United States District Court, S.D. California
ORDER GRANTING DEFENDANT SEALFIT'S MOTION TO
STAY, [ECF No. 15]
Hon.
Gonzalo P. Curiel United States District Judge
Before
the Court is Defendant SEALFIT, Inc.'s
(“Defendant” or “Sealfit”) motion to
stay proceedings. ECF No. 15. Plaintiff Philadelphia
Insurance Company (“Plaintiff” or
“Philadelphia”) filed an opposition on November
15, 2019. ECF No. 20. Sealfit filed a reply on November 27,
2019. ECF No. 21.
FACTUAL
BACKGROUND
Philadelphia
issued an insurance policy to Sealfit effective July 1, 2016
to July 1, 2017 (the “Policy”). ECF No. 1
(“Compl.”) ¶ 11. On September 25, 2018, a
complaint was filed in San Diego Superior Court
(“Wrongful Death Action”) against Sealfit
alleging that Kirk Deligiannis died on September 25, 2016 as
a result of Sealfit's negligence. Deligiannis
participated in a multi-day, 50-hour strenuous fitness event,
which was organized and promoted by Sealfit. The plaintiffs
in the Wrongful Death Action allege the following:
Towards the end of the event, Defendants recognized that the
decedent was suffering and had become pale. They then removed
him from the training. For some inexplicable reason,
Defendants were grossly negligent in allowing decedent to
return to the strenuous training after recognizing he was in
a perilous medical condition. Additionally, Defendants had
promised to monitor his nutrition and intake and grossly
failed to do so resulting in a major decline in his blood
sugar levels. Shortly thereafter, decedent collapsed, and
without an AED or emergency medical care for at least 16
minutes, died.”
ECF No. 20 at 18.[1] Philadelphia agreed to defend Sealfit
against the Wrongful Death Action under reservation of rights
on June 13, 2019. Compl. ¶ 10. On July 25, 2019,
Philadelphia filed a complaint in this Court seeking entry of
a judicial declaration that Philadelphia has no duty to
either defend or indemnify Sealfit in the Wrongful Death
Action since there was no actual coverage under the Policy
for all or part of the Wrongful Death Action.[2]
A.
The Policy
The
Policy provides Sealfit commercial general liability
coverage, under which Philadelphia agrees to pay damages
because of “bodily injury” caused by an
“occurrence” which occurs during the policy
period. ECF No. 20 at 5. The Policy also contains a
Participant Legal Liability - Accident Medical Warranty
Endorsement (“Endorsement”), which states:
Catastrophic Medical Insurance
Limits no less than: $25, 000
Specified Athletic Activity: All
A. In order for there to be coverage for “bodily
injury” to “player participants, ”
hereafter referred to as “Participant Legal
Liability” coverage under this policy, Catastrophic
Medical Insurance for the specified athletic activity and at
no less than the limit shown in the Schedule above must be in
full force and effect at the time of the
“occurrence” giving rise to a claim under this
policy. Failure to maintain coverage on all “player
participants” in the Specified Athletic Activity shown
in the Schedule above will fully void “participant
legal liability” coverage with respect to any
“player participants.”
B. For purposes of this endorsement, it is understood and
agreed that “player participant” means any
individual while practicing for or participating in a ...