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PRIMORIS ENERGY SERVICES CORPORATION d/b/a Sprint Pipeline Services, Appellant v. Thomas MYERS, Appellee

2018 WL 4136186

NOTICE: THIS OPINION HAS NOT BEEN RELEASED FOR PUBLICATION IN THE PERMANENT LAW REPORTS. UNTIL RELEASED, IT IS SUBJECT TO REVISION OR WITHDRAWAL.
Court of Appeals of Texas, Houston (1st Dist.).
PRIMORIS ENERGY SERVICES CORPORATION d/b/a Sprint Pipeline Services, Appellant
v.
Thomas MYERS, Appellee
NO. 01-16-00631-CV
|
Opinion issued August 30, 2018
On Appeal from the 164th District Court, Harris County, Texas, Trial Court Case No. 2014-46862
Attorneys and Law Firms
Timothy Lyle Culberson, Houston, Constance H. Pfeiffer, Kyle Lawrence, Houston, Daniel R. Hernandez, for Appellee.
Juan Roberto Fuentes, Houston, David Helmey, Spring, H. Dwayne Newton, Jessica Zavadil Barger, Bradley Wayne Snead, Houston, for Appellant.
Panel consists of Justices Jennings, Keyes, and Higley.

OPINION
Terry Jennings, Justice
*1 Appellant, Primoris Energy Services Corporation, doing business as Sprint Pipeline Services (“Sprint”), challenges the trial court’s judgment, entered after a jury trial, in favor of appellee, Thomas Myers, in his suit for negligence. In five issues, Sprint contends that the trial court erred in admitting evidence of medical expenses, the evidence is factually insufficient to support the jury’s proportionate responsibility findings, and the evidence is legally and factually insufficient to support the jury’s negligence finding against Sprint and the damages it awarded to Myers of $2 million for future physical impairment and $500,000 for future pain.

We affirm, in part, and reverse and remand, in part.

Background
In his second amended petition, Myers alleged that Spirit, a pipeline company, secured an easement across his ranch to transport vehicles and equipment to an adjacent property, on which it was constructing a pipeline. Sprint hired Montgomery Trucking Company (“Montgomery”) to transport equipment for the project. And Montgomery hired Justin Thomas Baggett, despite knowing that he had “numerous unsafe[ ] traffic violations,” to drive its truck for Sprint.

On January 26, 2014, Baggett attempted to maneuver an 18-wheeler truck and trailer (“18 wheeler”) loaded with Sprint’s materials through the gate, which was “entirely too narrow to accommodate the size of the truck,” to Myers’s ranch. Sprint had two “flagmen employees” assisting Baggett through the driveway. However, as Baggett reversed the 18-wheeler, he collided into the four-wheeler vehicle (“four-wheeler”) on which Myers was sitting. As a result, Myers “suffered a severe four-level cervical disc herniation that impinged on his spinal cord, requiring a four-level fusion surgery of the cervical spine.” He also “suffers from severe radiculopathy, neck pain, back pain and related atrophy of the right arm.”

Myers sued Sprint, Montgomery, and Baggett (the “defendants”) for negligence. Specifically, in regard to Sprint, Myers alleged that it, “by and through its agents, representatives, and/or employee spotters,” failed to “properly train its spotters, agents, representatives and/or employees”; “properly equip its spotters with communication equipment to properly and clearly communicate with” Baggett; “properly communicate with the truck driver and … warn the truck driver concerning [Myers] and his four-wheeler”; “warn [Myers] that the truck was intending on backing up to the area where [he] was sitting on his four-wheeler”; and “timely build an alternative and safe ingress and egress (driveway) for [Myers’s] property after having knowledge of the troublesome and dangerous condition of the existing range gate for the 18-wheelers entering and exiting the property which would have completely avoided this incident.”

Myers further alleged that the defendants’ negligence proximately caused damages for past and future pain and suffering, mental anguish, medical expenses, disfigurement, and physical impairment, as well as past and future economic damages arising from “costs associated with running his ranch since he is physically unable to do the work required to run a ranch of [its] size as he ha[d] done in the past before his injury.”

*2 Sprint filed an answer, generally denying the allegations and asserting that the collision was instead caused by the negligence of Myers or others.

At trial, Myers testified that in 2013, he granted BridgeTex Pipeline LLC (“BridgeTex”) an easement to construct and operate a pipeline along his sixty-six-acre ranch in Montgomery, Texas. Sprint was the contractor in charge of constructing the pipeline, and its only point of access to the easement was through Myers’s gravel driveway, which had a narrow gate. Although Myers granted BridgeTex and Sprint access to the driveway, he expressed concern about large trucks using the gate due to its narrowness, the angle of the approach, and the elevation drop. He suggested that they build a separate construction entrance that would better accommodate the vehicles and other equipment, but Sprint and BridgeTex declined to do so. After a truck, on January 8, 2014, hit Myers’s gate, pulling the frame over and uprooting the concrete foundation, Sprint agreed to build a separate construction driveway. And, in the meantime, it put “spotters” on location to guide trucks through the gate.

On January 26, 2014, Myers drove his four-wheeler to the gate to check on the progress of the construction of the new driveway. While watching a crew working on the fence, he heard some “yelling” coming from the gate area. Myers drove his four-wheeler over to determine what had happened, and he saw that another 18-wheeler had struck the gate. He stopped his four-wheeler and picked up his cellular telephone to call the land agent to inform him of what had happened. Myers explained that, at this time, the 18-wheeler was stationary. Because its break lights were on and a spotter was nearby, Myers did not believe that there was any indication that the 18-wheeler would move while he was on his cellular telephone.

While standing on his four-wheeler, Myers turned his back to the 18-wheeler and began to leave a message for the land agent. At that moment, the trailer of the truck struck his four-wheeler. His head snapped back, and he saw a “flash of white.” Myers then saw the trailer of the truck continue to move towards him, but it came to a stop before running him over. He got off of his four-wheeler and examined his body, not immediately noticing any apparent injuries. Eventually Myers went inside his home to lay down.

As his adrenaline wore off, Myers noticed paralysis around his neck and spine. He also began to experience intense pain. Initially, Myers tried to “sleep it off,” but decided to see a doctor several days later when the pain did not subside. After some testing, a doctor diagnosed Myers as suffering from six herniated discs and a compressed spinal cord. To treat these injuries, Myers, in August 2014, had a four-level disc-fusion surgery, in which four of his six herniated discs were removed, his spinal cord was “un-pinched, and his vertebrae were fused back together. Myers explained that the surgery has helped him, but his overall strength and mobility is still impaired. For example, he cannot lift more than ten pounds of weight with his right arm, and the muscles in it have greatly atrophied.

*3 Myers described himself, after having sustained his injuries, as “feeble.” And he explained that he can no longer run the equipment on his ranch, continue employment as a body guard, or “ride [his] daughter on his shoulders” as he was able to do before the collision. Consequently, his property is deteriorating because he cannot maintain it as he did previously. Before the collision, he maintained the ranch by clearing and mowing the lawns and pastures, repairing fences, and servicing the vehicles and other heavy equipment. After the collision, although Myers is able to use a riding lawn mower, he cannot operate the heavy equipment needed to cut, rake, bale, haul, and stack hay. And he cannot perform most of the other regular work around the ranch. However, Myers is still able to drive a vehicle and operate a gun range on his property. And he does not need any nursing or other personal care.

Dr. Nilesh Kotecha, a board-certified neurosurgeon, testified that he performed Myers’s four-level fusion surgery. After physically examining Myers and reviewing his MRI, Kotecha diagnosed him as suffering from “multilevel cervical disc herniations and … [a] spinal cord compression.” He also noted that Myers’s MRI revealed some pre-existing, chronic degeneration in his neck. But Kotecha ultimately determined that the severe, acute injuries were caused by the collision.

In August 2014, Dr. Kotecha performed a four-level fusion surgery on Myers’s cervical spine, which involved removing four of his herniated discs, un-pinching his spinal cord, and then fusing his vertebrae back together with spacers and bone taken from his sternum. He explained that he left two of Myers’s herniated discs untreated because a five-level fusion is considerably more extensive and those discs were not compressing Myers’s spinal cord. He further explained that although the surgery was successful, Myers will experience limitation in his range of motion, will not be able to bend and twist his neck “as much as he would otherwise,” and should not lift more than 20 to 30 pounds. And while Myers’s muscle atrophy could improve with therapy, any atrophy resulting from permanent nerve damage will not improve.

Dr. Kotecha further testified that Myers, at his follow-up visit in February 2015, did not require any prescription pain medicine. Moreover, his surgical wound had healed nicely, and he had “good” range of motion of his cervical spine. In regard to Myers’s medical expenses, Kotecha explained that the surgery he performed on Myers was medically necessary and the bills from the surgery were “reasonable and customary.”

James Evans, an accident reconstructionist, testified that he took statements from the witnesses to the collision, gathered data from the scene, and inspected the vehicles to determine the facts surrounding the collision in this case. He has reconstructed many collisions involving tractor-trailers, such as the 18-wheeler in the collision in the instant case, and has significant experience with all-terrain vehicles like the one Myers was on at the time of the collision. Evans explained that there is ample evidence available to reconstruct the collision in this case, including: a photograph that Myers took of the 18-wheeler after it hit his gate, photographs from after the collision that show tire marks and damage to the vehicles, and information regarding the dimensions of and damage to the vehicles.

Evans input the data that he had collected into a computer-aided drafting program to draw the scene to scale and reconstruct the collision. He opined that Baggett reversed without first exiting the 18-wheeler to check his surroundings and that Sprint’s spotters did not do their job to warn Baggett of any hazards obstructing his path. Evans further opined that Myers was in “small part” to blame for the collision. However, he attributed primary fault to Baggett and Sprint’s spotters. Specifically, Evans explained that spotters are placed on site to assist a driver when he does not have full visibility and to warn others in the area to avoid collisions.

*4 Darrell Hurst, a ranch-hand expert who manages a 250-acre ranch in Navasota, Texas, testified that Myers’s fences, pastures, creek, equipment, cattle, and pecan trees require daily maintenance. Thus, Myers would need to hire someone who knows how to build and maintain fences, care for cattle, perform mechanical work and carpentry, and maintain river banks, barns, and trees. This type of work requires heavy lifting and operation of heavy machinery, in excess of 30 pounds. In Hurst’s opinion, to maintain his ranch, Myers would need to hire someone to work on it six days per week for eight hours per day. He further opined that a reasonable hourly rate for this type of labor is $20 per hour. Hurst explained that when he toured Myers’s ranch, it was in a state of “disarray.” The pastures and fences had not been maintained, and the creek bed had overflowed and damaged a portion of the barbed-wire fencing that contains Myers’s cattle. However, Hurst acknowledged that he was not aware of the condition of Myers’s ranch prior to the collision.

Baggett testified that he was employed by Montgomery and drove the 18-wheeler that hit Myers on January 26, 2014. He explained that there were two spotters from Sprint assisting him that day: one spotter was stationed outside of Baggett’s window and a second one, whom Baggett could not see, was stationed behind the trailer of the 18-wheeler. The spotter stationed outside of his window told Baggett that “he could see everything back there.” That same spotter is the person who told him to stop the 18-wheeler because he had “rubbed the gate.” After he was told that he had hit the gate, Baggett kept his foot on the brake without moving the 18-wheeler for one to two minutes. He drove off only after the spotter told him that he was “clear.” Baggett further explained that the 18-wheeler did not make any “beeping” sound or other noise when it reversed. He had to rely on the spotters, who were not using flags or noisemakers, to guide him. And no one informed him that the trailer had hit Myers until he received a telephone call approximately 30 minutes later.

Diana M. Dooley testified by deposition that, in 2014, she was the Director of the Business Office for Spring Central Hospital, where Myers had his surgery. She is familiar with the billing practices of that facility and also has an extensive background in hospital billing. Dooley explained that, for his four-level fusion surgery, Myers was charged $201,570.54. She then opined that those charges were reasonable for the type of surgery performed on him.

James S. Bryan, a safety professional for Sprint at the time of the collision, testified by deposition that Sprint does not require their spotters to undergo any special training because it is a “common sense task.” And he noted that Myers declined medical attention immediately following the collision.

Cecil Wyatt, a pipeline inspector who was working on Myers’s property at the time of the collision, testified by deposition that on the day of the collision, he heard a “commotion” and went over to the gate. When he arrived, he saw Myers sitting on his four-wheeler with the bumper of the truck “up against” it.

Dr. Jerry Bob Blacklock, a board-certified neurosurgeon, testified that, in his opinion, the necessity of Myers’s four-level fusion surgery did not arise from the January 2014 collision. Instead, he opined that Myers would have needed the surgery at some point in the future, regardless of the collision because he suffered from arthritic degenerations, i.e., “bone spurs” that press on the spinal cord and are not caused by a traumatic injury. From Blacklock’s review of Myers’s imaging tests, he concluded that Myers did not have any herniated discs in his cervical spine. And he opined that Myers’s initial motor and neurologic exams were inconsistent with an individual who had experienced a recent spinal cord injury.

Dr. Blacklock further testified that he is familiar with the costs associated with a four-level fusion surgery and the charges associated with Myers’s surgery were not reasonable. First, he reviewed a bill from L2 Surgical regarding the hardware that was put into Myers’s spine for $33,195. Blacklock opined that this amount was unreasonable and the hardware should have cost between $3,000 and $5,000, at a maximum. Next, he reviewed a bill from Spring Central Hospital, where Myers had his surgery, in the amount of $201,570.54. Blacklock opined that this bill was also unreasonable and the cost for a four-level fusion surgery should have been $40,000, at a maximum. He then reviewed a bill from Dr. Kotecha, the surgeon who performed Myers’s surgery, for $68,587.09. Blacklock opined that this charge was also not reasonable and should have cost no more than $3,000 to $16,000. Finally, he reviewed a bill from Sentry Neuromonitoring, LLC for the monitors used during Myers’s surgery for $6,075.00. And Blacklock opined that this amount was approximately three times what he would expect to be charged for that type of equipment.

*5 Richard Baratta, Ph. D., a biomedical engineering expert, testified that, from his review of the evidence in this case, the 18-wheeler could not have struck Myers at a speed of greater than three miles per hour. And he explained that a contact speed of three miles per hour or less was insufficient to herniate discs in a cervical spine unless there were pre-existing injuries present.

The jury found that the negligence of Sprint, Baggett, and Myers proximately caused Myers’s injuries. It attributed sixty-four percent of the liability to Sprint, thirty-five percent to Baggett, and one percent to Myers. And the jury awarded Myers damages in the amount of $315,000 for past medical expenses, $15,000 for past physical pain, $500,000 for future physical pain, $50,000 for future mental anguish,1 $75,000 for past physical impairment, and $2,000,000 for future physical impairment. The trial court entered judgment on the verdict against Sprint and Montgomery.2 Sprint filed post-trial motions for a judgment notwithstanding the verdict, to modify the verdict, and for a new trial, which were all denied. Montgomery paid its portion of the judgment, and Sprint appealed.

Sufficiency of the Evidence
In its first, second, and fourth issues, Sprint contends that the evidence is legally and factually insufficient to support the jury’s negligence finding against Sprint and its damages award to Myers of $2 million for future physical impairment and $500,000 for future pain. In its fifth issue, Sprint argues that the evidence is factually insufficient to support the jury’s proportionate-responsibility findings.

Standard of Review
We will sustain a legal-sufficiency, or “no-evidence,” challenge if the record shows one of the following: (1) a complete absence of evidence of a vital fact; (2) rules of law or evidence bar the court from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a scintilla; or (4) the evidence establishes conclusively the opposite of the vital fact. City of Keller v. Wilson, 168 S.W.3d 802, 810 (Tex. 2005). In conducting a legal-sufficiency review, a “court must consider evidence in the light most favorable to the verdict, and indulge every reasonable inference that would support it.” Id. at 822. The term “inference” means:
In the law of evidence, a truth or proposition drawn from another which is supposed or admitted to be true. A process of reasoning by which a fact or proposition sought to be established is deduced as a logical consequence from other facts, or a state of facts, already proved….
Marshall Field Stores, Inc. v. Gardiner, 859 S.W.2d 391, 400 (Tex. App.—Houston [1st Dist.] 1993, writ dism’d w.o.j.) (quoting BLACK’S LAW DICTIONARY (5th ed. 1979) ).

If there is more than a scintilla of evidence to support the challenged finding, we must uphold it. Formosa Plastics Corp. USA v. Presidio Eng’rs & Contractors, Inc., 960 S.W.2d 41, 48 (Tex. 1998). “[W]hen the evidence offered to prove a vital fact is so weak as to do no more than create a mere surmise or suspicion of its existence, the evidence is no more than a scintilla and, in legal effect, is no evidence.” Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 601 (Tex. 2004) (internal quotations omitted). However, if the evidence at trial would enable reasonable and fair-minded people to differ in their conclusions, the trier-of-fact must be allowed to do so. City of Keller, 168 S.W.3d at 822. “A reviewing court cannot substitute its judgment for that of the trier-of-fact, so long as the evidence falls within th[e] zone of reasonable disagreement.” Id.

*6 When an appellant challenges the factual sufficiency of the evidence, we view all of the evidence in a neutral light and set aside the finding only if it is so contrary to the overwhelming weight of the evidence as to be clearly wrong and manifestly unjust. See Cain v. Bain, 709 S.W.2d 175, 176 (Tex. 1986). The factfinder is the sole judge of the witnesses’ credibility, and it may choose to believe one witness over another; a reviewing court may not impose its own opinion to the contrary. See Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757, 761 (Tex. 2003).

Liability
In its first issue, Sprint argues that the evidence is legally and factually insufficient to support the jury’s finding that Sprint was negligent and 64% responsible for Myers’s injuries because he submitted a negligent-activity claim to the jury, there is no evidence that Sprint’s spotters acted negligently at the time of the collision, and any inference that they did act negligently is “rendered no evidence” by equally probable inferences that they did not act negligently.

The elements of a negligence cause of action consist of the “existence of a legal duty, a breach of that duty, and damages proximately caused by the breach.” Gharda USA, Inc. v. Control Sols., Inc., 464 S.W.3d 338, 352 (Tex. 2015) (internal quotations omitted). “A general contractor in control of the premises may be liable for two types of negligence in failing to keep the premises safe: that arising from an activity on the premises, and that arising from a premises defect.” United Scaffolding, Inc. v. Levine, 537 S.W.3d 463, 470 (Tex. 2017) (quoting Clayton W. Williams, Jr., Inc. v. Olivo, 952 S.W.2d 523, 527 (Tex. 1997) ). “Negligence and premises liability claims … are separate and distinct theories of recovery, requiring plaintiffs to prove different, albeit similar, elements to secure judgment in their favor.” Id. at 471 (citing Del Lago Partners, Inc. v. Smith, 307 S.W.3d 762, 775–76 (Tex. 2010) ). “Underpinning the distinctions between these claims is the principle that ‘negligent activity encompasses a malfeasance theory based on affirmative, contemporaneous conduct by the owner that caused the injury, while premises liability encompasses a nonfeasance theory based on the owner’s failure to take measures to make the property safe.’ ” Levine, 537 S.W.3d at 471–72 (quoting Del Lago, 307 S.W.3d at 776 (footnotes omitted) ); see also Sampson v. Univ. of Tex. at Austin, 500 S.W.3d 380, 388 (Tex. 2016) (“When distinguishing between a negligent activity and a premises defect, this Court has focused on whether the injury occurred by or as a contemporaneous result of the activity itself—a negligent activity—or rather by a condition created by the activity—a premises defect.”). For a negligent-activity theory, a plaintiff generally need only submit a general-negligence question to the jury, which is insufficient to support recovery in a premises-defect case. Id. at *4–5.

Here, the trial court, at Myers’s request, submitted a general negligence question to the jury. Thus, only theories of negligent activity, not premises liability, are at issue. Sprint does not assert that it owed no duty to Myers in regard to its spotters who assisted Baggett in navigating the 18-wheeler when it hit Myers. Rather, it argues that it cannot be liable for negligence in this case because there is no evidence of any contemporaneous negligent activity by the spotters, “much less [of] an affirmative act of malfeasance,” but only equally plausible inferences that amount to no evidence.

*7 The evidence in the record supports a reasonable inference that the spotters breached their duty to exercise reasonable care in communicating with Baggett as he maneuvered the 18-wheeler and warning any bystanders about the 18-wheeler’s movement.3 Specifically, Baggett was not able to see anything behind him as he was backing up the 18-wheeler, and he relied on the spotter outside of his window to guide him. This spotter had told Baggett that “he could see everything back there.” There was a second spotter standing behind the trailer whom Baggett could not see. After Baggett hit the gate, he did not move for approximately one to two minutes, during which time Myers drove up on his four-wheeler. At this time, Myers took a photograph of the trailer’s contact with the gate. And the second spotter is visible in this photograph, standing behind the 18-wheeler, but in front of Myers. At some point, before the spotter who could “see everything” gave Baggett the “all-clear” to drive off, the trailer of the 18-wheeler struck Myers. This evidence constitutes sufficient circumstantial evidence that supports the jury’s negligence finding against Sprint in regard to the acts or omissions of its spotters.4

Sprint’s argument that the “equal inference rule” nullifies any alleged evidence of its negligence is without merit. “Circumstantial evidence can establish actual knowledge but such evidence must ‘either directly or by reasonable inference’ support that conclusion.” Suarez v. City of Tex. City, 465 S.W.3d 623, 634 (Tex. 2015) (quoting City of Corsicana v. Stewart, 249 S.W.3d 412, 415 (Tex. 2008) ). However, “when circumstances are equally consistent with either of two facts, neither fact may be inferred.” City of Keller, 168 S.W.3d at 814 (quoting Tubelite, a Div. of Indal, Inc. v. Risica & Sons, Inc., 819 S.W.2d 801, 805 (Tex. 1991) ).

Sprint argues that because it is equally plausible that the spotters acted reasonably and cleared the area before Myers drove up, the inference that the spotters acted negligently in performing their duties is “rendered” no evidence by the equal inference rule. However, this is not an equally plausible inference when considered in light of the evidence that Baggett was relying on the spotters to navigate the 18-wheeler, the spotter next to Baggett said he could see everything behind the 18-wheeler, and a picture that Myers took immediately before the collision shows that the second spotter was standing between him and the 18-wheeler. Regardless, even assuming a reasonable inference could have been deduced in Sprint’s favor, choosing “among opposing reasonable inferences” is a determination for the jury, which is “entitled to consider the circumstantial evidence, weigh witnesses’ credibility, and make reasonable inferences from the evidence it chooses to believe.” Lozano v. Lozano, 52 S.W.3d 141, 149 (Tex. 2001) (Phillips, C.J., concurring to, and dissenting from, per curiam opinion on behalf of majority).

*8 Accordingly, we hold that the evidence is legally and factually sufficient to support the jury’s negligence finding against Sprint.

We overrule Sprint’s first issue.

Physical Impairment
In its second issue, Sprint argues that the evidence is factually insufficient to support the jury’s award of $2 million to Myers for future physical impairment because his “ranch-hand damages model” improperly presented an economic-damages model to the jury when only non-economic damages are proper for physical impairment. Sprint ultimately concedes that there is some evidence of future physical impairment aside from the “ranch-hand damages model.”

In reviewing the factual sufficiency of a damages award, we consider all the evidence that bears on the challenged category of damages, even if the evidence also relates to another category of damages. Golden Eagle, 116 S.W.3d at 773. The fact-finder generally has discretion to award damages within the range of evidence presented at trial. Gulf States Utils., Co. v. Low, 79 S.W.3d 561, 566 (Tex. 2002). It may not, however, “arbitrarily assess an amount neither authorized nor supported by the evidence presented at trial.” First State Bank v. Keilman, 851 S.W.2d 914, 930 (Tex. App.—Austin 1993, writ denied). A rational basis for the calculation must exist. Id.

Damages are measured by the question and instruction given in the court’s charge. Equistar Chems. L.P. v. Dresser-Rand Co., 240 S.W.3d 864, 868 (Tex. 2007). In this case, the trial court asked the jury to determine an amount that would reasonably compensate Myers for past medical expenses, past and future physical pain, past and future mental anguish, and past and future physical impairment. It specifically instructed the jury to consider each element separately and to “not award any sum of money on any element if [it] ha[d] otherwise, under some other element, awarded a sum of money for the same loss” in order to prevent compensation “twice for the same loss.” And we presume that the jury followed the charge. Golden Eagle, 116 S.W.3d at 771 (noting unless record demonstrates otherwise, appellate courts must presume jury followed instructions given in charge).

Because the charge in this case did not define “physical impairment,” we measure the sufficiency of the evidence against the commonly-understood meaning of the term. Barnhart v. Morales, 459 S.W.3d 733, 745 (Tex. App.—Houston [14th Dist.] 2015, no pet.). The commonly-understood meaning of “physical” is “of or relating to the body.” Id. (internal quotations omitted). And “impair” is commonly understood to mean “to diminish in quantity, value, excellence, or strength.” Id. (internal quotations omitted). “More generally, Texas courts have recognized that physical impairment damages can compensate for physical injuries that affect the plaintiff’s activities or lead to loss of enjoyment of life.” Id. (citing Golden Eagle, 116 S.W.3d at 765–67).

Sprint concedes that “nothing was wrong with the charge.” However, it asserts that Myers improperly asked the jury to award economic damages for future physical impairment during closing argument when he asked the jury to award $1.5 million based on his “ranch-hand damages model.” However, Sprint did not object to this jury argument at trial and, therefore, any challenge to the impropriety of the argument is waived. See Phillips v. Bramlett, 288 S.W.3d 876, 883 (Tex. 2009) (“Appellate complaints of improper jury argument must ordinarily be preserved by timely objection and request for an instruction that the jury disregard the improper remark.”). And this is certainly not the type of incurable argument that may be raised for the first time on appeal as it could have easily been cured by an “instruction from the court or retraction of the argument” had Sprint alerted the trial court to the alleged error. See Living Ctrs. of Tex., Inc. v. Peñalver, 256 S.W.3d 678, 681 (Tex. 2008). Regardless, “[s]tatements from lawyers as to the law do not take the place of instructions from the judge as to the law.” Columbia Rio Grande Healthcare, L.P. v. Hawley, 284 S.W.3d 851, 862 (Tex. 2009).

*9 Myers presented evidence of future disfigurement, which was not separately submitted to the jury. Disfigurement can include surgical scars, even if they are in a location usually covered by clothing, or anything else that “impairs the appearance of a person, or that which renders unsightly, misshapen or imperfect, or deforms in some manner.” Figueroa v. Davis, 318 S.W.3d 53, 64 (Tex. App.—Houston [1st Dist.] 2010, no pet) (quoting Doctor v. Pardue, 186 S.W.3d 4, 18 (Tex. App.—Houston [1st Dist.] 2005, pet. denied) ); see also Diamond Offshore Servs., Ltd. v. Williams, 510 S.W.3d 57, 76–77 (Tex. App.—Houston [1st Dist.] 2015) (affirming award of $350,000 for future disfigurement where plaintiff suffered from “foot drop” due to nerve damage, could not extend his toes, dragged his foot when he walked, and suffered from noticeable limp), rev’d on other grounds, 542 S.W.3d 539 (Tex. 2018). The evidence in this case reveals that Myers has surgical scarring with the risk that he could have to undergo more surgery, and, thus, become further scarred in the future. Moreover, the jury heard testimony from Myers and Dr. Kotecha of muscle atrophy in Myers’s right arm due to nerve damage from the injury. At trial, Myers took off his jacket and showed the jury that, compared to his left arm, his right arm was diminished and shrunken from the injuries he sustained. He could not lift more than ten pounds with his right arm. And although Dr. Kotecha testified that the atrophy could possibly improve with therapy, he explained that it would not improve if there was permanent nerve damage.

There is also evidence of Myers’s future loss of earning capacity, which was not separately submitted to the jury. Before his injuries, Myers worked many jobs, including as an ironworker, mechanic, “hotshot” driver, and bodyguard. And he operated a gun range on his property. Due to his diminished strength and mobility, the jury could have reasonably inferred that Myers could no longer work many of these jobs, particularly that of a bodyguard, in the future.

Myers Further submitted evidence generally of his loss of enjoyment of life, which is the most common type of future physical-impairment damage and includes anything that extends “beyond any pain, suffering, mental anguish, lost wages, or diminished earning capacity.” Golden Eagle, 116 S.W.3d at 772. He was only 45 years old at the time of trial, but testified that his injuries have made him “feeble” and he has had to “completely and totally re-adjust” his life. As a result of his injuries, he no longer has full range of mobility in his neck. And the injuries have altered his “regular interaction” with his 10-year-old daughter, whom he cannot let run up and hug him and he cannot carry on his shoulders. Myers is not able to coach her soccer team or participate in activities with her as he had done before.

Further, Myers testified that he can no longer perform much of the day-to-day maintenance on his ranch that he used to handle on his own and was taught how to do by his grandfather, from whom he inherited the ranch.5 As a result, Myers’s ranch was deteriorating. He can use a riding lawn mower and perform some tasks, but he cannot operate and service the heavy equipment needed to cut, rake, bale, haul, and stack hay and to do most of the other regular work around the ranch. Myers described the impact of his injuries as effectively robbing him of his once active lifestyle and turning him “into an old man.”

Sprint argues that the award of damages for future physical impairment is insupportable because Myers, at the time of trial, had resumed many of his daily activities, did not complain of pain, and had not been back to a doctor. However, the jury heard the above-discussed testimony, and it was within its province to determine what weight to give the testimony in reaching its determination. See Maritime Overseas Corp. v. Ellis, 971 S.W.2d 402, 407 (Tex. 1998) (“The court of appeals is not a fact finder” and “may not pass upon the witnesses’ credibility or substitute its judgment for that of the jury, even if the evidence would clearly support a different result”).

*10 Aside from its attack on Myers’s “ranch-hand damages model,” Sprint does not address how the remainder of Myers’s evidence is insufficient to support the award for future physical impairment. Instead, Sprint cites to several cases in support of its assertion that “the jury’s award is out of line with awards from other cases.” But “[a]n award of future damages in a personal injury case is always speculative.” Pipgras v. Hart, 832 S.W.2d 360, 365 (Tex. App.—Fort Worth 1992, writ denied). And “[m]atters of pain and suffering, mental anguish, physical impairment, and loss of consortium are necessarily speculative, and … particularly within the jury’s province to resolve … and determine the amounts attributable thereto.” Lanier v. E. Founds., Inc., 401 S.W.3d 445, 455 (Tex. App.—Dallas 2013, no pet.).

“Because the measure of damages in a personal injury case is not subject to precise mathematical calculation, each case must be measured by its own facts, and considerable latitude and discretion are vested in the jury.” U-Haul Int’l, Inc. v. Waldrip, 322 S.W.3d 821, 855–56 (Tex. App.—Dallas 2010), rev’d in part on other grounds, 380 S.W.3d 118 (Tex. 2012). Therefore, comparison with other cases or amounts of verdicts is “generally of little or no help.” Id. at 856. And, as Sprint admits, other courts of appeals have upheld significant awards for physical impairment. E.g., id. (affirming $5 million award for future physical impairment); Casas v. Paradez, 267 S.W.3d 170, 189–90 (Tex. App.—San Antonio 2008, pet. denied) (affirming $7 million award for physical impairment, not specifying past or future); Gen. Motors Corp. v. Burry, 203 S.W.3d 514, 554–55 (Tex. App.—Fort Worth 2006, pet. denied) (affirming $3.5 million award for future physical impairment).

Even viewing the evidence without the “ranch-hand damages model,”6 we conclude that the jury’s award for future physical impairment is not is so contrary to the overwhelming weight of the evidence as to be clearly wrong and manifestly unjust. Accordingly, we hold that the evidence is factually sufficient to support the jury’s award of damages for future physical impairment.

We overrule Sprint’s second issue.

Future Pain
In its fourth issue, Sprint argues that the evidence is legally and factually insufficient to support the jury’s award of $500,000 in damages for future physical pain to Myers because he presented no evidence of future medical expenses, he did not complain about pain, and his doctor did not prescribe pain medication for him.

A plaintiff may recover for future physical pain if a jury can reasonably infer that he will feel physical pain in the future. See Figueroa, 318 S.W.3d at 62–63. And physical pain may be established by circumstantial evidence. Id. “The process of awarding damages for amorphous, discretionary injuries such as mental anguish or pain and suffering is inherently difficult because the alleged injury is a subjective, unliquidated, nonpecuniary loss.” Id. at 62 (quoting HCRA of Tex., Inc. v. Johnston, 178 S.W.3d 861, 871 (Tex. App.—Fort Worth 2005, no pet.) ). “Once the existence of some pain … has been established, there is no objective way to measure the adequacy of the amount awarded as compensation, which is generally left to the fact finder.” Id. (quoting Pentes Design, Inc. v. Perez, 840 S.W.2d 75, 80 (Tex. App.—Corpus Christi 1992, writ denied) ). Accordingly, the fact finder “is given a great deal of discretion in awarding an amount of damages it deems appropriate for pain and suffering.” Id. at 62–63 (quoting Johnston, 178 S.W.3d at 871).

*11 Here, the evidence demonstrates that Myers’s injuries included six cervical-disc herniations and a compressed spinal cord. Even after his four-level fusion surgery, two of his herniated discs remained untreated. Dr. Kotecha testified that he “hopes” the remaining two discs will heal on their own, but there is no guarantee that they will, and it could take up to four years for them to heal. Further, while Myers did not need any prescription pain medications at his last follow-up visit with Kotecha, his lifting of anything heavier than 20-30 pounds or any repetitive bending, twisting, or lifting motions, which would be normal actions for someone living on a ranch or with a young child, could subject him to further injury. And if the two untreated discs do not heal, Myers could need additional surgeries to correct them. Even Sprint’s own expert, Dr. Blacklock, opined that Myers will continue to experience pain in the future, although he disputed that Myers’s injuries were caused by the collision.

The record in this case reveals that Myers will continue, within a reasonable probability, to experience pain in the future. That he did not require prescription pain medicine at the time of trial or that surgery in the future is not guaranteed does not negate the jury’s finding of future physical pain in this case.7 See Figueroa, 318 S.W.3d at 63–64 (risk of future surgery sufficient to support award of future pain and suffering); PNS Stores, Inc. v. Munguia, 484 S.W.3d 503, 518 (Tex. App.—Houston [14th Dist.] 2016, no pet.) (upholding award for damages for future pain and suffering even though doctor “could not say with certainty exactly how long [plaintiff’s] injuries would last or predict with certainty whether they would be permanent,” where “no witness expressed doubt that [plaintiff] would continue to suffer physical pain in the future”). Accordingly, we hold that the evidence is legally and factually sufficient to support the jury’s award of damages for future pain. See Figueroa, 318 S.W.3d at 62–63 (explaining jury “is given a great deal of discretion in awarding an amount of damages it deems appropriate for pain and suffering”).

We overrule Sprint’s fourth issue.

Apportionment Findings
In its fifth issue, Sprint argues that the evidence is factually insufficient to uphold the jury’s proportionate liability finding because it is “undisputed that Myers drove his four-wheeler to within 70 feet of the gate” before the collision, did not tell anyone he was there, saw the 18-wheeler had its brake lights on, “and nevertheless turned away to talk on his cell phone.”

“[T]he jury is given wide latitude in determining the negligent parties’ proportionate responsibility.” Jackson v. Williams Bros. Constr. Co., 364 S.W.3d 317, 325 (Tex. App.—Houston [1st Dist.] 2011, pet. denied). “[W]e may set aside the jury’s determination of proportionate responsibility only if the finding is so against the great weight and preponderance of the evidence that it is clearly wrong and unjust.” Id. And, “[e]ven if the evidence could support a different percentage allocation, we may not substitute our judgment for that of the jury.” Id.

In its reply brief, Sprint concedes that this argument is “a corollary argument to the equal inference rule discussed” in regard to its challenge to the jury’s liability finding, which we overruled. Because the evidence supporting the jury’s negligence finding is factually sufficient, we further hold that the evidence supporting the jury’s assignment of 64% responsibility to Sprint is also sufficient.

We overrule Sprint’s fifth issue.

Medical Expenses
In its third issue, Sprint argues that the trial court erred in admitting and excluding certain evidence regarding the billing practices at Spring Central Hospital because it is relevant to the “reasonableness” of Myers’s medical expenses.

*12 The decision to admit or exclude evidence lies within the sound discretion of the trial court. Bay Area Healthcare Grp., Ltd. v. McShane, 239 S.W.3d 231, 234 (Tex. 2007). A trial court abuses its discretion if it acts in an arbitrary or unreasonable manner or without reference to guiding rules or principles. Bowie Mem’l Hosp. v. Wright, 79 S.W.3d 48, 52 (Tex. 2002). We will uphold a trial court’s evidentiary ruling if any legitimate ground supports the ruling, even if the ground was not raised in the trial court. Hooper v. Chittaluru, 222 S.W.3d 103, 107 (Tex. App.—Houston [14th Dist.] 2006, pet. denied). And we will not reverse an erroneous evidentiary ruling unless the error probably caused the rendition of an improper judgment or prevented a proper presentation of the appeal. See TEX. R. APP. P. 44.1(a); Sw. Elec. Power Co. v. Burlington N. R.R., 966 S.W.2d 467, 474 (Tex. 1998). In determining whether the erroneous admission or exclusion of evidence probably resulted in the rendition of an improper judgment, we review the entire record, and, “[t]ypically, a successful challenge to a trial court’s evidentiary rulings requires the complaining party to demonstrate that the judgment turns on the particular evidence excluded or admitted.” Interstate Northborough P’ship v. State, 66 S.W.3d 213, 220 (Tex. 2001). Ordinarily, we will not reverse a judgment because a trial court erroneously excluded evidence if the evidence in question is cumulative and not controlling on a material issue dispositive to the case. Id.

“In addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.” TEX. CIV. PRAC. & REM. CODE § 41.0105 (Vernon 2014). In a Medicare Part B case, the Texas Supreme Court first interpreted this statutory language and ultimately determined that the introduction into evidence of the total amounts initially billed by healthcare providers was error because federal law prohibits them from charging Medicare patients more than Medicare deems reasonable. Haygood v. De Escabedo, 356 S.W.3d 390, 392, 398–99 (Tex. 2011). Specifically, although the health care providers billed Haygood for $110,069.12, they had no right to recover this amount under federal law, pursuant to Medicare, and they ultimately adjusted their bill downward, reducing the total amount owed by Haygood to $27,739.43. Id. at 392. The supreme court interpreted the “actually paid and incurred” language of section 41.0105 to mean “expenses that have been or will be paid, and exclud[ing] the difference between such amount and charges the service provider bills but has no right to be paid.” Id. at 396–97. Thus, it held that the trial court had erred in admitting evidence of the original amounts charged where the healthcare providers were not legally entitled to be paid those amounts and the probative value of the evidence was substantially outweighed by the confusion it was likely to generate. Id. at 398. The court explained that “only evidence of recoverable medical expenses is admissible at trial.” Id. at 399.

In part of its third issue, Sprint argues that, in contravention of Haygood, the trial court erred in admitting evidence of the amount charged to Myers as opposed to the amount actually paid or “written off.” However, the factual scenario presented in this case is substantively distinguishable from Haygood in that Myers’s bill was not limited by Medicare, but was instead assigned to MedFin, a “factoring” company. “Factoring is a process by which a business sells to another business, at a … discount, its right to collect money before the money is paid.” Houston Lighting & Power Co. v. City of Wharton, 101 S.W.3d 633, 636 (Tex. App.—Houston [1st Dist.] 2003, pet. denied). It is “a financing tool that reduces the amount of working capital a business needs by reducing the delay between the time of sale and the receipt of payment.” Id.

In contrast to Haygood, there is no evidence in this case that there was a contract in place that prohibited Spring Central Hospital from charging Myers for the full value of the services rendered or preventing MedFin, as an assignee of Spring Central Hospital, from collecting the full value of the services rendered. See Amigos Meat Distribs., L.P. v. Guzman, 526 S.W.3d 511, 524–25 (Tex. App.—Houston [1st Dist.] 2017, pet. denied) (rejecting similar claims in a factoring case); Katy Springs & Mfg. v. Favalora, 476 S.W.3d 579, 601–02 (Tex. App.—Houston [14th Dist.] 2015, pet. denied) (same). There is similarly no evidence in the record that Myers was not liable for payment in full for the bill, regardless of whether Spring Central Hospital or MedFin ultimately accepted less than full payment. See Big Bird Tree Serv. v. Gallegos, 365 S.W.3d 173, 177 (Tex. App.—Dallas 2012, pet. denied) (holding indigent plaintiff who received medical care free of charge entitled to recover damages for full amount billed where no evidence of contract prohibiting hospital from charging full value and evidence demonstrated patient required to pay if obtained recovery in law suit).

*13 Accordingly, we hold that the trial court did not err in admitting evidence of the full amount of the bill that Spring Central Hospital charged to Myers.

In the remaining portion of its third issue, Sprint argues that the trial court erred in excluding a portion of the deposition testimony of Dooley, the former Director for the Business Office of Spring Central Hospital, regarding the hospital’s practice of “mark[ing] up the bills by 400%,” “usually accept[ing] 25-40% of the amount charged,” and having “negotiated a 40% rate with MedFin” before it performed any services for Myers. Sprint asserts that this evidence should have been admitted for the jury to consider in assessing the reasonableness of Myers’s medical expenses. Myers asserts that “the size of the discount is not relevant to the reasonableness of the expenses.” However, Dooley’s excluded testimony establishes that Spring Central Hospital charged Myers in excess of $200,000 for his surgery when it had already negotiated to accept $41,000 for the surgery from MedFin in exchange for assignment of Myers’s bill. This is approximately the amount that Dr. Blacklock testified would constitute a reasonable charge for the surgery. Thus, this evidence should have been admitted as relevant to the issue of the reasonableness of the medical expenses for Myers’s surgery charged by Spring Central Hospital. Accordingly, we hold that the trial court erred in excluding it.

Further, because Dooley worked in the billing department at Spring Central Hospital, the jury likely would have given her testimony more weight than that of Dr. Blacklock, who was a defense-paid expert and the only witness to opine that the expenses were unreasonable.8 See Chittaluru, 222 S.W.3d at 111 (“[H]ired experts risk being perceived by the jury as interested in providing testimony helpful to the party paying them.”). Accordingly, we further hold that the trial court’s error in excluding Dooley’s testimony was harmful. See id. at 111–12.

We sustain, in part, Sprint’s third issue.

Conclusion
We reverse, in part, the portion of the trial court’s judgment awarding Myers damages for past medical expenses, and we remand the case to the trial court for a new trial on the issue of past medical expenses.9 We affirm the remainder of the trial court’s judgment.

All Citations
— S.W.3d —-, 2018 WL 4136186

Footnotes

1
The jury declined to award Myers damages for past mental anguish.

2
The parties stipulated that Baggett was acting within the course and scope of his employment with Montgomery at the time of the collision.

3
To the extent that Sprint argues that the alleged action, or inaction, of one of its spotters leading up to the collision was not sufficiently contemporaneous with the collision to support a claim for negligent-activity, the argument is without merit. The record reveals that, at most, one to two minutes passed from the time that Baggett hit the gate to the time that he drove away. Any action, or inaction, by a spotter would have occurred during that time frame and, thus, “[i]mmediately prior” to the collision. See Tex. Dep’t of Transp. v. Ramming, 861 S.W.2d 460, 464–65 (Tex. App.—Houston [14th Dist.] 1993, writ denied) (explaining “injuries suffered … did not arise from the ‘absence, condition, or malfunction’ of a traffic signal,” but immediately after technician disconnected power source to traffic light and accident occurred while reconnecting it); but see Oncor Elec. Delivery Co. v. Murillo, 449 S.W.3d 583, 592 (Tex. App.—Houston [1st Dist.] 2014, pet. denied) (holding negligence not contemporaneous where utility company’s last action regarding transformer that shocked plaintiff “more than a month before … injury”).

4
To the extent that Sprint argues that Myers must prove an affirmative act of malfeasance, as opposed to an omission on the part of Sprint’s spotters, to support liability, the argument is without merit because negligence may be established by acts or omissions. E.g., Bustamante v. Ponte, 529 S.W.3d 447, 456 (Tex. 2017).

5
Sprint’s challenge is only to the economic-damages “model” presented by Hurst in an attempt to quantify non-economic damages through expert testimony. It concedes that “[p]hysical impairment damages can compensate a plaintiff for not being able to work, and the lost satisfaction therefrom.”

6
Because we conclude that factually-sufficient evidence aside from the “ranch-hand damages model” supports the jury’s award, we need not address Sprint’s argument that the model was improperly considered as part of the jury’s future physical impairment award. See TEX. R. APP. P. 44.1. Similarly, we need not address Sprint’s claim that the trial court erred in admitting Hurst’s expert testimony. See id.

7
There is no basis in the law or record in support of Sprint’s assertion that Myers’s failure to seek recovery for future medical expenses negates the inference that he could experience pain requiring, and then resulting from, a surgery in the future.

8
For similar reasons, we are unpersuaded by Myers’s argument, in his post-submission briefing, that the trial court “could have properly excluded” this evidence as cumulative of Dr. Blacklock’s testimony or because “the risk of confusing or misleading the jury substantially outweighed the evidence’s probative value.” Dooley’s testimony, as a fact witness and the employee who created the bills for Spring Central Hospital, that she marked up bills by 400% is unique from the testimony of Blacklock that, in his expert opinion, the fees charged by Spring Central Hospital were unreasonable. The testimony is not so confusing as to outweigh its probative value in this case. See TEX. R. EVID. 403.

9
See Holt Atherton Indus., Inc. v. Heine, 835 S.W.2d 80, 86 (Tex. 1992) (remanding to trial court for “new trial on the issue of lost profits”); Jackson v. Gutierrez, 77 S.W.3d 898, 904 (Tex. App.—Houston [14th Dist.] 2002, no pet.) (remanding limited damages issues). Cf. Whitaker v. Rose, 218 S.W.3d 216, 224 (Tex. App—Houston [14th Dist.] 2007, no pet.) (remanding “all of the damage awards” where awards not separable).

DeTray v. AIG Insurance Company of Canada

2018 WL 4184334

United States District Court, W.D. Washington,
at Seattle.
Tammy J. DETRAY and Gregory S. DeTray, Plaintiffs,
v.
AIG INSURANCE COMPANY OF CANADA f/k/a Chartis Insurance Company of Canada d/b/a Chartis Insurance; Northbridge Commercial Insurance Corporation; and Mullen Trucking 2005 Ltd., Defendants.
No. 2:17-cv-0983 RAJ
|
Signed 08/31/2018
Attorneys and Law Firms
Aaron Dean, Aaron Dean & Associates, PLLC, Raymond J. Dearie, Dearie Law Group PS, Seattle, WA, for Plaintiffs.
Joseph D. Hampton, Kathryn Naegeli Boling, Jeremy Roland Schulze, Betts Patterson & Mines, Seattle, WA, for Defendants.

ORDER
The Honorable Richard A. Jones, United States District Judge
*1 This matter comes before the Court on Defendant’s Motion for Summary Judgment (Dkt. # 34) and Plaintiffs’ Motion for Partial Summary Judgment (Dkt. # 27). Both Motions are opposed. Dkt. ## 36, 38, 51. For the reasons stated below, Defendant’s Motion for Summary Judgment (Dkt. # 34) is DENIED, and Plaintiffs’ Motion for Partial Summary Judgment (Dkt. # 27) is DENIED.

I. BACKGROUND
Plaintiffs Tammy and Gregory DeTray are residents of Thurston County, Washington. Dkt. # 1-2 ¶ 2.1. Plaintiffs owned and operated a pilot car service known as “G&T Crawler Service.” Dkt. # 29 Ex. A. Defendant Northbridge General Insurance Corporation (“Northbridge”) is a Canadian insurance company. Its principal place of business is in Toronto, Ontario. Id. ¶ 2.3.

In 2013, a commercial truck collided with the Skagit River Bridge in Mount Vernon, Washington, and caused it to collapse. Dkt. # 1-2 ¶ 5.1. The truck was guided at the time by a pilot vehicle operated by Plaintiff Tammy DeTray. Dkt. # 15 Ex. A. The truck was owned and operated by Mullen Trucking 2005 Ltd. (“Mullen”), a Canadian company based in Calgary, Alberta. Mullen was insured by Northbridge under a primary insurance policy, Policy No. 2002135 (the “Northbridge Policy”). Dkt. # 28 Ex. C. AIG Insurance Company of Canada (“AIG”) also issued a commercial umbrella policy to Mullen (the “AIG Policy”). The AIG Policy provides coverage after the limits of the Northbridge Policy have been exhausted. Dkt. # 37 Ex. 1.

*2 The State of Washington, Qwest Corporation, and three other individuals brought lawsuits against Mullen, Mrs. DeTray, and others in Skagit County Superior Court, alleging that Mrs. DeTray negligently caused the bridge to collapse (the “Underlying Lawsuits”). Dkt. # 45. Mullen then filed cross-claims against Plaintiffs in these lawsuits. Dkt. # 1-2 ¶ 5.2. The Underlying Lawsuits are still pending. Dkt. # 45. Mrs. DeTray tendered her defense of the lawsuits to Northbridge, requesting defense and indemnity under the Northbridge Policy. Id. ¶ 6.1. Northbridge assigned Mrs. DeTray’s claim to Senior Claims Technical Specialist Ryan Cobb. Dkt. # 28 Ex. C. Northbridge agreed to defend Mullen but declined Plaintiffs’ tender. Dkt. # 28 Ex. E. The letter declining Plaintiffs’ tender stated that Mrs. DeTray was not insured under the Northbridge Policy and that she did not qualify as an “additional insured under the CGL, SPF No. 1, or SPF No. 6.” The letter also stated that “[b]y Court order, Ms. DeTray was found to be [Mullen’s] agent during the transportation of [Mullen’s] oversized load. This does not qualify her for coverage under the Policy. The Policy does not include ‘agents’ as additional or unnamed insureds.” Dkt. # 28 Ex. C. Under the Northbridge Policy, Northbridge provides several different coverages. Three parts of the Northbridge policy provide liability insurance: the Standard Automobile Policy (“SPF No. 1”), the Commercial General Liability form (“CGL”), and the Non-Owned Automobiles form (“SPF No. 6”). Id.

The SPF No. 1 states:
The Insurer agrees to indemnify the Insured and, in the same manner and to the same extent as if named herein as the Insured, every other person who with his consent personally drives the automobile, or personally operates any part thereof, against the liability imposed by law upon the insured or upon any such other persons for loss or damage arising from the ownership, use or operation of the automobile and resulting from … [damage to property]

SPF No. 1 defines “the automobile” as: “The Described Automobile—an automobile, trailer or semi-trailer specifically described in the Policy or within the description of the insured automobiles set forth therein.” Dkt. # 28 Ex. C.

The CGL coverage states that it covers “sums that the Insured becomes legally obligated to pay as ‘compensatory damages’ because of ‘bodily injury’ or ‘property damage’ to which this insurance applies.” Id. “Property Damage” arising directly or indirectly out of the ownership, maintenance, use or entrustment to others of any automobile owned or operated by or on behalf of or rented or loaned to any Insured is excluded from coverage. Id. The term “automobile” is defined as “a land motor vehicle, trailer or semitrailer that is required by law to be insured under a contract evidenced by a motor vehicle liability policy, or any vehicle insured under such a contract.” Id. The CGL form also states who may qualify as an Insured under the coverage. Included in the definition of an Insured are “ ‘volunteer workers’ only while performing duties related to the conduct of your business, or your ‘employees’ … but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business.” Id. An “employee” includes a “leased worker” or a “temporary worker.” Id.

The SPF No. 6 states that the Insurer agrees to indemnify the Insured against liability imposed by law upon the Insured for loss or damage arising from the use or operation of any automobile not owned in whole or in part by or licensed in the name of the Insured, and resulting from bodily injury to or the death of any person or damage to property of others not in the care, custody, or control of the insured. Id. The SPF No. 6 also includes additional insureds. Additional Insureds are defined as:
[E]very partner, officer or employee of the Insured who, with the consent of the owner thereof, personally drives (a) in the business of the Insured stated in Item 3 of the application, any automobile not owned in whole or in part by or licensed in the name of (i) the Insured, (ii) such additional Insured person, or (iii) any person or persons residing in the same dwelling premises as the Insured or such additional insured person or (b) any automobile hired or leased in the name of the Insured except an automobile owned in whole or in part or licensed in the name of such additional insured person.
Id.

On April 11, 2017, Northbridge filed a separate lawsuit against Mrs. DeTray in Calgary, Alberta (the “Alberta Lawsuit”). Dkt. # 28 Ex. F. The Originating Application (analogous to a complaint) in the Alberta Lawsuit asked the Alberta Court to issue an order declaring that Northbridge had no obligation to defend or indemnify Mrs. DeTray in the Underlying Lawsuits. Dkt. # 28 Ex. F. Northbridge represents that Mrs. DeTray was properly served and that a copy of the Originating Application was sent to Plaintiffs’ attorney in the Underlying Lawsuits. Dkt. # 35. A hearing was held in the Alberta Lawsuit on September 21, 2017. Dkt. # 35 Ex. J. Northbridge also represents that Plaintiffs had notice of the hearing but did not appear. Dkt. # 35 Exs. C-I. The Alberta Court entered judgment on September 29, 2017, finding: (1) the Alberta Court had jurisdiction over the matter and Mrs. DeTray had proper notice of the Alberta Lawsuit in accordance with the law of Alberta and the rules and practices of the Alberta Court; (2) The vehicle operated by Mrs. DeTray was not insured under the relevant insurance policies; (3) Mrs. DeTray was not insured under the relevant policies; and (4) even if Mrs. DeTray was insured under the relevant policies, any duty to defend would be excluded or does not apply. Dkt. # 35 Exs. J, K.

*3 Plaintiffs filed this action in Skagit County Superior Court against AIG, Northbridge, Washington State Department of Transportation, and Mullen on May 11, 2017, shortly after Northbridge filed the Alberta Lawsuit. Dkt. # 1. Defendants then removed the lawsuit to this Court. Id. Plaintiffs filed stipulations of dismissal for the Washington State Department of Transportation, Mullen, and AIG. Dkt. ## 26, 64, 75. Plaintiffs seek a declaratory judgment from this Court that Northbridge is obligated to pay in full on behalf of Plaintiffs, that Northbridge handled Plaintiff’s insurance claim in bad faith and in violation of the Washington Consumer Protection Act, that Northbridge’s policies provided coverage by estoppel, damages, as well as attorney’s fees and costs. Dkt. # 1-2. Northbridge filed a Motion for Summary Judgment of Plaintiffs’ Complaint of lack of personal jurisdiction, or in the alternative, because Plaintiffs’ claims against Northbridge are barred by res judicata. Dkt. # 34. Plaintiffs also filed a Motion for Partial Summary Judgment, seeking a declaratory judgment that Northbridge had and has a duty to defend Mrs. DeTray in the Underlying Lawsuits. Dkt. # 27.

II. LEGAL STANDARD
Summary judgment is appropriate if there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Where the moving party will have the burden of proof at trial, it must affirmatively demonstrate that no reasonable trier of fact could find other than for the moving party. Soremekun v. Thrifty Payless, Inc., 509 F.3d 978, 984 (9th Cir. 2007). On an issue where the nonmoving party will bear the burden of proof at trial, the moving party can prevail merely by pointing out to the district court that there is an absence of evidence to support the non-moving party’s case. Celotex Corp., 477 U.S. at 325. If the moving party meets the initial burden, the opposing party must set forth specific facts showing that there is a genuine issue of fact for trial in order to defeat the motion. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250 (1986). The court must view the evidence in the light most favorable to the nonmoving party and draw all reasonable inferences in that party’s favor. Reeves v. Sanderson Plumbing Prods., 530 U.S. 133, 150-51 (2000).

However, the court need not, and will not, “scour the record in search of a genuine issue of triable fact.” Keenan v. Allan, 91 F.3d 1275, 1279 (9th Cir. 1996); see also, White v. McDonnel-Douglas Corp., 904 F.2d 456, 458 (8th Cir. 1990) (the court need not “speculate on which portion of the record the nonmoving party relies, nor is it obliged to wade through and search the entire record for some specific facts that might support the nonmoving party’s claim”). The opposing party must present significant and probative evidence to support its claim or defense. Intel Corp. v. Hartford Accident & Indem. Co., 952 F.2d 1551, 1558 (9th Cir. 1991). Uncorroborated allegations and “self-serving testimony” will not create a genuine issue of material fact. Villiarimo v. Aloha Island Air, Inc., 281 F.3d 1054, 1061 (9th Cir. 2002); T.W. Elec. Serv. V. Pac Elec. Contractors Ass’n, 809 F. 2d 626, 630 (9th Cir. 1987).

III. DISCUSSION

A. Personal Jurisdiction
Plaintiff has the burden of establishing personal jurisdiction. Ziegler v. Indian River County, 64 F.3d 470, 473 (9th Cir. 1995). “It is well established that where the district court relies solely on affidavits and discovery materials, the plaintiff need only establish a prima facie case of jurisdiction.” Rano v. Sipa Press, Inc., 987 F.2d 580, 587 n.3 (9th Cir. 1993). “Federal courts apply state law to determine the bounds of their jurisdiction over a party.” Williams v. Yamaha Motor Co., 851 F.3d 1015, 1020 (9th Cir. 2017) (citing Fed. R. Civ. P. 4(k)(1)(A) ). Washington’s long-arm statute, RCW 4.28.185, “extends jurisdiction to the limit of federal due process.” Shute v. Carnival Cruise Lines, 113 Wn. 2d 763, 771, 783 P.2d 78 (1989). The due process clause grants the court jurisdiction over defendants who have “certain minimum contacts … such that maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945).

*4 Personal jurisdiction can be found on either of two theories: general jurisdiction and specific jurisdiction. Bancroft & Masters, Inc. v. Augusta Nat’l Inc., 223 F.3d 1082, 1086 (9th Cir. 2000). A defendant with “substantial” or “continuous and systematic” contacts with the forum state is subject to general jurisdiction. Id. “The inquiry whether a forum State may assert specific jurisdiction over a nonresident defendant focuses on the relationship among the defendant, the forum, and the litigation.” Axiom Foods, Inc. v. Acerchem Int’l, Inc., 874 F.3d 1064, 1068 (9th Cir. 2017) (internal quotations omitted). As Plaintiffs do not assert that Northbridge is subject to general jurisdiction, the Court will consider whether Northbridge is subject to specific jurisdiction.

The court applies a three-part test to determine whether the exercise of specific jurisdiction over a non-resident defendant is appropriate: (1) the defendant has either purposefully directed his activities toward the forum or purposely availed himself of the privileges of conducting activities in the forum, (2) the plaintiff’s claims arise out of the defendant’s forum-related activities, and (3) exercise of jurisdiction is reasonable. Axiom Foods, Inc. v. Acerchem Int’l, Inc., 874 F.3d 1064, 1068 (9th Cir. 2017). Plaintiff bears the burden of satisfying the first two prongs. Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 802 (9th Cir. 2004). The burden then shifts to defendant to make a “compelling case” that the exercise of jurisdiction would not be reasonable. Id.

a. Purposeful Availment
To have purposely availed itself of the privilege of doing business in the forum, a defendant must have performed some type of affirmative conduct which allows or promotes the transaction of business within the forum state. Sher v. Johnson, 911 F.2d 1357, 1362 (9th Cir. 1990). Purposeful availment of a forum can occur when an insurer agrees to provide coverage to its insureds within the disputed forum and an insured event results in litigation within that forum. Farmers Ins. Exch. v. Portage La Prairie Mut. Ins. Co., 907 F.2d 911, 913-14 (9th Cir. 1990). It is undisputed that the insured event occurred in Washington State and resulted in litigation in Washington State. It is also undisputed that Northbridge agreed to provide coverage to their insureds within the United States and is currently providing defense to Mullen, Plaintiffs’ co-defendant in the Underlying Lawsuits. Dkt. # 52 Ex. G. The Court finds that Northbridge purposely availed itself of the privileges and benefits of conducting their business in Washington State by contracting to indemnify and defend claims arising in that forum.

b. Arising Out Of
The Ninth Circuit has adopted a “but for” analysis to determine whether the claims at issue arose from a defendant’s forum-related conduct. Menken v. Emm, 503 F.3d 1050, 1058 (9th Cir. 2007). “[T]he plaintiff’s claim must be one which arises out of or relates to the defendant’s forum-related activities.” Id. Plaintiffs bring this suit against Northbridge because of Northbridge’s alleged breach of promise to Plaintiffs to indemnify and defend them in the Underlying Lawsuits. Setting aside any disputes as to whether Plaintiffs are considered insureds under the Northbridge Policy, Plaintiffs would not have suffered the alleged injury “but for” Northbridge’s refusal to defend them.

c. Exercise of Jurisdiction is Reasonable
As Plaintiffs have satisfied the first two prongs required to establish specific jurisdiction, the burden shifts to Northbridge to make a “compelling case” that exercise of jurisdiction is not reasonable. Schwarzenegger, 374 F.3d at 802. There are seven factors a court must consider when determining whether exercise of jurisdiction is reasonable: “(1) the extent of the defendants’ purposeful interjection into the forum state’s affairs; (2) the burden on the defendant of defending in the forum; (3) the extent of conflict with the sovereignty of the defendants’ state; (4) the forum state’s interest in adjudicating the dispute; (5) the most efficient judicial resolution of the controversy; (6) the importance of the forum to the plaintiff’s interest in convenient and effective relief; and (7) the existence of an alternative forum.” CE Distribution, LLC v. New Sensor Corp., 380 F.3d 1107, 1112 (9th Cir. 2004).

*5 Northbridge cites to a series of Tenth Circuit cases in support of their argument that the type of “minimum contacts” in this case are so minimal that due process requires a “more rigorous analysis” of the reasonableness requirement for personal jurisdiction. Northbridge provides no argument or legal authority indicating that this is the law in the Ninth Circuit.

Northbridge offers very little argument in support of their contention that litigation in the disputed forum is not reasonable, choosing to rely on its citations to Tenth Circuit case law. Northbridge’s argument appears to echo an argument made in OMI Holdings, Inc. v. Royal Ins. Co. of Canada, 149 F.3d 1086, 1095 (10th Cir. 1998), more specifically, the argument that the burden of litigating in Washington would be too great for a Canadian corporation. Northbridge represents that this factor weighs strongly in their favor because they have no offices in Washington, have no license to conduct business in Washington, employ no agents in Washington, and insure no Washington residents. Northbridge also implies that litigating this case would not be reasonable because it would require travel and would force them to litigate in a foreign forum unfamiliar with the Canadian law governing the dispute. First, the parties present no arguments regarding what law governs this dispute and the Court will not make that determination at this time. Second, while litigating this case would require travel, Northbridge has been in litigation related to this matter and the underlying event in Washington State for over a year. As noted above, Northbridge accepted Mullen’s tender of defense, and this case has also been ongoing since May of 2017. Efforts related to all of these matters could be coordinated in order to lessen the burden.

Northbridge also argues that Canada has a greater interest in litigating this dispute, as the Northbridge Policy was drafted, negotiated, and executed in Alberta between two Canadian companies. Northbridge represents that the Northbridge Policy includes policy forms that are promulgated by the Alberta government. The Court agrees that Alberta has a greater interest in how the Northbridge policy is interpreted and applied. This factor weights in favor of Northbridge.

Northbridge presents no other argument regarding the remaining five factors to be considered when determining whether exercise of jurisdiction is reasonable. However, the Court notes that three of the remaining factors weigh in Plaintiffs’ favor: the most efficient judicial resolution of the controversy, the importance of the forum to Plaintiffs’ interest in convenient and effective relief, and the existence of an alternative forum. Following Northbridge’s logic, Plaintiffs would need to bring this case against Northbridge in Alberta, Canada in order to preserve their rights. As the Alberta Court has already issued a decision on this matter, it is unclear whether Plaintiffs would be able to do so. Further, requiring Plaintiffs to begin again in a different forum, over one year into these proceedings, would not result in the most efficient resolution of this matter. Finally, Plaintiffs are residents of Washington State. They are currently litigating this matter and all related matters in Washington State; matters that Northbridge is actively involved in. All of the events giving rise to this lawsuit took place in Washington State. Therefore, the forum of this lawsuit is important to Plaintiffs’ interest in convenient and effective relief. See McGee v. Int’l Life Ins. Co., 355 U.S. 220, 223, 78 S. Ct. 199, 201, 2 L.Ed. 2d 223 (1957) (finding that residents of the requested forum state “would be at a severe disadvantage if they were forced to follow the insurance company to a distant State in order to hold it legally accountable.”). After weighing all of the factors above, the Court finds that Northbridge fails to make a “compelling case” that exercise of jurisdiction is not reasonable. Therefore, this Court’s exercise of specific jurisdiction over Northbridge is appropriate.

B. Res Judicata
*6 “ ‘Res judicata … bars litigation in a subsequent action of any claims [or issues] that were raised or could have been raised in the prior action.’ ” Owens v. Kaiser Found. Health Plan, Inc., 244 F.3d 708, 713 (9th Cir. 2001) (quoting W. Radio Servs. Co. v. Glickman, 123 F.3d 1189, 1192 (9th Cir. 1997) ); see Clements v. Airport Auth., 69 F.3d 321, 329–30 (9th Cir. 1995). Res judicata applies where there is: 1) an identity of claims, 2) a final judgment on the merits, and 3) identity or privity between parties. Stewart v. U.S. Bancorp, 297 F.3d 953, 956 (9th Cir. 2002); W. Radio Servs. Co. v. Glickman, 123 F.3d 1189, 1192 (9th Cir. 1997).

Northbridge first asks the Court to recognize and enforce the judgment of the Alberta Court. This Court has the power to recognize and enforce foreign judgments. See Yahoo! Inc. v. La Ligue Contre Le Racisme Et L’Antisemitisme, 433 F.3d 1199, 1213 (9th Cir. 2006). However, Northbridge is not the plaintiff in this matter. Northbridge did not bring this claim seeking enforcement of the Alberta Court’s judgment against Plaintiffs, nor do they seek enforcement of that judgment in their request for relief. Dkt. # 41. Northbridge asks that this Court decide whether Plaintiffs claims are barred by the litigation and judgment in Alberta. Should the Court decide that res judicata applies to bar Plaintiffs’ claims, that decision would not act as declaratory judgment in Northbridge’s favor or an enforcement of the Alberta Court’s judgment.

The Court must now consider whether state or federal law should be applied when a party in a federal diversity case invokes the defense that res judicata bars a claim as a result of a foreign country’s prior judgment. In the absence of a federal statute or treaty, a federal court sitting in diversity generally applies the law of recognition of the state in which it sits. Erie R. R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938); see also Yahoo! Inc., 433 F.3d at 1213. While Washington has adopted the Uniform Foreign Money Judgments Recognition Act, those statutes do not apply where the judgment does not grant or deny recovery of a sum of money. RCWA § 6.40A.020. In the absence of an applicable Washington State statute, the principles of comity apply. “The doctrine of comity directs that we give full effect to foreign judgments, except in extraordinary cases.” Rains v. State, Dep’t of Soc. & Health Servs., Div. of Child Support, 98 Wash. App. 127, 134, 989 P.2d 558, 562 (1999). A foreign judgment is valid if:
there has been opportunity for a full and fair trial abroad before a court of competent jurisdiction, conducting the trial upon regular proceedings, after due citation or voluntary appearance of the defendant, and under a system of jurisprudence likely to secure an impartial administration of justice between the citizens of its own country and those of other countries, and there is nothing to show either prejudice in the court, or in the system of laws under which it is sitting, or fraud in procuring the judgment.
In re Estate of Toland, 180 Wash. 2d 836, 847, 329 P.3d 878, 883 (2014) (quoting Hilton v. Guyot, 159 U.S. 113, 202, 16 S.Ct. 139, 158, 40 L.Ed. 95 (1895) ). “A judgment is valid if the court had jurisdiction, there was notice, and the court was competent.” Id.

*7 The parties do not dispute that Plaintiffs had notice of the Alberta Lawsuit, or that Mrs. DeTray had notice of the related hearings. Further, Canadian courts have been recognized in the United States as “competent”. See Pickering v. Gonzales, 465 F.3d 263, 269 (6th Cir. 2006); see also Royal Bank of Canada v. Trentham Corp., 665 F.2d 515, 515 (5th Cir. 1981). Plaintiffs contend that the decision of the Alberta Court should be not recognized because it did not have personal jurisdiction over Mrs. DeTray, and the judgment entered as a result of Mrs. DeTray’s default is void. In analyzing whether a court of a foreign country has acquired jurisdiction over a nonresident defendant, the Ninth Circuit has applied the American principles of jurisdictional due process. A constitutionally valid judgment is entitled to full faith and credit as long as there is “a sufficient connection between the defendant and the forum state as to make it fair to require defense of the action in the forum, and provided that the defendant has received reasonable notice of the proceedings against him.” Bank of Montreal v. Kough, 612 F.2d 467, 470 (9th Cir. 1980) (citing to Kulko v. Superior Court of California, 436 U.S. 84, 91-92, 98 S.Ct. 1690, 1696-97, 56 L.Ed. 132 (1978) ) (internal quotations omitted). Plaintiffs argue that Mrs. DeTray lacked sufficient minimum contacts with the forum state because she has not been to Canada since the 1970’s, she is a resident of Washington State, and she was dispatched to operate the pilot vehicle at issue in this case by a United States company. Northbridge argues that by submitting an insurance claim to Northbridge in Toronto, Ontario, Mrs. DeTray was seeking benefits under a contract entered into by two Canadian companies under the law of Alberta, and that this constitutes minimum contacts sufficient to support personal jurisdiction. Dkt. # 54.

Northbridge represents that it is not licensed to practice in Washington, has no office in Washington, has no agents in Washington, but provides coverage in North America. The argument that Mrs. DeTray placed herself under the jurisdiction of the Alberta Court by submitting a claim to Northbridge in the only way open to her is not persuasive. Following Northbridge’s logic, the submission of a claim to a Canadian insurance company regardless of where the events giving rise to the claim occurred is a sufficient minimum contact to satisfy due process even where the claimant has no other contacts with that forum. While it is clear that Northbridge has a substantial connection with Canada, jurisdictional due process focuses on the relationship between the defendant and the forum, not the plaintiff. Mrs. DeTray had little to no connection to Alberta, Canada. The Court finds that the Alberta Court could not, within the restrictions of due process, exercise jurisdiction over Mrs. DeTray. Pursuant to the principles of comity, the decision in the Alberta Lawsuit would not be valid and recognized under Washington law. Therefore, it cannot serve as the basis to bar Plaintiffs’ claim by res judicata. Northbridge’s Motion for Summary Judgment is DENIED. Dkt. # 34.

C. Northbridge’s Duty to Defend Plaintiffs
Plaintiffs move for summary judgment of their claim for a declaratory judgment from the Court that Northbridge has a duty to defend Mrs. DeTray in the Underlying Lawsuits. Both parties agree that Washington law applies to this inquiry. Dkt. # 27 at 7; Dkt. # 38 at 10. Pursuant to Washington law, the duty to defend arises at the time an action is first brought, and is based on the potential for liability. Woo v. Fireman’s Fund Ins. Co., 161 Wash. 2d 43, 52, 164 P.3d 454, 459 (2007). “An insurer has a duty to defend when a complaint against the insured, construed liberally, alleges facts which could, if proven, impose liability upon the insured within the policy’s coverage.” Id. at 52-53 (internal citations omitted).

“[T]he duty to defend is triggered if the insurance policy conceivably covers the allegations in the complaint.” Id. at 53; see also Goodstein v. Cont’l Cas. Co., 509 F.3d 1042, 1055 (9th Cir. 2007). An insurer is not relieved of its duty to defend unless the claim alleged in the complaint is “clearly not covered by the policy.” Woo, 161 Wash. 2d at 53. There are two exceptions to the rule that the duty to defend must be determined only from the complaint: 1) “if it is not clear from the face of the complaint that the policy provides coverage, but coverage could exist, the insurer must investigate and give the insured the benefit of the doubt that the insurer has a duty to defend”; and 2) “if the allegations in the complaint conflict with facts known to or readily ascertainable by the insurer or if the allegations are ambiguous or inadequate, facts outside the complaint may be considered.” Id. at 53-54. The insurer may not rely on facts extrinsic to the complaint to deny the duty to defend—it may do so only to trigger the duty. Id. at 54.

*8 As noted above, three parts of the Northbridge policy provide liability insurance: the Standard Automobile Policy (“SPF No. 1”), the Commercial General Liability form (“CGL”), and the Non-Owned Automobiles form (“SPF No. 6”). Dkt. # 28 Ex. C. The CGL does not cover property damage arising directly or indirectly out of use of an automobile. Plaintiffs do not dispute that Mrs. DeTray and the driver of the commercial truck that collided with the Skagit River Bridge were operating “automobiles” as defined by the CGL form. To the extent that the Underlying Lawsuits allege property damage arising out of Mrs. DeTray’s use of an automobile, that damage is not covered under the CGL form and the duty to defend is not triggered. Only one of the complaints from the Underlying Lawsuits seeks damages for injuries that are not property damage, however, that complaint does not allege facts that would establish that Mrs. DeTray is covered by the CGL. The plaintiffs in that particular Underlying Lawsuit only allege that Mrs. DeTray, through her business, G&T Crawler Service, was hired by Mullen to drive a pilot car. The complaint does not allege that Mrs. DeTray is an employee of Mullen, and therefore insured under the CGL form for any damages that are not property damage. Dkt. # 29 Ex. C.

Mullen is the named Insured for the SPF No. 1. Dkt. # 28 Ex. C. On the Declarations page of the SPF No. 1, under “Particulars of the Described Automobile,” the trade name for the Described Automobile is listed as “ALL VEHICLES OWNED, REGISTERED, LEASED AND/OR OPERATED ON BEHALF OF THE NAMED INSURED.” Dkt. # 28-4 at 25. The SPF No. 1 defines “the automobile” as: “The Described Automobile—an automobile, trailer or semi-trailer specifically described in the Policy or within the description of the insured automobiles set forth therein.” Plaintiffs argue that the definition of “the automobile” incorporates the listed trade name for the Described Automobile on the Declarations page because it is “within the description of the insured automobiles set forth therein.” Referencing Endorsement # A-019, Northbridge argues that the definition of Described Automobile incorporates the Endorsement’s description of what automobiles are covered by the Auto Section of the Northbridge Policy.

Endorsement # A-019 is a Blanket Basis Fleet Endorsement and states that “[t]he policy shall provide Insurance with respect to all automobiles … which are: (i) owned by or licensed in the name of the Insured; (ii) leased [from certain lessors] for a period in excess of 30 days [; or] (iii) leased for a period in excess of 30 days under a written lease agreement from a lessor other than those listed[.]” This is quite literally a “description of the insured automobiles set forth therein.” Plaintiffs do not dispute that the Auto Section identifies the applicable modifications and endorsements, one of which is Endorsement # A-019. Dkt. # 68 at 4. The trade name for a defined term, Described Automobile, is not a description of the vehicles insured under the SPF No. 1. It is exactly what it purports to be, a general trade name for the vehicles that fit under the definition of the Described Automobile. There is no indication that this trade name should act as the official definition of the Described Automobile, such that it would overrule the specific contradicting definition listed in the Auto Policy. Plaintiffs do not point to any language in the Northbridge Policy that indicates that trade names should be incorporated into definitions within the policy. All of the complaints in the Underlying Lawsuits allege that Mrs. DeTray was driving a vehicle owned by and licensed to her and Mr. DeTray. They do not allege that Mullen owned or licensed the vehicle, or that Mullen leased it.

*9 The Declarations page of the SPF No. 6 names Mullen as the Insured for that policy. Dkt. # 28 Ex. C. Northbridge argues that the operation of Mrs. DeTray’s vehicle does not qualify for coverage under the SPF No. 6 form because it does not meet the requirements of the Additional Insureds clause. The Additional Insureds clause states that the Insurer “agrees to indemnify in the same manner and to the same extent as if named herein as the Insured,” employees of the Insured who drive “any automobile not owned in whole or in part by or licensed in the name of the Insured … or such additional insured person” or “any automobile hired or leased in the name of the Insured except an automobile owned in whole or in part or licensed in the name of such additional insured person.” Dkt. # 28 Ex. C. Only one of the complaints in the underlying action alleges that Mrs. DeTray was an “employee and/or agent” of Mullen. Dkt. # 29 Ex. A. At least one other complaint alleges that Mrs. DeTray was an agent of Mullen and was hired by Mullen, but makes no allegation that Mrs. DeTray was an employee of Mullen. Setting aside any later finding that Mrs. DeTray was an agent, at least one of the complaints sufficiently alleges that Mrs. DeTray was an employee of Mullen. However, even as an alleged employee of the Insured, Mrs. Detray would not qualify as an Additional Insured under the SPF No. 6 form. While Mrs. DeTray was driving a vehicle in the business of the Insured, the vehicle was owned in whole or in part by or licensed in the name of the “additional insured person,” or Mrs. DeTray. Therefore, Mrs. DeTray does not meet the requirements for coverage as an Additional Insured under part (a) of the clause. Mrs. DeTray also does not meet the requirements of part (b) of the clause. Her vehicle was arguably hired in the name of Mullen, but again, it was owned in whole or in part or licensed in her name. Even construing the allegations of the complaints from the Underlying Lawsuits liberally, there is no genuine issue of material fact as to Mrs. DeTray’s potential coverage. The complaints do not establish that Mrs. DeTray could “conceivably” be covered by the Northbridge Policy. Therefore, Plaintiffs’ Motion for Summary Judgment is DENIED. Dkt. # 27.

IV. CONCLUSION
For the foregoing reasons, Defendant’s Motion for Summary Judgment (Dkt. # 34) is DENIED, and Plaintiffs’ Motion for Partial Summary Judgment (Dkt. # 27) is DENIED.

All Citations
Slip Copy, 2018 WL 4184334

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