Admiral Insurance v. Kay Automotive Distributors, Inc.

ORDER RE CROSS SUMMARY JUDGMENT MOTIONS AS TO EXTENT OF COVERAGE [Dkt. Nos. 30, 36]

Presently before the Court are cross motions for summary judgment, filed by Plaintiff and by Defendant Christopher Ingram (“Ingram”), on the issue of the extent of coverage under an insurance contract purchased by Defendant Kay Automotive Distributors (“Kay”)- Having heard oral arguments and considered the parties’ submissions, the Court adopts the following order.

I. BACKGROUND

Kay employed Ingram as a delivery-person from 2007 to 2011. (State Court First Amended Complaint 1 (“State FAC”), ¶ 4.) Ingram alleges that Kay required workers to make deliveries off the clock, forced employees to accept paid time off in lieu of overtime pay, and required employees to skip meals and rest breaks. (Id. at ¶¶ 16-18.) He also alleges that he did not receive all the pay that was due to him at the end of his employment, including reimbursement for business expenses. (Id. at ¶ 20.)

Kay purchased an “Employment Practices Liability Insurance” contract from Plaintiff with an effective policy period of September 6, 2010 to September 6, 2011. (Decl. Barbara Mandell, Ex. A at 62.) The policy covered wrongful acts…