Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca3-07-02714/USCOURTS-ca3-07-02714-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 

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NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

 

Nos. 07-2714 & 07-3137

 

SENTRY SELECT INSURANCE COMPANY;

SENTRY INSURANCE, A MUTUAL COMPANY

v.

LBL SKYSYSTEMS (U.S.A.), INC. 

c/o ERNST & YOUNG, INC., 

as Interim Receiver;

TRAVELERS GUARANTEE COMPANY OF CANADA,

f/k/a St. Paul Guarantee Insurance Company;

SOLERA CONSTRUCTION, INC.; 

DCM ERECTORS, INC.;

ERNST & YOUNG, INC.; 

RAYMOND CHABOT INC.;

LINDA ANGELLO, as COMMISSIONER OF THE NEW YORK STATE

DEPARTMENT OF LABOR; ANDREW W. ERISTOFF, as COMMISSIONER OF THE

NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE;

LAURENTIAN BANK OF CANADA

Solera Construction, Inc.;

DCM Erectors, Inc., 

Appellants.

 

On Consolidated Appeals from the Orders dated May 18, 2007 and June 26, 2007 in the

United States District Court for the Eastern District of Pennsylvania

(Civ. No. 06-cv-04779)

District Judge: Honorable Jan E. DuBois

 

Argued: May 15, 2008

Case: 07-2714 Document: 00311908034 Page: 1 Date Filed: 06/05/2008
 *

 Honorable Joseph E. Irenas, Senior United States District Judge for the District of

New Jersey, sitting by designation.

 1

 St. Paul was formerly known as London Guarantee Insurance Company. References

are made to all three entities–Travelers, St. Paul, and London–throughout the documents

contained in the record, as well as the parties’ briefs. Since the names of the entities can

be read interchangeably, and for ease of reference, we will refer to them collectively as

St. Paul. 

2

Before: McKEE, GARTH, Circuit Judges, and IRENAS,* Senior District Judge.

(Filed: June 5, 2008)

Ray L. LeFlore, Esq.

250 East 40th Street

New York, NY 10016-0000

Counsel for Appellants

H. Hugh McConnell, Esq.

Stuart H. Sobel, Esq.

Siegfried, Rivera, Lerner, De La Torre & Sobel

201 Alhambra Circle

Suite 1102

Coral Gables, FL 33134-0000

Counsel for Appellee Travelers Guarantee Company of Canada

 

OPINION

 

IRENAS, Senior United States District Judge.

This case involves a dispute between Appellants, Solera Construction, Inc. and

DCM Erectors, Inc. (“Solera/DCM”), and Appellee, Travelers Guarantee Company of

Canada, formerly known as St. Paul Guarantee Insurance Company (“St. Paul”),1

 as to

Case: 07-2714 Document: 00311908034 Page: 2 Date Filed: 06/05/2008
 2

 We will refer to the judgment at issue as the “LBL Judgment,” the amount of which

is $1,566,381. See LBL Skysystems (USA), Inc. v. APG-America, Inc., No. Civ. A. 02-

5379, 2005 WL 2140240 (E.D. Pa. Aug. 31, 2005) (decision as to liability); LBL

Skysystems (USA), Inc. v. APG-America, Inc., No. Civ. A. 02-5379, 2006 WL 2590497

(E.D. Pa. Sept. 6, 2006) (decision as to damages). 

 3

 The Orders and Opinions were entered on May 23, 2007 and June 27, 2007.

 4

 The District Court’s May 18 Order also denied St. Paul’s motion for entry of

judgment by default, and denied Solera/DCM’s cross-motion seeking entry of an order 

(1) dismissing certain defendants and striking their pleadings; (2) dismissing the crossclaims of St. Paul and LBL; and (3) transferring the interpleader action to the United

States District Court for the Eastern District of New York. However, the issues presented

to this Court on appeal only concern the District Court’s grant of summary judgment in

favor of St. Paul and its denial of Solera/DCM’s cross-motion for summary judgment. 

 5

 Solera/DCM, in support of its motion, argued that disbursement of the proceeds to

St. Paul would leave Solera/DCM with “no fund[s] to look to” if it was ultimately

successful on appeal, and that its “appeal may become moot under the useless judgment

doctrine as the res will no longer be in existence.” As a precautionary measure, the

District Court ordered the withholding of $1000 of the LBL Judgment pending the

3

whether Solera/DCM or St. Paul is entitled to the proceeds from a judgment entered in

favor of LBL Skysystems (U.S.A.), Inc. (“LBL”).2

 Solera/DCM appeals from two Orders

and Memorandum Opinions signed by the Honorable Jan E. DuBois of the Eastern

District of Pennsylvania on May 18, 2007, and June 26, 2007, respectively.3

 In the

interpleader action below, the District Court granted St. Paul’s motion for summary

judgment and denied Solera/DCM’s cross-motion for summary judgment, concluding that

“St. Paul’s security interest in the proceeds of the [LBL Judgment] is superior to any

other interest in the funds held in escrow,” and ordered that the proceeds be paid to St.

Paul.4

 On June 26, the District Court denied Solera/DCM’s motion for a stay pending

appeal.5

 

Case: 07-2714 Document: 00311908034 Page: 3 Date Filed: 06/05/2008
outcome of this appeal.

4

In his two Memorandum Opinions and Orders, Judge DuBois thoroughly and

adequately explained why St. Paul was entitled to summary judgment. We find his

reasoning compelling and without error, and we will not repeat or add to it simply to

reach the same results. Accordingly, we will affirm the District Court’s decisions and

will remand the case so that it can order the disbursement of the remaining funds held in

escrow to St. Paul.

Case: 07-2714 Document: 00311908034 Page: 4 Date Filed: 06/05/2008