Passport 420, LLC v. Starr Indemnity and Liability Company

I. Background

A. Facts The Court adopts the facts as set out in Plaintiffs’ Complaint (“Compl.”) (Dkt. 1- 1). This is an action regarding losses resulting from the government seizure of an aircraft owned and operated by the Plaintiffs. Compl. ¶ 1. In June 2016, Parrish contemplated the joint purchase of an aircraft with his attorney Defendant Michael Avenatti (“Avenatti”). Id. ¶ 15. In July 2016, Parrish and Avenatti formed Passport and entered into an agreement to purchase an aircraft. Id. ¶ 16. At the time Passport was formed, Avenatti

CIVIL MINUTES – GENERAL

Case No. SA CV 19-07929-DOC (JDEx) Date: December 30, 2019 Page 2

was the formal “manager” of the LLC. Id. ¶ 18. However, by the Summer of 2018, Parrish assumed the role of manager. Id.

Defendant Starr Indemnity & Liability Company (“Starr”) sold an insurance policy (the “policy”) to Plaintiff Passport. Id. ¶ 19. Passport is the “named insured” on the policy. However, the policy further defines as an insured “any director, officer, partner, employee or stockholder of the Named Insured while that person is acting within their official capacity as such.” Declaration of Robert W. Clark (“Clark Decl.”)…