Finkelstein v. Axa Equitable Life Insurance Company
Filing
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ORDER DENYING 36 Motion for Leave to File Motion for Reconsideration. Signed by Judge Jeffrey S. White on July 21, 2017. (jswlc3S, COURT STAFF) (Filed on 7/21/2017)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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DAVID FINKELSTEIN,
Plaintiff,
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United States District Court
Northern District of California
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Case No. 17-cv-01089-JSW
ORDER DENYING PLAINTIFF'S
MOTION FOR LEAVE TO FILE
MOTION FOR RECONSIDERATION
v.
AXA EQUITABLE LIFE INSURANCE
COMPANY, et al.,
Re: Dkt. No. 36
Defendants.
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This matter comes before the Court upon consideration of the motion for remand filed by
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Plaintiff David Finkelstein, M.D. (“Plaintiff”). Plaintiff seeks reconsideration of this Court’s
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Order dated June 21, 2017, denying Plaintiff’s motion for remand. The Court denied Plaintiff’s
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motion for remand on the basis that Richard J. Boyer (“Boyer”) was a fraudulently joined
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defendant whose citizenship should not be considered for purposes of jurisdiction. The Court
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found that Boyer was a fraudulently joined defendant on the grounds that the statute of limitations
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barred claims against Boyer, Boyer’s representations were mere puffery, and Boyer’s
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representation of policy terms was accurate.
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Under Northern District Local Rule 7-9, a party may seek leave to file a motion for
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reconsideration any time before judgment. N.D. Civ. L.R. 7-9(a). A motion for reconsideration
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may be made on one of three grounds: (1) a material difference in fact or law exists from that
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which was presented to the Court, which, in the exercise of reasonable diligence, the party
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applying for reconsideration did not know at the time of the order; (2) the emergence of new
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material facts or a change of law; or (3) a manifest failure by the Court to consider material facts
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or dispositive legal arguments presented before entry of judgment. N.D. Civ. L.R. 7-9(b)(1)-(3).
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The moving party may not reargue any written or oral argument previously asserted to the Court.
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Id., 7-9(c).
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Plaintiff seeks leave to file a motion for reconsideration on the basis that the Court failed to
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consider material facts and dispositive legal arguments. In support of this motion, Plaintiff
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primarily presents arguments that were previously presented to the Court. The moving party may
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not reargue any written or oral argument previously asserted to the Court. N.D. Civ. L.R. 7-
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9(b)(1)-(3). The Court did consider each of the arguments raised by Plaintiff in support of his
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motion for remand. However, it found and continues to find those arguments unpersuasive.
Plaintiff asks that the Court reconsider its ruling on the statute of limitations issue,
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United States District Court
Northern District of California
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specifically the subissues of waiver of premium (“WOP”) and cost of living adjustment (“COLA”)
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benefits. To substantiate his arguments, Plaintiff introduces new evidence, which he had not
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previously presented to the Court. (Declaration of Rebecca Grey in Support of Motion for Leave
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to Seek Reconsideration (“Grey Decl.”), ¶¶ 1-5, Exs. 1-5.) To support a motion for
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reconsideration based upon new evidence, the moving party must show not only that the evidence
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was newly discovered or unknown until after the order, but also that it could not with reasonable
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diligence have been discovered and produced at the time of the order. Frederick S. Wyle Prof’l
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Corp. v. Texaco, Inc., 764 F.2d 604, 609 (9th Cir. 1985).
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Here, Plaintiff makes no attempt to argue that he did not know or have access to the newly
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presented evidence at the time the Court considered Plaintiff’s motion to remand. Plaintiff fails to
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demonstrate that he could not with reasonable diligence have discovered and produced the
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evidence at the time of his earlier filings. Thus, Plaintiff may not rely on the newly submitted
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evidence to support his current motion to reconsider.
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Even if Plaintiff had demonstrated that he could not with reasonable diligence have
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discovered and earlier produced the evidence he now seeks to introduce, the Court is not
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persuaded that the new evidence affects the outcome of its decision. The new evidence does not
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present any material difference in fact from what was previously presented to the Court.
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Moreover, Plaintiff already presented similar arguments regarding the issues of WOP and COLA
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benefits, on which the Court has already ruled. Plaintiff’s claims are time-barred against Boyer
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based on these factual predicates by the running of the two-year statute of limitations governing
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negligence actions. A professional negligence claim does not accrue until the plaintiff (1) sustains
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damage and (2) discovers, or should discover, the negligence. Hydro-Mill Company, Inc. v.
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Hayward, Tilton and Rolapp Ins. Assoc., Inc., 115 Cal. App. 4th 1145, 1161 (2004).
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Plaintiff contends that he did not sustain damage until his disability benefits were
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terminated in 2016 because he received WOP and COLA total disability benefits despite his
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residual disability classification. (Pl.’s Mot. for Leave to File Mot. for Recons. (“Mot. for Leave”)
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at 5:17-19, 23-26.) With regard to the WOP issue, Plaintiff argues that he was granted WOP
benefits from the outset of his claim in 1998, even though he was classified as residually disabled
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United States District Court
Northern District of California
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at that time, as opposed to totally disabled. (Id. at 5:23-26, 6:2-5; Notice of Mot. for Remand at
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9:12-15.) Plaintiff now submits monthly notices from Equitable dated September 1998 through
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November 11, 1998 indicating that Plaintiff was eligible for and would begin to receive WOP
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benefits. (Grey Decl., ¶¶ 1-3, Exs. 1-3.) Plaintiff also submits a letter Boyer sent to Equitable to
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confirm that no further premiums were due. (Id. at ¶ 4, Ex. 4.) However, the record indicates that
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these notices were sent mistakenly. The notices are contradicted by the terms of the subject
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insurance policy itself, by a subsequent letter dated December 10, 1998 which expressly notes that
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the policy provides WOP benefits for total disability only, and by another subsequent letter dated
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March 16, 2005 which indicates that in 2005, Plaintiff became eligible for WOP benefits, and that
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those benefits would continue so long as Plaintiff was totally disabled. (Declaration of Robert F.
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Mills, Jr. (“Mills Decl.”), ¶¶ 5-6, Exs. 3-4, Docket No. 3.) Thus, the Court finds that there is
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sufficient evidence to conclude that Equitable had adequately resolved the issue regarding
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Plaintiff’s eligibility for WOP benefits.
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With regard to the COLA issue, Plaintiff contends that Equitable awarded him total
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disability COLA benefits for most of the purported residual disability period between 1999 and
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2003. (Mot. for Leave at 5:17-19.) Plaintiff submits a letter dated July 6, 2001, in which
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Equitable explained that it had erroneously applied the residual disability COLA in lieu of the total
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disability COLA to his claim from 1999 to 2001. (Grey Decl., ¶ 5, Ex. 5.) Equitable enclosed
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with the letter a check payable to Plaintiff in the amount of $13,581.00 to compensate Plaintiff for
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the difference. When Equitable realized its mistake, it initiated measures to settle the overpayment
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issue. (Mills Decl., ¶ 4, Ex. 2.) Plaintiff contends that the record lacks evidence demonstrating
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that this overpayment issue was resolved. However, the Court finds this argument to be
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unpersuasive. In a letter dated August 6, 2003, Equitable referenced a conversation with Plaintiff
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regarding the overpayment issue, and wrote “[A]s we agreed, we will further discuss the
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repayment options following your accountants [sic] review of the policy.” (Id.) In a subsequent
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letter dated August 28, 2003, Equitable referenced a conversation with Plaintiff’s accountant
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regarding the overpayment issue, and wrote “[W]e look forward to discussing the overpayment
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issue once you and your advisors have reviewed your policy.” (Id.) Thus, the Court finds that
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United States District Court
Northern District of California
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there is sufficient evidence to conclude that Equitable resolved the COLA overpayment issue with
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Plaintiff.
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The Court finds there is sufficient evidence to conclude that Equitable resolved the WOP
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benefits and COLA overpayment issues with Plaintiff. Contrary to Plaintiff’s assertion, he
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sustained damage as a result of his residually disabled classification as early as December 10,
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1998, when he was notified that the policy provided WOP benefits for total disability only.
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Alternatively, Plaintiff suffered damage in the form of lesser COLA benefits as early as August
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2003, when Equitable commenced measures to settle the erroneous overpayment of COLA
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benefits to Plaintiff. Therefore, Plaintiff’s claims for relief against Boyer accrued as early as 1998.
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At the latest, Plaintiff’s claims for relief against Boyer accrued by 2009 when Plaintiff complained
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to Equitable that he should have been considered totally disabled at the inception of his claim, as
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previously addressed in this Court’s Order dated June 21, 2017 denying Plaintiff’s motion for
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remand. Thus, the two-year statutory period governing negligent misrepresentation and
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professional negligence actions bars Plaintiff’s claims against Boyer.
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In addition to the statute of limitations issue, the Court finds that the alternative bases for
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denial of remand with respect to Boyer’s representations as accurate or mere puffery, remain well-
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taken. The Court finds that there is no material difference in fact from that which was presented to
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the Court, which, in the reasonable exercise of diligence, Plaintiff could have submitted. The
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Court also find that it did not fail to co
ds
onsider mate
erial facts or dispositive legal argum
r
ments
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pre
esented at the time it con
e
nsidered the motion to re
m
emand.
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Accord
dingly, the Court DENIE Plaintiff’s motion for leave to file a motion fo
ES
s
e
or
rec
consideration
n.
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IT IS SO ORDER
S
RED.
Da
ated: July 21, 2017
,
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__________
___________
__________
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JEF
FFREY S. W
WHITE
UN
NITED STA
ATES DISTR
RICT JUDGE
E
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United States District Court
Northern District of California
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