaratory relief. Plaintiff Scottsdale Insurance Company ("Scottsdale") is an Arizona-based corporation. Compl. 2. Scottsdale issued a general liability insurance policy (the "Policy") to Elite Moving Systems, Inc. ("EMS"), a now-inactive California corporation. The Policy was to be effective from March 4, 2014, through March 4, 2015 and would provide one million dollars in coverage for bodily injury and property damage. Jones Decl. Ex. 2, at 9. The Policy obliged Scottsdale to defend and indemnify EMS for qualifying bodily injury and property damage which "occurs during the policy period." Jones Decl. Ex. 2, at 11.

         EMS financed the premium for the policy through IPFS Corporation, a premium finance company. Second Jones Decl. Ex. 1. EMS executed a Premium Finance Agreement (the "Agreement") with IPFS. Second Jones Decl. Ex. 1. The Agreement included the following term:

Insured [EMS] irrevocably appoints Lender [IPFS] attorney-in-fact with full power of substitution and full authority upon default to cancel all policies above identified, receive all sums assigned to its Lender or in which it has granted Lender a security interest and to execute and deliver on behalf of the insured documents, Instruments, forms and notices related to the listed insurance policies in furtherance of this Agreement.

Second Jones Decl. Ex. 1.

         EMS failed to pay IPFS for the premiums and, on April 28, 2014, IPFS mailed a Notice of Cancellation to EMS, effective May 1, 2014. Jones Decl. Ex. 3. Pursuant to its authority under the Agreement, IPFS notified Scottsdale on April 28, 2014, that the Policy was cancelled, effective May 1, 2014, Second Jones Decl. Ex, 2, at 1.

         Another California corporation, known as Elite Moving Solutions, Inc. ("Solutions"), was incorporated on March 19, 2015, and may be the successor entity to the now-defunct EMS. Jones Decl. Ex, 1.

         II. The Underlying Lawsuit

         On July 25, 2013, Jay and Kim Horowitz contracted with EMS and Lile International Companies ("Lile") to move the Horowitzes' possessions from California to Talent, Oregon. Lile and/or EMS hired Curtis Wiles and Jason Morgan to assist in moving the Horowitzes' property. The Horowitzes allege that Wiles and Morgan had extensive criminal backgrounds and that EMS and/or Lile failed to perform criminal background checks before hiring them.

         The Horowitzes allege that Wiles and Morgan used information learned during the move to plan a robbery of the Horowitzes' home. On May 3, 2014, Morgan and a man named James Turner broke into the home and assaulted the Horowitzes. Morgan and Turner then stole approximately $83, 000 worth of personal property, which they planned to divide with Wiles.

         The Horowitzes filed suit against EMS and Solutions, among other defendants, in Jackson County Circuit Court on March 18, 2016, with an amended complaint filed on March 30, 2016 (the "Underlying Lawsuit"). Andersen Decl. Ex. 1, 2. Scottsdale initially undertook to defend EMS and Solutions in the Underlying Lawsuit and Portland attorney Michael Hallinan was retained to represent EMS and Solutions. Andersen Decl. Ex. 3, 4. Solutions filed a motion to dismiss based on lack of personal jurisdiction. Second Jones Decl. Counsel for the Horowitzes and Mr. Hallinan discussed dismissing Solutions from the action based on the understanding that EMS had liability coverage of up to one million dollars. Andersen Decl. Ex. 5. On June 6, 2016, Mr. Hallinan replied that EMS had one million dollars in coverage "and the adjuster has confirmed no reservation of rights has been asserted." Andersen Decl. Ex. 6. The parties stipulated to the dismissal of Solutions from the Underlying Lawsuit on June 20, 2016. Andersen Decl. Ex. 7, at 3-4.

         Scottsdale subsequently issued a reservation of rights letter on January 12, 2017. Second Jones Decl. Ex. 2, In the reservation of rights letter, Scottsdale asserted that the Policy was properly terminated by IPFS on May 1, 2014, Second Jones Decl. Ex, 2, at 1, As the assault and robbery of the Horowitzes' home occurred on May 3, 2014, Scottsdale claims that the loss is not covered by the Policy and Scottsdale has no duty to defend ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.