San Francisco Bay Area Rapid Transit District v. Travelers Property Casualty Company of America

Filing 46

ORDER GRANTING 45 Stipulation to Stay Action, Vacate All Dates Set in this Action, and Hold a Case Management Conference in Six Months. Joint Case Management Statement due by 10/7/2016. Further Case Management Conference set for 10/14/2016 11:00 AM in Courtroom 5, 2nd Floor, Oakland. Signed by Judge Jeffrey S. White on 4/21/16. (jjoS, COURT STAFF) (Filed on 4/22/2016)

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PETER O. GLAESSNER, State Bar No. 93830
[e-mail]
LORI A. SEBRANSKY, State Bar No. 125211
[e-mail]
ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP
180 Montgomery Street, Suite 1200
San Francisco, CA 94104
Telephone:
[phone]
Facsimile:
[phone]
Attorneys for Plaintiff and Counterdefendant
SAN FRANCISCO BAY AREA RAPID TRANSIT
DISTRICT
UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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180 Montgomery Street, Suite 1200
San Francisco, California 94104

ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP

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OAKLAND DIVISION
SAN FRANCISCO BAY AREA RAPID
TRANSIT DISTRICT,
Plaintiffs,

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v.

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TRAVELERS PROPERTY CASUALTY
COMPANY OF AMERICA, a Connecticut
Corporation,

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TRAVELERS PROPERTY CASUALTY
COMPANY OF AMERICA, a Connecticut
Corporation,

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Counterclaimant and
Third-Party
Claimant,

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STIPULATION AND [PROPOSED] ORDER
TO STAY ACTION, VACATE ALL DATES
SET IN THIS ACTION, AND HOLD A CASE
MANAGEMENT CONFERENCE IN SIX
MONTHS

Defendants.

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Case No. 4:15-cv-01313-JSW

v.
SAN FRANCISCO BAY AREA RAPID
TRANSIT DISTRICT; SENTINEL
INSURANCE COMPANY LTD., a
Connecticut Corporation; and DOES 1-20,
inclusive,

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Counterdefendant
and Third-Party
Defendants.

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95218.1

STIPULATION TO STAY ACTION
CASE NO.: 4:15-CV-01313-JSW

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RECITALS

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Plaintiff/counterdefendant San Francisco Bay Area Rapid Transit District (BARTD),

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defendant/counterclaimant/third-party claimant/counterdefendant Travelers Property Casualty

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Company of America, and third-party defendant/counterclaimant Sentinel Insurance Company,

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LTD, jointly submit this Stipulation to request that the Court temporarily stay this action, vacate

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all dates currently set in this action, and schedule a Case Management Conference to take place in

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six months. The reasons for this request and stipulation are as follows:

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1.

This coverage dispute arises from a fatal accident that occurred on Saturday,

October 19, 2013 on the track between the Walnut Creek and Pleasant Hill BARTD stations.

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180 Montgomery Street, Suite 1200
San Francisco, California 94104

ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP

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Christopher Sheppard, Manager of BARTD Track & Grounds, and Laurence Daniels, a contractor

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working for Anil Verma Associates, Inc. (“AVA”), an engineering firm that is insured by

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Travelers, were on the track the afternoon of October 19 when they were struck by a train and

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killed.

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2.

Mr. Daniel’s heirs sued BARTD for wrongful death in a civil suit styled, Amber

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Daniels, et. al, v. Bay Area Rapid Transit District, Alameda County Superior Court No.

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RG14725711. Plaintiffs essentially allege that BARTD negligently failed to protect Mr. Daniels

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while he was working on tracks during rail car movement.

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3.

BARTD filed a cross-complaint against AVA in the Daniels action for declaratory

relief, and for implied and express indemnity and contribution.

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4.

BARTD is an additional insured under the Travelers policy under some

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circumstances. BARTD tendered its defense of the Daniels lawsuit to Travelers under the

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additional insured endorsement. Travelers denied that tender. BARTD filed this insurance action

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to determine whether Travelers has an obligation to defend.

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5.

Travelers filed a third-party claim against Sentinel Insurance Company, which

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insured Mr. Daniels’ company (Daniels Engineering). By this third-party claim, Travelers

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contends that should the Court find that Travelers owes BARTD a defense, that defense should be

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provided by Sentinel, and not by Travelers. Sentinel denies the claims asserted against it and

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filed a counterclaim for declaratory relief.
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95218.1

STIPULATION TO STAY ACTION
CASE NO.: 4:15-CV-01313-JSW

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6.

The parties have been working cooperatively to resolve this coverage dispute in

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the most efficient way possible. In September 2015, BARTD and the insurers attended an initial

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mediation session in the underlying case. Although some progress was made, the wrongful death

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claims were not resolved. The parties to this insurance action, however, were able to discuss in

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principle a potential settlement strategy that would encompass the BARTD’s contentions

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regarding insurers’ alleged defense obligations to BARTD, and BARTD’s liability claims against

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AVA (Travelers’ insured), thus resolving the claims involved in this action.

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7.

Unfortunately, settlement progress has been delayed by, inter alia, the wrongful

death plaintiffs’ continued efforts to amend their pleadings to assert a survivorship claim

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180 Montgomery Street, Suite 1200
San Francisco, California 94104

ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP

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(although Mr. Daniels died instantly), which they contend increases the value of their case by

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several million dollars. BARTD challenged the first amended wrongful death complaint by

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demurrer. The Superior Court agreed the pleading was defective but permitted leave to amend.

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Further complicating the matter, in the interim, one of the plaintiffs, Amber Daniels, passed away

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unexpectedly. A second amended complaint in the wrongful death suit was filed on or about

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April 6, 2016.

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8.

Additionally, on September 22, 2015, the personal representative of Daniels’

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Estate filed a second lawsuit against two BARTD employees, styled McComish v. Kappler, et.

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al., Alameda County Superior Court No. RG15786996. BARTD also challenged that pleading by

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demurrer. Again, the Superior Court agreed the pleading was defective but permitted leave to

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amend. A first amended complaint in the Estate’s action against the employees was filed on or

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about April 6, 2016.

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9.

BARTD intends to challenge both amended pleadings, and must do so by May 11,

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2016. Unfortunately, given the Superior Court’s calendar, we do not expect these law and motion

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matters to be heard until late July or perhaps early August. It will be difficult to engage in

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productive settlement negotiations encompassing the wrongful death claims until those pleading

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challenges are resolved.

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10.

In addition to participation in mediation in the underlying case, BARTD and the

insurers agreed to mediation and have had numerous telephone conferences with our appointed
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95218.1

STIPULATION TO STAY ACTION
CASE NO.: 4:15-CV-01313-JSW

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mediator, Richard Sipos. Mr. Sipos has been a very good resource. The parties and mediator

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agree that it makes most sense to resolve the insurance claims in conjunction with mediation of

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the underlying wrongful death suit.

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Given the delay in the underlying cases, and the parties’ continued desire to work

toward a global resolution without incurring unnecessary litigation costs, the parties ask this

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Court to stay this action, vacate all dates currently set in this action, and hold a case management

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conference in six months to determine whether the stay should be lifted. The parties believe this

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is the most efficient solution for themselves and the court.

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STIPULATION

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180 Montgomery Street, Suite 1200
San Francisco, California 94104

ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP

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For these reasons, it is hereby stipulated by and between San Francisco Bay Area Rapid

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Transit District, Travelers Property Casualty Company of America, and Sentinel Insurance

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Company LTD, through their respective counsel of record, and subject to the Court’s approval,

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that the action be stayed to accommodate proceedings in the underlying litigation, all dates in this

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action be vacated, and that a Case Management Conference be held in October 2016 (six months)

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to determine whether the stay should be lifted.

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The parties appreciate the Court’s attention and consideration.

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Respectfully submitted,

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Dated: April 21, 2016

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ALLEN, GLAESSNER,
HAZELWOOD & WERTH, LLP

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By:

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Dated: April 21, 2016

/s/ Lori A. Sebransky
PETER O. GLAESSNER
LORI A. SEBRANSKY
Attorneys for SAN FRANCISCO BAY AREA
RAPID TRANSIT DISTRICT

CATES PETERSON LLP

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By:

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95218.1

/s/ Mark D. Peterson
MARK D. PETERSON
Attorneys for TRAVELERS PROPERTY
CASUALTY COMPANY OF AMERICA
STIPULATION TO STAY ACTION
CASE NO.: 4:15-CV-01313-JSW

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Dated: April 21, 2016

SMITH ELLISON

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By:

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/s/ Michael W. Ellison
MICHAEL W. ELLISON
Attorneys for SENTINEL INSURANCE
COMPANY LTD.

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ORDER

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The parties’ stipulation to stay this action and vacate all dates currently set in this action is
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180 Montgomery Street, Suite 1200
San Francisco, California 94104

ALLEN, GLAESSNER, HAZELWOOD & WERTH, LLP

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adopted. A case management conference will be held in this Courtroom on October ___, 2016 at
11:00
___. a.m. A joint case management conference statement shall be filed by October 7, 2016.

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IT IS SO ORDERED.
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April 21, 2016
Dated: _________________

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______________________________
JEFFREY S. WHITE
UNITED STATES DISTRICT JUDGE

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95218.1

STIPULATION TO STAY ACTION
CASE NO.: 4:15-CV-01313-JSW