National Liability & Fire Insurance Company v. Brimar Transit, Inc., Pittsburgh Public School District

Summary

The United States District Court for the Western District of Pennsylvania partially granted National Liability & Fire Insurance Company’s motion for default judgment against Brimar Transit, Inc. The court awarded $86,981.09 in defense costs under the insurance policy but denied recovery of the $150,000 settlement payment under an unjust enrichment theory. The court concluded that the policy and settlement agreement provided litigable defenses to the settlement-reimbursement claim.

Holdings

1. Default judgment was warranted against Brimar for $86,981.09 in defense costs because the policy expressly permitted reimbursement after National defended Brimar, reserved its reimbursement rights, paid the defense costs, and it was later determined that no coverage existed.
2. National could not recover the settlement payment under unjust enrichment because the parties were governed by enforceable contracts—the insurance policy and settlement agreement—and the policy did not provide a right to reimbursement of settlement payments.
3. No evidentiary hearing was required because the defense-cost damages were a sum certain and could be determined from the complaint, declaration, and supporting materials.

Questions Presented

1. Whether National was entitled to default judgment against Brimar for reimbursement of $86,981.09 in defense costs under the insurance policy.
2. Whether National was entitled to default judgment against Brimar for the $150,000 settlement payment under an unjust-enrichment theory.
3. Whether a default-judgment hearing was required to determine the requested damages.

Disposition

other