Travelers Casualty Insurance Company of America v. New Mexico Bone and Joint Institute P.C.

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

TRAVELERS CASUALTY INSURANCE COMPANY OF AMERICA, Plaintiff, v. No, 2:24-cv-0027 MV/DLM NEW MEXICO BONE AND JOINT INSTITUTE, P.C., AMERICAN FOUNDATION OF LOWER EXTREMITY SURGERY AND RESEARCH, INC., a New Mexico Corporation, RILEY RAMPTON, DPM, LOREN K. SPENCER, DPM, TERVON DORSEY, individually, KIMBERLY DORSEY, individually, and KATE FERLIC as GUARDIAN AD LITEM for K.D. and J.D., MINORS, Defendants.

MEMORANDUM OPINION AND ORDER ADOPTING PROPOSED FINDINGS AND RECOMMENDED DISPOSITION THIS MATTER is before the Court on: (i) United States Magistrate Judge Damian Martinez’s Proposed Findings and Recommended Disposition (PFRD) filed November 7, 2024 (Doc. 47); and (ii) the Dorsey Defendants’! Objections filed November 21, 2024 (Doe. 48). In the PFRD, Judge Martinez recommends denying the Dorsey Defendants’ Motion to Dismiss. (See Doc. 47 at 1.) Based on the Court’s de novo determination of the issues the Dorsey Defendants raise in their Objections and after reviewing de novo the relevant law, the Court will OVERRULE the Objections, ADOPT the PFRD, and DENY the motion to dismiss.

'The Dorsey Defendants, referred to as the State Plaintiffs in the PFRD, include Tervon Dorsey, Kimberly Dorsey, and Kate Ferlic as guardian ad litem for K.D. and J.D., minors.

I Background Plaintiff Travelers Casualty Insurance Company of America filed a declaratory judgment action in this Court seeking a declaration on whether an insurance policy it issued to Defendant New Mexico Bone and Joint Institute, P.C. (NMBJI) requires it to defend or indemnify its insureds in an underlying state lawsuit. (See Doc. 47 at 1; see also Doc. 1.) Travelers and its insureds have filed cross-motions for judgment on the pleadings. (Docs. 3; 25.) The Dorsey Defendants— plaintiffs in the state case—move to dismiss Travelers’ lawsuit or to stay it pending resolution of certain fact issues in the state court. (See Doc. 20.) The Court referred the motion to dismiss to Judge Martinez. (See Doc. 41.) In the PFRD, Judge Martinez examined the Mhoon factors to analyze whether the Court should exercise its discretion to decide Travelers’ declaratory judgment action. (See Doc. 47 at 6 (discussing State Farm Fire & Cas. Co. v. Mhoon, 31 F.3d 979 (10th Cir. 1994)).) Judge Martinez found that this case “present[s] a close call[: t]he first two Mhoon factors weigh in favor of exercising jurisdiction, the third factor is neutral, and the fourth and fifth factors weigh slightly against exercising jurisdiction.” (/d. at 13.) Noting that “both the insurance company and its insureds are ready to proceed in this Court” and that the Dorsey Defendants “have neither found precedent that would require the Court to [stay or dismiss] ... nor... convincingly outlined factual issues that preclude the Court from deciding Travelers’ lawsuit[,]” Judge Martinez recommended denying the motion to dismiss and proceeding with the cross-motions for judgment on the pleadings. (See id.) The Dorsey Defendants generally object to the PFRD. (See Doc. 48.) Having considered the Dorsey Defendants’ objections de novo, the Court finds no reason to depart from the recommended disposition.

IT IS THEREFORE ORDERED that: 1. The Dorsey Defendants’ Objections (Doc. 48) are OVERRULED; 2. The PFRD (Doc. 47) is ADOPTED; and 3. The Motion to Dismiss (Doc. 20) is DENIED.

FC; bediee MARTHA VAZQUEZ SENIOR U.S. DISTRICT JUDGE