MGA Entertainment Inc et al v. The Hartford Insurance Group

Filing 485

(IN CHAMBERS): ORDERS TO SHOW CAUSE, RESCHEDULE HEARINGS, AND SET TRIAL DATES by Judge David O. Carter: If any party plans to raise an issue at trial and that issue has not been designated by this Order as appropriate for a bench or jury trial, that party shall file a proposed amendment to this Order on or before February 6, 2012. I. Hearings on Remaining Summary Judgment Motions: (Dkts. 320, 323, 333, 342). The Court RESCHEDULES the hearings for these motions to February 21, 2012, at 1:30 p.m. Accordingly, the hearing set for February 13, 2012, is removed from the calendar. The FIRST BENCH TRIAL (Phase 1) will commence on March 13, 2012, regarding whether: (1) the AIG Defendants owed the MGA Plaintiffs a duty to defend under the FAAC; (2)D efendant Crum & Forster owed the MGA Plaintiffs a duty to defend under the FAAC; and (3) theEvanston Defendants have an alter ego relationship. If the Evanston Defendants stipulate to a benchtrial on the duty to defend, the trial of the Evanston Defe ndants' duty to defend will also commence on March 13, 2012. All direct testimony in Phase 1 shall be conducted by written declarations filed with this Court on or before March 8, 2012. A JURY TRIAL (Phase 2) will commence on April 3, 2012, reg arding whether: (See document for further details.) The Court believes that the MGA Plaintiffs' claims against the two groups of insurers is appropriately tried together. Accordingly, the Court ORDERS the AIG Defendants to SHOW CAUSE why they sh ould be severed from the Evanston Defendants for the April 3, 2012, jury trial on whether either group of insurers committed a tortious breach of the covenant of good faith. The AIG Defendants shall file a Response to this OSC on or before February 6 , 2012. The MGA Plaintiffs and/or the Evanston Defendants shall file an Opposition, if at all, on or before February 10, 2012. The AIG Defendants shall file a Reply on or before February 14, 2012. The Court SCHEDULES the hearing for this OSC on February 21, 2012 at 12:30 p.m. (rla)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No. EDCV 08-0457-DOC(RNBx)

Date: January 30, 2012

Consolidated with: CV 10-7692-DOC(RNBx), CV 10-2355- DOC(RNBx), CV 09-7461-DOC(RNBx)

Title: MGA ENTERTAINMENT ET AL v. HARTFORD INSURANCE GROUP
PRESENT:
THE HONORABLE DAVID O. CARTER, JUDGE
Julie Barrera
Courtroom Clerk

Not Present
Court Reporter

ATTORNEYS PRESENT FOR PLAINTIFFS: ATTORNEYS PRESENT FOR DEFENDANTS:
NONE PRESENT

NONE PRESENT

PROCEEDING (IN CHAMBERS): ORDERS TO SHOW CAUSE, RESCHEDULE HEARINGS,
AND SET TRIAL DATES
Based on an informal meeting with all parties today, the Court issues the following orders
to show cause, reschedules hearings, and sets trial dates. The Court also memorializes several
stipulations by counsel regarding which issues are appropriate for a bench trial. If any party plans to
raise an issue at trial and that issue has not been designated by this Order as appropriate for a
bench or jury trial, that party shall file a proposed amendment to this Order on or before February 6,
2012.
I. Hearings on Remaining Summary Judgment Motions
Before the Court are four motions for summary judgment or partial summary judgment
filed by Defendants Lexington Insurance Company, Chartis Specialty Insurance Company, and
National Union Fire Insurance Company (collectively, AIG Defendants). (Dkts. 320, 323, 333, 342).
The Court RESCHEDULES the hearings for these motions to February 21, 2012, at 1:30
p.m. Accordingly, the hearing set for February 13, 2012, is removed from the calendar.
II. Division of Issues Into Bench or Jury Trial
The parties today stipulated that the following issues shall be resolved by a bench trial:
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(1) Evanston Defendants’ alter ego relationship; (2) Evanston Defendants’ right to an offset; (3) AIG
Defendants’ right to contribution. In addition, all the parties EXCEPT the Evanston Defendants
stipulated that the issue of whether an insurer owed a duty to defend to Plaintiffs MGA Entertainment,
Inc., and Isaac Larian (collectively, “MGA Plaintiffs”) as of the filing of the FAAC shall be resolved by
a bench trial.
The Evanston Defendants represented in today’s hearing that they may file a stipulation
to a bench trial on the issue of the duty to defend. If the Evanston Defendants do not file a stipulation
to a bench trial on the duty to defend by February 1, 2012, at 12 p.m., then the Evanston Defendants
and the MGA Plaintiffs shall appear before this Court at that time to argue whether a bench trial on the
duty to defend is appropriate.
The Court anticipates a jury trial on the following issues: (1) the AIG Defendants’
breach of the covenant of good faith; and (2) the Evanston Defendants’ breach of the covenant of good
faith.
III. Trial Dates
The FIRST BENCH TRIAL (“Phase 1”) will commence on March 13, 2012, regarding
whether: (1) the AIG Defendants owed the MGA Plaintiffs a duty to defend under the FAAC; (2)
Defendant Crum & Forster owed the MGA Plaintiffs a duty to defend under the FAAC; and (3) the
Evanston Defendants have an alter ego relationship. If the Evanston Defendants stipulate to a bench
trial on the duty to defend, the trial of the Evanston Defendants’ duty to defend will also commence
on March 13, 2012. All direct testimony in Phase 1 shall be conducted by written declarations filed
with this Court on or before March 8, 2012.
A JURY TRIAL (“Phase 2”) will commence on April 3, 2012, regarding whether: (1)
the AIG Defendants committed a tortious breach of the covenant of good faith; (2) the Evanston
Defendants committed a tortious breach of the covenant of good faith; and (3) the MGA Plaintiffs’
damages for this tort.
The following issues shall be tried in a SEPARATE BENCH TRIAL (“Phase 3”) to
commence 10 days AFTER the completion of Phase 2: (2) Evanston Defendants’ right to an offset;
(3) AIG Defendants’ right to contribution. All direct testimony in Phase 3 shall be conducted by
written declarations filed with this Court at least 5 days before Phase 3 commences.
Given these dates, the parties shall file on or before February 6, 2012, a stipulated
proposed timeline by which they will complete pre-trial deadlines (e.g. filing memoranda of
contentions of fact and law, witness lists, motions in limine, etc.).
IV. Hearing on OSC For Bench Trial on Breach of Contract and Contract Damages
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The MGA Plaintiffs have brought a breach of contract claim against Defendants Evanston
Insurance Company, Markel Corporation, and Markel Underwriting Managers, Inc. (collectively,
“Evanston Defendants”). The Court believes that this claim is appropriately resolved in a bench trial.
Accordingly, the Court ORDERS the Evanston Defendants to SHOW CAUSE why the
following issues should not be resolved by a bench trial: (1) whether the Evanston Defendants
breached their contract; and (2) the amount of contract damages incurred by the MGA Plaintiffs as a
result of that breach.
As discussed with parties today, the Evanston Defendants shall file their Response to this
OSC on or before February 6, 2012. The MGA Plaintiffs shall file their Opposition on or before
February 10, 2012. The Evanston Defendants shall file a Reply on or before February 14, 2012.
The Court SCHEDULES the hearing for this OSC on February 21, 2012, at 12:30 p.m.
IV. Hearing on OSC to Keep the AIG and Evanston Defendants’ Jury Trials Together
At the hearing today, the AIG Defendants stated that they wished to be severed from the
Evanston Defendants for the April 3, 2012, jury trial on whether either group of insurers committed a
tortious breach of the covenant of good faith. The Court believes that the MGA Plaintiffs’ claims
against the two groups of insurers is appropriately tried together.
Accordingly, the Court ORDERS the AIG Defendants to SHOW CAUSE why they
should be severed from the Evanston Defendants for the April 3, 2012, jury trial on whether either
group of insurers committed a tortious breach of the covenant of good faith.
The AIG Defendants shall file a Response to this OSC on or before February 6, 2012.
The MGA Plaintiffs and/or the Evanston Defendants shall file an Opposition, if at all, on or before
February 10, 2012. The AIG Defendants shall file a Reply on or before February 14, 2012.
The Court SCHEDULES the hearing for this OSC on February 21, 2012 at 12:30 p.m.
The Clerk shall serve a copy of this minute order on counsel for all parties in this action.

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