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Coleman Cable, Inc. v. Travelers Indem. Co.

Coleman Cable, Inc. v. Travelers Indem. Co.

United States District Court for the Northern District of Illinois, Eastern Division

May 13, 2011, Decided; May 13, 2011, Filed

No. 08-cv-5687

Opinion

 [*744]  MEMORANDUM OPINION AND ORDER

MARVIN E. ASPEN, District Judge:

Plaintiff Coleman Cable, Inc. ("Coleman") seeks payment from either Federal Insurance Company ("Federal") or The Travelers Indemnity Company ("Travelers") pursuant to two separate insurance agreements. Coleman's claims relate to the alleged theft of 904,470 pounds of copper wire, valued at $2,053,146.90, from its production facility in Miami Lakes, Florida. Subject to certain exclusions and limitations, Coleman's policy with Federal covers property loss due to employee theft, whereas Coleman's policy with Travelers covers property loss due to non-employee theft. Both Federal and Travelers move for summary judgment. Federal's motion is denied, and Travelers' motion is granted.

I. FACTUAL OVERVIEW

Coleman is a Delaware corporation headquartered in Illinois  [**2] that produces wire and cable products. (Travelers' Statement of Undisputed Facts ("TSUF") ¶ 1.) Federal is an Indiana corporation headquartered in New Jersey that sells insurance. (Federal's Statement of Undisputed Facts ("FSUF") ¶ 2.) Travelers is a Connecticut corporation headquartered in Connecticut that also sells insurance. (TSUF ¶ 2.) In 2005, Coleman maintained separate insurance policies with Federal and Travelers covering property loss due to different types of theft. (Id. ¶ 15; FSUF ¶ 24.)

At that time, Coleman operated six production facilities around the United States, including one in Miami Lakes, Florida that produced extension cords and battery booster cables. (Coleman's Response to Federal's Statement of Undisputed Facts and Statement of Additional Facts ("R-FSUF") ¶¶ 50—51.) The primary raw material used in production at Coleman's Miami Lakes facility was copper wire. (Id. ¶ 53.) There is no dispute that Coleman had some copper wire stolen from this facility in 2005. (TSUF ¶ 23; FSUF ¶ 15.) What is disputed is whether Federal, Travelers, or neither is obligated to pay Coleman and, if so, how much.

A. The Federal Policy

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790 F. Supp. 2d 742 *; 2011 U.S. Dist. LEXIS 51343 **

COLEMAN CABLE, INC., a Delaware corporation, Plaintiff, v. THE TRAVELERS INDEMNITY CO., a Connecticut corporation, and FEDERAL INSURANCE CO., an Indiana corporation, Defendants.

CORE TERMS

theft, inventory, surveillance, copper wire, Lakes, employees, thief, insured, reels, loading, involvement, summary judgment, door, surveillance camera, attempted theft, discrepancy, forklift, thieves, truck, summary judgment motion, recorded, video, insurance company, forklift-operating, argues, copper, reasonable jury, property loss, occurrence, cameras

Civil Procedure, Judgments, Summary Judgment, Evidentiary Considerations, Burdens of Proof, General Overview, Entitlement as Matter of Law, Supporting Materials, Insurance Law, Fidelity Insurance, Financial Institution Bonds, Employee Dishonesty & Fraud, Business Insurance, Claim, Contract & Practice Issues, Policy Interpretation, Evidence, Allocation, Proof Requirements