Allstate Insurance Company v. Shah, MD

District Court, D. Nevada·Decided August 15, 2022·No. 2:15-cv-01786·Unknown

Opinion

2 UNITED STATES DISTRICT COURT 3 DISTRICT OF NEVADA 4 * * * 5 Allstate Insurance Company, et al., Case No. 2:15-cv-01786-APG-DJA 6 Plaintiffs, 7 Order v. 8 Russel J. Shah, M.D., et al., 9 Defendants. 10 And related counterclaims. 11 12 This is a conspiracy action arising out of Allstate Insurance Company’s1 allegations that 13 Defendants Dr. Russel J. Shah, M.D. and Dr. Dipti R. Shah, M.D.2 inflated their billings on 14 personal injury claims to increase their patients’ attorneys’ settlements. Allstate sues the Radar 15 Parties for damages, alleging violations of the Nevada and Federal Racketeer Influenced and 16 Corrupt Organizations (RICO) Act, fraud, conspiracy to defraud, and constructive trust and unjust 17 enrichment. (ECF No. 41). The Radar Parties counterclaim for damages alleging intentional 18 interference with contractual relations and intentional interference with prospective economic 19 advantage. (ECF No. 145). 20 The Radar Parties now move to compel Allstate to respond to outstanding discovery 21 requests. (ECF No. 430). They also move to seal portions of and exhibits to their reply in 22 support of that motion. (ECF No. 438). Because the Court finds that the Radar Parties have 23

24 1 Plaintiffs include Allstate Insurance Company; Allstate Property and Casualty Insurance 25 Company; Allstate Indemnity Company; and Allstate Fire & Casualty Insurance Company. Collectively, the Court refers to Plaintiffs as “Allstate.” 26 2 Defendants include Dr. Dipti Shah, M.D. and her husband Dr. Russell J. Shah, M.D.; along with 27 their companies Dipti R. Shah, MD, Ltd.; Russel J. Shah, MD, Ltd.; and Radar Medical Group, LLP d/b/a University Urgent Care. Collectively the Court refers to Plaintiffs as the “Radar 1 carried their burden of showing that the discovery sought is relevant and proportional, but Allstate 2 has not carried its burden to show that the discovery is objectionable, the Court grants the motion 3 to compel. Because the Court finds that sealing the exhibits to and portions of the Radar Parties’ 4 reply is warranted, it grants the motion to seal. 5 I. Legal Standard. 6 If a party resists discovery, Rule 37 authorizes the requesting party to file a motion to 7 compel. Fed. R. Civ. P. 37(a)(1). The motion must include a threshold showing of relevancy. 8 See, e.g., Nugget Hydroelectric, L.P. v. Pac. Gas & Elec. Co., 981 F.2d 429, 438-39 (9th Cir. 9 1992); Hofer v. Mack Trucks, Inc., 981 F.2d 377, 380 (9th Cir. 1992); Guzman v. Lincoln Tech. 10 Inst., Inc., No. 2:13-cv-2251-RFB-VCF, 2015 WL 1729711, at *1 (D. Nev. Apr. 15, 2015).3 This 11 is a relatively low threshold. Tsatas v. Airborne Wireless Network, Inc., No. 2:20-cv-02045- 12 RFB-BNW, 2022 WL 74003, at *2 (D. Nev. Jan. 7, 2022) (internal citations and quotations 13 omitted). However, although relevance is defined very broadly, it is not without boundaries; 14 discovery must also be proportional. See Garneau v. City of Seattle, 147 F.3d 802, 812 (9th Cir. 15 1998) (citation omitted); Rivera v. NIBCO, Inc., 364 F.3d 1057, 1072 (9th Cir. 2014) (“[d]istrict 16 courts need not condone the use of discovery to engage in ‘fishing expeditions’”) (citation 17 omitted); Fed. R. Civ. P. 26(b)(1) (providing that, to be discoverable, information must be 18 proportional to the needs of the case). 19 The party opposing discovery has the burden of showing that the discovery is, among 20 other things, irrelevant, overly broad, or unduly burdensome. See Fosbre v. Las Vegas Sands 21 Corp., No. 2:10-cv-00765-APG-GWF, 2016 WL 54202, at *4 (D. Nev. Jan. 5, 2016) (citing 22 Graham v. Casey’s General Stores, 206 F.R.D. 251, 253-54 (S.D. Ind. 2000)). To meet this 23 burden, the objecting party must specifically detail the reasons why each request is objectionable. 24 See Fosbre, 2016 WL 54202, at *4. Federal Rule of Civil Procedure 26(b)(2)(C) further limits 25 3 “Many courts simply rely on the non-moving party demonstrating that the discovery sought is 26 not relevant and do not address this threshold showing by the moving party. The requirement of a 27 threshold showing makes sense given the language of Rule 26 (allowing parties to obtain information regarding matters relevant to a claim or defense).” Tsatas, 2022 WL 74003, at *2 1 discovery and allows the Court to restrict discovery where it is “outside the scope of Rule 2 26(b)(1).” Fed. R. Civ. P. 26(b)(2)(C)(3). In deciding whether to restrict discovery under 3 Federal Rule of Civil Procedure 26(b)(2)(C), the Court “should consider the totality of the 4 circumstances, weighing the value of the material sought against the burden of providing it, and 5 taking into account society’s interest in furthering the truth-seeking function in the particular case 6 before the court.” Caballero v. Bodega Latina Corp., No. 2:17-cv-00236-JAD-VCF, 2017 WL 7 3174931, at *3 (D. Nev. July 25, 2017) (internal citations and quotations omitted). District courts 8 have broad discretion when determining relevance for discovery purposes. Tsatas, 2022 WL 9 74003, at *2. 10 II. Discussion. 11 A. The Court grants the Radar Parties’ motion to compel. 12 The Radar Parties move to compel the Allstate parties to respond to one request for 13 production and two interrogatories. (ECF No. 430). 14 Request for Production (RFP) 3: Produce documents, including, but not limited to, Explanations of 15 Benefits[] reflecting internal audits of billing by the Radar Parties 16 for patients with dates of loss starting January 26, 2017, through the present.4 17 Response to RFP 3: 18 Plaintiff objects on the grounds that the request is vague, ambiguous and overbroad. Plaintiff further objects to this request on the 19 grounds that it calls for private and confidential information under 20 HIPAA. Defendants request[] that in response to this request for production Allstate expand on a previously produced spreadsheet 21 produced in and around 2017. Plaintiffs object[] on the grounds that 22

23 4 RFP 3 included the following footnote: 24 This request is similar to Request No. 262 to [sic] the Radar Parties’ First Set of Requests for Production of Documents to the Allstate Parties, to which the Allstate Parties agreed to 25 produce responsive documents. Specifically, with its Seventeenth Supplement to Initial Disclosures, the Allstate Parties produced the “Mitchell CPT data spreadsheet,” bates numbered 26 ALLSTATE10-161, containing information for patients with dates of loss ranging from January 27 2, 2007, to January 25, 2017. Through this request, the Radar Parties request that the Allstate Parties supplement the Mitchell CPT data spreadsheet with information for patients with dates of the information is not relevant to any claim or defense of Defendants 1 and is not proportional to the needs of this case. Even if there were 2 some marginal relevance, and there is none, given the minimal importance of the discovery in resolving the issues in this case, the 3 burden or expense of the proposed discovery outweighs its likely benefit. In addition, Allstate is obligated to produce those 4 documents in its possession and is not obligated to create a document in response to a request for production of documents.

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