Philadelphia Indemnity Insurance Company v. Barker

CourtDistrict Court, N.D. New York
DecidedMay 7, 2021
Docket1:19-cv-01456
StatusUnknown

This text of Philadelphia Indemnity Insurance Company v. Barker (Philadelphia Indemnity Insurance Company v. Barker) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philadelphia Indemnity Insurance Company v. Barker, (N.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PHILADELPHIA INDEMNITY INSURANCE COMPANY, as subrogee of BALDWIN REAL ESTATE CORPORATION,

Plaintiff, -v- 1:19-CV-1456

KATHLEEN BURKE BARKER,

Defendant.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

APPEARANCES: OF COUNSEL:

O’CONNOR, O’CONNOR LAW FIRM ELIZBETH J. GROGAN, ESQ. ALBANY OFFICE TERENCE P. O’CONNOR, ESQ. Attorneys for Plaintiff 20 Corporate Woods Boulevard Albany, New York 12211

de LUCA LEVINE JEFFREY M. ZIELINSKI, ESQ. Attorneys for Plaintiff THADDEUS S. KIRK, ESQ. Three Valley Square Blue Bell, Pennsylvania 19422

CABANISS CASEY LLP BRIAN D. CASEY, ESQ. Attorneys for Defendant JOHN R. CASEY, ESQ. 4 Tower Place, Suite 100 Albany, New York 12203

DAVID N. HURD United States District Judge MEMORANDUM-DECISION and ORDER INTRODUCTION AND BACKGROUND

On November 22, 2019, plaintiff Philadelphia Indemnity Insurance Corporation (“PIIC” or “plaintiff”) brought a single-count complaint against defendant Kathleen Burke Barker (“Barker” or “defendant”), alleging simple negligence under New York common law. Dkt. 1. Although one could

imagine a set of circumstances in which an insurance company would bring a negligence claim in its own right against a single person, this case takes the more traditional route of subrogation. One of PIIC’s clients, Baldwin Real Estate Corporation (“Baldwin”), owns

a plot of land at 5398 Hemlock Drive, Lowville, New York. Dkt. 27-13, Defendant’s Statement of Material Facts (“DSMF”), ¶ 1.1 Through plaintiff, Baldwin insured a two-story, four-unit apartment building (the “building”). Id. ¶ 2. Baldwin’s policy with plaintiff included fire insurance. Dkt. 1

(“Compl.”), ¶ 2.2 Baldwin’s investment in fire insurance would turn out to be prudent, because on April 6, 2019, the building burst into flames. DSMF ¶ 3. As is often the case, plaintiff’s coverage allowed it to assume Baldwin’s rights

1 The facts are taken from defendant’s statement of material facts where admitted by plaintiff, or from other record evidence. Disputed facts are flagged and supported by citations to either the proponent’s statement of material facts or to record evidence. 2 The Court refers to plaintiff’s complaint solely to illuminate the factual context and will not rely on it in considering the merits of the parties’ present motion practice. against the person responsible for causing the fire, and it has acted as Baldwin’s subrogee ever since. Id. ¶ 4.

Enter Barker. As PIIC would have it, defendant is to blame for the conflagration because she carelessly disposed of a cigarette. Compl. ¶ 9. Plaintiff alleges that that carelessness provides the negligence to support its claims in this district. Id. ¶ 14. Predictably, defendant disagrees and moved

for summary judgment in her favor under Federal Rule of Civil Procedure (“Rule”) 56 on December 29, 2020. Dkt. 27. Less predictably, however, the how and why of the fire has no bearing on Barker’s motion for summary judgment. Instead, the parties are sparring

over whether PIIC has sufficiently proven the damages it suffered as a result. As evidence of damages, PIIC largely relies on the report of Christopher Vaughn (“Vaughn”), a general adjuster. See generally Dkt. 28-1. According to plaintiff, Vaughn’s report details the amount that plaintiff paid to restore

the building. Dkt. 28, Plaintiff’s Statement of Material Facts (“PSMF”),3 ¶ 10. That amount ultimately totaled $720,375.71, broken down into three subcategories. Dkt. 28-1, p. 509.4 Building and “incurred” damages apparently cost $656,037.72, satisfying code requirements cost another

$23,088.35, and Vaughn’s report listed Baldwin’s lost rent during the

3 Dkt. 28 contains several responsive documents, but the Court only refers to plaintiff’s statement of material facts in this Memorandum-Decision and Order. 4 Pagination Corresponds with CM/ECF. reconstruction as $41,249.64. Id. As support, Vaughn’s report included invoices from both contractors: one responsible for the reconstruction and one

responsible for the upgrades to the building necessary to bring it up to code. Id. pp. 456, 475. Those invoices reflect the same costs that Vaughn’s report claims. Id. at 456, 475, 509. But Barker comes away from Vaughn’s report with a decidedly different

impression. According to defendant, Vaughn’s report reflected nothing more than a “negotiated, agreed-upon settlement of the fire loss claim.” DSMF ¶ 10. Defendant cites to several passages throughout Vaughn’s report and testimony that she argues demonstrate that the number PIIC came up

with only reflected a settlement, and nothing more. Dkt. 28-1, pp. 4, 137, 182, 380, 382; Dkt. 28-2 (“Vaughn Dep. 1”), pp. 14, 48, 63; Dkt. 282-3 (“Vaughn Dep. 2”), pp. 18-19, 26. However, that dispute was not the only quirk to emerge from discovery in

this case, many of them stemming from discovery’s timing. In the absence of other guidance, Rule 26(a)(3) provides the timeline for the parties’ pretrial discovery disclosures. FED. R. CIV. P. 26(a)(3). In this case, though, those deadlines were governed by a scheduling order put in place by United States

Magistrate Judge Daniel J. Stewart on February 13, 2020, which expressly superseded Rule 26(a)(3)’s usual timelines. Dkt. 13, ¶ 1. One of the areas the scheduling order controlled was the timing of expert witness disclosure. To that end, Magistrate Judge Stewart ordered PIIC to

disclose its experts no later than ninety days before the discovery deadline. Dkt. 13, ¶ 6(A)(i). Magistrate Judge Stewart then gave Barker forty-five days to provide her expert reports. Id.¶ 6(A)(ii). Both parties could then present all reports of rebuttal experts no later than thirty days before the discovery

deadline. Id. ¶ 6(A)(iii). The final discovery deadline was November 16, 2020. Dkt. 23. The parties agree that PIIC has only disclosed one expert in this case. Plaintiff disclosed Daniel E. Vieau (“Vieau”), an expert investigator, on July

20, 2020. Dkt. 27-8, pp. 2, 83. According to Barker, Vieau’s report was primarily focused on determining the cause of the fire, rather than the damages the fire caused. See DSMF ¶ 15. Vieau ultimately opined that defendant had improperly disposed of a lit cigarette in a plastic pot on the

back patio, and the fire was a direct result. Dkt. 27-8, pp. 17-19. For her part, Barker disclosed her own expert in fire investigation, Dr. Jamie McAllister (“McAllister”), on September 29, 2020. Dkt. 27-10, p. 1. McAllister’s opinion primarily undermined Vieau’s contention that a

carelessly discarded cigarette caused the fire. Id. at 19-20. McAllister also claimed that there was not enough information available to determine the actual cause. Id. In answer, PIIC submitted a rebuttal report by Vieau on October 19, 2020. Dkt. 27-12, p. 1. As “rebuttal” report suggests, Vieau’s report disagrees with

McAllister’s conclusions and explains why he continues to believe that his original opinions as to the source of the fire are best supported by the evidence. Id. at 4-6. One of Vieau’s supporting arguments was that some studies showed that cigarettes could ignite peat and potting soil in a planter

while causing minimal smoke. Id. at 4. On December 30, 2020—the day after Barker moved for summary judgment—defendant submitted a supplemental report augmenting McAllister’s initial report. Dkt. 28-4 (“McAllister Suppl.”), p. 2. McAllister’s

supplemental report was apparently intended to “address opinions arising from [her] review of additional materials received since” her initial one. Id. at 5.

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