Opinion
8:18-CV-01776 PSG (JDE)
01-11-2024
ASSOCIATED INDUSTRIES INSURANCE COMPANY, Plaintiff, v. FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY, Defendants. FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS, TRANSPORTATION CORRIDOR AGENCY Counter-Plaintiffs, v. ASSOCIATED INDUSTRIES INSURANCE COMPANY Counter-Defendant. FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY, Third-Party Plaintiffs, v. ALLIED WORLD NATIONAL ASSURANCE COMPANY, Third-Party Defendant. ALLIED WORLD NATIONAL ASSURANCE COMPANY, Counter-Plaintiff, v. FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY, Counter-Defendants.
NOSSAMAN LLP CARL L. BLUMENSTEIN (SBN 124158) BENJAMIN Z. RUBIN (SBN 249630) AALIA TAUFIQ (SBN 317787) RUTAN & TUCKER, LLP LISA N. NEAL (SBN 205465) GERARD M. MOONEY (SBN 222137) Attorneys for Defendants, Third-Party Plaintiffs, Counter-Plaintiffs and Counter-Defendants FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY
Action Filed: September 28, 2018
NOSSAMAN LLP
CARL L. BLUMENSTEIN (SBN 124158)
BENJAMIN Z. RUBIN (SBN 249630)
AALIA TAUFIQ (SBN 317787)
RUTAN & TUCKER, LLP
LISA N. NEAL (SBN 205465)
GERARD M. MOONEY (SBN 222137)
Attorneys for Defendants, Third-Party Plaintiffs, Counter-Plaintiffs and Counter-Defendants
FOOTHILL/EASTERN TRANSPORTATION CORRIDOR AGENCY and SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY
JUDGMENT AS TO THIRD-PARTY DEFENDANT AND COUNTER-PLAINTIFF ALLIED WORLD NATIONAL ASSURANCE COMPANY
Honorable Philip S. Gutierrez United States District Court
On February 13, 2023, the Court entered its “Order Granting [Partial] Summary Judgment to Associated, Granting [Partial] Summary Judgment to Allied World and Denying as Moot the TCA Defendants' Motions to Dismiss” (Dkt. No. 259) (“the February 13 Order”).
Pursuant to the February 13 Order, the Court granted third-party defendant and counter-plaintiff Allied World National Assurance Company (“Allied World”) summary judgment as to the Third Claim for Relief for declaratory judgment of no duty to indemnify in Allied World's “Answer to Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency's Third-Party Complaint and Amended Counterclaim” (Dkt. No. 192 [emphasis in original]) (“Amended Counterclaim”). In addition, the Court denied defendants, counter-plaintiffs, third-party plaintiffs, and counter-defendants Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency's (collectively, “TCA”) “Notice of Motion and Partial Motion to Dismiss Allied World National Assurance Company's Counterclaim” (Dkt. No. 196) (the “Motion to Dismiss”), and declined jurisdiction over Allied World's remaining First, Second, and Fourth through Sixth Claims for Relief in its Amended Counterclaim, each of which were dismissed, in light of its February 13 Order granting Allied World summary judgment as to its Third Claim for Relief.
Following the February 13 Order, the claims for relief remaining between TCA and Allied World were (1) TCA's First Claim for Relief in its Third Party Complaint (Dkt. No. 122) (the “TPC”) for declaratory relief regarding Allied World's duty to defend; (2) TCA's Second Claim for Relief in its TPC for Allied World's breach of the duty to defend; (3) TCA's Fifth Claim for Relief in its TPC for breach of the implied covenant of good faith and fair dealing; and (4) Allied World's Seventh Claim for Relief for reimbursement (the “Remaining Claims”). The Court did not formally dismiss TCA's Third Claim for Relief for declaratory relief regarding Allied World's duty to indemnify or Fourth Claim for Relief for breach of the duty to indemnify.
Allied World, on the one hand, and TCA, on the other hand, entered into a settlement agreement fully and finally resolving the Remaining Claims between them, as well as any claim by TCA for breach of the implied covenant of good faith and fair dealing with regard to Allied World's duty to indemnify TCA in connection with the action entitled Borsuk, et al. v. Foothill/Eastern Transportation Corridor Agency, et al., Case No. 8:16-cv-00262 ODW (JCGx) (C.D. Cal. 2016) (the “Borsuk Action”).
Allied World, on the one hand, and TCA, on the other hand, further agreed that TCA has the right to appeal the February 13 Order with regard to the Court's entry of summary judgment on Allied World's Third Claim for Relief for declaratory judgment of no duty to indemnify, and the parties' settlement did not resolve that claim for relief, or TCA's affirmative claims for relief pertaining to Allied World's duty to indemnify TCA in connection with the Borsuk Action (other than TCA's Fifth Claim for Relief in its TPC for breach of the implied covenant of good faith and fair dealing insofar as it addresses Allied World's duty to indemnify TCA in connection with the Borsuk Action). As such, the parties agree that the entry of Judgment does not prejudice, waive rights relating to, or in any way affect any party's right to appeal the February 13 Order referenced above with regard to the Court's entry of summary judgment for Allied World on its Third Claim for Relief for declaratory judgment of no duty to indemnify.
Pursuant to their settlement, Allied World, on the one hand, and TCA, on the other hand, entered into a stipulation dated January 9, 2024, dismissing the Remaining Claims, with prejudice. In addition, Allied World and TCA agree that the Court's February 13 Order constitutes an adjudication of TCA's Third Claim for Relief for declaratory relief regarding Allied World's duty to indemnify and Fourth Claim for Relief for breach of the duty to indemnify, in favor of Allied World. As a result, following the February 13 Order and the parties' stipulation of dismissal, all claims for relief remaining between Allied World and TCA have been adjudicated or dismissed.
Based upon the foregoing ruling and stipulation, and good cause appearing therefor, IT IS HEREBY ADJUDICATED, ORDERED, AND DECREED that:
1. Judgment should be entered in favor of third-party defendant and counter-plaintiff Allied World National Assurance Company (“Allied World”) and against defendants, counter-plaintiffs, third-party plaintiffs, and third-party counter-defendants Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency (collectively, “TCA”) on Allied World's Third Claim for Relief for declaratory judgment of no duty to indemnify in Allied World's “Answer to Foothill/Eastern Transportation Corridor Agency and San Joaquin Hills Transportation Corridor Agency's Third-Party Complaint and Amended Counterclaim” (Dkt. No. 192 [emphasis in original]), and TCA's Third Claim for Relief for declaratory relief regarding Allied World's duty to indemnify and Fourth Claim for Relief for breach of the duty to indemnify in TCA's Third Party Complaint (Dkt. No. 122), in accordance with the February 13, 2023 Order referenced above.
2. The Court finds, pursuant to Rules 54(a) and (b) of the Federal Rules of Civil Procedure, that this Final Judgment should be entered and further finds that there is no just reason for delay in the entry of this Judgment, as a Final Judgment, as to the above-identified parties. Accordingly, the Clerk is hereby directed to enter Judgment forthwith.
3. The entry of Judgment does not prejudice, waive rights relating to, or in any way affect any party's right to appeal the February 13, 2023 Order referenced above with regard to the Court's entry of summary judgment on Allied World's Third Claim for Relief for declaratory judgment of no duty to indemnify or of TCA's Third Claim for Relief for declaratory relief regarding Allied World's duty to indemnify and Fourth Claim for Relief for breach of the duty to indemnify.
4. Each of the above-identified parties will bear its own attorneys' fees and costs incurred to date.