Opinion
CIVIL ACTION NO. 3-02-CV-1279-M
January 27, 2004
FINAL JUDGMENT
At the conclusion of a hearing on the parties' cross-motions for summary judgment held on December 16, 2003, the Court orally granted Defendants' motions for summary judgment and denied Plaintiff's motion for summary judgment. Based on the Court's rulings on the parties' cross-motions for summary judgment and the representations made by counsel for the Stebbins Defendants at the December 16, 2003 hearing that the Stebbins Defendants did not intend to further pursue their extra-contractual Stowers/negligence and Texas Insurance Code claims in light of the Court's rulings on the contractual coverage and public policy issues, the Court has determined that it should enter a final judgment in favor of Defendants and against the Plaintiff.
It is, therefore, ORDERED, ADJUDGED AND DECREED that the Defendants' Motions for Summary Judgment are hereby GRANTED and Plaintiff's Motion for Summary Judgment is hereby DENIED.
It is, further ORDERED, ADJUDGED AND DECREED that Philadelphia Indemnity Insurance Company ("Philadelphia") policy No. PPG101293 affords coverage to Defendants Brentwood Healthcare Ltd. d/b/a Brentwood Place III and Stebbins Aviation, Inc., as general partner of Brentwood Healthcare, Ltd. for the punitive damage portion of the judgment entered in the underlying lawsuit styled Guadalupe Rivera, et al. v. Brentwood Place III, Brentwood Healthcare, Ltd. and Stebbins Aviation, Inc. as general partner of Brentwood Healthcare, Ltd (the "Underlying Lawsuit"), Cause No. 00-6777-E, originally filed in the 101st Judicial District Court of Dallas County, Texas.
It is further ORDERED, ADJUDGED AND DECREED that Texas public policy is not violated by requiring Plaintiff Philadelphia to indemnify Defendants Brentwood Healthcare, Ltd. d/b/a Brentwood Place, III and Stebbins Aviation, Inc., as general partner of Brentwood Healthcare, Ltd. for the punitive damage award in the Underlying Lawsuit.
It is further ORDERED, ADJUDGED AND DECREED that Defendants Brentwood Healthcare, Ltd. d/b/a Brentwood Place, III and Stebbins Aviation, Inc., as general partner of Brentwood Healthcare, Ltd. are entitled to indemnification from Plaintiff Philadelphia against the punitive damage award entered against them in the Underlying Lawsuit.
It is further ORDERED, ADJUDGED AND DECREED that Defendants and Counter-Claimants Guadalupe Rivera, Janie Lopez and Santiago Fonseca, Jr., individually and as sole heirs of the Estate of Martha R. Fonseca, deceased, recover on their Counterclaim against Plaintiff, Philadelphia Indemnity Insurance Company, the sum of $366,510.00, together with all post-judgment interest accruing thereon at the rate often (10%) percent per annum, compounded annually, beginning on October 3, 2003 and continuing until payment of the final judgment in the underlying lawsuit, said sum representing the total amount of punitive damages plus post-judgment interest in the Underlying Lawsuit, plus post-judgment — interest on this entire amount in the instant lawsuit at 1.19% per annum beginning from date of entry of the judgment and continuing thereon until the final payment as set forth in 28 U.S.C. § 1961.
It is further ORDERED, ADJUDGED AND DECREED that, since the Stebbins Defendants and Philadelphia have stipulated to the amount of recoverable attorneys' fees, Defendants Stebbins Five Companies, Ltd., Stebbins Five Management, Ltd., Stebbins Aviation, Inc. and Brentwood Healthcare, Ltd., d/b/a Brentwood Place III recover from Philadelphia the sum of $62,500.00 for their reasonable and necessary attorneys' fees and expenses.
It is further ORDERED, ADJUDGED AND DECREED that, with the agreement of the Stebbins Defendants, the Stebbins Defendants' negligence/Stowers and Texas Insurance Code claims are dismissed with prejudice.
It is further ORDERED, ADJUDGED AND DECREED that Plaintiff's claims against the Stebbins Defendants are dismissed with prejudice, and that Plaintiff take nothing on its claims in this lawsuit.
It is further ORDERED, ADJUDGED AND DECREED that court costs shall be borne by the party incurring same.
It is further ORDERED, ADJUDGED AND DECREED that the Defendants are entitled to post-judgment interest on the entire judgment being awarded herein, including pre-judgment interest and court costs, at the rate of 1.19% per annum as provided for by law.
All other relief not granted herein is denied.
It is so ORDERED.