Bob Lewis Volkswagen v. Universal Underwriters Group

ORDER RE: CROSS-MOTIONS FOR SUMMARY JUDGMENT

Plaintiff and insured Bob Lewis Volkswagen (“Bob Lewis”) has sued defendant insurer Universal Underwriters Insurance Company (“Universal”) for failing to provide the full limits of defense costs available under the Employment Related Defense (“ERD”) coverage issued to Bob Lewis by Universal. Bob Lewis seeks payment of defense costs under this coverage for claims filed by 46 of its current and former employees (“the underlying action”).

The parties have submitted cross-motions for summary judgment, or in the alternative summary adjudication, of Bob Lewis’s claims. Bob Lewis moves for partial summary judgment that (1) each arbitration claimant has a separate “suit”; (2) that the arbitration demands triggered 46 “per suit” limits; and (3) Universal’s policy interpretation is unreasonable as a matter of law. Universal moves for summary judgment on the ground that it has fulfilled its obligations under its policy by paying a single policy limit of $10,000 for defense expenses incurred in the underlying action. The primary issue between the parties is whether the actions filed by 46 claimants that were arbitrated in one proceeding…