Yates v. Insure Right Insurance Agency, LLC

CourtDistrict Court, D. Idaho
DecidedSeptember 29, 2025
Docket4:24-cv-00095
StatusUnknown

This text of Yates v. Insure Right Insurance Agency, LLC (Yates v. Insure Right Insurance Agency, LLC) 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
Yates v. Insure Right Insurance Agency, LLC, (D. Idaho 2025).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

RILEY YATES, an individual,

Case No. 4:24-cv-00095-DCN Plaintiff,

MEMORANDUM DECISION AND v. ORDER

INSURE RIGHT INSURANCE

AGENCY, LLC, a Utah limited liability company,

Defendant.

I. INTRODUCTION Before the Court is Defendant Insure Right Insurance Agency, LLC’s (“Insure Right”) Motion for Summary Judgment. Dkt. 14. Plaintiff Riley Yates opposes the motion. Dkt. 16. The Court held oral argument on July 31, 2025, and took the Motion for Summary Judgment under advisement. Insure Right has also filed a Motion for Sanctions because Yates’s counsel failed to appear for the originally scheduled summary judgment hearing. Dkt. 20. Yates opposes that motion as well. Dkt. 22. Upon review, and for the reasons set forth below, the Court GRANTS Insure Right’s Motion for Summary Judgment, and GRANTS in PART and DENIES in PART Insure Right’s Motion for Sanctions. II. BACKGROUND1 On July 1, 2019, Insure Right hired Yates as an insurance producer and agent. Yates

executed Insure Right’s “Producer Agreement” the same day. Insure Right is a Utah limited liability company. At the time he was hired in 2019, Yates was a resident of Utah. Yates relocated to Pocatello, Idaho, in November 2022, but continued to work for Insure Right remotely. On June 26, 2023, Insure Right terminated Yates, alleging he had altered two insurance declaration pages to show two properties were covered by insurance, when, in

fact, they were not.2 After terminating Yates, Insure Right withheld some of Yates’s earnings. Insure Right also communicated to certain clients and other regulatory agencies that Yates had engaged in unethical behavior and had consequently been terminated from the company. On December 27, 2023, Yates filed suit in Idaho State Court. Dkt. 1-2. On February

20, 2024, Insure Right removed Yates’s case to federal court. Dkt. 1.

1 As will be explained in greater detail below, the Court is, frankly, in the dark on this case. The Complaint is barebones. Dkt. 1-2. But details are not necessarily expected when a case is first filed. At the summary judgment state, however, details are required. Pursuant to Local Rule 7.1(b)(1), (c)(1) each party at summary judgment is expected to file a “separate statement of all material facts.” Neither party included a “separate statement” as required but instead included material facts in their moving papers. Even then, Insure Right’s facts comprise just six short sentences, while Yates summarized his entire case—every fact he thought necessary to defeat summary judgment—in a mere nine sentences. Such perfunctory summaries do not provide the Court much to work with.

2 Again, neither party clearly explains this underlying situation—the crux of this case—in their briefs. Insure Right included a short declaration from its owner explaining Yates underwrote multiple contracts for a certain client’s rental units. Yates, however, failed to issue policies for two of the client’s units, but then later altered the declaration pages to make it appear as if the polices existed for those units. Dkt. 14-3, at 2. Yates also purportedly failed to add a mortgage company to a policy, causing the policy to be cancelled. Id. at 3. In his complaint, Yates alleges six causes of action: (1) Declaratory Relief; (2) Failure to Pay Wages (pursuant to the Fair Labor Standards Act (“FLSA”) and Idaho Wage

Claim Act (“IWCA”)); (3) Defamation; (4) Defamation per se; (5) False Light; and (6) Tortious Interference with Prospective Economic Advantage. See generally Dkt. 1-2. After discovery closed, Insure Right filed the instant Motion for Summary Judgment. Dkt. 14. Yates did not respond by the appropriate deadline. The Court informally reached out to Yates’s counsel, who indicated an error had resulted in him failing to receive notice of Insure Right’s Motion. The Court reset the briefing deadlines

and Yates responded in opposition. Dkt. 16. Insure Right replied. Dkt. 17. The Court then set the matter for a hearing. Dkt. 18. The day prior to the hearing, the Court’s law clerk reached out to counsel to discuss logistics. The Court’s law clerk, however, received an automatic reply from Yate’s counsel stating he was out of the country. When the Court’s law clerk investigated further, Yates’

counsel (via his secretary) again indicated an error had resulted in them failing to receive notice of the summary judgment hearing. Because Yates’s counsel was out of the country, the Court rescheduled the hearing for a later date. Insure Right subsequently filed a Motion for Sanctions requesting reimbursement for the expenses its counsel incurred in preparing for, and travelling to, the original hearing.

Dkt. 20. The Court then held the hearing on Insure Right’s Motion for Summary Judgment. Prior to the hearing, Insure Right’s counsel informally requested the opportunity to appear via Zoom, which the Court approved. After the hearing, the Court took the Motion for Summary Judgment under advisement. Yates later responded in opposition to Insure Right’s Motion for Sanctions. Dkt. 22.

Insure Right did not file a reply. Both matters are ripe for the Court’s review. III. LEGAL STANDARD Summary judgment is proper “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The Court’s role at summary judgment is not “to weigh the evidence and

determine the truth of the matter but to determine whether there is a genuine issue for trial.” Zetwick v. Cnty. of Yolo, 850 F.3d 436, 441 (9th Cir. 2017) (cleaned up). In considering a motion for summary judgment, the Court must “view[] the facts in the non-moving party’s favor.” Id. To defeat a motion for summary judgment, the respondent need only present

evidence upon which “a reasonable juror drawing all inferences in favor of the respondent could return a verdict in [his or her] favor.” Id. (citation omitted). Accordingly, the Court must enter summary judgment if a party “fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). The

respondent cannot simply rely on an unsworn affidavit or the pleadings to defeat a motion for summary judgment; rather the respondent must set forth the “specific facts,” supported by evidence, with “reasonable particularity” that precludes summary judgment. Far Out Productions, Inc. v. Oskar, 247 F.3d 986, 997 (9th Cir. 2001). IV. ANALYSIS Insure Right contends summary judgment is appropriate on each of Yates’s claims.

The Court will address each in turn—combining like causes of action where necessary. The Court will then evaluate Insure Right’s Motion for Sanctions. A. Motion for Summary Judgment (Dkt. 14) 1. Declaratory Relief Yates’s first cause of action seeks a declaration from the Court that: (1) Yates was a Producer employed by Insure Right; (2) Insure Right exercised control over the nature

and structure of Yates’s employment; (3) Yates is entitled to compensation pursuant to the FLSA and IWCA; and (4) the contract with Insure Right is ambiguous. It is important to note at the outset that declaratory relief is not typically a standalone cause of action, and such a claim cannot, in itself, grant a court jurisdiction. See Ajetunmobi v. Clarion Mortg.

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