Patrick Industries, Inc. v. Continental Casualty Co. et al.

CourtDistrict Court, D. New Mexico
DecidedJanuary 23, 2026
Docket1:25-cv-00813
StatusUnknown

This text of Patrick Industries, Inc. v. Continental Casualty Co. et al. (Patrick Industries, Inc. v. Continental Casualty Co. et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patrick Industries, Inc. v. Continental Casualty Co. et al., (D.N.M. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO PATRICK INDUSTRIES, INC., Plaintiff,

v. No. 1:25-cv-00813-KG-LF CONTINENTAL CASUALTY CO. et al., Defendants. MEMORANDUM OPINION & ORDER REGARDING DEFENDANT’S MOTION TO TRANSFER VENUE

THIS MATTER is before the Court on defendants Continental Casualty Company, the Continental Insurance Company, and Columbia Casualty Company (collectively, “CNA Insurers")’s Motion to Transfer Pursuant to 28 U.S.C. § 1404(a) (Doc. 9). Having reviewed the motion, the law, and being otherwise fully advised, the Court denies the motion. BACKGROUND This case “is an insurance coverage, breach of contract, and bad faith dispute” that was initially filed in New Mexico state court but later removed to this Court on the basis of diversity jurisdiction. Doc. 1 at 1–3. Plaintiff, Patrick Industries, Inc., (“Patrick”) is a corporation organized under the laws of Indiana with its principal place of business in Indiana. Doc. 1-3 ¶ 1; Doc. 9 at 7. Continental Casualty Company (“CCC”) and Columbia Casualty Company (“Columbia”) are both corporations organized under the laws of Illinois with their principal places of business in Illinois. Doc. 1-3 ¶¶ 2, 4; Doc. 9 at 7. The Continental Insurance Company (“CIC”) is a corporation organized under the laws of Pennsylvania with its principal place of business in Illinois. Doc. 1-3 ¶ 3; Doc. 9 at 7–8. Patrick obtained a tower of insurance coverage involving policies from CNA Insurers for the period of October 15, 2023, to October 15, 2024. Doc. 9 at 2; Doc. 20 at 3–4. The insurance contracts were brokered in Indiana, signed by the Indiana Branch of CNA, and issued to Patrick, which is headquartered in Indiana. Doc. 9 at 14.

In November of 2023, a semi tractor accident in New Mexico resulted in the deaths of Chad and Brad Gunter, and the Gunters’ surviving family members brought a wrongful death lawsuit (the “Gunter Action”) against Patrick, among other defendants, in New Mexico state court in 2024. Doc. 9 at 5–6; Doc. 20 at 3. Patrick submitted a claim for coverage to CNA Insurers related to the lawsuit. Doc. 1-3 ¶¶ 21–22; Doc. 8 ¶ 22. However, plaintiffs in the Gunter Action demanded damages in excess of Patrick’s limits of liability. Doc. 1-3 ¶ 24; Doc. 8 ¶ 24. The case settled on July 11, 2025, and CNA Insurers paid the policy limits of all three insurance policies to effectuate the settlement. Doc. 9 at 6; Doc. 20 at 4–5. The parties dispute whether CNA Insurers properly reserved the right to seek recoupment of the amounts CNA Insurers paid under the policies. See Doc. 9 at 6; Doc. 20 at 4. Patrick argues that CNA Insurers’

coverage position and reservation of rights were bad faith conduct, but that Patrick decided under duress to proceed with settling the Gunter Action. Doc. 20 at 4–5. On July 14, 2025, Patrick filed this action in New Mexico state court, seeking a declaratory judgment that CNA Insurers owe it full coverage for the Gunter Action, Doc. 1-3 ¶¶ 79–90, and bringing claims of breach of contract, id. ¶¶ 91–114, tortious breach of the covenant of good faith and fair dealing, id ¶¶ 115–20, bad faith, id. ¶¶ 121–30, violations of the New Mexico Unfair Insurance Practices Act, id. ¶¶ 131–42, and violations of the New Mexico Unfair Trade Practices Act, id. ¶¶ 143–45. On July 21, 2025, CIC and Columbia filed their own lawsuit against Patrick in the U.S. District Court for the Northern District of Indiana, seeking both a declaratory judgment that they owe no duty to indemnify Patrick in the wrongful death action and reimbursement of the funds CNA committed to pay pursuant to that action’s settlement. Doc. 9-1 at 2. On August 28, 2025, CNA Insurers moved the Court to transfer this action to the

Northern District of Indiana. Doc. 9. Patrick opposes the motion. Doc. 20. On December 16, 2024, the United States District Court for the Northern District of Indiana stayed the Indiana lawsuit pending this Court’s resolution of the motion to transfer. Doc. 29 at 1. ANALYSIS I. Failure to Confer Pursuant to Local Rule 7.1(a). This District’s local rules of civil procedure require movants to “determine whether a motion is opposed” and provide that “a motion that omits recitation of a good-faith request for concurrence may be summarily denied.” D.N.M.LR-Civ. 7.1(a). While parties should strictly adhere to the Court’s local rules, the nature of Local Rule 7.1(a) is permissive, granting the Court discretion to reach a motion’s merits despite a party’s failure to adhere to the rule. See Merheb v.

Jerman, No. 15-cv-00522-MV-KK, 2016 WL 10671393, at *1 (D.N.M. Jan. 27, 2016); Speridian Technologies, LLC v. Applications Software Tech. Corp., 15-cv-0528-KBM-WPL, 2015 WL 13047933, at *1 n.1 (D.N.M. Oct. 9, 2015). Patrick correctly notes that CNA Insurers omitted a recitation of a good-faith request for concurrence and asserts that CNA Insurers did not confer with it to determine whether the motion is opposed. Doc. 20 at 7–8. CNA Insurers admit that they failed to comply with Rule 7.1(a) and state that they will ensure compliance with the rule moving forward. Doc. 25 at 8. CNA Insurers argue, however, that any attempt to comply with the rule would have been futile, given that Patrick has filed a motion to dismiss in the Indiana case on the basis that venue is proper in the District of New Mexico. Id. at 9. But there is no futility exception in the rule’s text, nor do any of the cases that CNA Insurers cite support the argument that a party may disregard the rule on their belief that concurrence would be futile. If concurrence is truly futile, a movant is required to include a recitation confirming that futility. See D.N.M.LR-Civ. 7.1(a).

Nonetheless, the Court will resolve the motion on the merits. The parties have already fully briefed the motion, and summarily “denying the now fully-briefed motion serves no benefit for judicial economy.” Speridian Technologies, 2015 WL 13047933, at *1 n.1. Further, CNA Insurers at least acknowledge their failure to comply with the rule and state that such failure was inadvertent. Cf. Armijo v. Cardinal Logistics Mgmt. Corp., No. 23-cv-00573-SMD-LF, 2025 WL 3269888, at *1–2 (D.N.M. Nov. 24, 2025) (summarily denying a fully-briefed motion for failure to confer under D.N.M.LR 7.1(a) where movant only attempted to confer twenty-one minutes before filing a motion and subsequently failed to address its noncompliance with the local rules). Under these circumstances it is more appropriate for the Court to admonish defense counsel to request concurrence from opposing counsel before filing any future motions in this District

regardless of whether they believe a request for concurrence on such motions is futile. II. Whether transfer is appropriate under § 1404(a). Pursuant to 28 U.S.C. § 1404(a), “a district court may transfer any civil action to any other district or division where it might have been brought,” both “[f]or the convenience of parties and witnesses” and “in the interest of justice.” The parties do not dispute that this action could have been brought in the Northern District of Indiana. Doc. 9 at 10; Doc. 20 at 8. Whether to grant a motion to transfer venue is within the Court’s discretion and is evaluated on a case-by-case basis. Chrysler Credit Corp. v. Country Chrysler, Inc., 928 F.3d 1509, 1516 (10th Cir. 1991).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Employers Mutual Casualty Co. v. Bartile Roofs, Inc.
618 F.3d 1153 (Tenth Circuit, 2010)
United States v. Stanley J. Gaudet
966 F.2d 959 (Fifth Circuit, 1992)
Pehr v. Sunbeam Plastics Corp.
874 F. Supp. 317 (D. Kansas, 1995)
Cook v. Atchison, Topeka & Santa Fe Railway Co.
816 F. Supp. 667 (D. Kansas, 1993)
City of Raton v. Arkansas River Power Authority
611 F. Supp. 2d 1190 (D. New Mexico, 2008)
Guidance Endodontics, LLC v. Dentsply International, Inc.
663 F. Supp. 2d 1138 (D. New Mexico, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
Patrick Industries, Inc. v. Continental Casualty Co. et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/patrick-industries-inc-v-continental-casualty-co-et-al-nmd-2026.