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Janusz Golasiewski v. Waste Management of Pennsylvania

May 27, 2011

JANUSZ GOLASIEWSKI, PLAINTIFF,
v.
WASTE MANAGEMENT OF PENNSYLVANIA, INC. AND
WB SERVICES, INC., DEFENDANTS. WASTE MANAGEMENT OF PENNSYLVANIA, INC., THIRD-PARTY PLAINTIFF,
v.
WB SERVICES, INC., LU TRANSPORT, INC., DELOS INSURANCE COMPANY,
LEXINGTON INSURANCE COMPANY,
NATIONAL UNION FIRE INSURANCE COMPANY AND
INVINCIA CORPORATION D/B/A INVINCIA INSURANCE SOLUTIONS, THIRD-PARTY DEFENDANTS.



The opinion of the court was delivered by: Gold, S., U.S.M.J.:

MEMORANDUM & ORDER

BACKGROUND

Plaintiff, Janusz Golasiewski, brings this lawsuit against Waste Management of Pennsylvania, Inc. ("Waste Management") in connection with injuries Golasiewski sustained at a solid waste transfer station. Pending before the Court is a motion filed by third-party defendant National Union Fire Insurance Company ("National Union") seeking to dismiss defendant Waste Management's third-party claims against it pursuant to Federal Rule of Civil Procedure 12(b)(6).

The parties have consented to have me decide this motion pursuant to 28 U.S.C. § 636 and to enter a final dispositive order. Docket Entries 80-81. For the following reasons, National Union's motion is granted.

FACTS

Waste Management is a Pennsylvania corporation in the business of providing solid waste transportation services. Waste Management's Third-Party Compl. ("Third-Party Compl.")

¶ 1, Ex. C Whereas Cl. On September 8, 2005 Waste Management entered into a Transportation Service Agreement ("the Service Contract") with WB Services, Inc. ("WB"), another Pennsylvania corporation. Third Party Compl. ¶¶ 2, 20, Ex. C. Under the Service Contract, WB agreed to transport waste from the Forge Transfer Station, a waste transfer station located in Philadelphia, Pennsylvania that Waste Management operates. Third-Party Compl. ¶ 20, Ex. C §§ 1(D), 2(A). The Service Contract requires WB to indemnify Waste Management against any damages arising from any personal injury suffered at the Forge Transfer Station, including injuries suffered by employees of WB. Third-Party Compl. ¶ 27, Ex C. § 16(B).

In addition, the Service Contract obligates WB to obtain certain insurance coverage, including workers compensation, employer's liability, and general liability, and to name Waste Management as an additional insured under its coverage. Third-Party Compl. ¶ 26, Ex. C § 15. To evidence compliance, WB is required to deliver a certificate of insurance naming Waste Management as an additional insured before performing its waste transportation duties. Id. The Service Contract permits WB to hire subcontractors and obligates WB's subcontractors to comply with the terms and conditions of the Service Contract, including its insurance and indemnification provisions. Third-Party Compl. ¶ 30, Ex. C §§ 15-16, 20. WB subcontracted its waste transportation responsibilities to LU Transport, Inc., ("LU") an Illinois corporation. Third-Party Compl. ¶¶ 5, 31.

Both WB and LU retained Invincia Corporation ("Invincia") to obtain the insurance coverage required under the Service Contract. Third-Party Compl. ¶¶ 26, 31. Invincia procured workers compensation and employer's liability coverage from the National Union Fire Insurance Company ("National Union"), general liability coverage from Delos Insurance Company ("Delos"), and excess umbrella coverage from the Lexington Insurance Company ("Lexington"). Third-Party Compl. ¶¶ 28, 85, 94, 103. On June 12, 2008 Invincia produced certificates of insurance with respect to both WB's and LU's policies. Third-Party Compl. Ex D. The certificates indicate that the insurance coverage is effective from June 16, 2008 through June 16, 2009. Id. Both certificates list "Waste Management" as an additional insured for Auto Liability and General Liability. In addition, the certificates of insurance recite the following in capital lettering:

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

Id. On the reverse side, both certificates of insurance state, "If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s)." Id.

On December 5, 2008, Golasiewski sustained injuries at the Forge Transfer Station operated by Waste Management. Third-Party Compl. ¶ 12. On October 26, 2009, Golasiewski filed suit in the Supreme Court of New York, Kings County alleging that Waste Management's negligent supervision over the Forge Transfer Station caused his injuries. Third-Party Compl. ¶ 12, Ex. A. Waste Management then removed this case to federal court. Docket Entry 4.

On July 8, 2010, Waste Management filed a third-party complaint asserting claims against WB, LU, Invincia, National Union, Delos and Lexington. Docket Entry 22. Waste Management's third-party complaint alleges that LU and WB are related entities and that Golasiewski was acting within the scope of his employment at the time he was injured. Third-Party Compl. ΒΆΒΆ 16-19, 23-24. With respect to National Union, Waste Management seeks a declaratory judgment that National Union is obligated to defend and indemnify ...


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