Owners Insurance Company v. Holley et al, No. 6:2022cv00017 - Document 18 (S.D. Ga. 2023)
Court Description: ORDER granting 17 Motion for Default Judgment. The Clerk is directed to enter judgment in favor of Plaintiff against Defendants, terminate any pending motions and deadlines, and close this case. Signed by Chief Judge J. Randal Hall on 6/29/2023. (gmh)
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Owners Insurance Company v. Holley et al Doc. 18 Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 1 of 7 IN THEUNITED STATES DISTRICT COURT FOR THE SOU THERN DISTRICT OF GEORG A I STATESB ORO DIVISIO N * * * OWNERS INSURANCE COMPANY, Plaintiff, * * * * * * v. MATTHEW HOLLEY; RODRIQUEZ WALLACE; CHRISTINE WELK, CV 622-017 0 R DER Presently before the Court is Plaintiff's motion for default judgment. (Doc. or otherwise Defendants 1 7.) defended this have action. not For appeared, the pled, following reasons, Plaintiff's motion is GRANTED. I. BACKR G OUND Plaintiff initiated the present action on February 24, 2022 pursuant to 28 U.S.C. § 2201 and Federal Rule of Civil Procedure 57. (Doc. 1, at 1.) Plaintiff is an insurance company organized under the laws of Michigan that at all relevant times was in the business of writing automobile lawfully doing business in Georgia. liability insurance (Id. at 2.) and was Plaintiff seeks a declaration that it has neither liability coverage, nor a duty to defend Defendant Holley, in civil actions pending in the State Dockets.Justia.com Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 2 of 7 Court of Toombs County, Georgia arising out of a motor vehicle accident (the ''Accident"). (Id. at 2, 7.) The Accident occurred when a vehicle operated by Defendant Holley made contact with a vehicle operated by Defendant Wallace, and Defendant Welk was a passenger in the vehicle operated by Wallace. (Id. at 1-2.) Plaintiff insured the 1998 Ford Ranger pickup truck operated by Defendant Holley during the Accident through policy number 51-954- 989-01 (the "Policy"). {1^ at 2.) Plaintiff issued the Policy to Elijah and Debra Holley (the "Insureds") to provide liability coverage with $50,000.00 per person and $100,000.00 per occurrence. 4.) limits of (Id. at 3- Defendant Holley is the adult son of Elijah and Debra Holley, the Insureds. (Id. at 6.) The Policy defines relatives as "a person who resides with you and who is related to you by blood, marriage or adoption." (Doc. 1-1, at 11-12.) The Policy provides liability coverage to the Insureds and "on behalf of any relative using [their] automobile" as well as "on behalf of any person using [their] automobile . . . with [their] permission or that of a relative." The Complaint alleges Defendant Holley was (Id. at 12.) operating the vehicle when the Accident occurred, and Defendants Wallace and Welk contend they sustained bodily injuries as a result of the Accident. (Doc. 1, at 5.) accident Holley Insureds. occurred. Defendant (Id. at 6.) did not At the time the reside with the Furthermore, Defendant Holley did not have Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 3 of 7 the permission, Insureds, to either operate express the 1998 or implied, Ford Ranger of either truck, and of the he was operating the truck with actual knowledge that he did not have permission to use or operate it. (Id. at 7.) Based on these facts. Plaintiff contends Defendant Holley does not qualify as an "insured" under the Policy, and thus, it does not owe liability coverage or a duty to defend him from the claims asserted against him in the underlying lawsuits. (Id.) Plaintiff already issued a reservation of rights letter to Defendant Holley informing him it reserved any and all rights it may have under the Policy to deny coverage and liability. On (Id.) November 8, 2022, Plaintiff moved for entry of default pursuant to Federal Rule of Procedure 55(a). (Doc. 15.) thereafter entered default on November 10, 2022. on November 17, 2022, default judgment. Plaintiff filed (Doc. 17.) the The Clerk (Doc. 16.) present Then motion for In this motion. Plaintiff requests the Court grant default judgment, adjudging that Plaintiff owes no obligation to defend or indemnify Defendant Holley with respect to any liability, judgment, or settlement flowing from, resulting from, or arising out of the Accident. Plaintiff requests the Court declare (Id. at it is 3.) under no Further, duty or obligation imposed by the Policy to defend or indemnify Defendant Holley against any liability Accident or underlying lawsuits. arising (Id.) from or respecting the Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 4 of 7 II. LEGAL STANDARD Under Federal Rule of Civil Procedure 55(b), "a court may enter default judgment against a defendant when (1) both subject matter and personal jurisdiction exist, (2) the allegations in the complaint state a claim plaintiff shows the against damages to the defendant, which Brothers, Inc. v. Heavenly Produce it is and (3) entitled." the Senn Palace LLC, No. CV 119-196, 2020 WL 2115805, at * 1 (S.D. Ga. May 4, 2020) {citing Pitts ex rel. Pitts V. Seneca Sports, Inc., 321 F. Supp. 2d 1353, 1356-58 (S.D. Ga. 2004)). pleadings state Final judgment is appropriate so long as "the a substantive cause of action sufficient basis to support the relief sought." and contain a Kennedy v. NILA Invs., LLC, No. 2:19-cv-090, 2020 WL 3578362, at *1 (S.D. Ga. July 1, 2020) (citing Tyco Fire & Sec., LLC v. Alcocer, 218 F. App'x 860, 863 (11th Cir. 2007)); see also Surtain Found., 789 F.3d 1239, 1245 (11th Cir. 2015) v. Hamlin Terrace (holding default judgment is merited only "when there is a sufficient basis in the pleadings for the judgment entered"). Further, a "defaulted plaintiff s well-pleaded complaint. defendant is deemed to admit allegations of fact" set forth the in the Surtain, 789 F.3d at 1245 (quoting Cotton v. Mass. Mut. Life Ins. Co., 402 F.3d 1267, 1278 (11th Cir. 2005)); Eagle Hosp. Physicians, LLC v. SRG Consulting, Inc., 561 F.3d 1298, 1307 (11th Cir. 2009) ("A defendant, by his default, admits the Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 5 of 7 plaintiff's well-pleaded allegations of fact, is concluded on those facts by the judgment, and is barred from contesting on appeal the facts thus citation omitted)). established." (internal quotations and Although well-pleaded allegations of fact are deemed admitted, defendant "is not held to admit facts that are no well-pleaded or to admit conclusions of law." Id. (citation and internal quotation marks omitted). III. DISCUSSION The Court turns to Plaintiff's motion for default judgment. (Doc. 17.) It first addresses whether it has jurisdiction over this action before proceeding to the merits of the motion. A. Jurisdiction Plaintiff filed its Complaint in this Court for declaratory judgment pursuant to 28 U.S.C. § 2201 and Federal Rule of Civil Procedure 57. (Doc. 1, at 1.) Plaintiff is a company organized under the laws of Michigan with its principal place of business also in Michigan. residents of (Id. at 2.) Georgia. (Id.) Defendants are all citizens and The Court has subject matter jurisdiction because Plaintiff seeks a declaratory judgment under 28 U.S.C. § 2201 Parties. Venue and is there proper is in complete the diversity Statesboro between Division of the the Southern District of Georgia because the Accident took place in Toombs County, Georgia, located within this District. (Id. at 1.) Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 6 of 7 Moreover, the Court has personal jurisdiction over the Defendants because Plaintiff served each Defendant and proof of such service was filed with the Court. (Docs. 7, 11-12.) B. Liability Having found the jurisdictional requirements satisfied, the Court now turns to Plaintiff's motion for default judgment. Plaintiff seeks declaratory judgment that is owes no contractual obligation to defend or indemnify Matthew Holley against any liability, judgment, or settlement following from, or arising out of, the Accident. (Doc. 17-1, at 11-12.) Plaintiff wants the Court to declare it is under no duty or obligation imposed by the Policy to defend or indemnify Defendant Holley against any liability arising from or respecting the Accident or the claims forming the basis of the underlying lawsuits. (Id. at 12.) Plaintiff s well pleaded allegations are outlined above in the background section of this Order. Defendants have failed to serve any response to Plaintiffs pleadings; therefore, the Court deems all well-pleaded factual allegations as true for purposes of its analysis. Based on these facts, the Court finds Plaintiff has no duty of coverage to or on behalf of Defendant Holley under the Policy for any claims arising from the Accident. the Court accepts as true, for purposes of Specifically, this analysis. Plaintiffs allegation that Defendant Holley does not qualify for coverage under the terms of the Policy because he was not living Case 6:22-cv-00017-JRH-BKE Document 18 Filed 06/29/23 Page 7 of 7 with the Insureds, and he was not given authorization to take the Insureds' 1998 Ford Ranger. contractual obligation to As defend such, Plaintiff or indemnify is under Defendant no Holley against any claim or amount of damages, costs, or other monetary amount arising out of the Accident or alleged or sought in the underlying lawsuits. Accordingly, default judgment is proper, and Plaintiff's motion (Doc. 17) shall be GRANTED, III. CONCLUSION For the foregoing reasons. judgment (Doc. 17) is GRANTED. Plaintiff's motion for default The Clerk is DIRECTED to ENTER JUDGMENT in favor of Plaintiff against Defendants, TERMINATE any pending motions and deadlines, and CLOSE this case. ORDER ENTERED at Augusta, Georgia, ay of June, 2023. J. RhNhm HALL, Cl/IEF JUDGE UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF GEORGIA
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