HOUSTON – An insurance company is suing another insurance company and is seeking declaratory relief surrounding an underlying state court action in an incident in an apartment complex.
Scottsdale Insurance Co. filed a lawsuit Feb. 2 in the U.S. District Court for the Houston Division of the Southern District of Texas against Steadfast Insurance Co. The action is based on events in and surrounding an underlying state court action titled William Aguilar, as Next Friend of Jack Aguilar, a Minor v. 214-7 CVP Holdings LLC, et al.
According to the complaint, Jack Aguilar was found unresponsive at the bottom of the pool at CityView Place Apartments on or about April 7, 2011. William Aguilar sued based on negligence, the suit states, and CVP Holdings was sued as the owner of CityView. Kaplan Management Co. was also sued as the property manager, the suit states. According to the complaint, Scottsdale insured CVP with a general liability policy while Steadfast insured Kaplan with a commercial general liability policy.
The suit states that in spite of numerous demands, Steadfast refused to participate in the defense. The underlying suit was settled with Scottsdale paying the sum of $2 million, the suit states. Scottsdale alleges that Steadfast breached its duty to defend the underlying defendants.
Scottsdale demands judgment through the court that declares Steadfast had a duty to defend the underlying defendant and is subrogated to the rights of the underlying defendants, and should share the defense and settlement costs. Gregory R. Ave and Steven R. Shattuck, both of Dallas, are representing the plaintiff.
Houston Division of the Southern District of Texas Case number 4:16-cv-00273