Zurich American Ins. Co. of Illinois v. VForce Inc.

CourtDistrict Court, E.D. California
DecidedMay 21, 2025
Docket2:18-cv-02066
StatusUnknown

This text of Zurich American Ins. Co. of Illinois v. VForce Inc. (Zurich American Ins. Co. of Illinois v. VForce Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zurich American Ins. Co. of Illinois v. VForce Inc., (E.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 ZURICH AMERICAN INSURANCE No. 2:18-cv-02066-DAD-CKD COMPANY OF ILLINOIS, 12 Plaintiff, 13 ORDER GRANTING PLAINTIFF’S MOTION v. FOR JUDGMENT AND MOTION TO 14 AMEND JUDGMENT VFORCE INC., et al., 15 (Doc. Nos. 216, 220) Defendants. 16

17 VFORCE INC., 18 Cross-Claimant and Third-Party Plaintiff, 19 v. 20 CORTECH, LLC, et al., 21 Cross-Defendant and 22 Third-Party Defendants.

23 24 This matter is before the court on the motion for judgment filed on October 1, 2024 and 25 the motion to amend the judgment pursuant to Federal Rule of Civil Procedure 59(e) filed on 26 October 15, 2024, both on behalf of plaintiff Zurich American Insurance Company of Illinois. 27 (Doc. Nos. 216, 220.) On October 31, 2024, those motions were taken under submission on the 28 ///// 1 papers pursuant to Local Rule 230(g). (Doc. No. 222.) For the reasons explained below, the 2 court will grant both pending motions. 3 BACKGROUND 4 The parties are familiar with the long, torturous history of this case. A more complete 5 factual background may be found in the various orders resolving motions for summary judgment 6 in this case. (See Doc. Nos. 182, 211, 213, 218.) In short, plaintiff brought one claim for breach 7 of contract against defendant VForce Inc. (“VForce”) and defendant Cortech, LLC arising from 8 defendants’ failure to pay insurance premiums. (See Doc. No. 6.) VForce brought nine claims 9 for indemnification of any premiums it might owe to plaintiff. (See Doc. No. 201.) Because the 10 entity that had initially agreed to indemnify VForce had dissolved, VForce asserted its claims 11 against a dozen cross- and third-party defendants that it alleged were the successors to or alter 12 egos of that entity. (See id.) 13 On September 18, 2024, the court issued an order finding that plaintiff was entitled to 14 summary judgment in its favor and against VForce on plaintiff’s sole claim for breach of contract. 15 (Doc. No. 213.) The court concluded therein that plaintiff was entitled to “damages in the amount 16 of $612,656.00 and prejudgment interest according to proof.” (Id. at 4.) The court expressly 17 noted that it would not direct the Clerk of the Court to enter final judgment at that time in light of 18 the requirements of Federal Rule of Civil Procedure 54(b). (Id.) On October 1, 2024, the parties 19 filed a stipulation permitting plaintiff to voluntarily dismiss its claim against defendant Cortech, 20 LLC; the court dismissed that claim pursuant to the parties’ stipulation the following day. (Doc. 21 Nos. 214, 217.) 22 On October 1, 2024, plaintiff filed its pending motion for judgment. (Doc. No. 216.) 23 Plaintiff requested that the court enter final judgment and noted that the court had previously 24 declined to do so pursuant to Rule 54(b). (Id.) VForce did not file any opposition to this motion. 25 On October 15, 2024, two weeks after filing its motion noting the lack of a final judgment, 26 plaintiff filed its pending motion to amend the judgment to include prejudgment interest from the 27 period of July 6, 2016 through September 18, 2024. (Doc. No. 220.) VForce filed its opposition 28 to that motion on October 29, 2024, seeking to have the court apply a lower interest rate than that 1 requested by plaintiff and to exclude certain periods of time from the calculation of the award of 2 prejudgment interest. (Doc. No. 221.) On November 8, 2024, plaintiff filed its reply thereto. 3 (Doc. No. 225.) 4 LEGAL STANDARD 5 A. Rule 54(b) 6 Federal Rule of Civil Procedure 54(b) provides that when “an action presents more than 7 one claim for relief—whether as a claim, counterclaim, crossclaim, or third-party claim—or when 8 multiple parties are involved, the court may direct entry of a final judgment as to one or more, but 9 fewer than all, claims or parties only if the court expressly determines that there is no just reason 10 for delay.” Fed. R. Civ. P. 54(b). The Supreme Court has set forth a two-step process for courts 11 to evaluate a Rule 54(b) motion. See Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S. 1, 7 12 (1980). “A district court must first determine that it has rendered a final judgment, that is, a 13 judgment that is an ultimate disposition of an individual claim entered in the course of a multiple 14 claims action.” Wood v. GCC Bend, LLC, 422 F.3d 873, 878 (9th Cir. 2005) (internal quotation 15 marks omitted). “Then it must determine whether there is any just reason for delay.” Id. The 16 “court must take into account judicial administrative interests as well as the equities involved.” 17 Curtiss-Wright Corp., 446 U.S. at 8. “Consideration of the former is necessary to assure that 18 application of the Rule effectively ‘preserves the historic federal policy against piecemeal 19 appeals.’” Id. (citing Sears, Roebuck & Co. v. Mackey, 351 U.S. 427, 438 (1956)). As the 20 Supreme Court has explained, Rule 54(b) was adopted “to avoid the possible injustice of delaying 21 judgment on a distinctly separate claim pending adjudication of the entire case.” Gelboim v. Bank 22 of Am. Corp., 574 U.S. 405, 409 (2015) (citation, internal quotation marks, and brackets omitted). 23 However, concerns about judicial economy counsel that Rule 54(b) should be used 24 sparingly. See Curtiss-Wright Corp., 446 U.S. at 10 (“Plainly, sound judicial administration does 25 not require that Rule 54(b) requests be granted routinely.”). In deciding whether to enter final 26 judgment under Rule 54(b), courts should consider “whether the certified order is sufficiently 27 divisible from the other claims such that the ‘case would not inevitably come back to this court on 28 the same set of facts.’” Jewel v. Nat’l Sec. Agency, 810 F.3d 622, 628 (9th Cir. 2015) (quoting 1 Wood, 422 F.3d at 878) (brackets omitted); see also Curtiss-Wright Corp., 446 U.S. at 8 2 (concluding that the district court properly “consider[ed] such factors as whether the claims under 3 review were separable from the others remaining to be adjudicated and whether the nature of the 4 claims already determined was such that no appellate court would have to decide the same issues 5 more than once even if there were subsequent appeals”). Nevertheless, the issues raised on 6 appeal need not be “completely distinct” from the rest of the action in order to enter final 7 judgment. Jewel, 810 F.3d at 628. 8 B. Rule 59(e) 9 Federal Rule of Civil Procedure 59(e) permits the filing of a motion to alter or amend a 10 judgment by no later than 28 days after the entry of the judgment. Fed. R. Civ. P. 59(e). 11 “[W]hen an original judgment does not allow for mandatory prejudgment interest, revising the 12 judgment to include prejudgment interest requires amending the judgment under Federal Rule of 13 Civil Procedure 59(e).” Westport Ins. Corp. v. Cal. Cas. Mgmt. Co., No. 16-cv-01246-WHO, 14 2017 WL 2335374, at *2 (N.D. Cal. May 30, 2017) (citing McCalla v.

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Zurich American Ins. Co. of Illinois v. VForce Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/zurich-american-ins-co-of-illinois-v-vforce-inc-caed-2025.