United States District Court, W.D. Washington, Tacoma
ORDER GRANTING DEFENDANT'S MOTION TO
BENJAMIN H. SETTLE United States District Judge.
matter comes before the Court on Defendant Westchester Fire
Insurance Company's (“Westchester”) motion to
dismiss. Dkt. 12. The Court has considered the pleadings
filed in support of and in opposition to the motion and the
remainder of the file and hereby grants the motion for the
reasons stated herein.
December 18, 2018, Plaintiffs Tidewater Barge Lines, Inc.,
Tidewater Environmental Services, Inc., and Tidewater
Holdings, Inc. (collectively “Tidewater”) filed a
complaint against Westchester asserting claims for breach of
contract and declaratory judgment. Dkt. 1.
February 22, 2019, Westchester filed a motion to dismiss.
Dkt. 12. On March 18, 2019, Tidewater responded. Dkt. 13. On
March 22, 2019, Westchester replied. Dkt. 16.
all of the facts in this matter are undisputed, and the
parties' dispute essentially boils down to the
interpretation of their insurance contract. Westchester
issued Tidewater a corporate indemnity package effective
October 1, 2017, through October 1, 2018. Dkt. 14, Ex. A
(“Policy”). Tidewater cites three relevant
coverage provisions: (1) computer fraud coverage, (2) claim
investigation expense coverage, and
supplemental funds transfer coverage. First, the computer
fraud coverage provision provides as follows:
The Insurer will pay for loss of or damage to Money,
Securities and Other Property resulting directly from the use
of any computer to fraudulently cause a transfer of that
property from inside the Premises or Banking Premises:
a) To a person (other than a Messenger) outside those
b) To a place outside those Premises.
Id. at 19 (emphasis omitted) (ECF pagination).
Second, the claims investigation coverage provision provides
The Insurer will pay the reasonable and necessary costs, fees
or other expenses incurred in excess of the deductible amount
of $5, 000 and paid by the Company to an independent
accounting, auditing or other service used to determine the
amount of loss occurring from a valid and covered claim
(“Claims Expense”). Provided, however, any such
payment shall only be made after the settlement of all
covered loss and only if such ...