Piveg, Inc. v. General Star Indemnity Co.

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

Defendant General Star Indemnity Company (“General Star”) moves for summary judgment on grounds that it has no duty to indemnify Plaintiff Piveg, Inc. (“Pi-veg”) for damages arising out of a third party claim. Piveg filed an opposition, and General Star filed a reply. After reviewing the record and the parties’ arguments, the Court concludes the undisputed facts establish that Piveg voluntarily resolved the third party claim without notice to General Star, thereby depriving General Star of its ability to control any defense or settlement of the claim. The insurance policy issued to Piveg precludes such conduct and relieves General Star of its obligations under the Policy for payments voluntarily made and obligations voluntarily assumed by its insured. For reasons more fully set out below, the motion for summary judgment is granted.

I.

BACKGROUND

Piveg is a supplier of raw materials to vitamin manufacturers. The raw materials sold by Piveg are incorporated into retail supplements by the vitamin manufacturers. J&D Laboratories, Inc. (“J&D”), a vitamin manufacturer, ordered 700 kg of astaxanthin oil from Piveg at a cost of…