Gutta Jr. v. Sedgwick Claims Management Services, Inc.

CourtDistrict Court, D. Oregon
DecidedJanuary 9, 2024
Docket3:22-cv-01145
StatusUnknown

This text of Gutta Jr. v. Sedgwick Claims Management Services, Inc. (Gutta Jr. v. Sedgwick Claims Management Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutta Jr. v. Sedgwick Claims Management Services, Inc., (D. Or. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

FRANK S. GUTTA JR., an individual, No. 3:22-cv-01145-HZ

Plaintiff, OPINION & ORDER

v.

SEDGWICK CLAIMS MANAGEMENT SERVICES, INC.,

Defendant.

Frank S. Gutta Jr. 4245 SE Main St. Portland, OR 97215

Pro se

Mark Crabtree Scott William Oborne Kevin Coles Jackson Lewis P.C. 200 SW Market St., Ste. 540 Portland, Oregon 97201

Attorneys for Defendant HERNÁNDEZ, District Judge: Before the Court are the parties’ cross-motions for summary judgment on Plaintiff’s two claims for breach of contract. ECF 31, 37, 41. Defendant also moves to strike Plaintiff’s evidence in support of his claim under Rule 37. ECF 49. This matter is suitable for decision

without oral argument. For the following reasons, the Court grants Defendant’s Motion to Strike and Motion for Summary Judgment and denies Plaintiff’s Motion for Summary Judgment. BACKGROUND This case revolves around the former business relationship between Plaintiff and Defendant. Plaintiff Frank Gutta Jr., the sole proprietor of Frank Gutta IT_Solutions (“IT_Solutions”), formerly did consulting work for ADIN Healthcare, LLC, a subsidiary of Defendant Sedgwick. Third Am. Compl. (“TAC”) ¶ 2, ECF 21; Answer ¶ 2, ECF 27. The precise nature of the consulting work is disputed. ADIN “provides scheduling services for healthcare providers and access to a national network of healthcare providers.” Harper Decl. ¶ 3, ECF 32. Plaintiff alleges that ADIN later became known as Fast 360 LLC. TAC ¶ 2. Plaintiff was not

organized under or supervised by Defendant’s IT department. TAC ¶ 4; Answer ¶ 4. Two claims remain in this case, both for breach of contract. First, Plaintiff alleges that he had “a written agreement with ADIN/Fast 360 to provide all phases of a system upgrade,” and the last phase of the upgrade required him “to integrate automated billing and Fee Schedules into the ADIN/Fast360 business applications.” TAC ¶ 13. Plaintiff tried to uphold his end of the agreement. Id. ¶ 62. The company never fully delivered the fee schedules. Id. ¶ 14 As a result, Plaintiff could not complete the agreement. Id. Second, Plaintiff alleges that he “entered into a business agreement with ADIN/Fast 360” that required Plaintiff to provide “business software solutions” and ADIN/Fast 360 to provide “all networking and security support.” Id. ¶ 12. He alleges that this is standard in the industry. Id. He alleges that Defendant failed in its duties. Id. On December 7, 2010, Plaintiff emailed several individuals at ADIN a proposed upgrade plan for a software project. Crabtree Summ. J. Decl. Ex. 1 at 5, ECF 33; Gutta Decl. Ex. 25, ECF

42. Plaintiff submits copies of a few emails related to his requests for fee schedules in 2016 and 2017. Gutta Decl. Exs. 8-11. The TAC enumerates various ways in which Defendant’s IT department allegedly failed in its duties. Plaintiff focuses on two incidents in particular. First, Plaintiff alleges that one of Defendant’s IT personnel improperly locked him out of all accounts for a month. TAC ¶ 30. He submits emails and other documents related to the lockout. Gutta Decl. Exs. 13-23. Second, Plaintiff alleges that a data breach occurred at the company in February 2020. TAC ¶ 15. He alleges that he reported the breach and was terminated immediately after he escalated his reports. Id. ¶¶ 17-20, 23. He submits emails, text messages, and other documents related to the alleged breach. Gutta Decl. Exs. 1, 2, 3, 12, 29.

On June 5, 2020, Joel Harper, Defendant’s Vice President of IT Applications, asked other employees of Defendant if he could see a copy of any agreement with Plaintiff, and expressed concerns that Plaintiff was not responding to communications or attending meetings. Harper Decl. ¶¶ 1, 5, Ex. 1 (emails). On June 9, 2020, Harper emailed other members of the IT department, “Based on Frank’s recent behavior and the small communications we do get from him, I feel it is time to cut his network access to all of Sedgwick.” Id. ¶ 6, Ex. 2. The same day, Defendant terminated Plaintiff’s network access. Id. ¶ 7. The next day, Defendant notified Plaintiff that it was terminating the parties’ business relationship. Id. Plaintiff filed his complaint in state court on June 10, 2022. Notice of Removal Ex. 1 at 4-13, ECF 1. His original complaint alleged negligence, negligent infliction of emotional distress (“NIED”), and fraud. Id. Defendant removed to federal court based on diversity of citizenship. Notice of Removal at 2. Defendant then moved to dismiss the complaint for failure to state a

claim. Def. Am. Mot. to Dismiss, ECF 7. On August 30, 2022, Plaintiff moved for an extension of time to respond, moved to amend his complaint, and filed an opposition to Defendant’s motion to dismiss. ECF 10-12. The Court granted leave to amend and denied the motion to dismiss as moot. Order, ECF 14. Plaintiff filed his amended complaint on October 4, 2022, adding new claims for wrongful termination under the Sarbanes-Oxley Act and breach of contract. Am. Compl., ECF 15. The Court granted Defendant’s motion to dismiss with respect to all of Plaintiff’s claims except for his breach of contract claim, and granted Plaintiff leave to amend his other claims. Op. & Ord., ECF 19. Plaintiff filed another amended complaint, the TAC, on January 20, 2023, adding a second claim for breach of contract. ECF 21. Defendant again moved to dismiss. ECF 24. The Court granted Defendant’s motion to dismiss with respect

to all of Plaintiff’s claims except for the two claims for breach of contract, and declined to grant further leave to amend. Op. & Ord., ECF 26. Defendant then answered the TAC. ECF 27. The Court held a Rule 16 conference on April 20, 2023. ECF 29. The discovery deadline was set for September 29, 2023, and the deadline to file dispositive motions was set for October 30. 2023. Id. On July 28, 2023, Defendant moved for summary judgment on the basis that Plaintiff had failed to prove the existence of a contract. Def. Mot. Summ. J., ECF 31. Defendant’s Motion relied in part on Plaintiff’s failure to timely answer certain requests for admissions, arguing that they were deemed admitted under Federal Rule of Civil Procedure 36(a)(3). Id. at 5-6. The Court issued a summary judgment advice notice to Plaintiff and extended the deadline for him to respond to the motion. ECF 34, 35. Plaintiff filed an opposition to Defendant’s Motion, and at the same time filed his First Motion for Summary Judgment. Pl. First Mot., ECF 37. Plaintiff’s First Motion consisted solely of a brief. After the parties notified the Court of a discovery dispute, the Court held a discovery

conference on September 11, 2023. ECF 40. The Court ordered Defendant to amend certain interrogatories and set a deadline for Plaintiff to respond. The Court also granted Plaintiff relief from the requests for admissions deemed admitted and ordered him to respond to the requests. The Court delineated the extent to which Defendant was required to respond to Plaintiff’s requests for production. The Court extended the discovery deadline to October 30, 2023. Finally, the Court directed the clerk to strike Plaintiff’s opposition to Defendant’s Motion for Summary Judgment so that Plaintiff could file a new opposition with supporting evidence. On October 30, 2023, Plaintiff filed his Second Motion for Summary Judgment. Pl. Second Mot., ECF 41. Plaintiff also submitted a declaration under penalty of perjury attaching 25 exhibits. Gutta Decl., ECF 42. In addition, Plaintiff filed two documents titled Motions in

Limine. One sought to preclude Defendant from making false statements about the alleged data breach. ECF 43.

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