Travelers Casualty Company of Connecticut v. Legree
1:12-cv-02548
D.S.C.Jul 23, 2013Background
- Travelers seeks a declaratory judgment regarding indemnification of Ada Legree under Travelers policy and the Ginn-Legree Agreement.
- Ginns and Legree signed a Ginn-Legree Agreement and settlement with Allstate; Ginns reserved rights to pursue excess coverage.
- Travelers’ actions target its obligations under the Travelers policy and the Ginn-Legree Agreement, not underlying state actions.
- Ginn-Legree Agreement states it does not limit Ginns’ rights to pursue verdicts against Legree; settlement involved releases and covenants not to execute.
- Counts I-II address indemnification questions; Counts III-IV address bad-faith/firmness of Travelers’ conduct; the court must assess ripeness and jurisdiction.
- The court ultimately finds Counts I-II ripe and within jurisdiction, while Counts III-IV are not ripe and are dismissed without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the action ripe and within subject matter jurisdiction for Counts I-II? | Travelers contends Counts I-II are proper declaratory judgments. | Ginns argue lack of ripeness/ jurisdiction due to underlying actions. | Counts I-II are within jurisdiction and not barred by ripeness. |
| Are Counts III-IV ripe and should they be dismissed? | Travelers argues bad-faith claims can proceed. | Ginns contend timing makes bad-faith claims premature. | Counts III-IV not ripe; dismissed without prejudice. |
Key Cases Cited
- Auto-Owners Ins. Co. v. Brazell Builders, Inc., 356 S.C. 156, 588 S.E.2d 112 (2003) (contract interpretation and ripeness considerations in declaratory actions)
- Nautilus Ins. Co. v. Winchester Homes, Inc., 15 F.3d 351 (4th Cir. 1994) (factors for discretionary dismissal in declaratory actions)
- Permanent Gen. Assurance Corp. v. Moore, 341 F. Supp. 3d 579 (D.S.C. 2004) (ripeness and premature bad-faith claims under declaratory judgments)
- Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (2007) (standard for pleading plausibility in federal complaints)
- McNair v. Lend Lease Trucks, Inc., 95 F.3d 325 (4th Cir. 1996) (pleading standard and favorable inferences in Rule 12(b)(6) context)
- Aetna Cas. & Sur. Co. v. Quarles, 92 F.2d 321 (4th Cir. 1937) (factors for declaratory judgment discretion in overlapping state/federal actions)
- Auto-Owners Ins. Co. v. Carl Brazell Builders, Inc., 356 S.C. 156, 588 S.E.2d 112 (2003) (contract interpretation and policy construction)