Fruge v. Ulterra Drilling Technologies, L.P.

883 F. Supp. 2d 692, 2012 WL 3062739
CourtDistrict Court, W.D. Louisiana
DecidedSeptember 7, 2012
DocketCivil Action No. 6:07-cv-00789
StatusPublished
Cited by1 cases

This text of 883 F. Supp. 2d 692 (Fruge v. Ulterra Drilling Technologies, L.P.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fruge v. Ulterra Drilling Technologies, L.P., 883 F. Supp. 2d 692, 2012 WL 3062739 (W.D. La. 2012).

Opinion

MEMORANDUM RULING AND ORDER

TUCKER L. MELANQON, District Judge.

Before the Court are appeals from the Magistrate Judge’s Memorandum Ruling of July 25, 2012, R. 197, that denied defendant Amerisure Mutual Insurance Company’s “Motion To Enforce Settlement Agreement, To Dismiss All Cross-Claims Of Chubb, To Preclude Further Discovery, And To Submit Pending Motions For Consideration In Accordance With The Fifth Circuit Decision,” R. 198, and that denied defendant Chubb Custom Insurance Company’s “Rule 56(d) Motion To Stay Proceedings On Motion For Summary Judgment And Motion To Reopen Discovery,” R. 200.1 After an independent review of the record, considering the objections and responses filed by the parties, as well as the applicable jurisprudence, the Court concludes that the Magistrate Judge was correct and his ruling will therefore be AFFIRMED in all respects.

I. STANDARD OF REVIEW

The court reviews the ruling of a magistrate judge on non-dispositive, pretrial motions only to determine whether they are “clearly erroneous or contrary to law.” 28 U.S.C. § 636(b)(1)(A) (2012); Castillo v. Frank, 70 F.3d 382, 385 (5th Cir.1995); Daffern v. State Auto Prop. & Cas. Ins. Co., No. 10-1211, 2011 WL 1085664, at *1 (W.D.La. Mar. 18, 2011) (James, C.J.).

II. AMERISURE’S MOTIONS TO ENFORCE THE SETTLEMENT AGREEMENT OR, ALTERNATIVELY, TO DISMISS CHUBB’S CROSS-CLAIM2

The Magistrate Judge correctly concluded that dismissal of Chubb’s cross-[695]*695claim against Amerisure under the provision in the settlement agreement would be inconsistent with the common intent of the parties to the agreement, and would necessarily involve disregarding one settlement provision in favor of another contrary to Louisiana law. R. 197 at 702-03; see La. Civ. Code Ann. arts. 2045, 2050 (2012); see also La. Ins. Guar. Ass’n v. Interstate Fire & Cas. Co., 630 So.2d 759, 763 (La.Ct. App. 1st Cir.1994) (interpreting separate insurance contract policy provisions in light of section 2050). The Magistrate Judge correctly concluded that the settlement agreement clearly evinces the parties’ common intent to “preserve[] both parties’ right to appeal,” R. 197 at 702-03, and that the dismissal of Chubb’s cross-claim would deny Chubb “the right to finish the appeal process by having the trial court rule in accordance with the Fifth Circuit’s remand order,” R. 197 at 702-03, a right specifically preserved by the settlement agreement.

Amerisure also attempts, in its appeal of the Magistrate Judge’s ruling, to resurrect its argument originally made in its motion for summary judgment before this Court that Chubb has “no standing” to enforce its legal claim against Amerisure. This theory, and the new cases Amerisure cites in support of it, were not presented by Amerisure to the Magistrate Judge prior to the Magistrate Judge issuing its Memorandum Ruling, see R. 180, R. 187, and thus the Magistrate Judge did not have the opportunity to address this aspect of Amerisure’s argument. The argument has been waived on appeal by Amerisure due to its failure to present it to the Magistrate Judge. See Lewis v. Ascension Parish Sch. Bd., 662 F.3d 343, 348 (5th Cir. 2011); Cupit v. Whitley, 28 F.3d 532, 535 & n. 5 (5th Cir.1994). Assuming arguendo that the argument had not been waived, after review of the newly cited cases, the Court finds that the Magistrate Judge was nonetheless correct.3 The Magistrate’s [696]*696denial of Amerisure’s motions to enforce the settlement agreement or, alternatively, to dismiss Chubb’s cross-claim, is therefore affirmed.

III. CHUBB’S RULE 56(D) MOTION TO RE-OPEN DISCOVERY

Without deciding the issue of whether or not Fifth Circuit jurisprudence allows for submission of an “equivalent statement” conveying the need for additional discovery despite the clear language of Rule 56(d) requiring “an affidavit or declaration,” the Court finds that the Magistrate Judge properly denied Chubb’s motion as Chubb failed to present any valid justification, particularly in light of the history of this proceeding, for its failure to request discovery earlier. The record clearly demonstrates a conscious decision by Chubb to pursue the argument made in its summary judgment motion that the Amerisure policies were unambiguous and could not be altered through extrinsic evidence, rather than request to take “additional discovery to investigate the mutual error claim asserted in Amerisure’s [own summary judgment] motion.” R. 197 at 701-02. Chubb’s argument that the Fifth Circuit “changed the rules of the game” by refocusing the central issue on mutual mistake — an issue which Amerisure has argued from the start of this litigation,4 and which Chubb has itself admitted is the longstanding position of Amerisure5 — is, as the Magistrate Judge concluded, “wholly unpersuasive.” As the record includes ample support for the Magistrate Judge’s conclusion, it is not clearly erroneous, and therefore the denial of Chubb’s Rule 56(d) motion is affirmed.

IV. CONCLUSION

For the foregoing reasons,

The Magistrate Judge’s Ruling granting in part Amerisure’s motion seeking to have the Court rule on the case’s pending motions, and denying in part Amerisure’s motion to enforce the settlement agreement and to dismiss Chubb’s cross-claim, R. 180, is AFFIRMED; and

The Magistrate Judge’s Ruling denying Chubb’s Rule 56(d) motion to stay proceedings and reopen discovery, R. 185, is AFFIRMED.

As a result of the foregoing, Amerisure’s Motion To Strike Affidavit, R. 202, is DENIED as moot.

MEMORANDUM RULING

PATRICK J. HANNA, United States Magistrate Judge.

Currently pending before the Court are two related motions: (1) defendant Amerisure Mutual Insurance Company’s motion to dismiss defendant Chubb Custom Insurance Company’s cross-claim, enforce the settlement agreement, preclude further discovery, and submit pending motions for consideration (Rec. Doc. 180); and (2) Chubb’s motion to stay proceedings on motion for summary judgment and reopen discovery (Rec. Doc. 185). For the reasons explained below, Chubb’s motion is DENIED, and Amerisure’s motion is GRANTED IN PART and DENIED IN PART.

Background

Rockbit Holdings owns Ulterra Drilling Technologies (“Drilling”), which owns Ulterra MWD (“MWD”). Ronald F. Thomason, the chief financial officer for both Drilling and MWD, contacted Cameron Jones at William Rigg Company to pur[697]*697chase insurance for both Drilling and MWD. Rigg obtained policies from Chubb and Amerisure.

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883 F. Supp. 2d 692, 2012 WL 3062739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fruge-v-ulterra-drilling-technologies-lp-lawd-2012.