Estate of Kevin Brown v. City of San Diego

CourtDistrict Court, S.D. California
DecidedJuly 2, 2020
Docket3:15-cv-01583
StatusUnknown

This text of Estate of Kevin Brown v. City of San Diego (Estate of Kevin Brown v. City of San Diego) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Kevin Brown v. City of San Diego, (S.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 THE ESTATE OF KEVIN BROWN, et al., Case No.: 15-CV-1583-DMS-WVG

12 Plaintiffs, ORDER ON DISCOVERY DISPUTE 13 v. REGARDING DISCOVERABILITY OF DEFENDANTS’ REINSURANCE 14 MICHAEL LAMBERT, et al., POLICY 15 Defendants. 16 17 18 19 I. INTRODUCTION 20 Pending before the Court is the Parties’ supplemental briefing on the discoverability 21 of Defendants’ reinsurance policy as maintained with third-party entity, Wesco/Amtrust, 22 through CSAC-EIA, Defendant City of San Diego’s reinsurer. (Doc. Nos. 248, 249.) 23 Plaintiffs argue the reinsurance policy requires production; Defendants disagree. The 24 Parties timely filed their supplemental briefing pursuant to the Court’s June 23, 2020 Order 25 following a discovery conference on the matter on that same day. (Doc. No. 247.) The 26 dispute is now ripe for this Court’s adjudication. Having reviewed and considered the 27 Parties’ respective positions and supporting legal authority, the Court GRANTS Plaintiffs’ 28 request for Defendants’ production of their reinsurance policy and ORDERS Defendants 1 to produce the policy no later than Friday, July 17, 2020. The Court explains below. 2 II. FACTUAL AND PROCEDURAL BACKGROUND 3 The following facts are undisputed by the Parties and relevant to this discovery issue. 4 At the inception of fact discovery, Defendants represented that the City of San Diego was 5 self-insured. Accordingly, Defendants did not provide insurance information or tender any 6 insurance related documents to Plaintiffs at any time during the Parties’ exchange of initial 7 disclosures, fact discovery, or any of the pre-trial proceedings in this matter. Trial began 8 on February 3, 2020 and concluded on February 18, 2020. (Doc. Nos. 160, 183.) It resulted 9 in a jury verdict for Plaintiffs in an amount exceeding $6 million, constituting 10 compensatory and punitive damages plus post-judgment interest and attorney fees and 11 costs. (Doc. No. 194.) Since then, Defendants have filed various post-trial motions, 12 including an Ex Parte Motion to Stay Enforcement of Judgment and for Relief from 13 Supersedeas Bond (“Ex Parte Motion”) (Doc. No. 208), a Motion for New Trial (Doc. No. 14 213), and a Renewed Motion for Judgment as a Matter of Law (Doc. No. 214). As of May 15 1, 2020, Plaintiffs’ Motion for Attorney Fees and Costs remains pending alongside 16 Defendants’ three motions. (Doc. No. 225.) 17 Defendants’ Ex Parte Motion and related Reply to Plaintiffs’ Opposition (Doc. No. 18 211) are relevant here, specifically the Declarations of Matthew Bartholow (“Bartholow 19 Declaration”) and Claudia Castillo del Muro (“Castillo del Muro Declaration”) in support 20 of same. (Doc. Nos. 208-2; 211-2.) Respectively, the Bartholow Declaration represents 21 “for judgments above $3,000,000, the City has multiple re-insurance policies providing 22 excess layers of coverage up to a total of $50,000,000” and “for a $10,000,000 judgment, 23 stemming from an incident that occurred in 2014, the City would pay the judgment and 24 then be reimbursed by the CSAC-Excess Insurance Authority with funding from Wesco 25 Insurance Company.” (Id., 2:5-9.) The Castillo del Muro Declaration adds, “Once a 26 judgment is paid using the Public Liability Fund (“PLF”), any portion of the judgment 27 amount over $3 million is reimbursed to the fund by the City’s reinsurance carriers.” (Doc. 28 No. 211-2, 2:21-24.) The Declaration then illustrates the point: “If the City uses General 1 Funds to pay a judgment, any amount over $3 million is reimbursed by the City’s 2 reinsurance carriers.” (Id.) 3 By respectively filing the Bartholow and Castillo Del Muro Declarations on March 4 25, 2020 and March 31, 2020. (Doc. Nos. 208, 211), Defendants, for the first time in this 5 longstanding litigation, disclosed their retention of a reinsurance policy that would apply 6 to any judgment issued here. In response to Defendants’ post-trial disclosure, Plaintiffs 7 requested production of the reinsurance policy, counsel for the Parties subsequently met 8 and conferred on the matter, and the Parties ultimately sought this Court’s intervention 9 given Defendants’ ongoing failure and/or inability to produce the policy. On June 23, 2020, 10 this Court convened a video discovery conference on the dispute and ordered the Parties to 11 file the supplemental briefing, which informs the basis of this Order. (Doc. No. 247.) 12 In short, Plaintiffs are convinced Rule 26(a) of the Federal Rules of Civil Procedure 13 obligates Defendants to produce their reinsurance policy consistent with routine initial 14 disclosures and a party’s continuing duty to supplement their relevant discovery under Rule 15 26(e). Plaintiffs assert that Defendants doubly erred by failing to make the initial disclosure 16 and then further delaying disclosure until trial concluded and post-trial proceedings were 17 underway. Defendants reject Plaintiffs’ stance and wholly dispute they bear any burden to 18 produce the reinsurance policy under Rule 26 or otherwise. Further, Defendants posit that, 19 while they consent to this Court adjudicating this discovery dispute, the Court in fact does 20 not have jurisdiction over this matter because the Action is in post-trial proceedings. The 21 Court addresses the jurisdictional inquiry and the discoverability issue in turn. 22 III. DISCUSSION 23 a. The Court Has Jurisdiction Over This Post-Trial Discovery Dispute 24 Section 636 of Title 28 of the United States Code (“Section 636”) provides for the 25 scope of a magistrate judge’s authority. 28 U.S.C. § 636; Ransom v. Herrera, 2017 WL 26 6425031, at *3 (E.D. Cal., Dec. 18, 2017). Under Section 636, a district judge “may 27 designate a magistrate judge to hear and determine any pretrial matter pending before the 28 court, except [certain enumerated motions].” 28 U.S.C. § 636(b)(1)(A); see also Denny v. 1 Ford Motor Co., 146 F.R.D. 52 (N.D.N.Y.1993) (citing to same and concluding magistrate 2 judge had authority under Section 636(b)(3) to decide post-verdict discovery motion to 3 take deposition). Coloring Section 636 is Rule 72(a) of the Federal Rules of Civil 4 Procedure, which provides that a magistrate judge has authority to hear matters that are not 5 dispositive of a party’s claim or defense. Fed. R. Civ. Proc. 72(a). Necessarily, these 6 include discovery motions. Germaine-McIver v. County of Orange, 2018 WL 6266525, at 7 *1 (C.D. Cal., Oct. 25, 2018); Bhan v. NME Hospitals, Inc., 929 F.2d 1404, 1414 (9th Cir. 8 1991); Hoar v. Sara Lee Corp., 900 F.2d 522, 525 (2d Cir. 1990) (“Matters concerning 9 discovery generally are considered ‘non-dispositive’ of the litigation”); Hutchinson v. 10 Pfeil, 105 F.3d 562 (10th Cir. 1997) (same as Hoar). Local Civil Rule 69.1(b) finesses 11 these foundational principles and governs proceedings to enforce judgments. The Rule 12 expressly states: “All other motions concerning execution of a judgment must be made to 13 the assigned district judge, unless the motion relates to the post-judgment discovery, in 14 which case the motion must be made to the assigned magistrate judge.” Civ. L. R. 69.1(b). 15 Taken together, the above rules affirm that this Court may properly adjudicate the 16 Parties’ instant discovery dispute.

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Estate of Kevin Brown v. City of San Diego, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-kevin-brown-v-city-of-san-diego-casd-2020.