Justia Civil Procedure Opinion Summaries

The issue this matter presented for the Supreme Court's review centered on a discovery dispute between plaintiff Stephen Rumnock and defendant American Family Mutual Insurance Company. After being ordered to produce documents that Rumnock requested, American Family disclosed some and simultaneously moved for a protective order. The motion sought to preclude Rumnock from using or disclosing the documents (alleged to be trade secrets) outside of this litigation. The trial court granted in part and denied in part, ordering that the alleged trade secrets not be shared with American Family's competitors, but declining to further limit their use. American Family petitioned the Colorado Supreme Court to direct the trial court to enter the protective order. The Supreme Court declined to do so, finding that American Family failed to present to the trial court evidence demonstrating the documents were trade secrets or otherwise confidential commercial information. View "In re Rumnock v. Anschutz" on Justia Law

Defendants April Steele Benton and John Benton and State Farm Mutual Automobile Insurance Company ("State Farm"), petitioned for a writ of mandamus to direct the Bibb Circuit Court to vacate its July 18, 2016, order denying the Bentons' and State Farm's motion to transfer this action from the Bibb Circuit Court to the Shelby Circuit Court and to enter an order granting the motion. In 2014, April Steele Benton, a resident of Bibb County, and Amir Alan Ebrahimi, a resident of Shelby County, were involved in a two-vehicle collision in Shelby County. Following the collision, Ebrahimi was transported from the scene of the accident by Regional Paramedical Services to the University of Alabama at Birmingham Medical Center ("UAB"), where he received treatment for his injuries. Ebrahimi filed a complaint in the Bibb Circuit Court against April Steele Benton; John Benton, the owner of the car April was driving; and State Farm, Ebrahimi's underinsured-motorist carrier. The Bentons filed a motion to transfer the action to Shelby County based on the doctrine of forum non conveniens. The Bentons argued in their motion that Shelby County had a stronger connection to the case because: (1) the accident occurred in Shelby County; (2) the Pelham Police Department, located in Shelby County, investigated the accident; (3) Ebrahimi resided in Calera, located in Shelby County; (4) the first responders, employees of Regional Paramedical Services, were located in Shelby County; (5) Ebrahimi was treated at UAB, which was closer to Shelby County than to Bibb County; and (6) the only connection this action has with Bibb County was the fact that the Bentons, resided there. The Supreme Court found that the trial court should have granted the Bentons' motion for a change of venue, and accordingly, issued the writ of mandamus to direct the trial court to deny the motion and transfer the action to Shelby County. View "Ex parte Benton et al." on Justia Law

Insured Kourtni Martin suffered serious injuries from an automobile collision in Oklahoma City with Nicholas Gray. At the time of the collision, Insured had UM coverage with Goodville Mutual Casualty Company. The policy was purchased by her parents while they lived in Kansas. She was, however, a listed/rated driver in the policy. Before the collision, Martin's parents notified the Kansas agent that she was moving to Oklahoma to live with her grandmother and that her vehicle would be garaged in Oklahoma. After the collision, the claim was reported to the agent in Kansas who then transmitted the claim to Insurer which was located principally in Pennsylvania. The claim was adjusted out of Pennsylvania. Martin was unable to locate Gray. Her attempts to serve Gray, or his insurer, in Oklahoma and Texas failed. Martin filed this lawsuit against Gray alleging negligence (later adding breach of contract and bad faith against her Insurer). After service by publication, Gray answered asserting a general denial. Martin sought compensation from the Insurer pursuant to her UM policy and negotiations began between Insured and Insurer regarding medical bills and projected future medical bills substantially in excess of $100,000. Insurer offered $27,000 for medical expenses under the "Kansas No Fault Benefits" and $10,000 in UM coverage. The trial court, after reviewing the policy at issue here, applied Kansas law to this case and dismissed Martin's bad faith claim against the Insurer (with prejudice). After review, however, the Oklahoma Supreme Court concluded the trial court erred in applying Kansas law, finding that the actions by Insurer related to the bad-faith claim appear to have occurred primarily in Oklahoma and Pennsylvania: (1) any injury from the alleged bad faith occurred in Oklahoma where Insured is located; (2) the alleged conduct causing injury from bad faith occurred in Oklahoma or Pennsylvania, where the claim was handled; (3) the domicile of Insurer and Insured are Pennsylvania and Oklahoma, respectively, and (4) the place where the relationship between the parties occurred had yet to be determined. However, because the trial court did not apply the "most significant relationship test," there was no evaluation of these factors according to their relative importance. Despite the parties' voluntary settlement of this case, the Supreme Court nevertheless remanded this case for the trial court to make findings with respect to the "most significant relationship test," and then to dismiss. View "Martin v. Gray" on Justia Law

Plaintiff filed suit against Stonebridge, challenging the insurer’s partial denial of his claim for hospitalization benefits. The trial court ruled that a policy provision was unenforceable, entitling plaintiff to $31,500 in additional benefits under the policy. A jury then found that Stonebridge acted with fraud and fixed the punitive damage award at $19 million. At issue is the trial court's remittitur of that award from $19 million to $350,000 based on a ratio of punitive to compensatory damages of 10:1. The Supreme Court held on review that the Brandt v. Superior Court fees should be included as compensatory damages in the ratio calculation irrespective of whether such fees were awarded by the trial court or the jury. On remand from the Supreme Court, the court held that the Brandt fees should be included in the compensatory damages, modified the judgment and, as modified, affirmed it. View "Nickerson v. Stonebridge Life Insurance Co." on Justia Law

An employee of a nonprofit serving disabled adult clients used her position to embezzle more than half a million dollars held by the nonprofit for its clients. After the embezzlement was discovered, Travelers Casualty & Surety Company, the nonprofit's insurance company, made the nonprofit whole. Travelers then sought contribution from the bank in federal court. By submitting certified questions of Washington law, that court has asked the Washington Supreme Court to decide, among other things, whether a nonpayee's signature on the back of a check was an indorsement. Furthermore, the Court was also asked whether claims based on unauthorized indorsements that are not discovered and reported to a bank within one year of being made available to the customer are time barred. The Supreme Court answered yes to both questions. View "Travelers Cas. & Sur. Co. v. Wash. Trust Bank" on Justia Law

Plaintiff-Appellee Century Surety Company (“Century”) issued a commercial lines policy to Defendant-Appellant Shayona Investment, LLC covering commercial property and business income coverage. Shayona submitted claims, Century paid them, and then Century sought a declaratory judgment in the district court as to whether the claims were fraudulent. At trial, the jury found in favor of Century, awarding it both the amount the company paid Shayona under the policy and the sum it spent investigating the claims. Shayona appealed, arguing that the standard of proof the court instructed the jury to use was wrong. Finding no reversible error, the Tenth Circuit affirmed the district court's entry of judgment on the verdict. View "Century Surety Co. v. Shayona Investment" on Justia Law

Plaintiffs, who owned insurance policies with National Lloyds Insurance Company, filed independent lawsuits against National Lloyds, claiming they were underpaid on claims following two hail storms in Hidalgo County. The Multidistrict Litigation Panel of Texas (MDL Panel) granted the motions of other insurance carriers seeking to transfer cases arising from the hail storms to a pretrial court and subsequently transferred Plaintiffs’ claims to the same pretrial court. At issue in this case was National Lloyd’s failure to produce certain information requested by Plaintiffs. The pretrial court entered an order compelling National Lloyds to produce six categories of documents, including “management reports and emails,” and assessed sanctions for attorney’s fees. National Lloyds sought mandamus relief, asserting that the compelled discovery was overbroad. The Supreme Court conditionally granted mandamus relief, holding (1) the pretrial court abused its discretion in compelling production of the management reports and emails; and (2) because the pretrial court’s order was overboard as the management reports and emails, but because National Lloyds failed to produce five other categories of discovery, the sanctions award must be reevaluated. View "In re National Lloyds Insurance Co." on Justia Law

A person who pays for a trip to the emergency room out-of-pocket can be charged significantly more for care than a person who has insurance. This case centered on whether a person could maintain an action challenging this variable pricing practice under the Unfair Competition Law, the Consumer Legal Remedies Act or and action for declaratory relief. The Court of Appeals concluded after review of this case that most of the claims asserted by plaintiff Gene Moran lacked merit. However, he sufficiently alleged facts supporting a conclusion that he had standing to claim the amount of the charges defendants' hospital bills self-pay patients was unconscionable. Therefore, the Court reversed the trial court's dismissal of Moran's case, and remanded for further proceedings. View "Moran v. Prime Healthcare" on Justia Law

Sharel Kenney appealed the trial court’s grant of summary judgment in favor of USAA Casualty Insurance Company (USAA-CIC) and Foremost Insurance Company (Foremost). Kenney purchased a motorcycle in Slidell, Louisiana. Kenney, a Louisiana resident, completed a Louisiana Motorcycle Insurance Application with Foremost, which included an Uninsured/Underinsured Motorist Bodily Injury Coverage Form (“UMBI Form”). Pursuant to the Form, Kenney elected not to purchase UMBI coverage. Following receipt of the application and the UMBI Form, Foremost issued a policy to Kenney. Daniel Steilberg, Kenney’s fiancé, was listed as an operator on the insurance policy. While riding the motorcycle, Kenney and Steilberg were involved in an accident with an uninsured motorist on Highway I-90 in Bay St. Louis, Mississippi. After the accident, Kenney made claims for uninsured-motorist coverage under three separate policies. Kenney did receive payments from Foremost representing the actual cash value for property damage to the motorcycle. Kenney also filed a claim with USAA-CIC, the insurer for Kenney’s Dodge Charger, but she was denied payment for medical expenses and uninsured/underinsured-motorist coverage. After the denials of coverage, Kenney filed suit against the uninsured motorise, Foremost, USAA-CIC and Steilberg, Finding that the trial court erred in granting summary judgment as to Foremost but not as to USAA-CIC, the Supreme Court affirmed the trial court in part and reversed and remanded in part. View "Kenney v. Foremost Insurance Co." on Justia Law

Allstate filed a qui tam action on behalf of itself and the State against defendants under the California Insurance Frauds Prevention Act, Insurance Code 1871.7. Following entry of the qui tam judgment, Allstate began efforts to collect it. During its investigation, Allstate learned of a series of real estate transactions conducted by defendants designed to transfer away their assets. Allstate, on behalf of the State, filed an action to set aside the fraudulent transfers of real and personal property. Allstate subsequently obtained a stay of the fraudulent conveyance action and returned to the qui tam court where it filed a motion for an order allocating the qui tam judgment proceeds. The motion was based on a stipulation entered into between the People and Allstate allocating to Allstate 50 percent of the civil penalties and assessments, plus reasonable attorney fees and costs. The trial court granted Allstate's allocation motion and entered the stipulation as judgment. Defendants appealed. The court held that judgment-debtor defendants in qui tam insurance fraud actions are not aggrieved by such allocation orders under section 1871.7, subdivision (g)(2)(A), with the result that they do not have standing to appeal. Accordingly, the court dismissed the appeal. View "People ex rel. Allstate Ins. Co. v. Dahan" on Justia Law