Wallace v. U.S.A.A. Life General Agency, Inc.

862 F. Supp. 2d 1062, 82 Fed. R. Serv. 3d 319, 2012 U.S. Dist. LEXIS 43338, 2012 WL 1068313
CourtDistrict Court, D. Nevada
DecidedMarch 29, 2012
DocketNo. 2:10-CV-01855-LRH
StatusPublished
Cited by2 cases

This text of 862 F. Supp. 2d 1062 (Wallace v. U.S.A.A. Life General Agency, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace v. U.S.A.A. Life General Agency, Inc., 862 F. Supp. 2d 1062, 82 Fed. R. Serv. 3d 319, 2012 U.S. Dist. LEXIS 43338, 2012 WL 1068313 (D. Nev. 2012).

Opinion

ORDER

Before the court is Defendant USAA Life Insurance Company, Inc.’s (“USAA”)1 Motion for Summary Judgment (# 182). Plaintiff Mariellen M. Wal[1064]*1064lace filed a consolidated Opposition and Countermotion for Summary Judgment (# 22-23), USAA filed a reply (# 24) and a cross-opposition (# 26), and Plaintiff filed a cross-reply (# 32).

LARRY R. HICKS, District Judge.

[1064]*1064Also before the court are three additional motions: first, Plaintiffs Motion to Strike USAA’s Summary Judgment Motion (# 29), along with USAAs opposition (# 35) and Plaintiffs reply (# 36); second, Plaintiffs Motion in Limine # 1 (# 28), along with USAA’s opposition (# 33); and third, Plaintiffs Motion in Limine #2 (# 30), along with USAA’s opposition (# 34).

I. Facts and Procedural History

This action involves USAA’s denial of Plaintiffs claim for life insurance benefits based on the insurer’s contention that Plaintiffs deceased husband’s life insurance application contained misrepresentations and omissions that were material to the issuance of the $500,000 policy. More specifically, USAA contends that Mr. Wallace failed to disclose medical testing and treatment occurring between his application date and the issuance of the policy and that he answered certain questions incorrectly on his application.

Plaintiff counters that her husband fully disclosed his pertinent health condition, particularly orchitis, disclosed his health care provider’s contact information, and provided the insurer with an authorization to contact his health care providers. She further contends that her husband’s condition did not change and that any undisclosed tests or procedures related to the condition were immaterial, particularly given the disclosure of the condition itself and that her husband was already classified at an elevated risk level based on other disclosed factors, including medical conditions, age and activities.

Following the USAA’s denial of her claim, on September 21, 2010, Plaintiff filed her complaint in state court alleging five causes of action for (1) breach of contract, (2) breach of the implied covenant of good faith and fair dealing, (3) breach of fiduciary duty, (4) insurance bad faith, and (5) declaratory relief, all based on USAA’s failure to make prompt payment of benefits under the policy. On October 22, 2010, USAA removed the action on the basis of this court’s diversity jurisdiction. Following discovery, USAA now moves for summary judgment (# 18), and Plaintiff opposes and cross-moves for summary judgment (# 22, # 23). Plaintiff also moves to strike USAA’s motion as based on the testimony of an expert witness the Magistrate Judge has since disqualified (# 27) and other witnesses that were not properly disclosed during discovery. Plaintiff also moves to exclude those improperly disclosed witnesses (#28), as well as improperly disclosed documents (# 30).

II. Evidentiary Motions

A. Plaintiffs Motion in Limine # 1 (# 28)

Plaintiffs first motion in limine seeks to exclude three witnesses — Peter Morris, Katy Luebke and Kim Wilhoite — as undisclosed or improperly disclosed during discovery. Morris is USAA’s principal underwriter and the person who, following the insured’s death and Plaintiffs claim for benefits, reviewed the insured’s insurance application and undisclosed medical history and determined that USAA would not have issued the life insurance policy had it known the correct information — i.e., that the inaccuracies and omissions were material. Luebke and Wilhoite are the underwriters that reviewed the insured’s application before issuance of the policy.

As part of a party’s initial disclosures in discovery, the party “must, without await[1065]*1065ing a discovery request, provide to the other parties: (i) the name and, if known, the address and telephone number of each individual likely to have discoverable information — along with the subjects of that information — that the disclosing party may use to support its claims or defenses, unless the use would be solely for impeachment.” Fed.R.Civ.P. 26(a)(l)(A)(i). Such initial disclosures must be made “at or within 14 days after the parties’ Rule 26(f) conference unless a different time is set by stipulation or court order.” Fed.R.Civ.P. 26(a)(1)(C). Furthermore, “[a] party must make its initial disclosures based on information then reasonably available to it. A party is not excused from making its disclosures because it has not fully investigated the case....” Fed.R.Civ.P. 26(a)(1)(E).

Here, USAA issued its Rule 26(a)(1)(A)® initial disclosure of witnesses on January 7, 2011, and two supplemental witness disclosures on June 9, 2011 and July 19, 2011, the discovery cut-off date. None of these disclosures list Morris, Luebke or Wilhoite.

USAA points instead to its disclosure of Morris in its Answers to Interrogatories, which it issued along with its second supplemental witness disclosure on the discovery cut-off date, July 19, 2011. In response to Interrogatory No. 1, requesting the identities of “every person who had any involvement in handling the claim that is the subject of this lawsuit,” USAA listed “Pete Morris” and others listed as “individuals [that] were involved in certain aspects of processing the claim.” (Doc. # 33-2, pp. 2-3.)

Regarding Luebke and Wilhoite, USAA has never specifically identified them as potential witnesses or even as persons with knowledge. Instead, their names appeared only in the bodies of documents disclosed in USAA’s response to Plaintiffs request for production of documents and as part of USAA’s supplemental Rule 26 disclosures, both of which were issued on the discovery cutoff date, July 19, 2011.

As to Luebke and Wilhoite, the court finds that USAA has never properly identified either individual as a potential witness in compliance with Rule 26. The mere appearance of their names within documents disclosed on the discovery cutoff date3 is plainly insufficient to satisfy the requirements of Rule 26 for identifying potential witnesses. Such disclosure was purely incidental. USAA has never identified Luebke or Wilhoite as persons likely to have discoverable information, nor made any indication that they are witnesses that USAA “may use to support its claims or defenses.” Fed.R.Civ.P. 26(a)(1)(A)® (also requiring disclosure of each witness’ name, address, telephone number, and subjects of the discoverable information they are likely to have).

The court also finds that USAA failed to comply with the plain requirements of Rule 26(a)(1) as to Morris, USAA’s principal underwriter, notwithstanding USAA’s identification of Morris in its Answers to Interrogatories at the close of discovery. Like Luebke and Wilhoite, Morris was never disclosed as a potential defense witness in any of USAA’s initial or supplemental Rule 26 disclosures. Even in USAA’s Answers to Interrogatories, [1066]

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862 F. Supp. 2d 1062, 82 Fed. R. Serv. 3d 319, 2012 U.S. Dist. LEXIS 43338, 2012 WL 1068313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-usaa-life-general-agency-inc-nvd-2012.