LYLE E. STROM, Senior District Judge.
This matter is before the Court on the motion (Filing No.
This case concerns a breach of the fiduciary duties of good faith and fair dealing between Regent and its insured client, Bamford. Bamford was in litigation regarding a vehicle accident, and Regent supplied Bamford's legal counsel. Instead of accepting settlement offers, Regent insisted upon a trial. After the jury determined damages, the parties entered into post-verdict settlement negotiations. Regent paid approximately $6,000,000 and Bamford paid $1,999,996.49 out-of-pocket. Filing No.
Bamford claims three kinds of damages from the initial case, the settlement damages, attorney fees, and "loss of business opportunities" damages. This motion concerns the "lost-business-opportunities" form of damages. Bamford elected to pay its out-of-pocket expenses from an Edward Jones investment account. According to Bamford, that investment account increased significantly in value after Bamford withdrew its funds. But for Bamford's withdrawal from its investment account, Bamford "los[t] business opportunities in the amount of $24,865.32 by losing investment value of reserve assets in order to pay $1,999,996.49." Filing No.
A motion for summary judgment shall be granted by the Court "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A "material" fact is one that "might affect the outcome of the suit under the governing law," and a genuine issue of material fact exists when "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). On a motion for summary judgment, facts must be viewed in the light most favorable to the nonmoving party only if there is a genuine dispute as to those facts. Wood v. SatCom Marketing, L.L.C., 705 F.3d 823, 828 (8th Cir. 2013).
The moving party bears the burden to establish that no genuine issue of material fact exists. Fed. R. Civ. P. 56(a); Adickes v. S.H. Kress & Co., 398 U.S. 144, 157 (1970). If the moving party does not meet its initial burden, summary judgment must be denied even if no affidavits or other evidence have been submitted in opposition to the motion. See id. at 159-60. After the moving party has met its burden, "the non-moving party may not rest on the allegations of his pleadings, but must set forth specific facts, by affidavit or other evidence, showing that a genuine issue of material fact exists." Singletary v. Mo. Dept. of Corrections, 423 F.3d 886, 890 (8th Cir. 2005).
The issue before the Court is whether Bamford's lost-business-opportunity damages is foreseeable. The Court finds the lost investment value is not foreseeable.
Regent has provided persuasive argument from the Sixth Circuit which addresses the issue before this Court directly. Filing No.
Therefore, as a matter of law, plaintiff may not recover the difference in the value of "investment" funds that it liquidated to pay its share of the settlement with a third party at the time of settlement and the value that plaintiff estimates such funds would have achieved as of May 19, 2014, had it not liquidated the fund to settle its claims. Accordingly,
IT IS ORDERED:
1) Defendant's motion (Filing No.
2) Plaintiff's request for damages for loss of business opportunities is denied as a matter of law.