New York Inn v. Associated Indust
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 24-10338 (5th Circuit, Apr 03,2025) Not Published
- Tag(s):
-
- Ruling:
- In dueling appeals arising from the same case, the U.S. Court of Appeals for the Fifth Circuit (Circuit) affirmed the grant by the district court of the motion for summary judgment, based on the bankruptcy court's report and recommendation, filed by Associated Industries Insurance Co. (Associated) in the adversary against it launched by New York Inn, Inc., joined by Viva Inn, Inc., an entity with the same owner, which together owned Viva Inn Motel in Arlington, Texas, but remanded for consideration of outstanding appeals as to Associate's motions to dismiss and deny attorneys' fees.
- Procedural context:
- New York Inn, Inc. (New York Inn), a corporate affiliate of Viva Inn, Inc. (Viva, and together with New York Inn, the Owners) and an involuntary chapter 11 debtor in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division (BC) , filed an adversary proceeding in bankruptcy court against Associated, which Viva later joined. After the BC granted Associated's motion to dismiss New York Inn as a plaintiff based on lack of standing, New York Inn filed an amended complaint listing itself and Viva as plaintiffs. In response, Associated filed another motion to dismiss New York Inn as a plaintiff for lack of standing and also moved to dismiss the declaratory judgment cause of action, plus a motion to deny Viva’s request for attorneys’ fees; both were appealed to the U.S. District Court for the Northern District of Texas (DC). The DC consolidated the appeals, but did not rule. Meanwhile, Associated filed a separate motion for summary judgment. The BC issued a report and recommendation advising the DC to grant the motion; the DC subsequently adopted the report and recommendation and granted summary judgment. The Owners now appeal the district court’s grant of summary judgment and the bankruptcy court’s grant of the motion to dismiss and motion to deny attorneys’ fees.
- Facts:
- Associated issued an insurance policy to Viva Inn, Inc. (Viva) for commercial property and general liability coverages for the Motel from August 9, 2020, to August 9, 2021 (the Policy). Although Viva is the named insured on the Policy, Viva asked Associated to include New York Inn as an additional insured; Associated complied. Following winter storm Uri in February 2021, Viva’s adjuster filed a claim for water damage to the Motel from a burst pipe. Between March 2021 and June 2022, Associated paid Viva $271,538.65 for damage to the Motel. In December 2022, the Motel reopened. In May 2021, an involuntary chapter 11 bankruptcy proceeding was filed against New York Inn in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (BC).
- Judge(s):
- Jennifer Walker Elrod; Edith Brown Clement; and Irma Carrillo Ramirez
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