Zurich American Insurance Company v. Walker

CourtDistrict Court, M.D. Alabama
DecidedJune 11, 2024
Docket2:20-cv-00696
StatusUnknown

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

Bluebook
Zurich American Insurance Company v. Walker, (M.D. Ala. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA NORTHERN DIVISION

ZURICH AM. INS. CO., ) ) Intervenor Plaintiff, ) ) Case No. 2:20-cv-696-RAH v. ) [WO] ) JERRY DONALD WALKER, et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER I. INTRODUCTION Anyone familiar with “Hannibal” will recall the titular character’s use of kholodet with anchovies (a Ukranian aspic you might call a fish gelatin mold) as an allusion to a great chase; several hunters trailing one another, no one sure at a given moment who is pursuing whom. The basis of the remaining claims here seems easy enough: a workers’ compensation carrier seeks to protect its subrogation interest and collect reimbursement of the benefits it paid out to the injured employee of its insured. If only the current parties had made it so simple. Now, 43 months after Intervenor-Plaintiff Zurich American Insurance Company moved to intervene, which the parties did not object to back in 2020, and after all of Plaintiff Robert Blanchard’s claims were dismissed without any financial recovery, Defendant Jerry Donald Walker moves to dismiss Zurich’s claims against him. Zurich resists. Because Zurich’s claims are moot and time barred, they will be dismissed. II. BACKGROUND A case like this would ordinarily proceed on a linear and straightforward path. Reader beware; twists and turns abound in this record. It all started in 2018, when Walker allegedly caused a motor vehicle collision, injuring Blanchard. (Doc. 51 at 2.) Blanchard sued Walker and the underinsured motorist carrier (Ace American Insurance Company) for Blanchard’s employer (Linden Bulk Transportation). (Id. at 3–4.) Linden had workers’ compensation insurance coverage through Zurich under a policy written and administered in Louisiana, and Zurich paid out benefits to Blanchard after the motor vehicle collision, including indemnity and medical. (Id.; doc. 45.) Zurich intervened in this suit to protect its subrogation interest or seek reimbursement “out of the proceeds of any recovery from the Defendants” for workers’ compensation benefits it has paid to Blanchard. (Docs. 40 & 45.) The parties did not object to the intervention. (Doc. 40.) The court later concluded that Blanchard’s action against Walker was barred by the statute of limitations, so it dismissed Blanchard’s claims against Walker. (Doc. 65 at 8–9.) After that, it was “unclear whether there [was] anything left to decide in this case.” (Id. at 9.) What remained was Blanchard’s underinsured motorist claim against Ace American, and Zurich’s claim for “reimbursement ‘out of the proceeds of any [of Mr. Blanchard’s] recovery’ for workers’ compensation benefits it has paid to Mr. Blanchard.” (Id. (quoting doc. 45 at 2).) The parties were ordered to file a motion on or before August 30, 2022, if any of them thought the dismissal of Blanchard’s claims against Walker were “dispositive of other claims[.]” (Doc. 65 at 9.) No party filed anything. Blanchard then pursued an interlocutory appeal which the Eleventh Circuit Court of Appeals ultimately denied for want of jurisdiction. (Doc. 80.) The litigation continued in this Court. The parties pretty much ignored Zurich throughout the case and settled Blanchard’s remaining claim against Ace American after Blanchard’s unsuccessful appeal. (Docs. 91 & 93.) Zurich did not take much, if any, action throughout the case to protect or pursue its interests either. Look no further than the Notice of Settlement, in which Ace American said it “hereby notifies the Court that the parties have reached a settlement of the disputes pending in this case.” (Doc. 91 at 1.) The parties were then ordered to file their stipulation of dismissal in accordance with Federal Rule of Civil Procedure 41(a)(1)(A)(ii). (Doc. 92.) Blanchard and Ace American filed a Joint Stipulation of Dismissal and “respectfully request[ed] that his Honorable Court enter an order dismissing this case, with prejudice, costs taxed as paid.” (Doc. 93.) Recognizing not all remaining parties who appeared in the case signed the stipulation of dismissal, as the Eleventh Circuit requires for a valid dismissal under Rule 41(a)(1)(A)(ii), the Court ordered the parties to resubmit their stipulation “with an affirmative acknowledgment by” Zurich as to whether it agreed to the dismissal. (Doc. 94.) They did, and they “respectfully request[ed] that this Honorable Court enter an order dismissing this case, with prejudice, costs taxed as paid, except as to [Zurich’s] claims against Jerry Donald Walker.” (Doc. 95.) Ace American, Blanchard, and Zurich signed the stipulation. (Id.) The Court then dismissed the case with prejudice “on the terms agreed to and set out by the parties.” (Doc. 96.) After that, Zurich moved to reconsider the order of dismissal and asked that the case be reopened so it could “pursue its claims against Defendant, Jerry Donald Walker.” (Doc. 97 at 2.) The Court held a hearing on the motion and then reopened the case for the parties to litigate the claims Zurich brought in its Intervenor Complaint. (Doc. 100.) Zurich’s Intervenor Complaint is three pages long and “joins in [Blanchard’s] demands for damages and a judgment against Defendants to the extent of its right to reimbursement and exoneration of the provisions of the Louisiana Workers’ Compensation Act, and prays judgment be rendered in favor of” Blanchard and Zurich. (Doc. 45 at 2.) Remember that at this point Blanchard’s action against Walker was dismissed with prejudice because his claims were time barred, Ace American and Blanchard had settled their dispute with Zurich’s consent (although they represented to the Court that they settled the “disputes pending in this case” which sounds like all disputes in the case), and Blanchard was dismissed as a party because all of his claims were resolved. Shortly after the case was reopened, Zurich filed a status report and said Walker’s counsel “was under the belief that the earlier dismissal of” Blanchard’s claims against Walker “totally dismissed all claims against Walker.” (Doc. 102 at 1.) Zurich disagreed because it thinks “an intervenor is given additional time to file within the statute of limitations,” so it asked for additional time to resolve the disputed lien totals of $362,958.53 with Walker. (Id.) The Court held another hearing and ordered the parties to respond to Zurich’s Intervenor Complaint because they failed to do so in the 30 months that had passed from the date Zurich filed it. Walker then moved to dismiss Zurich’s claims for failure to state a claim. (Doc. 107.) In its Intervenor Complaint, recall that Zurich joined Blanchard’s demands and asked for relief against all Defendants. (Doc. 45 at 2.) When it asked to reopen the case, it sought relief against only Walker. (Doc. 97.) So Ace American filed a response to the Court’s order stating it “believed itself dismissed from the case in all respects” following the Court’s order of dismissal (doc. 96), and because Zurich’s counsel wrote in an email to Ace American’s counsel that it “cannot get any part of” the settlement between Blanchard and Ace American. (Doc. 111 at 2.) Zurich also responded and said, “It is not believed that Ace American Insurance Company remains in the lawsuit as a party.” (Doc. 113 at 1.) III. STANDARD OF REVIEW Walker moves to dismiss Zurich’s claims pursuant to Federal Rule of Civil Procedure 12(b)(6). In deciding a Rule 12(b)(6) motion, a court considers only the allegations contained in the complaint and any attached exhibits. Hoefling v. City of Miami, 811 F.3d 1271, 1277 (11th Cir. 2016).

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Bluebook (online)
Zurich American Insurance Company v. Walker, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zurich-american-insurance-company-v-walker-almd-2024.