ORDER
This is a declaratory judgment action. On September 6, 2011, Defendant Jason Chatham was driving a dump truck owned by Defendant CECS, Inc. (“CECS”) when he and Defendants Louis Duckwall and Trisha Miller were involved in a motor vehicle accident. Trisha Miller died and Louis Duckwall was injured. CECS identified the dump truck as a scheduled vehicle on a Southern Pilot Business Auto Policy (“Policy”). However, Plaintiff Southern Pilot Insurance Company (“Southern Pilot”) filed this instant action seeking a declaration that, because it properly cancelled the subject policy, it was not in force at the time of the accident.
In addition to filing an answer and counterclaim (Doc. 14), Defendants CECS, Inc. (“CECS”) and Jason Chatham (the “CECS Defendants”) filed a Third-Party Complaint against insurance agents Michael Dillon and Little and Smith Inc. (“Little & Smith”). Among other claims, the CECS Defendants assert that Dillon and Little & Smith breached a fiduciary duty by not acting in a timely manner to ensure that CECS had sufficient liability insurance coverage.
This matter is before the Court on the CECS Defendants’ Motion for Partial Summary Judgment [Doc. 38] and Dillon and Little & Smith’s Motion to Dismiss, or in the Alternative, Motion to Strike the Third-Party Complaint [Doc. 52].
I. DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT
A. Summary Judgment Standard
Summary judgment must be granted if the record shows “that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.CivJP. 56(c). A factual issue is genuine if there is sufficient evidence for a reasonable jury to return a verdict in favor of the nonmoving party. See Anderson v. Liberty Lobby, Inc.,
Keeping in mind that when deciding a motion for summary judgment, the Court must view the evidence and all factual inferences in the light most favorable to the party opposing the motion, the Court provides the factual background below. See Optimum Techs., Inc. v. Henkel Consumer Adhesives, Inc.,
B. Background
Southern Pilot issued a policy of commercial automobile insurance to CECS. (Pl.s’ Resp. Defs.’ Statement Undisputed Facts (Doc. 44) ¶ 1; Chatham Aff. (Doc. 38-3) Ex. A.)
In August of 2011, Southern Pilot/General Casualty
You are notified that the policies indicated with asterisk (* *) below will cancel in accordance with the terms and conditions of the policy unless the “minimum payment due” is received at the Home Office of the company prior to the effective date of the cancellation listed below.
(Doc. 38-3 Ex. B.) The Notice of Intent referenced the subject policy with an asterisk and stated that the “Cancellation Effective” date for that policy was August 23, 2011. (Id.) Finally, the Notice of Intent included a remittance indicating that the “minimum due” was $1,277.48. (Id.)
Along with the Notice of Intent, Southern Pilot contends that it sent CECS a notice of cancellation (“Notice of Cancellation”), also dated August 8, 2011. (Doc. 60-1 at 8-10 (Ex. J).) The Notice of Can
The CECS Defendants appear to dispute that they received the Notice of Cancellation. Indeed, the circumstances surrounding the Notice of Cancellation are peculiar. Southern Pilot contends that it sent this Notice in the same envelope as the Notice of Intent to Cancel. (PL’s Supplemental Resp. Opp’n Defs.’ Mot. Summ. J. (Doc. 60) at 4; Gragg Aff. (Doc. 60-1) ¶ 4.) However, when Southern Pilot initiated this action in November of 2011, Southern Pilot relied only on the Notice of Intent. (Compl. (Doc. 1) Ex. G.) It was not until Southern Pilot filed a supplemental response to the CECS Defendants’ motion for partial summary judgment on May 18, 2012 (Doc. 60)
There is no dispute, however, regarding the remaining material facts. Southern Pilot sent CECS a letter entitled “Cancellation Memo,” dated August 23, 2011. (Doc. 44 ¶ 7.) On August 24, 2011, a day after the purported cancellation, CECS transmitted an electronic check for premium payment to General Casualty. (Doc. 44 ¶ 6.) The amount of this check was removed from the CECS account on August 26, 2011. (Id.)
On September 6, 2011, while operating a dump truck owned by CECS, Defendant Jason Chatham was involved in a motor vehicle collision. (Doc. 38-3 ¶ 6.) Shortly thereafter, on November 9, 2011, Southern Pilot filed this instant action seeking a declaration that the subject policy was not in force at the time of the accident. (Doc. 1.)
C. Analysis
The issue on summary judgment is narrow: whether Southern Pilot sent sufficient notice to CECS that its policy would cancel on August 23, 2011. The parties do not address, and thus the Court does not consider, any of the CECS Defendants’ other arguments to support their contention that, regardless of the sufficiency of the Notices, the policy was in force at the time of the accident. The CECS Defendants’ only contention here is that the Notice of Intent to Cancel it received failed to satisfy Georgia law regarding the sufficiency of notices of cancellation.
Whether the Notice of Intent to Cancel (Ex. B) here meets the statutory requirements of insurance cancellation notices in Georgia is a close call. However, there is no question that the Notice of Cancellation (Ex. J) is sufficient. The Notice of Cancellation unequivocally states that the policy will cancel on August 23, 2011 and the reason for cancellation is the “Nonpayment of premium.” (Ex. J.) Just as in Reynolds, the fact that the Notice of Intent to Cancel “contains an option to avoid imminent cancellation” by promptly paying the amount due does not render the Notice of Cancellation ineffective. Reynolds,
The CECS Defendants finally argue—in their reply brief—that the notices are insufficient to cancel the Policy for failure to pay premiums when due because the Policy imposes no requirement to pay premiums on any particular date. As an initial matter, courts generally will not consider issues raised for the first time in a reply brief. See Conn. State Dental Ass’n v. Anthem Health Plans, Inc.,
For the foregoing reasons, the Court DENIES the CECS Defendants’ motion for partial summary judgment [Doc. 38].
II. MOTION TO DISMISS OR STRIKE THIRD-PARTY COMPLAINT
A. Introduction
The Court now turns to the Third-Party Defendants’ Motion to Dismiss, or in the Alternative to Strike the Third-Party Complaint (Doc. 52). After being served with the Complaint, the CECS Defendants asserted a counterclaim against Southern Pilot on January 12, 2012. (Doc. 14.) In this counterclaim, the CECS Defendants sought a declaration that the subject insurance policy was in force at the time of the dump truck accident. (Id.) In an apparent attempt to cover all their bases, the CECS Defendants also filed a near-contemporaneous Third-Party Complaint against Michael Dillon and Little and Smith, Inc., the insurance agents working with CECS to obtain automobile insurance. (Doc. 16.) This Third-Party Complaint is the subject of the instant motion.
The Third-Party Complaint restates almost exactly the allegations in the CECS Defendants’ counterclaim against Southern Pilot. (Compare Doc. 14 at 29-46, with Doc. 16 at 15-30.) Moreover, Counts I, II and III of the Third-Party Complaint do
After stripping these allegations from the Third Party Complaint, the Court finds that Count IV (“Breach of Fiduciary Duty”) is the only remaining claim against the Third-Party Defendants.
B. The Remaining Third-Party Claim
In Count IV, the CECS Defendants allege that Dillon and Little & Smith breached a duty owed to them “by not acting in a timely manner to ensure that [automobile] liability insurance coverage was afforded for all motor vehicles being operated on the roads of the State of Georgia.” (Doc. 16 ¶¶ 90-92.) According to the CECS Defendants, this breach resulted in “a situation where there is a question as to liability coverage” and as a result, “CECS has accrued attorney’s fees, costs and damages and will continue in the future to be put into peril for attorney’s fees, costs and damages.” (Doc. 16 ¶¶ 96-97.) The CECS Defendants further assert that, “[i]n the event [they] are forced to answer to any claim or satisfy a judgment as a result of [the] September 6, 2011 motor vehicle collision, they are entitled to recover from Michael Dillon and Little & Smith all costs, attorney’s fees and damages which may be occasioned to them.” (Id. ¶ 99.)
The Third-Party Defendants move to dismiss, or alternatively to strike, the Third-Party Complaint, putting forth two arguments. First, the Third-Party Defendants argue that impleader is improper under Rule 14 because the breach of fiduciary duty claim is not derivative of the main claim here, one for declaratory judgment. Second, the Third-Party Defendants argue that the breach of fiduciary duty claim is not ripe for review, and thus this Court lacks subject matter jurisdiction to address it. The Court will consider each of these arguments in turn.
C. Analysis
1. Impleader Under Rule 14
Rule 14 provides that a defendant can implead a third-party to assert claims against it if such claims are dependent upon the outcome of the main claim. Fed.R.Civ.P. 14.
Rule 14(a) allows a defendant to assert a claim against any person not a party to the main action only if that third person’s liability on that claim is in some way dependent upon the outcome of the main claim. Rule 14(a) does not allow the defendant to assert a separate and independent claim even though the claim arises out of the same general set of facts as the main claim.
U.S. v. Olavarrieta,
The main claim here is one for declaratory relief. Southern Pilot seeks a declaration that the subject policy was not in force at the time of the accident. The CECS Defendants’ third-party claim, in turn, seeks to hold Dillon and Little & Smith hable for failing to acquire liability insurance. This claim depends upon whether the subject policy was in force at the time of the accident; only if it were not would the CECS Defendants have a claim against their insurance agents. As the third-party claim is dependent upon the outcome of the main claim, impleader is appropriate here. See Am. Fidelity & Cas. Co., Inc. v. Greyhound Corp.,
The Court recognizes that some courts take a different view, strictly reading Rule 14(a) to preclude a third-party complaint in a declaratory judgment action. See e.g., Southern Ins. Co. v. Bennett,
However, the former Fifth Circuit, whose decisions are binding on this Court,
2. Ripeness of the CECS Defendants’ Claim
The Third-Party Defendants’ next argument is more persuasive. They argue that the CECS Defendants’ breach of fiduciary duty claim is not ripe, and thus this Court does not have subject matter jurisdiction to hear the case.
Article III of the United States Constitution limits the jurisdiction of this Court to “cases and controversies.” U.S. Const, art. III. “The ripeness doctrine is one of several justiciability considerations that are at the core of the case or controversy requirement.” Gen. Motors LLC v. Canton Motor Sales, Inc., No. 1:12-cv-1994-JEC,
“A ripeness analysis involves the evaluation of two factors: the hardship that a plaintiff might suffer without court redress and the fitness of the case for judicial decision.” Dermer v. Miami-Dade County,
First, the third-party claim here is not fit for judicial decision. The CECS Defendants assert a breach of fiduciary duty claim against CECS’ insurance agents. They contend that “in the event” this Court determines that CECS was not insured at the time of the accident, they are entitled to recover from the Third-Party Defendants for this breach. As such, this action “depends upon the presence of damages and, therefore, may not be maintained until the principal suffers a loss.” Hoffman v. Ins. Co. of N. Am.,
The CECS Defendants have not alleged that they are currently “subjected to liability[ ] for which they are not covered.”
Second, there is no indication that dismissing this action without prejudice results in hardship. As previously noted, if this Court determines that the subject policy was not in force at the time of the accident, the CECS Defendants could then bring their state law breach of fiduciary duty claim against the Third-Party Defendants in state court.
For these reasons, the CECS Defendants’ breach of fiduciary duty claim against the Dillon and Little & Smith is not ripe. Pursuant to Rule 12(b)(1), the Court DISMISSES WITHOUT PREJUDICE this third-party complaint for lack of jurisdiction.
III. CONCLUSION
For the foregoing reasons, the Court DENIES Defendant CECS, Inc. and Jason Chatham’s Motion for Partial Summary Judgment [Doc. 38] and GRANTS Third-Party Defendants Michael Dillon and Little and Smith, Inc.’s Motion to Dismiss the Third-Party Complaint [Doc. 52].
The Court ORDERS Plaintiff and the Defendant CECS, Inc. and Jason Chatham to private mediation. The parties shall advise the Court within 10 days of the date of this Order if they cannot agree on a private mediator, in which case the Court will appoint one. Mediation shall conclude within 45 days of the date of this Order.
Notes
. The Third-Party Defendants filed their first Motion to Dismiss or in the Alternative, Motion to Strike [Doc. 41] the CECS Defendants’ Third-Party Complaint on March 14, 2012. Subsequently, the CECS Defendants filed a timely amendment to the Third-Party Complaint in which they "incorporate the allegations” set forth in the Third-Party Complaint. (Doc. 47). The Court construes this as an amended complaint. An amended complaint supersedes the original complaint, and thus renders moot a motion to dismiss the original complaint. See Dresdner Bank AG v. M/V Olympia Voyager,
. The parties do not dispute that the relevant portions of the policy for purposes of this motion are attached as Exhibit A to Jason Chatham’s affidavit (Doc. 38-3 Ex. A). (Doc. 44 V 1.)
. Though it is not clear precisely what the relationship is between General Casualty Insurance Company and Southern Pilot, this relationship is not material for purposes of the pending summary judgment motion.
. Southern Pilot attached the Notice of Cancellation to its supplemental response (Doc. 60) without first filing a motion for leave to file such response pursuant to the local rules. See LR 56.1(A), NDGa (stating that parties shall not be permitted to file supplemental briefs and materials on a motion for summary judgment except upon order of the court). Nonetheless, the Court treated this filing as a motion and granted it nunc pro tunc. (Doc. 68.) The Court also granted the CECS Defendants an opportunity to respond to this supplemental response, which they did on January 9, 2013. (Doc. 69.)
. The Court does not reach the issue of whether the Notice of Intent (Ex. B) alone is sufficient to cancel the Policy under Georgia law because Southern Pilot now relies on both Notices in its defense to the CECS Defendants’ motion for summary judgment.
. The CECS Defendants imply that they in fact made this argument in their opening summary judgment brief. (See Doc. 50 at 6.) This is not so. The CECS Defendants, instead, argued that Southern Pilot failed to comply with the terms of the policy "by not
. Although Southern Pilot requested that summary judgment be entered in its favor (See Doc. 42 at 3), Southern Pilot did not itself move for summary judgment on this issue and therefore has no motion for summary judgment pending before this Court. Moreover, neither party moved for summary judgment on the CECS Defendants’ claims of Accord and Satisfaction (Count I) and Appropriation of Payments (Count III). (Doc. 14 at 29-31 and 35-38.)
. The Court will consider the allegations in Counts V of the CECS Defendants' Amended Third-Party Complaint as part of their breach of fiduciary duty claim. Count VI, however, does not assert a claim against the Third-Party Defendants, but rather, provides support for the CECS Defendants' contention that that their claim for breach of fiduciary duty is ripe.
. In Bonner v. Prichard,
. The Court also notes that, as the Third-Party Complaint does not assert a federal claim, and the Third-Party Plaintiffs and Defendants are not diverse, there is no independent basis for jurisdiction.
. In fact, the CECS Defendants have not even alleged that there is a pending third-
. As mentioned, there is no independent basis for the third-party claim to be in federal court. See supra n, 10.
. The Court DENIES AS MOOT the Third-Party Defendants’ first Motion to Dismiss [Doc. 41].
