FIL ED U.S. COURT OF APPEAL S EL EVENTHCI RCUI T J ANUARY 6, 2010 J OHN P. L EY ACTI NG CL ERK [DO NOT PUBLISH] IN THE UN ITED STATES COURT OF APPEALS FOR THE ELE VENTH CIRCUIT

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__ __ __ __ __ __ __ __ __ __ __ __ D. C. Dock etNo. 0 8- 02 23 6- CV-WSD-1 AA ACTION, INC., d.b .a. Can dl er-S m ith Hi st or ic W areh ou se Dis tri ct , Pl ai nt iff -Ap pe ll an t, ve rs us TRANSCONTINENTAL INSURANCE COMPANY, Defen da nt -Ap pe ll ee.

__ __ __ __ __ __ __ __ __ __ __ __ App eal fro m

th e Uni te d S ta te s Di st ric t Co urt fo r th e North ernDis tri ctof Ge or gi a

__ __ __ __ __ __ __ __ __ __ __ __ _ (J anua ry 6, 2 01 0) Befo re BLACK, PRYOR an d ANDERSON, Ci rcu itJu dg es . PER CURI AM:Thi s ca se is anin suran ce d is pu te ari si ng fro m a wro ng fu l d eath s ettl em en t reac he d a fte r a fi re k il le d thr ee i nd iv idua ls ina st or ag e uni t m an ag edby Plai nt iff AA Acti on , Inc . (“ AA Acti on ”). The o wne r of th e st or ag e uni t, Ca nd le r W areh ou se s, LLC, h ada co m m erci al ge ne ral li ab il ity

in suran ce p ol ic y

fro m Adm ira l In su ran ce Co m

pa ny (“ Adm ira l Po li cy ”). The Adm ira l Po li cy in de m ni fie d Can dl er an d AA Act io n fo r $1 m il li on of t he $3 .25 mil li on set tl em en t am ou nt . AA Acti on is anin su redun de r a Tran sc on ti ne nt al in su ran ce p ol ic y pro vi di ng bu si ne ss li ab il ity

co ve rag e an d u m

br el laco ve rag e. Purs uantto th atpo li cy , AA Acti on cla im s t o b e en ti tl edto in de m ni ty from Tran sc on ti ne nt al forad di ti on al am ou nt s p ai d i n t he set tl em en t. Tran sc on ti ne nt al cla im s tha t i t i s n otres po ns ib le fo r de fen se an d i nd em

ni ty aris in g fr om

th e se tt le m en t b ecau se th e lo cat io n wh ere th e fi re o ccu rredwas n oton e o f th e “ de si gn at edpre m is es ” co ve redby the Tran sc on ti ne nt al Po li cy . The d is tri ctco urt g ran te d Tra ns co nt in en ta l’s m ot io n fo r su m m ary jud gm en t, h ol di ng th atth e in su ran ce co nt ractis no t am bi gu ou s, an d t ha t th e te rm s d o n otpro vi de co ve rag e fo r th e d am ag e AA Acti on all eg es . W e ag ree.

“ W e rev ie w th e g ran t o f su m m ary jud gm en t d e n ov o, co ns id eri ng all ev id en ce an d re as on ab le in fere nc es dra wn the refr om inth e li gh t m os t fa vo rab le to th e n on -m ov an t.” Water s v . Mil le r, 56 4 F .3d13 55 , 13 56 (11 th Cir . 20 09 ). “ Wha t a co nt ractpro vi si on m ean s, o r whe th er i t i s ambig uo us , are que st io ns of l aw we 2rev ie w de n ov o.” All ap at ta h S erv s. In c. v. Ex xo n C or p., 3 33 F.3d12 48 , 12 61 (1 1t h C ir. 2 00 3) . W e ap pl y Geor gi a co nt ractlaw t o d et erm in e th e sc op e o f co ve rag e und er an in su ran ce p ol ic y . See Ferrero v. As so ci at edMat eri al s, In c., 92 3 F .2d14 41 , 14 44 (1 1t h C ir. 1 99 1) . “ Eve ry in su ran ce co nt ractsh al l b e co ns tru edacco rd in g t o t he en ti rety of i ts term s an d c on di ti on s as setforth inth e p ol ic y an d a s ampli fie d, ex te nd ed , or m od ifi edby any rid er, en do rs em en t, o r ap pl ic at io n m ad e a p artof t he po li cy .” Gul f St at es Und erwri te rs of La., In c. v. Be nn et t, 2 60 Ga. App . 69 9, 7 03 , 58 0 S .E.2d55 0 (2 00 3) . “ Any reaso nabl e d oubtas t o u nc ert ai n l an gu ag e wil l b e res ol ve d a ga in stth e in su rer.” Nati on wid e Mu t. Fi re In s. Co . v. Co ll in s, 1 36 Ga. App . 67 1, 6 76 , 22 2 S .E.2d82 8 (1 97 5) . AA Acti on advanc es two ba se s fo r it s ar gu m en t tha t i t i s en ti tl edto co ve rag e und er i ts Tran sc on ti ne nt al Ins ur an ce Po li cy forth e wro ng fu l d eath se tt le m en t. Fi rs t, i t ar gu es th atth e Lim it at io n o f Co ve rag e to de si gn at edPrem is es orPro ject En do rs em en t i n t he Bu si ne ss own ers Liab il ity Co ve rag e Po li cy

is am bi gu ou s an d m

us t b e co ns tru edinfav orof AA Act io n. Se co nd , itarg ue s tha t th e Um br el laCo ve rag e End or se m en t i s ambig uo us an d m us t b e co ns tru edinfav or of AA Acti on . The C ert ifi cat e o f Pro pe rty andLiab il ity Ins ur an ce i n t he Bu si ne ss own ers 3Liab il ity

Co ve rag e Po li cy

sp eci fie s tha t the lo cat io ns co ve redby the Po li cy are co nt ai ne d i n S up pl em en ta l Ce rti fic at e p ag es . The Po li cy co nt ai ns fiv e su chpa ge s, each of wh ic h l is ts a se pa rat e ad dr es s. Altho ug h i t i s s om ewh atdi ffi cu ltto 1 un ta ng le th e Po li cy

gi ve n t he nu m

be r of di st in ctform s an d the rou nd ab ou t m an ne r in whi chth e fo rm s re fer t o o ne an othe r, th ere i s n o d oubtth atth e Certi fic at e o f Pro pe rty andLiab il ity

Ins ur an ce an d t he Supp le m en ta l Ce rti fic at e p ag es are p art s of th e Tran sc on ti ne nt al Po li cy . Und er the rul es of c on tra ctco ns tru ct io n, we m us t readth e Po li cy

as awho le an d c on st ru e it“ in a m an ne r th atgi ve s ef fectto all of th e co nt ractua l t erm s.” B oardm anPetro le um Inc ., v. Fed erat edMu t. In s. Co ., 49 8 S.E.2d49 2, 4 94 (Ga. 19 98 ). In c on tra ve nt io n o f th is rul e, AA Acti on ’s in te rp ret at io n o f th e co nt ractwou ldren de r m ean in gl es s the Supp le m en ta l Cert ifi cat e p ag es refe rredto by the Cert ifi cat e o f Pro pe rty andLiab il ity Ins ur an ce. Rea d i n c on

jun ct io n wi th th e res t o f th e Po li cy , th e Certi fic at e o f Pro pe rty and Liab il ity Ins ur an ce an d S up pl em en ta l Ce rti fic at e p ag es cle arl y li m itco ve rag e to th e fi ve li st edlo cat io ns . Non e o f th es e is 67 5 M etro po li ta n P kwy #50 36 , Atl an ta , GA 30 36 0, the lo cat io n wh ere t he fir e o ccu rred . There fo re, we ag ree wi th th e 2 Thre e o f th es e p ag es are m ark ed“ DELET ED.” 1 AA Ac tion also argues that the policy shows its maili ngaddre ss as 675 2 Metropolitan Pkwy

#D-1000. AAAction argues that we should infer that the policy is at least ambiguous as to the cove rag e of that addre ss. Even if ther e we re a mbiguity as to cove rag e of that addre ss, the fire oc curr ed at a differ ent addr ess–i.e. 675 Metropolitan Pkwy #5036. 4di st ric t co urt tha t the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy

do es no t ex te ndto co ve r th e wro ng fu l d eath s et tl em en t. AA Acti on alt ern at iv el y

see ks co ve rag e und er the Um br el laCo ve rag e End or se m en t, ar gu in g t ha t the sco pe of t he um br el laco ve rag e is am

bi gu ou s an d it s p ro vi si on s s ho ul d b e rea d i n fa vo r of AA Acti on . By

it s o wn t erm s, the Um br el laCo ve rag e End or se m en t i s i nt en de d t o m od ify the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy , no t t o s ta ndon it s o wn as a se pa rat e p ol ic y . There fo re, ex cep t wh ere s uc h p ro vi si on s ar e am en de d b y th e te rm s o f th e Um

br el laCo ve rag e End or se m en t, the pro vi si on s o f th e Bu si ne ss own ers Liab il ity Co ve rag e Po li cy rem ai n i n fo rce wi th reg ardto th atPo li cy an d app ly to the “um

br el laco ve rag e” as well . The re i s n o l an gu ag e in th e Um br el laCo ve rag e End or se m en t m od ifyin g t he lo cat io ns sp eci fie d i n t he Bu si ne ss own ers Liab il ity Co ve rag e Po li cy

di sc us se d ab ov e. Becaus e th e Um

br el laCo ve rag e End or se m en t d oe s n otsp eci fy a

“ co ve rag e te rri to ry ” d is ti nc t fr om th e “ co ve rag e te rri to ry ” d efi ne d i n the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy , itis cle ar tha t “ co ve rag e te rri to ry ” in th e Um br el laCo ve rag e End or se m en t co ns is ts of the fiv e lo cat io ns sp eci fie d i n t he Bu si ne ss own ers Liab il ity Co ve rag e Po li cy . AA Acti on arg ue s tha t the Adm ira l Po li cy co ns ti tu te s “ un sc he du le d 5un de rlyin g i ns ur an ce” t rig ge rin g c ov erag e und er the Um br el laCo ve rag e End or se m en t. The po rti on of the Um br el laCo ve rag e End or se m en t atis su e rea ds : 3. We sh al l o nl y

be li ab le forth e “ul ti m at e n etlo ss ” in ex ces s o f: a. The ap pl ic ab le li m it s o f “ sc he du le d u nd erl y in g in su ran ce” a s s ho wn i n the Um br el laPo rti on of the Decl arat io ns for“ in ci de nt s” co ve redby “ sc he du le d un de rlyin g i ns ur an ce,” p lu s the li m it s o f any un sc he du le d u nd erl y in g i ns ur an ce” wh ic h a ls o p ro vi de s co ve rag e fo r su ch“ in ci de nt s.” b. The "u ns ch edul edun de rlyin g i ns ur an ce" or the "ret ai ne d li m it ," wh ic he ve r is gre at er, fo r "i nc id en ts " co ve redby "u ns ch edul edun de rlyin g i ns ur an ce" an d b y th is po li cy on ly; or c. The “ ret ai ne d l im it ” fo r “ in ci de nt s” co ve redby thi s po li cy on ly; bu t o nl y up to th e am ou ntof o urli m it s as sh own inth e Um br el laPo rti on of t he Decl arat io ns be cau se of asi ng le “ in ci de nt .” Thi s l an gu ag e is in cl ud edin“ Sect io n D: Lim it s o f In su ran ce.” Th atlan gu ag e m erel y li m it s the am ou ntto be pa idun de r th e u m br el laco ve rag e; itdo es no t ex pa ndco ve rag e to ev en ts tri gg eredby uns ch edul edin su ran ce. The pro vi si on s rel at edto “un sc he du le d u nd erl y in g i ns ur an ce” e xp la inth atTran sc on ti ne nt al can on ly be h el d l iabl e fo r lo ss es inex ces s o f lo ss es co ve redby oth er i ns ur an ce. The sc en ari o i n wh ic h t hi s p ro vi si on wou ldbe ne ces sa ry is on e inwhi chanin ci de nt

6tri gg ers co ve rag e und er b ot h the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy

an d an ot he r in su ran ce p ol ic y

no t s pe ci fic al ly con te m

pl at edinth e Um

br el laCo ve rag e End or se m en t s ch edul e o f in su ran ce. The pro vi si on m ak es cle ar tha t, i n t ha t sc en ari o, Tran sc on ti ne nt al is on ly liab le un de r th e u m br el laco ve rag e fo r an y am ou ntex ceed in g wh atis co ve redby the ot he r po li ci es . The p ro vi si on do es no t, co nt rary to AA Act io n’s as se rti on , ext en d t he Um br el laCo ve rag e End or se m en t t o co ve r in ci de nt s n otothe rwis e co ve redun de r th e Bu si ne ss own ers Liab il ity Co ve rag e Po li cy . 3 AA Acti on arg ue s ag ai ns t thi s re ad in g o f th e ab ov e-quo te d l an gu ag e, cl ai min g t ha t Se ct io n 3 (b ) co nt em pl at es a sc en ari o i n wh ic h t he Um br el la Co ve rag e End or se m en t ap pl ie s t o acla im foranin ci de ntth atis no t co ve redby

“ sc he du le d u nd erl y in g i ns ur an ce” –i.e. the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy . W e d is ag ree. Se ct io n 3 (b ) ex pr es sl y ap pl ie s o nl y

wher e an“ in ci de nt ” is co ve redby uns ch edul edun de rlyin g i ns ur an ce “ an d b y th is po li cy .” An “ in ci de nt ” is on ly cov ered“by thi s p ol ic y ”– i.e. the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy as m od ifi edby the Um

br el laCo ve rag e End or se m en t– if i t o ccu rredwithi n t he co ve rag e te rri to ry

sp eci fie d i n the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy . The

Be cause AA Ac tion’s claim is not covere d by the Tra nscontinental Policy , AA 3 Action is not entitled to an awa rd base d on Transc ontinental’s alleg ed bad f aith. 7“ in ci de nt ” atis su e h ere d idno t o ccu r withi n the sp eci fie d c ov erag e te rri to ry , and

th eref or e itco ul d n othave tri gg eredco ve rag e und er the Um br el laCo ve rag e End or se m en t. W e h ol d t ha t n ei th er the Bu si ne ss own ers Liab il ity Co ve rag e Po li cy

no r th e Um br el laCo ve rag e End or se m en t p ro vi de s co ve rag e fo r th e uni nd em ni fie d p orti on of th e wro ng fu l d eath s ettl em en t p ai d b y AA Acti on . Accor di ng ly, we affi rm th e di st ric t co urt’s g ran t o f su m m ary jud gm en t i n fa vo r of Tran sc on ti ne nt al . AFFIRMED. 4

The pa rties’ re quest for or al argument is denied. 4 8