Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Chartis Property Casualty Co. v. Huguely

United States District Court, Fourth Circuit

October 15, 2013

CHARTIS PROPERTY CASUALTY COMPANY
v.
GEORGE W. HUGUELY, v.

MEMORANDUM OPINION

DEBORAH K. CHASANOW, District Judge.

Presently pending and ready for review in this insurance case are three motions. First, Defendant George W. Huguely, V moves to stay this case during the pendency of the criminal proceeding against him in the Commonwealth of Virginia. (ECF No. 24). This motion was later joined by Sharon D. Love, Personal Representative of the Estate of Yeardley R. Love. (ECF No. 28). Second, Plaintiff Chartis Property Casualty Company ("Chartis") filed a motion for summary judgment. (ECF No. 8). Third, Defendant filed a motion to deny or defer considering Plaintiff's motion for summary judgment. (ECF No. 25). The issues have been fully briefed, and the court now rules, no hearing being deemed necessary. Local Rule 105.6. For the following reasons, Defendant's motion to stay the case will be granted. The remaining motions will be denied without prejudice to renewal once the stay is lifted.

I. Background

This case involves the intersection of three actions, all of which have Huguely as the defendant: a criminal case, a civil case, and an insurance case.

A. Criminal Case

On February 22, 2012, a jury in the Circuit Court for the City of Charlottesville, Virginia found Huguely guilty of second-degree murder in the May 2010 death of Yeardley R. Love. Huguely petitioned for appeal of his conviction to the Court of Appeals of Virginia, claiming multiple errors in his trial. On April 23, 2013, the Court of Appeals granted Huguely's petition as to two issues: (1) whether the circuit court violated Huguely's right to counsel by forcing him to proceed with trial in the absence of his retained counsel of choice; and (2) whether the circuit court erred in refusing to strike for cause Juror 32, whose answers during voir dire revealed serious doubts about her impartiality. (ECF No. 24-2). On June 14, 2013, a three-judge panel of the Court of Appeals added further issues for appeal: (1) whether the circuit court violated Huguely's right to a trial by a fair and impartial jury by refusing to allow the defense to ask questions during voir dire that were directly relevant to whether prospective jurors could remain impartial; (2) whether the right to a fair and impartial jury was violated by refusing to strike a number of jurors who were not stricken for cause (as opposed merely to Juror 32); and (3) whether the circuit court did not adequately instruct the jury about the meaning of "malice" under Virginia law. (ECF No. 24-3). The Court of Appeals declined to hear Huguely's other allegations of error, including that the evidence was insufficient to support a conviction of second-degree murder. An independent investigation of the Court of Appeals docket reveals that the appeal was fully briefed as of September 30, 2013. There is no indication when oral argument will occur. Huguely v. Commonwealth, No. 1697-12-2.

B. Civil Case

On April 26, 2012, Sharon D. Love, as administrator of the estate of Yeardley R. Love, brought a wrongful death suit against Huguely in the Circuit Court for the City of Charlottesville. (ECF No 1-1). That complaint was amended on April 30, 2013 and seeks nearly $30 million dollars in compensatory damages and an additional $1 million dollars in punitive damages. (ECF No. 1-2, Case No. CL-2012-130). Defendant represents that he requested a stay of the case pending the completion of his criminal case on July 17, 2012 and Ms. Love has recently done likewise. The circuit court has not yet acted upon these requests.

C. Insurance Case

The case in this court concerns whether Plaintiff, an insurance company, has no duty pursuant to certain insurance policies to defend or indemnify Huguely in the Civil Case. Huguely's mother and step-father purchased a Homeowners policy that became effective on January 25, 2010. (ECF No. 1 ¶ 24). The policy would pay for the costs to defend, and any subsequent damages incurred, from the actions of the insured or a "family member." "Family member" is defined as "a person related to [the insured] by blood, marriage or adoption that lives with [the insured]." ( Id. ¶ 31). Coverage does not extend to personal injury or property damage resulting from any criminal, willful, intentional or malicious acts. ( Id. ¶ 35). Importantly for the present dispute, the policy sets out the insured's duties after a loss, to include submitting to a separate examination under oath as often as Chartis reasonably requires. ( Id. ¶ 36).

Beginning on May 22, 2012, Chartis advised Huguely that it was undertaking an investigation of the Civil Case and informed Huguely of their respective obligations under the insurance policy. Chartis advised Huguely that it would be contacting Defendant in the future to schedule an examination under oath. ( Id. ¶ 51). Chartis sought to examine Huguely to understand better whether it was contractually obligated to provide coverage given that the insurance contract explicitly excludes intentional and/or criminal conduct from its coverage. As the altercation between Huguely and Love had no other witnesses, Huguely is the only available party to help Chartis understand its obligations and craft a defense. ( Id. ¶¶ 55-57). Additionally, Chartis sought to examine Huguely about his residency, as Huguely was then a student at the University of Virginia in Charlottesville, living separately from either of his parents. ( Id. ¶¶ 58-59).

Huguely, through counsel, has consistently refused to submit to an examination under oath, asserting his Fifth Amendment right against self-incrimination. Chartis seeks a declaratory judgment that Huguely's refusal to cooperate with Chartis's investigation as required by the insurance contract constitutes a material breach resulting in actual prejudice, and that therefore Chartis has no duty to defend or indemnify Huguely in the Civil Case. Chartis did not allege that it had no duty to defend or indemnify Huguely because of his intentional and/or criminal acts. The complaint was filed on May 20, 2013 and Plaintiff moved for summary judgment on July 3, 2013. (ECF No. 8). Defendant moved to deny or defer consideration of that motion, (ECF No. 25), and at the same time moved to stay the case pending the outcome of the Criminal Case (ECF No. 24). Defendant's motion to stay was joined by Sharon D. Love, plaintiff in the Civil Case, on September 12, 2013. (ECF No. 28).

II. Defendant's Motion to Stay

"[T]he power to stay proceedings is incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants." Maryland v. Universal Elections, Inc., ___ F.3d ___, 2013 WL 3871006, at *7 (4th Cir. 2013) ( quoting Landis v. N. Am. Co., 299 U.S. 248, 254 (1936)). It is settled that it is not unconstitutional to force a litigant to choose between invoking the Fifth Amendment in a civil case, thus risking a loss there, or answering the questions and thus risking subsequent criminal prosecution. See Baxter v. Palmigiano, 425 U.S. 308, 318-19 (1976). Although it is permissible to force a party to choose, it is also constitutional ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.