Taylor v. Hawley Troxell Ennis & Hawley LLP

CourtDistrict Court, D. Idaho
DecidedMay 27, 2025
Docket1:10-cv-00404
StatusUnknown

This text of Taylor v. Hawley Troxell Ennis & Hawley LLP (Taylor v. Hawley Troxell Ennis & Hawley LLP) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Hawley Troxell Ennis & Hawley LLP, (D. Idaho 2025).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

DALE L. MIESEN, an individual who is a shareholder and who is also bringing Case No. 1:10-cv-00404-DCN this action on behalf of and/or in the right of AIA Services Corporation and its MEMORANDUM DECISION AND wholly owned subsidiary AIA Insurance, ORDER Inc,

Plaintiff, v.

HAWLEY TROXELL ENNIS & HAWLEY, LLP, an Idaho limited liability partnership; GARY D. BABBITT, an individual; D. JOHN ASHBY, an individual; RICHARD A. RILEY, an individual; MICHAEL W. CASHMAN SR., an individual; JAMES BECK, an individual; R. JOHN TAYLOR, an individual; CONNIE TAYLOR HENDERSON, an individual; JOLEE K. DUCLOS, an individual; CROP USA INSURANCE AGENCY, INC., an Idaho corporation; AIA SERVICES CORPORATION, an Idaho corporation; AIA INSURANCE, INC., an Idaho corporation; CROP USA INSURANCE SERVICES, LLC, an Idaho limited liability company; GEMCAP LENDING I, LLC, et al., a Delaware limited liability company,

Defendants.

I. INTRODUCTION Before the Court is the parties’ briefing on whether Plaintiff Dale Miesen has any viable direct claims against certain Defendants.1 On May 5, 2022, the Court granted Defendant Hawley Troxell Ennis & Hawley LLP’s (“Hawley Troxell”) Motion to Dismiss,

which dismissed all derivative claims Miesen brought against Hawley Troxell, Individual Defendants, and CropUSA Defendants. Dkt. 1203. Due to the sheer procedural complexity of this case, the Court ordered each party file a status report of which claims remained after that decision. Id. at 50–51. After the filing of those status reports, and further litigation, Miesen contended he had direct claims that remained against Defendants. On August 9, 2022, the Court ordered further briefing on whether Miesen has any

direct claims against these Defendants. Dkt. 1238, at 4. The Defendants submitted a joint opening brief (Dkt. 1239) to which Miesen filed a Response (Dkt. 1248). Defendants then submitted a joint Reply. Dkt. 1254. Shortly thereafter, Miesen filed a Motion for Leave to File a Sur-Reply to Defendants’ Reply. Dkt. 1262. In relation to this briefing, briefing was stayed on CropUSA Defendants’ Motion to File and Overlength Brief (Dkt. 1064) and

Motion for Summary Judgment (Dkt. 1071) because, if Miesen cannot maintain any direct claims against CropUSA, these Motions are moot. Because oral argument would not significantly aid its decision-making process, the Court will decide these issues on the briefing. Dist. Idaho Loc. Civ. R. 7.1(d)(1)(B). Upon consideration, and for the reasons below, Miesen’s Motion for Leave to File a Sur-Reply

1 The relevant Defendants to which this Order will apply are AIA Insurance, Inc. and AIA Services Corporation (collectively “AIA Defendants”), James Beck, Michael W. Cashman, Connie Taylor Henderson, and R. John Taylor (collectively “Individual Defendants”), Crop USA Insurance Agency, Inc. and Crop USA Insurance Services, LLC (collectively “CropUSA Defendants”). For ease moving forward, the Court will refer to these three groups collectively as Defendants, which will not include the other Defendants still party to this case who are not involved in this particular issue. is DENIED. The Court finds Miesen does not have any viable direct claims against the Defendants. Accordingly, CropUSA Defendants’ Motion to File an Overlength Brief and

Motion for Summary Judgment are MOOT. II. BACKGROUND This case began 15 years ago, in 2010, as a shareholder derivative lawsuit on behalf of the AIA Defendants. On May 5, 2022, the Court entered an order dismissing all Miesen’s derivative claims against CropUSA Defendants, Individual Defendants, and Defendant Hawley Troxell for failure to fulfill derivative demand requirements. Dkt. 1203. Due to the

extensive complexity of this case, the Court instructed the parties to file a status report addressing which claims and motions remained in the case after the outcome of that order. Between May 9, 2022, and May 19, 2022, each party filed their status reports. Dkts. 1204, 1207–1212. Over the next several months, Miesen and Hawley Troxell and Miesen and GemCap

Lending I LLC (“GemCap”) reached settlement agreements. See Dkts. 1214, 1231. GemCap then filed for Bankruptcy. Dkt. 1259. The case was then stayed pending further information from the bankruptcy court, and the stay was not lifted until March 26, 2024. Dkt. 1291. Prior to the stay, the Court issued an Order addressing the parties’ status reports and

briefing schedules which remained at issue. Dkt. 1238. Briefing on several motions had been stayed prior to the Court’s decision at docket 1203. See Dkt. 1089 (staying briefing on multiple motions). Additionally, as part of his status report, Miesen indicated that, even though his derivative claims had been dismissed, he still had direct claims against CropUSA Defendants, AIA Defendants, and Individual Defendants which needed to be litigated. Defendants opposed such a notion, claiming Miesen had never asserted harms

unique to himself; rather that he always maintained he was bringing a derivative suit. The Court ordered further briefing as “an extension of the underlying motion to dismiss” on whether Miesen had ever made any direct claims in this case. Dkt. 1238, at 4. The Court indicated it would first address the direct claims arguments before resuming briefing on the other remaining issues, as the outcome could moot some of those motions.2 The Court now decides whether Miesen has asserted any viable direct claims against

CropUSA Defendants, AIA Defendants, and Individual Defendants. III. LEGAL STANDARDS A. Leave to File Sur-Reply “While the Federal Rules of Civil Procedure do not expressly permit the filing of a sur-reply, this Court has recognized that a reply brief may justify a sur-reply in appropriate

circumstances.” Ocampo v. Corizon, LLC, 2019 WL 1495251, at *3 (D. Idaho Apr. 4, 2019). Leave to file a sur-reply is discretionary but should be granted “where a valid reason for such additional briefing exists,” such as when the movant raises new arguments in its reply brief. Hill v. England, 2005 WL 3031136, at *1 (E.D. Cal. Nov. 8, 2005). However,

2 Separately, Miesen filed a Writ of Mandamus with the Ninth Circuit on January 27, 2025, arguing, in essence, that this case was not progressing and suggesting that it be reassigned to another judge. Dkt. 1295. The Court appreciates that Miesen would like to move this case forward as quickly as possible. Many factors have contributed to the delay in this case. Some of those include the Court’s heavy docket—as of the date of this writing, the undersigned presides over close to 500 civil and criminal case with 284 pending motions. Other factors—such as stays, supplemental briefs, hearings, repeated objections and motions for reconsideration by Miesen—have also contributed to the length of this case. The Ninth Circuit will adjudicate Miesen’s Writ as it deems appropriate, but the Court emphasizes here that it sees no reason to transfer this case to another Judge or otherwise change the current trajectory of the case. sur-replies—in any context—are “highly disfavored, as they usually are a strategic effort by the nonmoving party to have the last word on a matter.” J.R. Simplot Company v.

McCain Foods USA, Inc., 2021 WL 4899465, at *2 (D. Idaho Oct. 20, 2021) (cleaned up). B. Derivative v. Direct Claims In Idaho, derivative actions are “brought by one or more stockholders of a corporation to enforce a corporate right or remedy a wrong to the corporation in cases where the corporation, because it is controlled by the wrongdoers or for other reasons fails and refuses to take appropriate actions for its own protection[.]” McCann v. McCann

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Bluebook (online)
Taylor v. Hawley Troxell Ennis & Hawley LLP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-hawley-troxell-ennis-hawley-llp-idd-2025.