Meelod Shaterian v. Commerce West Insurance Company

District Court, W.D. Washington·Decided January 20, 2026·No. 2:24-cv-01509·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON MEELOD SHATERIAN, CASE NO. 2:24-cv-01509-TL Plaintiff, ORDER ON MOTION FOR v. RECONSIDERATION COMPANY, Defendant. This matter is before the Court on Defendant’s motion for reconsideration (Dkt. No. 56) of the Court’s December 22, 2025, order (Dkt. No. 54) that granted Plaintiff’s motion for sanctions (Dkt. No. 42). Having reviewed Defendant’s motion and Plaintiff’s response (Dkt. No. 63), the Court DENIES Defendant’s motion. The Court assumes familiarity with the claims, factual history, and procedural history of this case. Relevant here, on December 22, 2025, the Court granted Plaintiff’s motion for discovery sanctions. Dkt. No. 54 at 6. The Court found that “Defendant [had] both failed to provide and/or supplement information and identify a witness as required by [Federal Rule of Civil Procedure] 26(a) and (e).” Id. at 5. The Court found further “that the failure was neither substantially justified nor harmless.” Id. Accordingly, under Rule 37, sanctions were warranted. See id.

The Court described the specifics of Defendant’s sanctionable conduct in its prior order. See id. at 4–5. To summarize, when Defendant made its initial Rule 26 disclosures to Plaintiff on November 8, 2024, it neglected to disclose John Toste as a witness. See id. at 4. On June 12, 2025, after the Court had ordered Defendant to provide Plaintiff with a supplemental privilege log, Defendant identified Toste on the privilege log as “someone who had made a ‘Post Litigation Claim note.’” Id. (quoting Dkt. No. 47-1 (supplemental privilege log) at 5). A “Post Litigation Claim note” would be protected under the attorney work-product doctrine. See id. But then, on October 7, 2025, Defendant submitted its pretrial statement, indicating that it planned to call Toste as a witness to “testify regarding his estimate for Plaintiff’s vehicle and the damage sustained to Plaintiff’s vehicle.” Dkt. No. 47-1 (pretrial statement) at 12.

The Court found that Defendant’s slipperiness regarding Toste and his testimony was improper: Defendant shielded from earlier probing both Mr. Toste’s identity as a witness, as well as what work he might have done, by choosing to describe Mr. Toste’s estimate as a “Post Litigation Claim note.” A “Post Litigation Claim note” would fall within the protection of the work product doctrine; it is a far cry from a “vehicle estimate”—which is how Defendant now characterizes the document in its pretrial statement and would thus indicate a document that contains facts to which a Plaintiff could seek access and an author about whom Plaintiff might want to make further inquiry.

Dkt. No. 54 at 5. Accordingly, the Court sanctioned Defendant. In relevant part, the Court: (1) precluded Toste from testifying at trial; and (2) ordered that Toste’s “appraisal be admitted into evidence with an instruction to the jury that the document was improperly withheld in discovery by Defendant, in violation of the Court’s Order.” Id. at 6. On January 5, 2026, Defendant moved for reconsideration of the sanctions. Dkt. No. 56. On January 12, 2026, the Court ordered Plaintiff to respond to Defendant’s motion (Dkt. No. 61),

and on January 16, 2026, Plaintiff submitted his response (Dkt. No. 63). “Motions for reconsideration are disfavored.” LCR 7(h)(1). Such motions are ordinarily denied absent “a showing of manifest error in the prior ruling or a showing of new facts or legal authority which could not have been brought to [the court’s] attention earlier with reasonable diligence.” Id. Absent such a showing, motions for reconsideration should be granted only in “highly unusual circumstances.” Marlyn Nutraceuticals, Inc. v. Mucos Pharma GmbH & Co., 571 F.3d 873, 880 (9th Cir. 2009) (quoting 389 Orange St. Partners v. Arnold, 179 F.3d 656, 665 (9th Cir. 1999)); see also Inventist, Inc. v. Ninebot Inc., 664 F. Supp. 3d 1211, 1215 (W.D. Wash. 2023) (noting that reconsideration is an “extraordinary remedy” and that the moving party

bears a “heavy burden” (quoting Kona Enters., Inc. v. Estate of Bishop, 229 F.3d 877, 890 (9th Cir. 2000))). “A motion for reconsideration ‘may not be used to raise arguments or present evidence for the first time when they could reasonably have been raised earlier in the litigation.’” Marlyn Nutraceuticals, 571 F.3d at 880 (quoting Kona Enters., 229 F.3d at 890). “Whether or not to grant reconsideration is committed to the sound discretion of the court.” Navajo Nation v. Confederated Tribes & Bands of the Yakama Indian Nation, 331 F.3d 1041, 1046 (9th Cir. 2003) (citing Kona Enters., 229 F.3d at 883). // //

// In moving for reconsideration, Defendant does not assert that the Court erred in granting Plaintiff’s motion for sanctions. See Dkt. No. 56 at 1–2. Rather, Defendant argues that the sanction is too harsh: The Court’s “specific sanction requiring a jury instruction that the Toste

appraisal was improperly withheld in violation of the Court’s order is improper and unduly prejudicial to the Defendant . . . .” Id. at 2. Plaintiff counters that Defendant “has not met its burden pursuant to LCR 7(h)(2) for the Court to grant reconsideration”; and that Defendant “is continuing its evasive discovery conduct that warranted sanctions.” Dkt. No. 63 at 1.1 The Court cited two primary authorities in its order: Federal Rule of Civil Procedure 37 and Yeti by Molly, Ltd. v. Deckers Outdoor Corp., 259 F.3d 1101 (9th Cir. 2001). Rule 37 authorizes a court to sanction a party that “fails to provide information or identify a witness as required by Rule 26(a) or (e) . . . .” Fed. R. Civ. P. 37(c)(1). Rule 37(c)(1)(B) specifically allows the Court to “inform the jury of the party’s failure.” In Yeti by Molly, the Ninth Circuit explained that district courts are “give[n] particularly wide latitude to the district court’s discretion to issue

sanctions under Rule 37(c)(1).” 259 F.3d at 1106. Defendant concedes that, in granting Plaintiff’s motion, the Court did not exceed its authority under either Rule 37 or Yeti by Molly. See Dkt. No. 56 at 3. Instead, Defendant cites Yeti by Molly as a case comparable to this one that, under similar factual circumstances, yielded a different outcome. Defendant argues that even though “[t]he actions of the parties in Yeti closely mirror the finding of this [C]ourt,” the district court in Yeti by Molly did not impose a sanction of an adverse jury instruction. Id. For his part, Plaintiff argues that the actions of the parties in Yeti

1 It is not necessary for the Court to address Plaintiff’s allegations about further “evasive discovery conduct” to adjudicate the instant motion. by Molly were dissimilar to Defendant’s actions here, and that the softer sanction issued in that case is therefore irrelevant. See Dkt. No. 63 at 2. Defendant’s concession is fatal to its motion for reconsideration. If, as Defendant notes, the Court correctly applied both Rule 37 and Yeti by Molly (albeit more harshly than Defendant

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Meelod Shaterian v. Commerce West Insurance Company, (W.D. Wash. 2026).

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