McGill et al v. National Specialty Insurance Company et al

Filing 153

ORDER denying 150 Motion for Reconsideration. Signed by Judge David G Campbell on 12/11/2013.(DGC, nvo)

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1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA 8 9 KnightBrook Insurance Co., et al., No. CV12-01671-PHX-DGC Plaintiffs, 10 ORDER 11 v. 12 Payless Car Rental System, Inc., et al., 13 Defendants. 14 15 Plaintiffs KnightBrook Insurance Company and Knight Management Insurances 16 Services, L.L.C. have filed a motion for reconsideration. Doc. 150. The motion concerns 17 the Court’s previous ruling that permitted Defendants to amend their answer and assert 18 counterclaims. Doc. 141. Plaintiffs allege that “[s]everal statements in the [Court’s] 19 Order contain misapprehensions of substantive Arizona insurance law and the terms of 20 the commercial auto policy issued by KnightBrook Insurance Company to PCR 21 Venture.” Id. at 1. The Court will deny Plaintiffs’ motion. 22 Plaintiffs assert that “the Court has overlooked an important aspect of Arizona 23 insurance law: an insured must have made a claim before it can assert a cause of action 24 for bad faith against its insurer.” 25 opposition to Defendants’ motion for leave to amend. 26 should not be used to restate arguments previously made or to ask the Court to rethink its 27 analysis. United States v. Rezzonico, 32 F. Supp. 2d 1112, 1116 (D. Ariz. 1998) (citing 28 Above the Belt, Inc. v. Mel Bohannon Roofing, Inc., 99 F.R.D. 99, 101 (E. D. Va. 1983)). Id. at 2. Plaintiffs made this argument in their Motions for reconsideration 1 The Court does not find Plaintiffs’ new variation of their argument – that bad faith arises 2 only after a claim has been filed – to be substantially different from the argument they 3 made previously. The Court rejects this argument for the reasons stated in its order. 4 Doc. 141. Whether Defendants can succeed in asserting a bad faith claim on the facts of 5 this case will be decided at summary judgment or trial. 6 Plaintiffs take issue with a statement in the Court’s order that “it appears that 7 Defendants were covered even in their role as agents by Plaintiffs’ insurance policy.” 8 Doc. 141 at 7. By stating what “appears” to be the case, the Court was simply providing 9 additional support for its conclusion. The statement was not intended, and is not, a 10 definitive ruling in this case on whether Defendants were covered by the policy. 11 Plaintiffs also argue that the Court incorrectly cited Plaintiffs’ brief for the 12 proposition that “no [fiduciary] duties arise in the principal-agent context.” Doc. 150 at 13 8. Read in context, the Court was referring to Plaintiffs’ argument that they did not owe 14 fiduciary duties to Defendants, not to any admission that Defendants did not owe 15 fiduciary duties to them. The Court specifically stated, in any event, that it cannot 16 address the breach of fiduciary duty issues until a more complete factual record has been 17 developed. 18 arguments in support of their claims in this case. 19 20 21 Doc. 141 at 7. The Court has not foreclosed Plaintiffs from making IT IS ORDERED that Plaintiff’s motion for reconsideration (Doc. 150) is denied. Dated this 11th day of December, 2013. 22 23 24 25 26 27 28 -2-

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