FI L ED

U.S. COURT OF APPEAL S

EL EVENTH CI RCUI T

OCT 27, 2008

THOMAS K. KAH

N

CL ERK [ D O N O T P U B L I S H ]

I N T H E U N I T E D S T A T E S C O U R T O F A P P E A L S

F O R T H E E L E V E N T H C I R C U I T

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N o

. 0 8

- 1 0 9 1 5

N o n

- A r g u m e n t C a l e n d a r

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D

. C

. D o c k e t N o

. 0 6

- 0 2 0 2 9

- C V

- L S C

- W

V I R G I L E

. C O O K

, i n d i v i d u a l l y

,

V I R G I L E

. C O O K

, d

. b

. a

. W o r m S h a c k S p o r t i n g G o o d s

, I n c o r p o r a t e d

,

P l a i n t i f f

- C o u n t e r

- D e f

e n d a n t

- A p p e l l a n t

,

W O R M S H A C K S P O R T I N G G O O D S

, I N C O R P O R A T E D

,

P l a i n t i f f

- C o u n t e r

- D e f

e n d a n t

,

v e r s u s

T R I N I T Y U N I V E R S A L I N S U R A N C E C O M P A N Y O F K A N S A S

,

D e f e n d a n t

- C o u n t e r C l a i m a n t

- A p p e l l e e

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A p p e a l f r o m t h e U n i t e d S t a t e s D i s t r i c t C o u r t

f o r t h e N o r t h e r n D i s t r i c t o f A l a b a m a

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

( O c t o b e r 2 7

, 2 0 0 8 )

B e f o r e H U L L

, M A R C U S a n d P R Y O R

, C i r c u i t J u d g e s

.P E R C U R I A M :

V i r g i l E

. C o o k

, p r o s e

, a p p e a l s t h e d i s t r i c t c o u r t ’ s e n t r y o f s u m m a r y

j u d g m e n t i n f

a v o r o f T r i n i t y U n i v e r s a l I n s u r a n c e C o

. ( “ T r i n i t y ” )

, o n C o o k ’ s b r e a c h

o f c o n t r a c t a n d b a d f

a i t h c l a i m s a r i s i n g f

r o m T r i n i t y ’ s d e n i a l o f i n s u r a n c e c o v e r a g e

f o l l o w i n g a f

i r e a t C o o k ’ s b u s i n e s s ( t h e “ W o r m S h a c k ” )

. B e c a u s e w e c o n c l u d e 1

t h a t C o o k d o e s n o t h a v e a p p e l l a t e s t a n d i n g t o c h a l l e n g e t h e e n t r y o f s u m m a r y

j u d g m e n t a g a i n s t t h e W o r m S h a c k

, a n d t h a t C o o k d i d n o t i n d i v i d u a l l y h a v e

s t a n d i n g t o p u r s u e h i s c l a i m b e f o r e t h e d i s t r i c t c o u r t

, w e d o n o t r e a c h t h e m e r i t s o f

C o o k ’ s a p p e a l

. A c c o r d i n g l y

, w e d i s m i s s t h e a p p e a l i n p a r t

, a n d a f f i r m i t i n p a r t

. 2

“ [ W ] e a r e o b l i g e d t o c o n s i d e r s t a n d i n g s u a s p o n t e e v e n i f t h e p a r t i e s h a v e

n o t r a i s e d t h e i s s u e b e c a u s e a n a p p e l l a t e c o u r t m u s t s a t i s f y i t s e l f n o t o n l y o f i t s

Although both Cook and Worm Shack a ppeale d, we ha ve alr eady held that the notice of 1

appea l was ineff

ective a s to W orm Shack, since it was a c orpora te entity not repre sented by

counsel, a nd we ha ve dismissed it from this appeal. See Pala zz o v. Gulf Oil Corp., 764 F.2d

1381, 1385 (11th Cir. 1985) (holding that a cor poration ca

nnot appea

r pro se even w hen the

person se eking to repre sent it is the president and major stockholder) . Trinity

also filed

counter claims ag ainst Cook and Worm S hack, a nd one of the se re mained unre solved befor e the

district court, but Trinity

later r enounce d this countercla im and, there fore , “fina liz ed the district

court proc eeding s.” Consistent with thi s, we c onclude that Cook’s notice of appe al was

sufficie nt to vest us with appellate jurisdiction. Robinson v. Tanner, 798 F .2d 1378, 1382 (11th

Cir. 1986) (noting that a pre mature a ppeal is re viewable wher e a subse quent judg ment of the

district court ef

fec tively terminated the litigation, eve n though no ne w notice of appea l was filed

afte r the subseque nt judgment)

.

I n other wor ds, in light of the disposition based on standing , we f ind it unnecessar

y to 2

consider: ( i) whethe r Cook, in his pro se brief , adequately

prese rved a

challeng e to the district

court’s a naly sis of his contrac t and bad f aith claims; or (ii) whe ther the g rant of summar y judgme nt on those claims was prope r.

2o w n j u r i s d i c t i o n

, b u t a l s o o f t h a t o f t h e l o w e r c o u r t s i n a c a u s e u n d e r r e v i e w

. ”

A T & T M o b i l i t y

, L L C v

. N a t ’ l A s s ’ n f o r S t o c k C a r A u t o R a c i n g

, I n c

. , 4 9 4 F

. 3 d

1 3 5 6

, 1 3 6 0 ( 1 1 t h C i r

. 2 0 0 7 ) ( i n t e r n a l q u o t a t i o n m a r k s o m i t t e d )

. “ A s w i t h a l l

j u r i s d i c t i o n a l i s s u e s

, [ w e ] r e v i e w [ ] s t a n d i n g d e n o v o

. ” I d

. W e m a y a f f i r m t h e

d i s t r i c t c o u r t o n a n y b a s i s s u p p o r t e d b y t h e r e c o r d

. W a t k i n s v

. B o w d e n

, 1 0 5 F

. 3 d

1 3 4 4

, 1 3 5 3 n

. 1 7 ( 1 1 t h C i r

. 1 9 9 7 )

.

L i t i g a n t s m u s t e s t a b l i s h t h e i r s t a n d i n g n o t o n l y t o b r i n g c l a i m s

, b u t a l s o t o

a p p e a l j u d g m e n t s

. A r i z o n a n s f o r O f f i c i a l E n g l i s h v

. A r i z o n a

, 5 2 0 U

. S

. 4 3

, 6 4

( 1 9 9 7 ) ( “ T h e s t a n d i n g A r t i c l e I I I r e q u i r e s m u s t b e m e t b y p e r s o n s s e e k i n g

a p p e l l a t e r e v i e w

, j u s t a s i t m u s t b e m e t b y p e r s o n s a p p e a r i n g i n c o u r t s o f f i r s t

i n s t a n c e

. ” )

. T h o u g h s i m i l a r a n d o v e r l a p p i n g

, t h e d o c t r i n e s o f a p p e l l a t e s t a n d i n g

a n d t r i a l s t a n d i n g a r e n o t i d e n t i c a l

. S e e K n i g h t v

. A l a b a m a

, 1 4 F

. 3 d 1 5 3 4

, 1 5 5 5

( 1 1 t h C i r

. 1 9 9 4 )

. “ T h e p r i m a r y l i m i t a t i o n o n [ a l i t i g a n t ’ s ] a p p e l l a t e s t a n d i n g i s t h e

a d v e r s e n e s s r e q u i r e m e n t w h i c h i s o n e o f t h e r u l e s o f s t a n d i n g p e c u l i a r t o t h e

a p p e l l a t e s e t t i n g

. O n l y a l i t i g a n t ‘ w h o i s a g g r i e v e d b y t h e j u d g m e n t o r o r d e r m a y

a p p e a l

. ’ ” I d

. a t 1 5 5 6 ( c i t a t i o n s o m i t t e d )

. S t a n d i n g m u s t e x i s t w i t h r e s p e c t t o e a c h

c l a i m

. S e e J a c k s o n v

. O k a l o o s a C o u n t y

, F l a

. , 2 1 F

. 3 d 1 5 3 1

, 1 5 3 6

- 3 7 ( 1 1 t h C i r

.

1 9 9 4 )

. M o r e o v e r

, a “ p l a i n t i f f g e n e r a l l y m u s t a s s e r t h i s o w n l e g a l r i g h t s a n d

i n t e r e s t s

, a n d c a n n o t r e s t h i s c l a i m t o r e l i e f o n t h e l e g a l r i g h t s o r i n t e r e s t s o f t h i r d

3p a r t i e s

. ” W a r t h v

. S e l d i n

, 4 2 2 U

. S

. 4 9 0

, 4 9 9 ( 1 9 7 5 ) ; s e e a l s o M i c c o s u k e e T r i b e o f

I n d i a n s o f F l a

. v

. F l a

. S t a t e A t h l e t i c C o m m ’ n

, 2 2 6 F

. 3 d 1 2 2 6

, 1 2 3 0 ( 1 1 t h C i r

.

2 0 0 0 ) ( “ A b s e n t e x c e p t i o n a l c i r c u m s t a n c e s

, a t h i r d p a r t y d o e s n o t h a v e s t a n d i n g t o

c h a l l e n g e i n

j u r y t o a n o t h e r p a r t y

. ” )

. T h u s

, a s w e n o t e d w h e n w e d i s m i s s e d W o r m

S h a c k

, a n o f

f i c e r o r o w n e r o f a c o r p o r a t i o n c a n n o t p u r s u e a n a p p e a l f o r t h e

c o r p o r a t i o n

. P a l a z z o

, 7 6 4 F

. 2 d a t 1 3 8 5

.

I n l i g h t o f t h e c a s e l a w

, w e a r e c o m p e l l e d t o c o n c l u d e t h a t C o o k

,

i n d i v i d u a l l y

, l a c k s a p p e l l a t e s t a n d i n g t o c h a l l e n g e t h e j u d g m e n t a g a i n s t W o r m

S h a c k

, a s e p a r a t e c o r p o r a t e e n t i t y

, a n d l a c k s t h e a b i l i t y t o p r o s e c u t e W o r m S h a c k ’ s

c l a i m s i n h i s o w n n a m e

. W e d i s m i s s t h e a p p e a l t o t h e e x t e n t h e s e e k s t o d o e i t h e r

.

W e f u r t h e r c o n c l u d e t h a t C o o k l a c k e d s t a n d i n g b e f o r e t h e d i s t r i c t c o u r t t o

b r i n g c l a i m s o n h i s o w n b e h a l f

. A l t h o u g h t h e d i s t r i c t c o u r t d i d n o t e x p r e s s l y

a d d r e s s t h i s i s s u e

, C o o k w a s

, a s a p l a i n t i f f

, r e q u i r e d t o d e m o n s t r a t e “ i n j u r y i n f a c t

,

c a u s a t i o n a n d r e d r e s s a b i l i t y

. ” E l e n d v

. B a s h a m

, 4 7 1 F

. 3 d 1 1 9 9

, 1 2 0 5 ( 1 1 t h C i r

.

2 0 0 6 )

. T o e s t a b l i s h a n i n j u r y i n f a c t

, h e h a d t o d e m o n s t r a t e t h a t T r i n i t y i n v a d e d

o n e o f C o o k ’ s “ l e g a l l y p r o t e c t e d i n t e r e s t [ s ]

. ” A T & T M o b i l i t y

, 4 9 4 F

. 3 d a t 1 3 6 0

.

G e n e r a l l y

, s t a t u s a s a c o r p o r a t e s h a r e h o l d e r w i l l n o t g i v e a n i n d i v i d u a l

s t a n d i n g t o p r o s e c u t e a c l a i m o n b e h a l f o f a c o r p o r a t i o n

. S p e c i f i c a l l y

, w e h a v e

n o t e d t h a t :

4[ a ] n a c t i o n t o r e d r e s s i n j u r i e s t o a c o r p o r a t i o n c a n n o t b e m a i n t a i n e d

b y a s h a r e h o l d e r i n h i s o w n n a m e b u t m u s t b e b r o u g h t i n t h e n a m e o f

t h e c o r p o r a t i o n

. T h e s h a r e h o l d e r ’ s r i g h t s a r e m e r e l y d e r i v a t i v e a n d

c a n b e a s s e r t e d o n l y t h r o u g h t h e c o r p o r a t i o n

. A l t h o u g h t h i s r u l e d o e s

n o t a p p l y i n a c a s e w h e r e t h e s h a r e h o l d e r s h o w s a v i o l a t i o n o f d u t y

o w e d d i r e c t l y t o h i m

, d i m i n u t i o n i n v a l u e o f t h e c o r p o r a t e a s s e t s i s

i n s u f f i c i e n t d i r e c t h a r m t o g i v e t h e s h a r e h o l d e r s t a n d i n g t o s u e i n h i s

o w n r i g h t

.

S t e v e n s v

. L o w d e r

, 6 4 3 F

. 2 d 1 0 7 8

, 1 0 8 0 ( 5 t h C i r

. U n i t B A p r

. 1 9 8 1 ) ( i n t e r n a l

c i t a t i o n s o m i t t e d ) ; s e e a l s o F l a

. S e e d C o

. v

. M o n s a n t o C o

. , 1 0 5 F

. 3 d 1 3 7 2

, 1 3 7 6 3

( 1 1 t h C i r

. 1 9 9 7 ) ( n o t i n g t h a t

, w i t h r e s p e c t t o a s u i t b r o u g h t b y a s o l e s t o c k h o l d e r

o n b e h a l f o f h i s c o r p o r a t i o n

, c o u r t s h a v e u n i f o r m l y h e l d t h a t s u c h a s t o c k h o l d e r

l a c k s s t a n d i n g t o b r i n g a n a n t i t r u s t s u i t f o r i n j u r y t o t h e c o r p o r a t i o n )

.

W h i l e s t a n d i n g m a y b e a v a i l a b l e t o t h i r d

- p a r t y b e n e f i c i a r i e s o f a c o n t r a c t

,

t h i s d e s i g n a t i o n i s u s u a l l y l i m i t e d o r p r e c l u d e d b y t h e c o n t r a c t a t i s s u e

, s u b j e c t t o

a p p l i c a b l e l a w

. “ U n d e r E r i e R a i l r o a d v

. T o m p k i n s

, [ 3 0 4 U

. S

. 6 4 ] ( 1 9 3 8 )

, a f e d e r a l

c o u r t i n a d i v e r s i t y a c t i o n m u s t a p p l y t h e c o n t r o l l i n g s u b s t a n t i v e l a w o f t h e s t a t e

. ”

P r o v a u v

. S t a t e F a r m M u t

. A u t o I n s

. C o

. , 7 7 2 F

. 2 d 8 1 7

, 8 1 9 ( 1 1 t h C i r

. 1 9 8 5 )

.

“ T h e c o n s t r u c t i o n o f i n s u r a n c e c o n t r a c t s i s g o v e r n e d b y s u b s t a n t i v e s t a t e l a w

. ” I d

.

a t 8 1 9

- 2 0

. T h u s

, w h e t h e r a p e t i t i o n e r w h o i s a t h i r d

- p a r t y b e n e f i c i a r y h a s s t a n d i n g

For mer F ifth Circuit decisions, issued befor e close of business on September 30, 1981, 3

bind this C ourt. Bonne r v. City of Prichar d, 661 F.2d 1206, 1209- 10 (11th Cir. 1981) (e n banc)

.

5t o s u e i s a q u e s t i o n o f s t a t e l a w

. A T & T M o b i l i t y

, L L C

, 4 9 4 F

. 3 d a t 1 3 6 0 ( c i t i n g

M i r e e v

. D e k a l b C o u n t y

, G a

. , 4 3 3 U

. S

. 2 5

, 2 9

- 3 3 ( 1 9 7 7 ) )

.

U n d e r A l a b a m a l a w

, o n e w h o i s n o t a p a r t y t o a c o n t r a c t o r i n p r i v i t y w i t h a

p a r t y c a n n o t s u e f

o r b r e a c h o f t h e c o n t r a c t

. A i r l i n e s R e p o r t i n g C o r p

.

v

. H i g g i n b o t h a m

, 6 4 3 S o

. 2 d 9 5 2

, 9 5 4 ( A l a

. 1 9 9 4 )

. A l t h o u g h “ a d i r e c t t h i r d

- p a r t y

b e n e f i c i a r y m a y s u e o n t h e c o n t r a c t

. . . t h e p a r t y c l a i m i n g t o b e a t h i r d

- p a r t y

b e n e f i c i a r y o f a c o n t r a c t m u s t e s t a b l i s h t h a t t h e c o n t r a c t i n g p a r t i e s i n t e n d e d

, a t t h e

t i m e t h e c o n t r a c t w a s c r e a t e d

, t o b e s t o w a d i r e c t b e n e f i t o n t h e t h i r d p a r t y

. ” I d

.

( i n t e r n a l c i t a t i o n o m i t t e d )

. A n i n t e n d e d i n c i d e n t a l b e n e f i t i s i n s u f

f i c i e n t t o c r e a t e

s t a n d i n g

. E x p a r t e S c o t t P a p e r C o

. , 6 3 4 S o

. 2 d 5 4 6

, 5 4 8 ( A l a

. 1 9 9 3 ) ( h o l d i n g t h a t

n o e v i d e n c e e x i s t e d t h a t a t t i m e o f c o n t r a c t b e t w e e n l o g g e r a n d c o m p a n y t h a t

c o m p a n y i n t e n d e d t o c o n f e r d i r e c t b e n e f

i t o n l o g g e r ’ s e m p l o y e e s u f f i c i e n t t o g i v e

e m p l o y e e s t a n d i n g t o s u e t o e n f o r c e c o n t r a c t )

. T h e i n t e n t o f t h e p a r t i e s c o n t r o l s i n

c o n s t r u i n g a w r i t t e n c o n t r a c t a n d t h a t i n t e n t i s d e r i v e d f r o m t h e c o n t r a c t i t s e l f

,

w h e r e t h e l a n g u a g e u s e d i s p l a i n a n d u n a m b i g u o u s

. H

. R

. H

. M e t a l s

, I n c

. v

. M i l l e r

e x r e l

. M i l l e r

, 8 3 3 S o

. 2 d 1 8

, 2 4 ( A l a

. 2 0 0 2 )

. “ I t i s o n l y w h e r e a c o n t r a c t p r o v i s i o n

i s f o u n d t o b e a m b i g u o u s t h a t i t m a y b e c o m e n e c e s s a r y t o c o n s i d e r t h e s u r r o u n d i n g

c i r c u m s t a n c e s a n d t h e c o n s t r u c t i o n t h e p a r t i e s g a v e t h e l a n g u a g e i n o r d e r t o

d e t e r m i n e t h e i n t e n t o f t h e c o n t r a c t i n g p a r t i e s

. ” I d

.

6T h e i n s u r a n c e c o n t r a c t h e r e s h o w s t h a t W o r m S h a c k w a s t h e o n l y i n s u r e d

a n d C o o k w a s n o t a l o s s p a y e e

. B o t h p a r t i e s a l s o s t i p u l a t e d t o t h e f o r m e r

.

T h e r e f o r e

, b a s e d o n t h e p l a i n a n d u n a m b i g u o u s l a n g u a g e o f t h e i n s u r a n c e c o n t r a c t

,

C o o k w a s n o t a d i r e c t t h i r d

- p a r t y b e n e f i c i a r y u n d e r A l a b a m a l a w

, a n d h e l a c k e d

s t a n d i n g t o p u r s u e t h e a c t i o n

. S e e H

. R

. H

. M e t a l s

, 8 3 3 S o

. 2 d a t 2 4 ; A i r l i n e s

R e p o r t i n g

, 6 4 3 S o

. 2 d a t 9 5 4

. F u r t h e r m o r e

, C o o k

, a s a s h a r e h o l d e r

, c o u l d n o t

m a i n t a i n a n a c t i o n t o r e d r e s s i n j u r i e s t o W o r m S h a c k b a s e d o n d i m i n u t i o n o f

W o r m S h a c k ’ s v a l u e a s a r e s u l t o f t h e f i r e

. S e e S t e v e n s

, 6 4 3 F

. 2 d a t 1 0 8 0

.

I n s u m

, w e c o n c l u d e t h a t C o o k l a c k e d s t a n d i n g

, i n d i v i d u a l l y

, t o e i t h e r c l a i m

e n t i t l e m e n t t o i n s u r a n c e p r o c e e d s h i m s e l f o r c h a l l e n g e T r i n i t y ’ s d e n i a l o f W o r m

S h a c k ’ s c l a i m a s a b r e a c h o f c o n t r a c t

. M o r e o v e r

, b e c a u s e C o o k c o u l d n o t s h o w

t h a t h e w a s e n t i t l e d t o p r e v a i l o n t h e u n d e r l y i n g c o n t r a c t c l a i m

, h e w a s a l s o b a r r e d

f r o m r e c o v e r i n g o n a b a d f a i t h r e f u s a l t o p a y c l a i m

, a s a m a t t e r o f l a w

. S e e N a t ’ l

S a v

. L i f e I n s

. C o

. v

. D u t t o n

, 4 1 9 S o

. 2 d 1 3 5 7

, 1 3 6 1

- 6 2 ( A l a

. 1 9 8 2 ) ( h o l d i n g t h a t

“ a n i n s u r a n c e c o n t r a c t b e t w e e n t h e p a r t i e s a n d a b r e a c h t h e r e o f b y t h e d e f e n d a n t ”

i s a n e l e m e n t o f a “ b a d f a i t h r e f u s a l ” c l a i m )

.

A c c o r d i n g l y

, w e a f

f i r m t h e e n t r y o f s u m m a r y j u d g m e n t a g a i n s t W o r m S h a c k

a n d d i s m i s s t h e a p p e a l a s t o C o o k

.

A F F I R M E D I N P A R T

, D I S M I S S E D I N P A R T

.

7