Chartis Specialty Insurance Company et al v. United States of America

Filing 114

AMENDED ORDER by Judge Edward M. Chen granting 105 Plaintiffs' Request for Leave to File a Motion for Reconsideration (emclc2, COURT STAFF) (Filed on 12/2/2014)

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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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CHARTIS SPECIALTY INSURANCE
COMPANY, et al.,

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Plaintiffs,

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v.

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For the Northern District of California

United States District Court

No. C-13-1527 EMC

UNITED STATES OF AMERICA,

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ORDER GRANTING PLAINTIFFS’
REQUEST FOR LEAVE TO FILE A
MOTION FOR RECONSIDERATION

Defendant.
___________________________________/

(Docket No. 105)
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Pending before the Court is Plaintiff Chartis Specialty Insurance Company’s (“Chartis”)

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request for leave to file a motion for reconsideration. Chartis' request is GRANTED and the

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proposed motion for reconsideration, located at docket number 105-1, will be filed.

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The Court concludes that Plaintiff's reliance on the Ninth Circuit's recent decision in

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ASARCO, LLC v. Union Pacific R.R. Co., 765 F.3d 999 (9th Cir. 2014), as intervening authority is

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misplaced. ASARCO addressed a narrow question of first impression regarding the application of

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Rule 15's relation back doctrine: “Can an amended pleading relate back if it includes allegations that

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were expressly disclaimed in the original pleading?” Id. at 1005. Chartis’ original complaint in this

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action did not expressly disclaim any claim or allegation later alleged in the First Amended

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Complaint. ASARCO did not break new ground in any way material to this case. Accordingly,

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Chartis has failed to meet the standard for reconsideration under N.D. Cal. Local Rule 7-9(b).

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Despite the fact that Chartis’ “motion is technically defective, the Court nonetheless has the

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inherent authority to revisit and modify any interlocutory orders at any time prior to final

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judgement.” Gong v. City of Alameda, No. C03-5495 TEH, 2007 WL 1223693, at *1 (N.D. Cal.

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Apr. 24, 2007). “A district court may reconsider and reverse a previous interlocutory decision for

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any reason it deems sufficient, even in the absence of new evidence or an intervening change in or

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clarification of controlling law.” Abada v. Charles Schwab & Co., Inc., 127 F. Supp. 2d 1101, 1102

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(S.D. Cal. 2000).

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Chartis is correct that the Court in its prior order on the United States’ motion to dismiss

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determined, sua sponte, that the statute of limitations for Chartis’ subrogration claims should be

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based on the date of the filing of the First Amended Complaint. Accordingly, the Court did not have

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the benefit of briefing by the parties on whether the subrogration claims should relate back to the

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filing of the original complaint for purposes of the statute of limitations. Chartis’ motion for

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reconsideration raises a substantial question as to whether its subrogation claim should be deemed to

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For the Northern District of California

United States District Court

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relate back to the filing of the original complaint.
The United States is ORDERED to file a response to Chartis’ substantive arguments in

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favor of applying the relation back doctrine in these circumstances. This response shall not exceed

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seven pages and shall be filed by Tuesday, December 9, 2014 at 5:00pm. Chartis may file a reply

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not to exceed three pages by Tuesday, December 16, 2014 at 5:00pm.

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This order disposes of docket number 105.

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IT IS SO ORDERED.

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Dated: December 2, 2014

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_________________________
EDWARD M. CHEN
United States District Judge

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