American Zurich Insurance Company v. Catalyst Resources, LLC and Covol Fuels No. 3, LLC

Summary

The United States District Court for the Eastern District of Kentucky grants American Zurich Insurance Company’s motion for summary judgment in a dispute over unpaid workers’ compensation and employers liability insurance premiums and deductibles. The court concludes that Defendants failed to establish a genuine dispute regarding the accuracy of the post-policy audit, the unpaid premiums, or the deductible obligations. The court awards summary judgment on the breach of contract claim and directs Plaintiff to submit an updated damages and interest calculation before entry of judgment.

Holdings

1. Plaintiff's motion for summary judgment is granted. Defendants failed to present sufficient evidence to create a genuine issue of material fact on breach or damages. The policy terms permitted a post-expiration audit and Defendants' evidence of a prior, unrelated accounting mistake and identical invoices was insufficient to dispute the accuracy of the audit or damages calculation.

Questions Presented

1. Whether Plaintiff is entitled to summary judgment on its breach of contract claim for unpaid insurance premiums and unpaid deductible.
2. Whether Defendants' evidence of a prior accounting mistake and identical invoices creates a genuine issue of material fact.

Disposition

affirmed