An insurance coverage dispute has landed in Ohio federal court, with Liberty Insurance seeking a declaratory judgment against ACE American, ACE Property and Casualty, and Staffmark over responsibility for defending and indemnifying a logistics company after a fatal warehouse incident.
Liberty Insurance Corporation is seeking declaratory judgment and damages against ACE American Insurance Company, ACE Property and Casualty Insurance Company, and Staffmark Group, LLC. The case, filed in the US District Court for the Southern District of Ohio, centers on which insurer is responsible for defending and indemnifying CJ Logistics Holdings America Corporation and CJ Logistics America, LLC (collectively, CJ) in a wrongful death suit stemming from a workplace incident in Georgia.
According to the complaint, the incident occurred on June 29, 2021, at a warehouse operated by CJ for Kellogg Sales Company and/or Kellogg Company. CJ used temporary employees from Staffmark and ProLogistix. On that date, Reginald Stewart (ProLogistix) and Tevin Huey (Staffmark) became involved in a verbal altercation that escalated into a fistfight. Supervisor Darron Lamont White broke up the fight and ordered Stewart to leave. Stewart left, retrieved a gun from his automobile, returned, and shot Huey in the head and chest. Huey died from his injuries. The incident was witnessed by numerous warehouse employees, as detailed in attached statements.
On April 27, 2023, Carol Robinson-Huey, individually and as Administrator of the Estate of Tevin Huey, filed a wrongful death suit in the State Court of DeKalb County, Georgia. The case was later transferred to the State Court of Gwinnett County, Georgia, as Case No. 24-C-07306-S1. Defendants in the underlying suit include Kellogg, CJ, ProLogistix, Employbridge Holding Company, and White. The complaint alleges negligence, negligent security/premises liability, respondeat superior for the alleged negligence of White, and negligent hiring, training, supervision, and retention against CJ. The estate seeks punitive damages, damages for Huey’s conscious pain and suffering, medical expenses, funeral and burial expenses, and all damages allowable under Georgia law.
Liberty’s complaint asserts that CJ was named as an additional insured under Staffmark’s commercial general liability (CGL) and umbrella policies issued by ACE American and ACE P&C, as required by a staffing contract. The staffing contract required Staffmark to “indemnify, defend, and hold harmless [CJ]…from and against all damages to third parties …imposed upon or incurred by [CJ] to the extent they arise out of…any…intentional misconduct on the part of Staffmark, [or] its…employees (including its employees on assignment)” (Exhibit D, Staffing Contract, Section 11). The complaint further states that Staffmark’s Rule 30(b)(6) witness admitted that Huey’s involvement in the fight constituted intentional misconduct, triggering the indemnity obligation.
Liberty issued a CGL policy to CJ for the period August 1, 2020, to August 1, 2021, with “bodily injury” liability limits of $2,000,000 per occurrence and a $4,000,000 General Aggregate limit. The policy is written on ISO Form CG 00 01 04 13 and provides that Liberty will pay those sums that CJ becomes “legally obligated to pay as damages because of ‘bodily injury’ to which this insurance applies, and to defend CJ against any ‘suit’ seeking those damages.” The policy’s “Other Insurance” condition states: “if other valid and collectible insurance is available” to CJ for a loss that Liberty covers, Liberty’s insurance is primary “except when Paragraph b. below applies.” Paragraph b(1)(b) specifies that “this insurance is excess over…any other primary insurance available” to CJ covering “liability for damages…for which you have been added as an additional insured.” The complaint quotes these provisions directly.
ACE American issued a CGL policy to Staffmark for the term October 1, 2020, to October 1, 2021, with Each Occurrence Limits of $3 million and General and Products Completed Operations Aggregate limits of $4 million. The policy is also written on ISO Form CG 00 01 04 13. Endorsements include LD-21730a (08/13), which adds as an additional insured any person or organization required by written contract, and CG 20 26 12 19, which applies to designated persons or organizations. The endorsements specify that coverage for additional insureds is excess unless the written contract specifically requires that this insurance apply on a primary or non-contributory basis.
ACE P&C issued an umbrella policy to Staffmark for the term October 1, 2020, to October 1, 2021, with Each Occurrence and General Aggregate limits of $5 million. The policy includes as insureds those entities qualifying as insureds under the ACE American CGL Policy, for coverage “no broader” than under the underlying insurance.
Liberty alleges that after the wrongful death suit was filed, it tendered the defense of CJ to Staffmark and ACE on February 7, 2024, but coverage was denied. Liberty re-tendered the claim on April 5, 2025, but received no response. As a result, Liberty retained counsel to defend CJ and has incurred attorneys’ fees, litigation expenses, and other costs. Liberty seeks a declaration that ACE owes primary coverage and defense for CJ, that Liberty’s coverage is excess, and that Staffmark is contractually obligated to indemnify CJ. Liberty also seeks reimbursement for defense costs and damages.
Liberty requests the court to declare the rights and duties of the parties under the policies and staffing contract, including that ACE American owes primary CGL coverage and defense to CJ, ACE P&C owes umbrella coverage, and Staffmark owes a defense and indemnity to CJ under the staffing contract. Liberty also seeks damages for attorneys’ fees, litigation expenses, and other costs incurred in defending CJ.
