In Southern Surgery Center, LLC v. Fidelity and Guaranty Ins. Co., 2008 U.S. Dist. LEXIS 79971 (S. D. Miss., Oct. 8, 2008), United States Fidelity and Guaranty Company ("USF&G") insured a building owned by Southern Development Resources, LLC ("SDR"). A different insurer, Fidelity and Guaranty Insurance Company, insured two other companies related to SDR. USF&G was identified in the policies issued to the related companies. The issue in this case was whether USF&G must insure under these policies merely by being named in the policies?
SDR made claims to USF&G for damage to the building and insured premises caused by Hurricane Katrina. USF&G ultimately compensated for all of these claims, minus deductibles. USF&G denied claims, however, based on losses to the related companies. SDR sued, arguing that because USF&G was identified in the policies issued to the related companies, it was a party to those contracts.
The District Court disagreed. A review of the policies indicated USF&G issued one policy to SDR. The declarations page on this policy stated, "Your Insurance Company is United States Fidelity & Guaranty." On the other hand, the declaration pages for the two related companies stated, "Your Insurance Company is Fidelity and Guaranty Insurance Company." Merely because USF&G was listed on a page of the form policy separate from the declaration pages did not mean USF&G was also insuring the related companies when USF&G was clearly not designated as their insurer. Therefore, USF&G's motion for summary judgment was granted.
