Source: https://www.scribd.com/document/321206662/Breton-LLC-v-Graphic-Arts-Mutual-Insurance-4th-Cir-2011
Timestamp: 2019-04-21 00:23:44+00:00

Document:
Before KING, SHEDD, and WYNN, Circuit Judges.
the majority opinion, in which Judge King joined.
Silver, SILVER & BROWN, Fairfax, Virginia, for Appellee/CrossAppellants.
and the movant is entitled to judgment as a matter of law.
issued by Graphic Arts Mutual Insurance Co. (Graphic Arts).
of Breton and remand for further proceedings.
protective devices or services listed in the Schedule above.
control, in complete working order.
the case of death of an individual named insured.
(d) Pumps and private fire protection mains.
(b) Hydrants, standpipes and outlets.
of the . . . fire marshal . . . .
On December 2, 2007, a fire destroyed the warehouse.
insurance contract and barred coverage.
Arts was obligated to provide coverage under the policy.
constituted a breach of the insurance contract.
Rights and Duties provision justified denying coverage.
motion for summary judgment on November 10, 2009.
context of the insurance policy.
did not apply to bar coverage.
interpreting control to mean physical control.
the district court held that the exclusion was inapplicable.
contractual duties to Ragan, barred coverage.
for Bretons lost business income.
687, 693 (4th Cir. 2007).
might affect the outcome of the suit under the governing law.
See Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S.
of the State in which the federal court is located); Buchanan v.
controls issue as to its coverage.).
Opening Brief of Appellant at 22.
are susceptible of such construction.
Hill v. State Farm Mut.
Auto Ins., 237 Va. 148, 152, 375 S.E.2d 727, 729 (1989).
Va. 498, 502, 423 S.E.2d 188, 191 (1992).
ambiguous the terms are construed against the insurer.
constituting the condition precedent was ambiguous.
Salzi v. Virginia Farm Bureau Mut.
is not susceptible to more than one meaning.
Assoc., Inc., v. Fed. Ins. Co., 141 F.3d 500, 502 (4th Cir.
Salzi, 263 Va. at 55-56, 556 S.E.2d at 760.
2. To continue in possession of (property, etc.).
keep in continuance or in a certain state, as of repair . . . 5.
to support by supplying what is needed.
Dictionary 363 (Warner Books ed. 1987).
186 Va. 1012, 1020, 45 S.E.2d 313, 317 (1947).
policy, we conclude that maintain is ambiguous here.
exclusion from coverage, which we discuss below.
See Gates, 141 F.3d at 502-03.
contends stem from the duty to maintain.
revealed during an inspection must be repaired.
language of an insurance policy.
order to satisfy the condition precedent.
our application of this definition.
meaning of maintain in the condition placed on coverage.
Breton satisfied the condition placed on coverage.
except in the case of death of an individual named insured.
maintain the warehouse to another.
imposed a maintenance duty on the tenant.
maintenance duty to Graphic Arts.
the transfer of a duty owed by Breton to Graphic Arts.
contracts Transfer of Rights and Duties provision.
the Protective Safeguards endorsement operates to bar coverage.
Walton, 244 Va. at 502, 423 S.E.2d at 191.
had control over the protective safeguard in question.
legal control or physical control.
manage, direct, or oversee . . . .
of controlling; check 3. an apparatus to regulate a mechanism.
manage, direct, or regulate an object or entity.
the legal power to do so.
established through physical power over an object.
See Bell v. Commonwealth, 21 Va. App.
to vehicle in which contraband was found); but see Overbee v.
thereto); United States v. Jackson, 529 F. Supp. 1047, 1050 (D.
(analyzing language of 18 U.S.C. 2251A(b)(2)).
have legal power over an object or entity (i.e. legal control).
person, family unit, [or] partnership.) (quoting 29 C.F.R.
ownership paper indicates lack of control) (emphasis added).
the exercise of physical control and legal control.
the funds, even if he retained physical control over them.).
must construe it liberally in favor of the insured.
Va. at 197, 129 S.E.2d at 655.
insureds ownership of the premises.
176 Va. 182, 188-89, 10 S.E.2d 518, 520 (1940).
insureds physical control over the Automatic Sprinkler System.
material fact necessary to the resolution of this case.
Anderson, 477 U.S. at 248.
dispute, summary judgment is inappropriate.
were located within the warehouse in a Sprinkler Room.
warehouse and did not provide Breton with keys.
only Ragan had physical access to the Sprinkler Room.
Breton had control of the sprinkler system.
keys nor access to the Sprinkler Room.
Ragan, had the keys to the Sprinkler Room.
to maintain the system in complete working order.
then it had no such duty.
respect to which no such duty existed.
meaning must be given to every clause [in a contract].).
resulting contractual ambiguity to the detriment of Breton.
material factual dispute, summary judgment is inappropriate.
establish that there were no genuine disputes of material fact.
we need not address this argument.
for reasons different than the majority.
Corp. v. St. Paul Mercury Ins. Co., 407 F.3d 631, 640 (4th Cir.
can be given to it.).
reminding Breton to have the system inspected. J.A. 2017-21.
sprinkler system whether it worked or not - in place.
the sprinkler system had to be in working order.
well as to make any alterations and repairs . . . . J.A. 1003.
was therefore obligated to keep the system in working order.
resolution of that narrow issue.

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