BENTON – Cincinnati Insurance, defending a claim that it must cover replacement of the roof on St. Clair Country Club, sent subpoenas to seven contractors on May 23 regarding reports of possible storm damage.
Country club counsel Jarrod Beasley of Belleville moved to quash the subpoenas on May 26.
Cincinnati counsel Isaac Melton of Chicago responded that the country club lacked standing to bring the motion.
He claimed parties lack standing to quash a subpoena issued to one who is not a party, “unless the party claims some personal right or privilege with regard to the documents sought.”
The country club sued Cincinnati in St. Clair County Circuit Court last November, claiming it acted in bad faith by denying $242,110.64 in coverage for a storm that hit on May 15, 2022.
Cincinnati removed the complaint to U.S. district court in December, asserting diversity jurisdiction as an Ohio business.
The clerk randomly assigned Chief District Judge Nancy Rosenstengel, and she recused herself.
The clerk then randomly assigned Magistrate Judge Reona Daly.
Melton filed affirmative defenses in January, stating the country club’s claims didn’t arise out of a covered cause of loss.
He claimed roofs of the clubhouse, pro shop, and pool house incurred no physical loss.
Daly set trial for next January and an Aug. 24 deadline for completion of discovery.
She appointed A. J. Bronsky of St. Louis as mediator by agreement of the parties.
Cincinnati mailed subpoenas to Geissler Roofing and Four Points Roofing and Siding, both of Belleville, Holland Construction of Swansea, Stay Roofing of Millstadt, Martin Roofing of Mascoutah, D. E. Martin Roofing of Lebanon, and Centi Mark of Hazelwood, Mo.
Beasley’s motion to quash stated the subpoenas related to services performed, solicited, or proposed to be performed, from the beginning of time.
He claimed they sought communications, documents, correspondence, receipts, photographs, and contracts.
“Defendant denied the claim solely based on their allegation that there was no physical damage due to hail,” he wrote.
“Plaintiff has alleged there was hail damage to the roof and fully performed its obligations under the contract and thus Defendant is in breach,” he added.
Beasley claimed Cincinnati was attempting to do the investigation it should have done before denying the claim.
He claimed Cincinnati essentially admitted that its reason for denial and its investigation were inadequate.
He added that Cincinnati can’t assert new defenses through a new investigation.
Beasley claimed courts have precluded insurers from denying a claim and changing the basis for denial in litigation.
He also claimed Cincinnati was asking to search for a denial that might survive scrutiny.
Melton responded, “Plaintiff lacks standing to challenge any of the subpoenas as they are not directed to it and no personal right or privilege is implicated by the subpoenas.”
He claimed the country club provided no valid basis to quash them and made no specific argument pertaining to any of them.
Melton also claimed the country club didn’t assert that they implicated its rights.
He added that subpoenas went to companies that inspected the roof before and after last May 15.
He claimed inspections prior to the storm might support opinions of Cincinnati’s engineer that hail fell on the property more than once and damage to some shingles wasn’t a result of wind.
“Documents from companies that performed inspections following plaintiff’s alleged loss may reveal further information as to the cause of the roof damage or conversations with plaintiff representatives pressuring them to claim the damage is weather related in order to ensure their bid was accepted to perform the roof replacement,” he wrote.
He claimed the country club didn’t argue that the information is irrelevant and argued instead that it might lead to more affirmative defenses.
He also claimed Cincinnati didn’t add affirmative defenses and rather issued subpoenas reasonably calculated to lead to discovery of admissible evidence.
Melton added that Cincinnati didn’t change its litigation position.