The opinion
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ALABAMA
NORTHEASTERN DIVISION
ALLSTATE PROPERTY AND )
CASUALTY INSURANCE )
COMPANY, )
)
Plaintiff, )
)
v. ) Case No. 5:24-cv-00359-LCB
)
KINSEY ANNE ROUNSAVALL, )
et al., )
)
Defendants. )
MEMORANDUM OPINION
This matter comes before the court on Plaintiff Allstate Property and Casualty
Insurance Company’s motion for default declaratory judgment against Defendants
Toney and Jeanne Rounsavall. (Doc. 14). Allstate’s Complaint seeks a declaratory
judgment that it does not owe Kinsey Rounsavall, Toney Rounsavall, or Jeanne
Rounsavall any duty to defend or indemnify under Toney and Jeanne’s insurance
policy. (Doc. 1).
The Clerk of Court entered default against all the defendants except Kinsey
Rounsavall. (Doc. 9). Allstate then moved under Federal Rule of Civil Procedure 55
for a default judgment against the defaulted defendants. (Doc. 14). Because
Allstate’s well-pleaded allegations and the evidence support its claim for declaratory
judgment, the Court GRANTS the motion for default judgment and ENTERS
default declaratory judgment in favor of Allstate against Toney and Jeanne
Rounsavall.
I. BACKGROUND
A defaulting defendant “admits the plaintiff’s well-pleaded allegations of
fact” for purposes of liability. Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir.
1987) (internal quotation marks omitted)). Accordingly, the Court takes as true the
well-pleaded allegations of Allstate’s complaint.
A. Insurance Policy
Allstate’s automobile insurance policy number 835 208 946 lists two holders,
Toney and Jeanne Rounsavall, and two covered vehicles, a 2019 Honda Cr-V and a
2010 Ford F150 pickup. (Doc. 1-1 at 3-10). The policy also shows that Toney and
Jeanne Rounsavall reside in Centerville, Tennessee. (Id. at 3, 7, 9). Moreover, the
policy contains several definitions relevant to this case:
6. Resident means a person who physically resides in [a policyholder’s]
household with the intention to continue residence there. [A
policyholder’s] unmarried dependent children while temporarily away
from home will be considered residents if they intend to resume
residing in [a policyholder’s] household.
. . .
1. Insured Auto means an auto [a policyholder] own[s] which is described
on the Policy Declarations and for which a premium is shown for
Automobile Liability Insurance – Bodily Injury and Property Damage.
This also includes:
a) its replacement auto;
b) an additional auto;
c) a substitute auto;
d) a non-owned auto;
e) a trailer or travel-trailer.
2. Insured Person means:
a) While using [a policyholder’s] insured auto:
1) [policyholder];
2) any resident; and
3) any other person using it with [the policyholder’s]
permission.
b) While using a non-owned auto:
1) [policyholder]; and
2) any resident relative.
3. Non-owned Auto means an auto used by [a policyholder] or a resident
relative with the owner’s permission but which is not:
a) Owned by [a policyholder] or a resident relative; or
b) Available or furnished for the regular use of you or a resident
relative.
However, an auto owned by, or available or furnished for the regular
use of, a resident relative shall be considered a non-owned auto with
respect to:
a) you, provided it is not owned by you or available or furnished for
your regular use; and
b) any resident relative who does not own the auto and for which
the auto is not available or furnished for the person’s regular use,
provided the auto is not owned by you or available or furnished
for your regular use.
(Id. at 20, 23).
B. Automobile Accident
On August 25, 2022, Kinsey Rounsavall was driving a 1993 Toyota Camry
northbound on Pulaski Pike in Huntsville, Alabama, when she made a left turn in
front of an oncoming vehicle, resulting in a head-on collision. (Doc. 1-2). The police
report reflects that Kinsey resides in Harvest, Alabama. (Id.).
C. State Court Action
On January 18, 2023, Michael Bell and Lynese Bell filed a personal injuries
complaint against Kinsey Rounsavall, Toney Rounsavall and Jeanne Rounsavall in
the Circuit of Madison County, Alabama. (Doc. 1 at ¶ 11); Michael Brown and
Lynese Bell v. Kinsey Anne Rounsavall, Toney Rounsavall, and Jeanne Rounsavall.,
et al., Case No. CV 2023-900059. In turn, Toney Rounsavall requested coverage
pursuant to his policy. (Id. at ¶ 12). Allstate responded with a reservation of rights
letter, reserving the right to deny coverage for the claim submitted by Toney
Rounsavall. (Doc. 1-3).
D. Federal Court Action
Allstate filed a complaint in this Court seeking a declaratory judgment that it
has no duty to defend or indemnify Kinsey Rounsavall, Toney Rounsavall, or
Jeannie Rounsavall under the applicable insurance policy. (Doc. 1). The docket sheet
reflects that Allstate served Toney and Jeanna Rounsavall on April 6, 2024, making
their responsive pleadings due April 27, 2024. (Doc. 5). On June 3, 2024, the Clerk
of Court entered a default against Toney and Jeanna Rounsavall. (Doc. 9). On July
17, 2024 Allstate moved for a default declaratory judgment against the defaulted
defendants. (Doc. 14).
II. ANALYSIS
Federal Rule of Civil Procedure 55 establishes a two-step procedure for
obtaining a default judgment. First, when a defendant fails to plead or otherwise
defend a lawsuit, the Clerk of Court must enter the party’s default. Fed. R. Civ. P.
55(a). Second, if the defendant is not an infant or an incompetent person, the court
may enter a default judgment against the defendant as long as the well-pleaded
allegations in the complaint state a claim for relief. Fed. R. Civ. P. 55(b); Nishimatsu
Contr. Co. v. Houston Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975).1
Here, the Clerk of Court has already entered default against Toney and Jeanne
Rounsavall, so the court must determine whether the well-pleaded factual allegations
support Allstate’s request for a declaratory judgment. Allstate argues that both
Kinsey Rounsavall and the 1993 Toyota Camry that she was driving at the time of
the collision are not covered under the policy issued to Toney and Jeanne
Rounsavall. The Court agrees.
First, neither Kinsey Rounsavall nor the 1993 Toyota Camry that she was
driving at the time of the accident is listed on the applicable policy. Second, the
Complaint avers that Kinsey Rounsavall did not reside with Toney and Jeanne
Rounsavall. In addition, the Complaint states Kinsey Rounsavall was not occupying
1 In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir.1981) (en banc), the Eleventh
Circuit adopted as binding precedent all decisions of the former Fifth Circuit handed down before
October 1, 1981.
an “insured auto” at the time of the accident. Although a “non-owned auto” can
qualify as an “insured auto” under the applicable policy, the Complaint explains that
the 1993 Toyota Camry does not qualify as a “non-owned auto” because Kinsey
Rounsavall is neither a policyholder nor a resident relative of Toney and Jeanne
Rounsavall.
Thus, under policy number 835 208 946, Kinsey Rounsavall was not an
“insured person,” nor was she operating an “insured auto” at the time of the accident,
and Allstate has no obligation to defend and/or indemnify Defendants Jeanne
Rounsavall, Toney Rounsavall or Kinsey Rounsavall with respect to the lawsuit in
the Circuit Court of Madison County, Alabama, captioned Michael Brown and
Lynese Bell v. Kinsey Anne Rounsavall, Toney Rounsavall, and Jeanne Rounsavall.,
et al., Case No. CV 2023-900059.
III. CONCLUSION
The court GRANTS Allstate’s motion for a default declaratory judgment and
ENTERS default declaratory judgment that Allstate owes no duty to defend or
indemnify Jeanne Rounsavall, Toney Rounsavall, or Kinsey Rounsavall with respect
to the lawsuit in the Circuit Court of Madison County, Alabama, captioned Michael
Brown and Lynese Bell v. Kinsey Anne Rounsavall, Toney Rounsavall, and Jeanne
Rounsavall., et al., Case No. CV 2023-900059.
DONE and ORDERED this August 23, 2024.
SESE
LILES C. BURKE
UNITED STATES DISTRICT JUDGE