Nobles v. Rural Community Insurance Services (303 F. Supp. 2d 1292, 2004)

OPINION

MYRON H. THOMPSON, District Judge.

This lawsuit, which the court has described as having a “convoluted procedural history,” Nobles v. Rural Community Ins. Servs., 303 F.Supp.2d 1279, 1280 (M.D.Ala.2004), was originally bought by plaintiffs William M. Nobles and Ronnie Hales in state court in February 2000, claiming that defendant Rural Community Insurance Services (RCIS) told them that their land was insurable under a multiple-peril crop-insurance policy and then later denied their crop-loss claims on the basis that their land was uninsurable. Nobles and Hales allege state-law breach of contract, fraud, suppression of material facts, negligence and wantonness, negligent and wanton failure to supervise and train employees, and bad faith. On March 29, 2000, RCIS removed the case to this court based on diversity-of-citizenship jurisdiction. See 28 U.S.C.A. §§ 1332 (diversity), 1446 (removal).

This case is now before the court on the parties’ cross-motions for summary judgment. For the reasons that follow, the court will grant RCIS’s motion in full.

I. SUMMARY-JUDGMENT STANDARD

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). Under Rule 56, the party seeking summary judgment must first inform the court of the basis for the motion, and the burden then shifts to the non-moving party to demonstrate why summary judgment would not be proper. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); see also Fitzpatrick v. City of Atlanta, 2 F.3d 1112, 1115-17 (11th Cir.1993) (discussing burden-shifting under Rule 56). The non-moving party must affirmatively set forth specific facts showing a genuine issue for trial and may not rest upon the mere allegations or denials in the pleadings. Fed.R.Civ.P. 56(e).

The court’s role at the summary-judgment stage is not to weigh the evidence or to determine the truth of the matter, but rather to determine only whether a genuine issue exists for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). In doing so, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in favor of that party. Matsu- shita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

II. FACTUAL BACKGROUND

Because the court finds in favor' of RCIS, it will look at the facts in a light most favorable to Nobles and Hales. See Antenor v. D & S Farms, 88 F.3d 925, 927 n. 2 (11th Cir.1996). In 1999, Nobles and Hales decided to plant cotton on First American Farm in Walton County, Florida. In order to pay for the crop, they had to secure financing, and, in order to secure financing, they were required by their banks and suppliers to purchase crop insurance. Nobles and Hales spoke with Joseph Carpenter, an authorized agent for RCIS, and Philip East, RCIS’s regional sales manager, about insurance. East told them that, because their land was not listed as uninsurable in the actuaríais published by the Federal Crop Insurance Corporation (FCIC), there would be no reason for it to be uninsurable.

The FCIC is both a governmental corporation and an agency of and within the United States Department of Agriculture (USDA). It was created pursuant to the Federal Crop Insurance Act (FCIA), 7 U.S.C.A. §§ 1501 to 1521.

Based on East’s assurances, Nobles and Hales bought two types of coverage for their crops from RCIS. First, they bought multiple-peril crop insurance (MPCI). Under this policy, which is based on yield guarantees rather than dollars, they were guaranteed to produce a set number of pounds of cotton; for every pound they fell short of that guarantee, they would be paid an agreed-upon amount. While MPCI policies can be issued by private insurance companies, FCIC regulations and provisions govern the sale, issuance, and service of these policies. MPCI policies are backed (reinsured) by the FCIC; all premiums collected for MPCI policies are paid to the United States government, and all claims paid under MPCI policies are paid with United States Treasury funds.

Second, Nobles and Hales bought an added-priee-option (APO) policy, which would pay them an additional 30