Justice Elizabeth Emerson
Plaintiff, a purchaser of accounts receivables of other businesses to provide them with working capital, entered into an agreement with distributor US Hay Direct. US Hay obtained a credit insurance policy from Euler Hermes containing a beneficiary endorsement in favor of plaintiff giving it the same rights as US Hay. Ten of US Hay’s customers failed to pay plaintiff for invoices issued by US Hay, and plaintiff filed claims with Euler, who denied the claims arguing the customers did not owe US Hay any money. Euler claimed the policy excluded disputed invoices, even after plaintiff obtained a final and enforceable judgment. The complaint sought damages for breach of contract, among other things. Euler alleged plaintiff failed to show that any covered products were actually shipped. The court found documentary evidence submitted by plaintiff clearly established it was a beneficiary of the policy, which Euler did not dispute. Thus, plaintiff’s motion for partial summary judgment was granted. It ruled Euler failed to establish its entitlement to judgment, noting a party did not carry its burden in moving for summary judgment by pointing to gaps in its opponent’s proof, but must affirmatively demonstrate the merits of its claim or defense.
