Kauai Scuba Center, Inc. v. Padi Americas, Inc.

MEMORANDUM

Kauai Scuba Center, Inc. (“Kauai”) appeals from the dismissal with prejudice of its class action complaint asserting state law claims for misrepresentation, breach of contract, breach of fiduciary duty, and deceptive trade practices arising from the purchase of commercial general liability (“CGL”) and property damage (“PD”) insurance policies for scuba diving shops. The appellees are Vicencia & Buckley Insurance Services, Inc. (“V & B”), an insurance broker; Lexington Insurance Co. (“Lexington”), the surplus lines insurer that issued the group policies; PADI Americas, Inc. (“PADI”), a scuba diving certification organization that sponsored the policies; and York Risk Services Group, Inc. (‘York”), an insurance claims administrator and adjuster. Kauai sued on its own behalf and on behalf of all similarly situated dive shops that purchased such group policies. The District Court dismissed Kauai’s original complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure. After two amended complaints, the District Court found that the allegations were still deficient and granted the defendants’ motions to dismiss, with prejudice and without leave to amend. We have…