Allstate Indemnity Company v. Lindquist

District Court, W.D. Washington·Decided September 13, 2021·No. 2:20-cv-01508·Unknown

Opinion

1 2 3

4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 ALLSTATE INDEMNITY CASE NO. C20-1508JLR COMPANY, 11 ORDER GRANTING MOTION Plaintiff, TO CONTINUE 12 v.

13 RANDY LINDQUIST, et al., 14 Defendants. 15 I. INTRODUCTION 16 Before the court is Defendant Randy Lindquist’s motion to continue Plaintiff 17 Allstate Indemnity Company’s (“Allstate”) motion for partial summary judgment. (2d 18 Cont. Mot. (Dkt. # 71); see Reply (Dkt. # 83).) Allstate opposes the motion. (Resp. 19 (Dkt. # 81).) The court has considered the parties’ submissions, the relevant portions of 20

21 //

22 // 1 the record, and the applicable law. Being fully advised,1 the court GRANTS Mr. 2 Lindquist’s motion to continue. 3 II. BACKGROUND

4 Allstate filed this lawsuit against Mr. Lindquist and JPMorgan Chase Bank, N.A. 5 (collectively, “Defendants”) on October 13, 2020. (See Compl. (Dkt. # 1).) Allstate 6 seeks declaratory relief establishing that Mr. Lindquist’s homeowner’s insurance policy 7 does not cover harm to his property that was damaged in a fire on December 25, 2019. 8 (See id. ¶¶ 6.1-6.3.) On November 12, 2020, less than a month after initiating the case,

9 Allstate moved for partial summary judgment. (MSJ (Dkt. # 8).) Mr. Lindquist moved 10 for a continuance of the summary judgment motion on November 19, 2020. (Cont. Mot. 11 (Dkt. # 12).) On December 3, 2020, the court granted a continuance in order to allow Mr. 12 Lindquist a reasonable opportunity to discover facts relevant to Allstate’s summary 13 judgment motion, which the court re-noted to February 5, 2021. (12/3/20 Order (Dkt.

14 # 20) at 5-6.) After full briefing, the court denied Allstate’s summary judgment motion. 15 (3/5/21 Order (Dkt. # 52) at 21.) 16 Thereafter, a dispute arose between the parties regarding which parts of Mr. 17 Lindquist’s claim file, if any, must be produced in discovery. (See 8/16/21 Order (Dkt. 18 # 73).) After receiving briefing, holding a hearing, and conducting in camera review of

19 the disputed records (id. at 2), the court ordered Allstate to produce certain documents 20

21 1 No party has requested oral argument (see 2d Cont. Mot. at 1; Resp. at 1), and the court concludes that oral argument would not be helpful to its disposition of the motion, see Local 22 Rules W.D. Wash. LCR 7(b)(4). 1 that had previously been redacted or withheld and to conduct a review of other 2 documents previously withheld in their entirety (id. at 11). 3 While that order was pending, Allstate moved again for partial summary judgment

4 on August 12, 2021, arguing that partial summary judgment is appropriate because Mr. 5 Lindquist “misrepresented and concealed material facts to Allstate and that he failed to 6 cooperate in the investigation of the claim by failing to report losses on the property.” 7 (2nd MSJ (Dkt. # 71) at 1.) As before, Mr. Lindquist has moved to continue Allstate’s 8 summary judgment motion because he “has not had a reasonable opportunity to

9 investigate or conduct discovery regarding the important issues raised in Allstate’s 10 motion.” (2d Cont. Mot. at 2). 11 III. ANALYSIS 12 Mr. Lindquist argues that the court should defer ruling on Allstate’s motion for 13 partial summary judgment because he “has not had a reasonable opportunity to

14 investigate or conduct discovery regarding the important issues raised in Allstate’s 15 motion.” (2d Cont. Mot. at 2.) The court agrees. 16 Under Federal Rule of Civil Procedure 56(d), if the nonmoving party “shows by 17 affidavit or declaration that, for specified reasons, it cannot present facts essential to 18 justify its opposition, the court may: (1) defer considering the motion or deny it; (2) allow

19 time to obtain affidavits or declarations or to take discovery; or (3) issue any other 20 appropriate order.” Fed. R. Civ. P. 56(d). To prevail on a Rule 56(d) motion, the party 21 opposing summary judgment “must make ‘(a) a timely application which (b) specifically 22 identifies (c) relevant information, (d) where there is some basis for believing that the 1 information sought actually exists.’” Emps. Teamsters Loc. Nos. 175 & 505 Pension Tr. 2 Fund v. Clorox Co., 353 F.3d 1125, 1129 (9th Cir. 2004) (quoting VISA Int’l Serv. Ass’n 3 v. Bankcard Holders of Am., 784 F.2d 1472, 1475 (9th Cir.1986)). Moreover, unless the

4 party requesting a continuance “has not diligently pursued discovery of the evidence,” 5 their request “should be granted almost as a matter of course.” Burlington N. Santa Fe 6 R.R. Co. v. The Asssiniboine & Sioux Tribes of the Fort Peck Reservation, 323 F.3d 767, 7 773-74 (9th Cir. 2003) (internal quotation marks and citations omitted). Mr. Lindquist 8 meets this standard.

9 To begin, Mr. Lindquist’s motion is timely. He filed the request only seven days 10 after Allstate filed its summary judgment motion (see 2d Cont. Mot.; 2d MSJ) and well in 11 advance of the discovery deadline (see Sched. Order (Dkt. # 30)). Mr. Lindquist’s 12 motion also identifies specific categories of records that he contends are necessary to 13 resolve the issues presented in Allstate’s summary judgment motion. (See 2d Cont. Mot.

14 at 3-4 (citing Knudsen Decl. (Dkt. # 75) Exs. A-F; Reply at 2.)2 These include: a 15 complete claim file from Allstate;3 documents and communications from Allstate Agent 16

2 Rule 56(d) requires the party requesting a continuance to demonstrate its need through 17 “affidavit or declaration.” See Fed. R. Civ. P. 56(d). Mr. Lindquist asserts that his motion “is based on the Declaration of Kathryn Knudsen and the records and files herein.” (See 2d Cont. 18 Mot. at 2.) The Knudsen Declaration avers that the records attached as exhibits are true and correct copies but includes no other factual statements. (See Knudsen Decl. (Dkt. # 75) ¶¶ 3-7.) 19 Nevertheless, the court finds that the exhibits attached to the Knudsen Declaration, together with the motion, suffice to meet the requirements of Rule 56(d). See Choi v. Reed Inst., 822 F. App'x 20 572, 574 (9th Cir. 2020) (finding that a district court acted within its discretion when it considered “counsel’s affirmation [and] the memorandum of law in support of the motion” in ruling on a motion for continuance). 21 3 Mr. Lindquist asserts that the parties may soon bring before the court the question of whether “claim documents created after October 13, 2020” are discoverable. (2d Cont. Mot. at 22 3.) The court strongly encourages the parties to resolve this dispute amicably and by reference to 1 and third-party defendant, Melody Grondahl, “related to Mr. Lindquist’s Lake Forest 2 Park property”; Ms. Grondahl’s agency agreement with Allstate; insurance applications 3 submitted by Mr. Lindquist to Allstate for both his Lake Forest Park and Edmonds

4 properties; and any “insurance policy or coverage documents potentially available to 5 satisfy a judgment against Grondahl.” (Reply at 2; see also Knudsen Decl. Ex. C at 1.) 6 Mr. Lindquist also seeks to depose Ms. Grondahl. (2d Cont. Mot. at 4; Knudsen Decl. 7 Ex. A at 2 & Ex. C at 1 (documenting efforts by counsel to schedule Ms. Grondahl’s 8 deposition).)

9 Mr. Lindquist argues that this information will help answer what Allstate and its 10 agent “knew about [him] and his properties at the time of the loss.” (2d Cont. Mot.

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