United States District Court, D. Colorado
ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR SUMMARY JUDGMENT
MARCIA S. KRIEGER, Chief District Judge.
THIS MATTER is before the Court on the parties' Joint Motion for Judgment (# 28). In determining this matter, the Court has considered the written arguments of the parties, including both parties' briefs in support of the joint motion (# 29 and 30), and both parties' responses (# 31 and 32).
This is an action for determination of scope of coverage under the terms of a "claims made" insurance policy. No dispositive motions were filed, and on December 11, 2013, the Court held a Final Pretrial Conference. Based on the proposed Final Pretrial Order and colloquy with the parties, it appeared that no material facts were in dispute and that only legal issues required determination. At the Court's invitation, the parties filed the Joint Motion for Judgment.
Having reviewed the Motion, along with accompanying briefs, stipulated facts and attached documents, it appears that there may be disputed material facts that will require a trial. Accordingly, the Court treats the Motion as one requesting summary judgment pursuant to Fed.R.Civ.P. 56, and makes those legal determinations that can be made at this juncture.
The Court has jurisdiction pursuant to 28 U.S.C. § 1332(a). Plaintiff Adelphia Communications Corporation ("Adelphia") is a Delaware corporation with its principal place of business in Denver, Colorado. Defendant Quanta Specialty Lines Insurance Company ("Quanta") is an Indiana company with its principal place of business in New York, New York. Adelphia alleges that it has suffered damages of more than $250, 000.
III. Material Facts
Adelphia filed for bankruptcy under chapter 11 of the United States Bankruptcy Code in June 2002. In December 2003, Adelphia's insurance broker provided Quanta with a schedule identifying approximately 1, 800 locations that Adelphia sought to insure under an environmental site protection policy. Quanta agreed to insure Adelphia for environmental hazards on the listed parcels. Among these was a property in Waterbury, Connecticut (the "Waterbury Property").
In 2005, Adelphia and Quanta renewed the policy, amending it to include additional coverage ("Coverage A.1"), pursuant to which Quanta was obligated to:
pay loss that the Insured is or becomes legally obligated to pay as a result of a claim for bodily injury, property damage or remediation costs, resulting from a pollution incident that commenced prior to [January 1, 2000], and is at, on, under or migrating beyond the boundaries from the scheduled location, provided such claim is first made against the Insured and reported to the Company in writing during the policy period or any applicable extended reporting period[.]
The term of the policy, including this coverage, was eventually extended until September 1, 2006. An extended reporting period continued until November 1, 2006.
In April 2005, Adelphia entered a contract to sell the Waterbury Property. Adelphia engaged ENVIRON International Corporation ("Environ") to provide an environmental audit prior to sale. By December 13, 2005, Environ determined that the Waterbury Property had been used as a vehicle body repair shop sometime after 1967. This fell within the definition of an "establishment" within the meaning of the Connecticut Property Transfer Act, C.G.S.A. § 22a-134, et seq.
The Connecticut Act prohibited transfer of "an establishment except in accordance with" the Act's provisions, which included certification that a parcel had been investigated regarding potential discharge of hazardous waste and, if necessary, that any ...