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McGregor v. Columbia Nat'l Ins. Co.

The trial court did not err in ruling that the general liability policies at issue did not provide coverage for the plaintiffs' claims, since the parties' agreement specifically set forth that the insurer did not admit to an advertising injury, which would be covered under its general liability policy.

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This case arises out of a federal lawsuit filed by William J. McGregor, Cheryl McGregor, Ralph Destito, Marie Destito, Joseph J. Destito, Philip Dipaolo, III, Linda W. Dipaolo, Judy Watkins, Joseph Hutchings, Judy Hutchings, Robert Morrison, James Matthew, Frank Drozd, Pamela Drozd, Thomas Wescott, Joanne Wescott, and Bernard J. Kunes II collectively “McGregor” against J. Scott Eskind, Lorus Investments, Inc., and Capital Management Fund, L.P. collectively “Eskind”. McGregor, Eskind, and Eskind’s insurer, Columbia National Insurance Company “Columbia” entered into a settlement agreement, and McGregor subsequently filed the instant action, seeking to recover the amount of the judgment against Columbia. The parties filed cross-motions for summary judgment, and the trial court ruled in favor of Columbia, finding that the relevant policies did not provide coverage for McGregor’s claims. McGregor appeals from this order, and we affirm, finding no error. A trial court properly grants summary judgment where the evidence, viewed in the light most favorable to the nonmovant, demonstrates that there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law.1 When reviewing the grant or denial of a motion for summary judgment, this Court conducts a de novo review of the law and the evidence.2

So viewed, the evidence shows that McGregor invested approximately $2.2 million with Eskind. Thereafter, on July 10, 2003, McGregor filed suit against Eskind in federal court, asserting various tort claims including, inter alia, negligent misrepresentation, fraudulent misconduct, and false advertising.3

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