Caramba, Inc. v. Nationwide Mutual Fire Insurance Company

District Court, S.D. Texas·Decided December 24, 2020·No. 4:19-cv-01973·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT December 24, 2020 FOR THE SOUTHERN DISTRICT OF TEXAS David J. Bradley, Clerk HOUSTON DIVISION CARAMBA, INC. d/b/a Pueblo Viejo, § Plaintiff, § § v. § CIVIL ACTION NO. H-19-1973 § NATIONWIDE MUTUAL FIRE § INSURANCE COMPANY, § Defendant. § MEMORANDUM AND ORDER There are four expert-related motions pending before the Court in this insurance coverage dispute. First, there is the Motion to Strike the Opinions and Testimony of Neil Hall (“Hall Motion”) [Doc. # 22] filed by Defendant Nationwide Mutual Fire Insurance Company (“Nationwide”). Plaintiff Caramba, Inc. d/b/a Pueblo Viejo (“Caramba”) filed a Response [Doc. # 30], and Nationwide filed a Reply [Doc. # 35].1 Also pending is Nationwide’s Motion to Strike the Opinion and Testimony of Kevin Funsch (“Funsch Motion”) [Doc. # 23], to which Caramba filed a Response

[Doc. # 32], and Nationwide filed a Reply [Doc. # 36]. Finally, Nationwide filed a Motion to Strike the Opinions and Testimony of Gary Johnson (“Johnson Motion”)

1 Nationwide also filed a Motion to Strike the Untimely Supplemental Report and Declaration of Neil Hall [Doc. # 38], to which Caramba filed a Response [Doc. # 43], and Nationwide filed a Reply [Doc. # 45]. P:\ORDERS\11-2019\1973MExcludeExperts.wpd 201224.1410 [Doc. # 24], to which Caramba filed a Response [Doc. # 31], and Nationwide filed a Reply [Doc. # 34].

The Court has carefully reviewed the record in this case, including the experts’ reports and deposition testimony. Based on that review and the application of relevant legal authorities, the Court denies the Hall Motion and the Funsch Motion, and grants

the Johnson Motion. I. BACKGROUND Caramba is the named insured under a Nationwide “Premier Businessowners

Policy,” No. ACP BPFF 5545868791 (the “Policy”). The Policy provided coverage for Caramba’s commercial property, a restaurant in Porter, Texas (the “Property”), for the period October 27, 2016 to October 27, 2017. Caramba claims the Property sustained wind damage, and resulting water

damage, in August 2017 from Hurricane Harvey. Caramba’s roofing contractor, Alejandro Gonzalez of Champion Renovation Roofing (“Champion”), inspected the Property in early September 2017, after Hurricane Harvey. In June 2018, Champion

applied a black asphalt coating to the metal roof at the Property, made temporary repairs to the tile roof, and repaired some interior damage. Caramba filed its claim under the Policy on June 26, 2018.

2 P:\ORDERS\11-2019\1973MExcludeExperts.wpd 201224.1410 The next day, Nationwide’s adjuster, Cheri McGinnis, contacted Caramba’s principal, Alejandro Lozano, to discuss the claim. McGinnis requested additional

information, and she inspected the Property on July 9, 2018. On July 13, 2018, McGinnis engaged Stephens Engineering (“Stephens”) to investigate the extent and cause of the damage to the Property. On July 27, 2018, a

Stephens representative inspected the Property, and Stephens issued its report (“Stephens Report”) [Doc. # 22-4] on August 10, 2018. On August 17, 2018, Nationwide denied Caramba’s claim. Caramba retained

counsel and submitted additional information, including a damage estimate from DELK, LLC (“DELK”). On February 9, 2019, Nationwide reaffirmed its denial of Caramba’s claim. On April 17, 2019, Caramba filed this lawsuit in the 410th Judicial District

Court of Montgomery County, Texas. Nationwide filed a timely Notice of Removal [Doc. # 1] on May 31, 2019. On February 14, 2020, Caramba filed its Designation of Expert Witnesses [Doc.

# 20]. Caramba designated Dr. Neil Hall as its causation expert and attached his report (“Hall Report”) [Doc. # 20-1]. Caramba designated Kevin Funsch as its damages expert and attached his report (“Funsch Report”) [Doc. # 20-2]. Caramba

designated Gary Johnson as its expert on claims processing, and it attached his report 3 P:\ORDERS\11-2019\1973MExcludeExperts.wpd 201224.1410 (“Johnson Report”) [Doc. # 20-3].2 On August 28, 2020, Nationwide filed the pending motions to strike the opinions and testimony of these three designated expert

witnesses.3 The motions have been fully briefed and are now ripe for decision. II. APPLICABLE STANDARD FOR EXPERT OPINIONS Witnesses who are qualified by “knowledge, skill, experience, training or

education” may present opinion testimony to the jury. FED. R. EVID. 702; see, e.g., Whole Woman’s Health v. Hellerstedt, __ U.S. __, 136 S. Ct. 2292, 2316 (2016); Moore v. Ashland Chem., Inc., 151 F.3d 269, 276 (5th Cir. 1998) (en banc); Huss v.

Gayden, 571 F.3d 442, 452 (5th Cir. 2009). “Rule 702 does not mandate that an expert be highly qualified in order to testify about a given issue.” Williams v. Manitowoc Cranes, L.L.C., 898 F.3d 607, 623 (5th Cir. 2018). “This is because ‘[d]ifferences in expertise bear chiefly on the weight to be assigned to the testimony

by the trier of fact, not its admissibility.’” Id. at 623-24 (quoting Huss, 571 F.3d at 452). Nationwide does not challenge the qualifications of Hall, Funsch, or Johnson. To be admissible, an expert’s proffered testimony must be both relevant and

reliable. Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 591-92 (1993);

2 Caramba also designated William Featherston as its expert on attorneys’ fees. Nationwide has not moved to strike Featherston’s opinions. 3 Nationwide also filed a Motion for Summary Judgment [Doc. # 25] which will be addressed separately. 4 P:\ORDERS\11-2019\1973MExcludeExperts.wpd 201224.1410 Carlson v. Bioremedi Therapeutic Sys., Inc., 822 F.3d 194, 199 (5th Cir. 2016). The expert testimony must be relevant and the expert’s proposed opinion must be one that

would assist the trier of fact to understand or decide a fact in issue. See Weiser-Brown Operating Co. v. St. Paul Surplus Lines Ins. Co., 801 F.3d 512, 529 (5th Cir. 2015); Bocanegra v. Vicar Servs., Inc., 320 F.3d 581, 584 (5th Cir. 2003) (citing Daubert,

509 U.S. at 591-92). To satisfy the “reliability” prong, a “party seeking to introduce expert testimony must show (1) the testimony is based upon sufficient facts or data, (2) the testimony

is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case.” Huss, 571 F.3d at 452 (citing Smith v. Goodyear Tire & Rubber Co., 495 F.3d 224, 227 (5th Cir. 2007)); see also Carlson, 822 F.3d at 199. “Reliability” requires that the proponent of the expert

testimony must present some objective, independent validation of the expert’s methodology. See Brown v. Illinois Cent. R. Co., 705 F.3d 531, 536 (5th Cir. 2013). The objective of the Court’s gatekeeping role is to ensure that an expert “employs in

the courtroom the same level of intellectual rigor that characterizes the practice of an expert in the relevant field.” Kumho Tire Co. v. Carmichael, 526 U.S. 137, 152 (1999); Certain Underwriters at Lloyd’s, London v. Axon Pressure Prod.

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

Caramba, Inc. v. Nationwide Mutual Fire Insurance Company, (S.D. Tex. 2020).

Caramba, Inc. v. Nationwide Mutual Fire Insurance Company (Caramba, Inc. v. Nationwide Mutual Fire Insurance Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Moore v. Ashland Chemical Inc.
151 F.3d 269 (Fifth Circuit, 1998)
Bocanegra v. Vicmar Services, Inc.
320 F.3d 581 (Fifth Circuit, 2003)
Burleson v. Texas Department of Criminal Justice
393 F.3d 577 (Fifth Circuit, 2004)
Smith v. Goodyear Tire & Rubber Co.
495 F.3d 224 (Fifth Circuit, 2007)
Hathaway v. Bazany
507 F.3d 312 (Fifth Circuit, 2007)
Chan v. Coggins
294 F. App'x 934 (Fifth Circuit, 2008)
Huss v. Gayden
571 F.3d 442 (Fifth Circuit, 2009)
Daubert v. Merrell Dow Pharmaceuticals, Inc.
509 U.S. 579 (Supreme Court, 1993)
Kumho Tire Co. v. Carmichael
526 U.S. 137 (Supreme Court, 1999)
Joe Woods v. James H. Thieret and Dennis Hasemeyer
5 F.3d 244 (Seventh Circuit, 1993)
John Brown v. Natl Railroad Passenger Corp.
705 F.3d 531 (Fifth Circuit, 2013)
MM Steel, L.P. v. Reliance Steel & Aluminum Co., e
806 F.3d 835 (Fifth Circuit, 2015)
Carlson v. Bioremedi Therapeutic Systems, Inc.
822 F.3d 194 (Fifth Circuit, 2016)
Whole Woman's Health v. Hellerstedt
579 U.S. 582 (Supreme Court, 2016)
Mark McManaway v. KBR, Incorporated
852 F.3d 444 (Fifth Circuit, 2017)
Wanda Williams v. The Manitowoc Company, Inc.
898 F.3d 607 (Fifth Circuit, 2018)