Louisiana Corral Management, LLC v. Axis Surplus Insurance Company

CourtDistrict Court, E.D. Louisiana
DecidedJanuary 11, 2023
Docket2:22-cv-02398
StatusUnknown

This text of Louisiana Corral Management, LLC v. Axis Surplus Insurance Company (Louisiana Corral Management, LLC v. Axis Surplus Insurance Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Corral Management, LLC v. Axis Surplus Insurance Company, (E.D. La. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA LOUISIANA CORRAL * CIVIL ACTION MANAGEMENT, LLC * NO. 22-2398 VERSUS * SECTION “I” (2) AXIS SURPLUS INSURANCE COMPANY *

ORDER AND REASONS

Before me on an expedited basis is a Motion to Quash Subpoenas filed by Defendant Axis Surplus Insurance Company. ECF No. 38. Plaintiff Louisiana Corral Management, LLC timely filed an Opposition Memorandum. ECF No. 46. No party requested oral argument in accordance with Local Rule 78.1, and the Court agrees that oral argument is unnecessary. Considering the record, the submissions and arguments of counsel, and the applicable law, Defendant Axis Surplus Insurance Company’s Motion to Quash is GRANTED IN PART AND DENIED IN PART for the reasons stated herein. I. BACKGROUND Plaintiff Louisiana Corral Management, LLC, the operator of a Golden Corral franchise in Houma, Louisiana, filed suit against its insurer Axis Surplus Insurance Company alleging breach of contract and statutory violations, seeking to recover for losses incurred as a result of Hurricane Ida as well as extra-contractual damages and attorneys’ fees. ECF No. 1. Plaintiff alleges that, after it provided satisfactory proof of loss, Axis sent an inspector to the property but did not provide a repair estimate. Id. ¶¶11-12. Plaintiff incurred $397,012.94 for water mitigation, cleaning and demolition, and received estimates of $1,215,437.83 for hurricane repairs, $436,778.79 for replacement equipment, $46,050 for roof repair and temporary coverings, $21,384 for flat roof repair, $28,504.72 for security camera replacement, and $1,000 for furniture assembly costs. Id. ¶¶ 13-17, 21-23. Plaintiff alleges that, on April 12, 2022, Axis tendered an untimely and grossly inadequate first payment of $409,383.10. Id. ¶ 20. During discovery, Plaintiff issued Rule 45 subpoenas duces tecum to Axis’ third-party administrator NARS, its field adjuster Provencher, and its expert building consultant J.S. Held.

ECF No. 38-1 at 1; see also Nos. 38-2, 38-3, 38-4. Axis contends that the Subpoenas must be quashed as they do not allow a reasonable time for compliance as they were provided to counsel on January 3, 2022, with a return date of January 13, 2022, but had not been served by the January 5th filing of its Motion to Quash. ECF No. 38-1 at 5-6. It also contends that the Subpoenas are overbroad because they seek blanket production of the attorney’s and insurer’s claim file rather than specific documents within the claims file, hence, it argues, the subpoena also seeks both ordinary and mental impression work product. Id. at 6-8. Axis further contends that the subpoenas to both Provencher and Held seek attorney-client communications and work product. Id. at 8-11. In Opposition, Plaintiff argues that Axis lacks standing to seek quash the subpoenas directed to third parties and has failed to establish that any information sought is either protected

by the attorney-client privilege or work product doctrine. ECF No. 46 at 3-5. It asks for in camera review of documents withheld on the basis of privilege. Id. at 5. Plaintiff concedes that the subpoena imposes a “time crunch,’ but blames same on defense counsel’s unavailability for deposition during November and December. Id. at 5-6. II. APPLICABLE LAW A. Scope of Discovery Rule 26 authorizes the parties to “obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. Information within this scope of discovery need not be admissible in evidence to be discoverable.” FED. R. CIV. P. 26(b)(1). Rule 26(b)(2)(C) mandates that the Court limit the

frequency or extent of discovery otherwise allowed, if it determines: (1) the discovery sought is unreasonably cumulative or duplicative, or can be obtained from some other source that is more convenient, less burdensome, or less expensive; (2) the party seeking discovery had ample opportunity to obtain the information; or (3) the proposed discovery is outside the scope of Rule 26(b)(1).1 1. The Attorney-Client Privilege The attorney-client privilege is the oldest of the privileges for confidential communications.2 The purpose of the attorney-client privilege is well-established: to encourage candid communications between client and counsel.3 The applicability of the attorney-client privilege “is a question of fact, to be determined in the light of the purpose of the privilege and guided by judicial precedents.”4 Not all communications between a client and his or her attorney

are protected by the attorney-client privilege.5 While the attorney-client privilege extends to all situations in which counsel is sought on a legal matter, it protects “only those disclosures necessary to obtain informed legal advice which might not have been made absent the privilege.”6 The attorney-client privilege therefore does not

1 FED. R. CIV. P. 26(b)(2)(C)(i)–(iii). 2 Hodges, Grant & Kaufmann v. U.S. Gov’t, Dept. of the Treasury, I.R.S., 768 F.2d 719, 720 (5th Cir. 1985) (citation omitted). 3 Upjohn Co. v. United States, 449 U.S. 383, 389–91 (1981). 4 Hodges, 768 F.2d at 721 (citation omitted). 5 United States v. Pipkins, 528 F.2d 559, 562–63 (5th Cir. 1976) (stating that the attorney-client privilege “is not a broad rule of law which interposes a blanket ban on the testimony of an attorney.”). 6 Fisher v. United States, 425 U.S. 391, 403 (1976) (citations omitted). attach to every communication between a client and counsel, as the privilege “does not embrace everything that arises out of the existence of an attorney-client relationship.”7 “What is vital to the privilege is that the communication be made in confidence for the purpose of obtaining legal advice from the lawyer.”8 A party invoking the attorney-client privilege bears the burden of

demonstrating its applicability and must show: “(1) that he made a confidential communication; (2) to a lawyer or his subordinate; (3) for the primary purpose of securing either a legal opinion or legal services, or assistance in some legal proceeding.”9 2. The Work Product Doctrine Rule 26(b)(3) of the Federal Rules of Civil Procedure governs the disclosure of documents prepared in anticipation of litigation and provides: Ordinarily, a party may not discover documents and tangible things that are prepared in anticipation of litigation or for trial by or for another party or its representative (including the other party's attorney, consultant, surety, indemnitor, insurer, or agent). But, subject to Rule 26(b)(4), those materials may be discovered if: (i) they are otherwise discoverable under Rule 26(b)(1); and

(ii) the party shows that it has substantial need for the materials to prepare its case and cannot, without undue hardship, obtain their substantial equivalent by other means.

FED. R. CIV. Proc. 26(b)(3). The work product doctrine protects two categories of materials: ordinary work-product and opinion work product.10 Ordinary work product is generally immune from discovery unless the party seeking disclosure “has a substantial need for the material in order to prepare for trial and is unable without

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Louisiana Corral Management, LLC v. Axis Surplus Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-corral-management-llc-v-axis-surplus-insurance-company-laed-2023.