RP Golden State Management, LLC v. Ohio Security Insurance Company

CourtDistrict Court, E.D. California
DecidedAugust 17, 2020
Docket1:19-cv-00600
StatusUnknown

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

Bluebook
RP Golden State Management, LLC v. Ohio Security Insurance Company, (E.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 RP GOLDEN STATE MANAGEMENT, ) Case No.: 1:19-cv-00600-DAD-JLT LLC, ) 12 Plaintiff, ) ORDER GRANTING UNOPPOSED MOTION TO ) COMPEL NON-PARTY DEPONENT 13 v. ) ) (Doc. 37) 14 OHIO SECURITY INSURANCE ) 15 COMPANY, ) Defendant. ) 16 )

17 This lawsuit arises from the handling of two insurance claims submitted by Plaintiff RP 18 Golden State Management, LLC to Defendant Ohio Security Insurance Company under its 19 commercial property insurance policy. The primary loss involves alleged wind damage to the roof and 20 resulting water leaks at Plaintiff’s hotel located in Bakersfield, California, and the other claim involves 21 alleged vandalism, purportedly caused by a long-term hotel tenant. Since February 2020, Defendant 22 has been attempting to take the deposition of third-party witness, William Harrison. Harrison served as 23 a general contractor at the Plaintiff’s hotel, overseeing the extensive hotel remodel which was 24 allegedly delayed because of the wind and vandalism losses. Defendant states that Harrison initially 25 agreed to appear for deposition, but later reversed course. 26 Defendant seeks the Court to (1) deem Defendant’s August 2, 2020 service of a deposition 27 subpoena upon Harrison effectuated; and (2) compel Harrison to appear for deposition on August 14, 28 2020 (the date set forth in the operative subpoena), or on another date sufficiently in advance of the 1 September 4, 2020 fact discovery cut-off. Plaintiff’s counsel does not oppose this motion. For the 2 reasons set forth below, Defendant’s motion to compel is GRANTED.1 3 I. Background and Allegations 4 This lawsuit arises from the handling of two insurance claims submitted by Plaintiff to 5 Defendant under its commercial property insurance policy. (Doc. 38 at 2.) The primary loss involves 6 alleged wind damage to the roof and resulting water leaks at Plaintiff’s hotel located in Bakersfield, 7 California. (Id.) The other claim involves alleged vandalism, purportedly caused by a long-term hotel 8 tenant. (Id.) Defendant never denied coverage for these claims prior to suit being filed. (Id.) 9 Nonetheless, Plaintiff filed the instant complaint asserting causes of action for (1) breach of contract; 10 (2) breach of the covenant of good faith and fair dealing; and (3) bad faith against Defendant, seeking 11 damages in the 7-figure range. (Id.; see Doc. 1.) Accordingly, Defendant has continued to investigate 12 whether Plaintiff has presented a viable claim for a covered loss through discovery in this litigation. 13 (Doc. 39, Safford Decl., ¶ 2.) 14 Since February 2020, Defendant has been attempting to take the deposition of third-party 15 witness, William Harrison. (Doc. 38 at 2.) Harrison served as a general contractor at the Plaintiff’s 16 hotel, overseeing the extensive hotel remodel which was allegedly delayed because of the wind and 17 vandalism losses. (Id.) The extensive remodel was required by the franchise agreement that Plaintiff 18 had signed with Radisson to upgrade the hotel. (Id.) Harrison has knowledge of the condition of the 19 roof prior to Plaintiff making a claim to Defendant, which is key according to Defendant, because 20 Plaintiff foamed over the allegedly wind-damaged roof before he even reported the claim to 21 Defendant. (Id.) There are also documents reflecting that Harrison told a Farmers insurance adjuster 22 that there was no wind damage to the roof, which has been confirmed by the adjuster in deposition. 23 (Id.) For these reasons, Defendant asserts, Harrison’s testimony is critical to the Defendant’s defense. 24 (Safford Decl., ¶ 3.) 25 More than five months ago, Defendant commenced efforts to depose Harrison. (Safford Decl., 26 ¶ 4.) On February 24, 2020, counsel for Defendant spoke with Harrison by phone regarding the need 27

28 1 The Court held a hearing on this motion. The moving party, its counsel and Mr. Harrison failed to appear. The Court has 1 to take his deposition. (Id.) Harrison agreed to appear for his deposition on March 20, 2020, and he 2 further agreed to accept service of a deposition subpoena via email. (Id.) Following the call, counsel 3 for Defendant memorialized this agreement in an email communication to Harrison, attaching the 4 subpoena, and explaining to Harrison that, although he had agreed to electronic service of the 5 subpoena, it would be necessary to personally serve him with the subpoena as well, in accordance with 6 the Federal Rules of Civil Procedure. (Id.; Doc. 39-1.) The subpoena setting Harrison’s deposition for 7 March 20, 2020 was personally served upon Harrison on March 16, 2020. (Id., at ¶ 5; Doc. 39-2.) 8 On March 17, 2020, counsel for Defendant called Harrison to advise that, due to State and 9 County stay-at-home orders resulting from the outbreak of COVID-19, his deposition would need to 10 be postponed. (Safford Decl., ¶ 6.) Harrison agreed to work with Defendant to set a new date for his 11 deposition. (Id.) That same day, counsel for Defendant sent Harrison an email confirming their 12 discussion. (Id.; Doc. 39-3.) Two days later, on March 19, 2020, counsel for Defendant mailed 13 Harrison a letter, again confirming their earlier conversation and asking Harrison to sign an agreement 14 to appear at deposition on a mutually convenient date and time, pursuant to the previously served 15 subpoena. (Id., at ¶ 7; Doc. 39-4.) 16 On April 1, 2020, having not received the signed agreement to appear at deposition without the 17 issuance of a new subpoena, counsel for Defendant emailed Harrison to inquire about the status of 18 same. (Safford Decl., ¶ 8; Doc. 39-5.) A further email was sent to Harrison on April 15, 2020, again 19 requesting that he execute and return the agreement to appear at deposition. (Id., at ¶ 9; Doc. 39-6.) He 20 failed to do so. (Id.) 21 On June 11, 2020, counsel for Defendant spoke with Harrison by phone again. (Safford Decl., 22 ¶ 10.) Harrison confirmed his prior commitment to sign the agreement to appear at deposition, to avoid 23 being personally served with a new subpoena. (Id.) In an email that same day, counsel for Defendant 24 memorialized their conversation, and re-sent the requested agreement for Harrison to appear at 25 deposition. (Id.; Doc. 39-7.) Harrison never signed the agreement. (Id.) 26 On June 24, 2020, counsel for Defendant sent an email to Harrison inquiring as to his 27 availability for deposition on July 14, 15, or 17. (Safford Decl., ¶ 11; Doc. 39-8.) On June 30, 2020, 28 counsel for Defendant spoke with Harrison by phone, yet again, to discuss re-scheduling his 1 deposition. (Id., at ¶ 12.) Harrison agreed to be deposed on July 22, 2020, to waive personal service of 2 a subpoena for his deposition, and to appear pursuant to the original subpoena personally served upon 3 him. (Id.) This agreement was memorialized in an email communication, as well as in a letter sent via 4 first class mail. (Id.; Doc. 39-9.) Counsel for Defendant requested that Harrison sign the June 30, 2020 5 letter, acknowledging his agreement to comply with the enclosed subpoena and appear for deposition 6 on July 22, 2020. (Id.) Harrison never signed the letter. (Id.) 7 On July 1, 2020, counsel for Defendant emailed Harrison a notice of deposition, setting his 8 deposition for the agreed-upon date of July 22, 2020. (Safford Decl., ¶ 13.) Again, counsel for 9 Defendant emphasized the need to receive Harrison’s signed acknowledgment to comply with the 10 subpoena, noting that if the executed agreement was not received, it would be necessary to personally 11 serve Harrison with a new subpoena. (Id.; Doc. 39-10.) Harrison never returned the signed agreement.

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RP Golden State Management, LLC v. Ohio Security Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rp-golden-state-management-llc-v-ohio-security-insurance-company-caed-2020.