Team Industrial Services, Inc v. Zurich American Insurance Company

CourtDistrict Court, D. Kansas
DecidedFebruary 25, 2022
Docket2:19-cv-02710
StatusUnknown

This text of Team Industrial Services, Inc v. Zurich American Insurance Company (Team Industrial Services, Inc v. Zurich American Insurance Company) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Team Industrial Services, Inc v. Zurich American Insurance Company, (D. Kan. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

TEAM INDUSTRIAL SERVICES, INC., ) ) Plaintiff, ) ) vs. ) Case No. 19-2710-HLT-KGG ) ZURICH AMERICAN INSURANCE ) COMPANY, et al., ) Defendants. ) )

MEMORANDUM & ORDER ON MOTION TO COMPEL

NOW BEFORE THE COURT is the Motion to Compel (Doc. 259) filed by Defendant Endurance American Insurance Company (hereinafter “Endurance”) relating to responses by Plaintiff Team Industrial Services (hereinafter “Team”) to certain Interrogatories, Requests for Production, and Requests for Admission. After review of the parties’ submissions, including the discovery at issue, Endurance’s motion is GRANTED in part and DENIED in part. BACKGROUND Non-party Furmanite was a contractor which provided services to Westar at a coal-fired power plant. Under its contract with Westar, insurance was provided to Furmanite by Westar under an OCIP through Zurich which provided coverage to all enrolled contractors performing work for Westar during the policy’s effective dates. Team alleges that it assumed the contract from Furmanite, but that as a result of “errors, oversights, or inadvertence that [it] contends is attributable to Westar, Zurich, and/or their agents or representatives, [Team]

purportedly was not enrolled in the OCIP.” Two employees of Westar (“the deceased”) were killed in an accident at the site and brought legal actions against Team (hereinafter “the incident”). Zurich

denied coverage because Furmanite, rather than Team, was listed as the insured, even though Team claims Westar and Zurich knew Team was performing the work at the site. The widow of one of the deceased, Kelli Most, is a Defendant in the

present litigation as personal representative of her deceased husband. She has prevailed in a lawsuit in Texas state court (“Texas litigation”) against Team (the Plaintiff herein). The Texas litigation resulted in a verdict against Team in the

amount of $222 million, although judgment had not been entered at the time of the filing of the present motion. (Doc. 260, at 2.) Team brought the present litigation as a declaratory judgment action on November 19, 2019, against Westar and Zurich claiming it was entitled to

coverage for the accidents. The motion to intervene (Doc. 92) filed by Westchester Fire Insurance Company was granted on 10/20/2020 (Doc. 117). Team filed its Second Amended Complaint (Doc. 157) on February 23,

2021, which, in relevant part, added Endurance as a party Defendant as a result of an excess policy of insurance issued by Endurance effective January 1, 2018, through January 1, 2019. Team alleges that Endurance, along with Defendant

insurers Zurich and Westchester, are potentially liable to defend Team or indemnify it for damages alleged against the plaintiff in the related Texas litigation. (Id.)

Team contends it is should have been enrolled in the OCIP when it took over work of affiliated entity Furmanite, which was previously enrolled in the Westar OCIP. (Doc. 157, at ¶¶ 27-38.) Team continues that inclusion of Furmanite rather than Team in the Westar OCIP after Team assumed Furmanite’s work is the result

of an administrative error; according to Team, both it and Westar intended Team’s valve work to be covered under the Westar OCIP. (Id., ¶¶ 74-84.) According to Endurance, Team asserted in its defense of the Texas litigation

that Team “was entitled to the workers’ compensation exclusive remedy defense under Texas law such that Most was precluded from bringing a tort action against Team.” (Doc. 260, at 2.) Endurance continues that Team asserted that the Texas Workers’ Compensation Act provisions codified by section 408.001(a) of the Texas Labor Code barred Most’s claims against Team. This was asserted by Team as an affirmative defense (“Affirmative OCIP Defense”). See Team’s Verified First Amended Answer and Renewed Request for Disclosures, ¶ 12, attached as [Doc. 260-12]. The basis for this defense would have been the contention that both Team and Westar were insureds under the Westar OCIP, under Texas law Team would be considered the statutory employer of Westar’s employees and, therefore, Most’s remedies were limited to workers’ compensation benefits.

(Doc. 260, at 2.) The present motion relates to Endurance’s discovery requests to Team, originally served on November 17, 2021, with responses following on December 17, 2021. (Docs. 260-9, -10, and -11.) Team argues that prior to filing the present discovery motion, Endurance failed to comply with the “meet and confer” requirements of Fed.R.Civ.P. 37 and D. Kan. Rule 37.2. The Court has, however, reviewed the parties’ pre-motion communications and finds they were sufficient.

ANALYSIS I. Standards for Motions to Compel. Fed.R.Civ.P. 26(b) states that

[p]arties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at state in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. Information within this scope of discovery need not be admissible in evidence to be discoverable.

Fed.R.Civ.P. 26(b)(1). As such, the requested information must be nonprivileged, relevant, and proportional to the needs of the case to be discoverable. Holick v. Burkhart, No.16-1188-JTM-KGG, 2018 WL 372440, at *2 (D. Kan. Jan. 11, 2018).

Discovery requests must be relevant on their face. Williams v. Board of Co. Comm’rs, 192 F.R.D. 698, 705 (D. Kan. 2000). Relevance is to be “broadly construed at the discovery stage of the litigation and a request for discovery should

be considered relevant if there is any possibility the information sought may be relevant to the subject matter of the action.” Smith v. MCI Telecomm. Corp., 137 F.R.D. 25, 27 (D. Kan. 1991). Once this low burden of relevance has been established, the legal burden

regarding the defense of a motion to compel resides with the party opposing the discovery request. See Swackhammer v. Sprint Corp. PCS, 225 F.R.D. 658, 661, 662, 666 (D. Kan. 2004) (stating that the party resisting a discovery request based

on overbreadth, vagueness, ambiguity, or undue burden/expense objections bears the burden to support the objections). Thus, “the objecting party must specifically show in its response to the motion to compel, despite the broad and liberal construction afforded by the federal discovery rules, how each request for

production or interrogatory is objectionable.” Sonnino v. University of Kansas Hosp. Authority, 221 F.R.D. 661, 670–71 (D. Kan. 2004). “Unless a request is overly broad, irrelevant, or unduly burdensome on its

face, the party asserting the objection has the duty to support its objections.” Funk v. Pinnacle Health Facilities XXIII, LP, No. 17-1099-JTM-KGG, 2018 WL 6042762, at *3 (D. Kan. Nov. 19, 2918) (quoting Hammond v. Lowe's Home

Ctrs., Inc., 216 F.R.D. 666, 670 (D. Kan. 2003)). Further, once the “low burden of relevance is established, the legal burden regarding the defense of a motion to compel resides with the party opposing the discovery request.” Waters v. Union

Pac. RR. Co., No. 15-1287-EFM-KGG, 2016 WL 3405173, at *1 (D. Kan. June 21, 2016) (citing Swackhammer v. Sprint Corp. PCS, 225 F.R.D. 658, 661, 662, 666 (D. Kan.

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