Roman v. Travelers Casualty Insurance Company of America

District Court, D. New Mexico·Decided May 6, 2021·No. 1:20-cv-00765·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR

THE DISTRICT OF NEW MEXICO ________________________

T. ROSARIO ROMAN,

Plaintiff,

v. 20cv00765 WJ/SCY

TRAVELERS CASUALTY INSURANCE COMPANY OF AMERICA,

Defendant.

MEMORANDUM OPINION AND ORDER (1) GRANTING DEFENDANT’S MOTION TO DISMISS IN PART; (2) GRANTING DEFENDANT’S MOTION TO SUPPLEMENT BRIEFING; and (3) AWARDING DEFENDANT ATTORNEY FEES FOR FILING OF MOTION TO DISMISS AND TO SUPPLEMENT BRIEFING

THIS MATTER comes before the Court upon:

(1) Defendant’s Motion to Dismiss Based on Discovery Violations, filed January 8, 2021 (Doc. 33); and

(2) Defendant’s Opposed Motion to Supplement Briefing on the Motion to Dismiss for Discovery Violations (Doc. 45), filed April 14, 2021.

Having reviewed the parties’ briefs and applicable law, the Court finds that Defendant’s Motion to Dismiss (Doc. 33) is partially granted in that: (1) Plaintiff is ordered to supplement her discovery disclosures as described below; and (2) Defendant is awarded attorney fees and costs, the exact amount of which is to yet be determined, associated with the filing of the motion to dismiss and the motion to supplement briefing (Docs. 33 and 45), due to Plaintiff’s discovery abuses. The Court grants Defendant’s Opposed Motion to Supplement Briefing (Doc. 45). BACKGROUND This case is a dispute over the recovery of insurance benefits under a commercial policy issued by Defendant. Plaintiff alleges that Defendant did not pay all the sums due when she made a claim under the policy alleging that her property was damaged by a storm-related wind/hail event on or around September 1, 2018. The Complaint asserts claims of: breach of contract; violation of the New Mexico Insurance Code, specifically § 59A-16-20; bad faith; and negligence. Both

parties agree that the case is governed by New Mexico state law. Defendant seeks dismissal of Plaintiff’s case as a sanction for Plaintiff’s failure to provide adequate information in response to discovery requests regarding the condition of the property prior to the September 2018 storm. Defendant claims that documents produced pursuant to a third- party subpoena reveal that Plaintiff was aware of the roof leaking when she purchased the property in 2014 and that she even negotiated roof repairs with the seller. However, Plaintiff has withheld, and continues to withhold, relevant discovery materials in response to discovery requests and has misrepresented her discovery to this Court. I. Court’s Preliminary Consideration of Defendant’s Motion to Dismiss (Docs. 33, 42)

On April 1, 2021, the Court preliminarily addressed Defendant’s motion to dismiss, reviewing the chronology related to the discovery requests and Plaintiff’s disclosures (“April 1st Order”). The Court agreed with Defendant that there was indeed some discrepancy in discovery produced by Plaintiff—for example, a two-page roofing estimate by AAA Roofing which had not previously been produced until Plaintiff’s response to the motion to dismiss. Doc. 42 at 6. The Court also agreed with Defendant’s contention that there appeared to be some foot-dragging on Plaintiff’s part in fulfilling her discovery obligations. Id. at 7. The Court deferred a consideration of imposing sanctions under Ehrenhaus and instead afforded Plaintiff an opportunity to file a surreply in order to respond to (1) the sudden appearance of the AAA roofing estimate; and (2) the charge that she continues to withhold discovery material related to inspections and repairs of her house.1 Id. at 9. Plaintiff filed a surreply on April 15, 2021 (Doc. 47). II. Defendant’s Opposed Motion to Supplement Briefing (Doc. 45) On April 12, 2021, following the deposition of Plaintiff on April 12th and the deposition

of Caid Riggin of Allstate Public Adjusters, LLC on April 7th, Defendant requested leave of Court to supplement briefing on its motion to dismiss (“Supplement”). Mr. Riggin was the public adjuster involved in the adjusting of the underlying claim.2 Defendant contends that the Supplement “bears directly” on the Ehrenhaus analysis the Court had deferred pending Plaintiff’s filing of a surreply. Plaintiff did not respond to Defendant’s request to supplement briefing on the motion to dismiss and Defendant filed a Notice of Completion on May 4, 2021. Doc. 50. Under this Court’s local rules, the Court may consider Plaintiff’s failure to respond as consent to grant the motion. D.N.M. L.R.Civ-7.1(b). However, the Court would also have granted Defendant’s motion because it contains new information based on Plaintiff’s deposition testimony which was only made

available to Defendant on April 13, 2021— two days before Plaintiff filed her surreply. The supplemental information provided by Defendant is therefore relevant to the issue of whether

1 See Ehrenhaus v. Reynolds, 965 F.2d 916, 920 (10th Cir. 1992).

2 Defense counsel provides an interesting bit of background concerning the business of “public adjusters,” who work on behalf of the insured to adjust claims. They usually work with roofing contractors and engage in “door-to-door sales tactics” following storms to sign up insureds to make insurance claims. If the insurer denies the claim because it finds no storm damage, the public adjuster and roofer then refer the insured to an attorney—in this case, McClenny, Mosely & Associates (“MMA”) out of Houston, Texas—to file suit, and the public adjuster provides his estimate and photos to the attorney. Under this rather convenient arrangement, the public adjuster pockets 10 percent of a claim, whether or not the case settles pre-litigation. Doc. 45-2 at 60:12-18 (Riggin Depo.). Defense counsel also notes that MMA itself does its share of storm chasing to bring in business and refers to a recent Facebook post showing an MMA attorney setting up an RV “base camp” at Lake Charles, Louisiana following a hurricane. Doc. 45 at 3. While this description offers a rather jaundiced view of law firm “rainmaking,” it is not necessarily inaccurate. The Court includes it here because it could provide some context and explanation about what appears to be almost a collective effort on the part of Plaintiff’s team to hamper discovery in this case. Plaintiff has failed to comply with this Court’s discovery orders—and if so, whether sanctions are warranted. While the Court grants Defendant’s request to supplement briefing, it views the “motion” itself as the supplement because it contains detailed additional information and argument. There is no reason to allow Defendant a second round of briefing when it has already had a first one.

DISCUSSION

Defendant contends that Plaintiff has willfully failed to comply with this Court’s discovery orders and seeks dismissal of Plaintiff’s case pursuant to Fed.R.Civ.P. 37(b)(2)(A) and under Ehrenhaus v. Reynolds, 965 F.2d 916, 920 (10th Cir. 1992). I. Court’s Previous Findings3 In its April 1st Order, the Court concluded that it did appear that Plaintiff was “hiding the ball regarding inspections and repairs made to the property prior to the September 2018 storm— or at least protracting the discovery process.” Doc. 42 at 4. The Court’s opinion was based on Plaintiff’s various responses to Defendant’s discovery requests:  September 22, 2020. First Interrogatories and Requests for Production (“RFP”). Plaintiff provided responses to these requests on October 22, 2020.

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Roman v. Travelers Casualty Insurance Company of America, (D.N.M. 2021).

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