Financial Indemnity Company v. Sapien et al

Filing 33

ORDER DENYING MOTION TO STAY by Judge Paul S. Grewal denying 13 Motion to Stay (psglc2, COURT STAFF) (Filed on 9/3/2013)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

United States District Court
For the Northern District of California

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SAN JOSE DIVISION
FINANCIAL INDEMNITY CO.,

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v.

Plaintiff,

LYDIA SAPIEN, et al.,

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Defendants.

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Case No.: 5:13-cv-02315 PSG
ORDER RE: MOTION TO STAY
(Re: Docket Nos. 13, 25, 27)

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Before the court is a motion by Defendant Lydia Sapien (“Sapien”) to stay the proceedings.

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Sapien urges the court's discretion in managing a declaratory judgment action such as this one, and

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highlights the priority of the related state court action involving some, but not all, of the parties.

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Plaintiff Financial Indemnity Company (“Financial”) opposes, noting that the state court case

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Sapien has filed will not resolve the central insurance coverage question in this case.

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In Burlington Ins. Co. v. Alan, this court set forth the relevant factors to consider when
weighing a stay in a case such as this. 1 The bottom line for the undersigned is that even if Sapien
is found to be an employee under California law in the state court action, the question of coverage,

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Case No. 3:12-cv-3372, 2013 WL 567615, at *4-12 (N.D. Cal. 2013) (citing Gov’t Emps. Ins. Co.
v. Dizol, 133 F.3d 1220, 1225 (9th Cir. 1998) (en banc)).
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Case No.: 5:13-cv-02315 PSG
ORDER

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turning on whether Sapien was an employee at the time of the catering truck accident under the

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terms of the operative insurance policy, will remain. Especially when one considers that Financial

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is not even a party to the state court proceedings, it appears clear that a stay here would only delay

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the resolution of this dispute.

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The motion to stay is therefore DENIED. T he court will proceed to issue a scheduling
order, including a referral to mediation.

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United States District Court
For the Northern District of California

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IT IS SO ORDERED.
Dated: September 3, 2013

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_________________________________
PAUL S. GREWAL
United States Magistrate Judge

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Case No.: 5:13-cv-02315 PSG
ORDER

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