Archer Daniels Midland Co. v. Aon Risk Services, Inc.

187 F.R.D. 578, 1999 U.S. Dist. LEXIS 11718, 1999 WL 548730
CourtDistrict Court, D. Minnesota
DecidedJune 7, 1999
DocketCiv. No. 97-2185(JRT/RLE)
StatusPublished
Cited by78 cases

This text of 187 F.R.D. 578 (Archer Daniels Midland Co. v. Aon Risk Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Archer Daniels Midland Co. v. Aon Risk Services, Inc., 187 F.R.D. 578, 1999 U.S. Dist. LEXIS 11718, 1999 WL 548730 (mnd 1999).

Opinion

MEMORANDUM ORDER

ERICKSON, United States Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate Judge pursuant to [580]*580a general assignment, made in accordance with the provisions of Title 28 U.S.C. § 636(b)(1)(A), upon the Defendant’s Motion to Amend Pretrial Order, Amend its Answer, and Compel Depositions, and upon the Plaintiffs Motion for a Protective Order. A Hearing on the Motion was conducted on May 11, 1999, at which the Plaintiff appeared by Jerry W. Snider, Kara L. Benson, William D. Langford Jr., and Aubrey M. Daniel, III, Esqs.; and the Defendant appeared by Alan L. Kildow, Shand S. Stephens, and Eliot R. Hudson, Esqs. For reasons which follow, the Defendant’s Motion to Amend the Pretrial Order is granted in part, its Motions to Amend its Answer and to Compel Depositions are denied, and the Plaintiffs Motion for a Protective Order is granted in part.

II. Factual and Procedural Background

This case arises out of the “great” flood of 1993, which inundated vast areas of the Mississippi River basin. The Plaintiff Archer Daniels Midland Company (“ADM”), whose business is said to have been substantially harmed by the flood’s effect upon corn production, barge traffic, and by the other devastating consequences of the deluge, claims that the Defendant Aon Risk Services, Inc. (“Aon”) had neglected to secure $50 million, in excess insurance coverage, for ADM’s consequent business interruption. More precisely, according to ADM, Aon did not obtain an excess policy from Hartford Fire Insurance Company (“Hartford”), which would have provided “extra expense, contingent business interruption, or contingent extra expense coverage,” Am.Compl. ¶ 31, which, assertedly, would have indemnified ADM for losses resulting from the interruption of its business operations.

Before this action was filed, ADM sued its several insurers, including Hartford, in order to recover the policy limits under each insurance contract, for the losses which were claimed to have been sustained as a result of the flood. See, Archer-Daniels-Midland Co. v. Phoenix Assurance Co. (“Phoenix”), Civ. No. 95-4001(JLF) (S.D.Ill). There, the District Court dismissed ADM’s claims against Hartford, and ADM has taken an appeal to the United States Court of Appeals for the Seventh Circuit, which is still pending.

ADM filed this action on September 25, 1997, and amended its Complaint on March 11, 1998. After receiving the recommendations of the parties as to appropriate pretrial deadlines, the Court issued its Pretrial Schedule on April 28, 1998. Among the deadlines established by that Order, the time for amending a pleading would expire on July 1,1998, the discovery period was scheduled to conclude on February 1, 1999, and the case was set to be “Ready for Trial” on July 1, 1999. In addition, each party was limited to 20 depositions and 25 interrogatories. On June 1, 1998, Aon filed a Motion to Dismiss the Plaintiffs Complaint for failing to state a claim upon which relief could be granted, and the resultant briefing of that Motion ensued.

During the pendency of Aon’s Motion to Dismiss, Aon twice moved to amend the Pretrial Schedule by extending certain of its deadlines. We denied the first Motion, but agreed, on January 25, 1999, to permit an extension of the pretrial deadlines, leaving it to the parties to stipulate, in the first instance, to an Amended Pretrial Order which would incorporate a modest extension in the prescribed pretrial timetable. As it had been stipulated by the parties, and accepted by the Court, discovery is now set to conclude on July 15, 1999, nondispositive Motions are due on October 1, 1999, dispositive Motions must be filed and heard by December 15, 1999, and the case will be “Ready for Trial” on February 1, 2000. Notably, no change in the deadline for amending a pleading was requested, or granted. On February 25, 1999, the District Court denied Aon’s Motion to Dismiss and, on March 8, 1999, Aon filed its Answer in this matter.

Candidly admitting that it has only recently given discovery its close attention, Aon requests sweeping modifications to the Pretrial Schedule so as to permit Aon to amend its Answer, in order to assert ten additional affirmative defenses — many of which overlap, and some of which are premised upon allegations that ADM has engaged in price-fixing in violation of State and Federal Antitrust laws. The proposed affirmative defenses include the following: (1) ADM’s unclean hands and/or illegal conduct; (2) ADM’s [581]*581breach of the insurance contract it had with Hartford by not disclosing facts material to Hartford’s decision to underwrite the policy; (3) ADM’s misrepresentations to Hartford and Aon; (4) the doctrine of impossibility, assertedly because the coverage claimed was not available (presumably because of ADM’s alleged price fixing); (5) ADM’s negligent failure to inform Aon that it did not agree to the terms of the Hartford policy; (6) waiver; (7) laches; (8) promissory estoppel, equitable estoppel, collateral estoppel, and/or judicial estoppel; (9) comparative negligence; and (10) ripeness — owing to the fact that the dispute between ADM and Hartford has not been finally resolved. Proposed Am. Answer ¶ 63-72. In addition, Aon requests that the Pretrial Order be amended so as to extend each of the remaining pretrial deadlines by six months, and in order to allow Aon to complete 75 depositions, and to serve a total of 50 interrogatories. Aon’s Motion to Compel relates to the appropriate location for the depositions of ADM’s officers, directors, representatives, and employees. Specifically, Aon seeks an Order that would require ADM to present the deponents, who are within ADM’s control, to the District of Minnesota for the taking of their depositions.

ADM’s Motion for a Protective Order presents, in practical effect, the mirror-image of Aon’s demand for relief. Pursuant to Rule 26(c), Federal Rules of Civil Procedure, ADM requests an Order that would bar Aon from inquiring into ADM’s alleged violations of the antitrust laws, that would preserve the quantity of depositions, and interrogatories, that were allowed in our Pretrial Order, and that would prevent its directors, officers, and employees, from being deposed anywhere else but Decatur, Illinois. This matter was taken under advisement on May 19, 1999, following the parties’ submission of additional letter briefs which were intended to clarify their respective positions on certain of the issues presented.

III. Discussion

A. Amendment of the Answer and Pretrial Deadlines. Aon’s attempt to amend its Answer, and to extend the existing pretrial deadlines, has been advanced under the governing regime of Rules 15(a), and 16(b), Federal Rules of Civil Procedure, which control the amendment of pleadings and the modification of a Pretrial Scheduling Order. In reality, where, as here, the time for amending the pleadings expired some ten months before the Hearing on the Motion to Amend, both requests should be considered within the framework of Rule 16(b). See, Luigino’s, Inc. v. Pezrow Cos., 178 F.R.D. 523, 525 (D.Minn.1998).1

1. Standard of Review.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
187 F.R.D. 578, 1999 U.S. Dist. LEXIS 11718, 1999 WL 548730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/archer-daniels-midland-co-v-aon-risk-services-inc-mnd-1999.