Amtrust International Underwriters DAC v. 180 Life Sciences Corp.
Filing
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ORDER by Magistrate Judge Virginia K. DeMarchi re 85 Defendant's Motion for Payment of Costs. (vkdlc2, COURT STAFF) (Filed on 10/23/2024)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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AMTRUST INTERNATIONAL
UNDERWRITERS DAC,
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Plaintiff,
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v.
ORDER RE DEFENDANT'S MOTION
FOR PAYMENT OF COSTS
Re: Dkt. No. 85
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United States District Court
Northern District of California
Case No. 22-cv-03844-BLF (VKD)
180 LIFE SCIENCES CORP.,
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Defendant.
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180 LIFE SCIENCES CORP.,
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Counterclaimant,
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v.
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AMTRUST INTERNATIONAL
UNDERWRITERS DAC,
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Counterdefendant.
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On May 9, 2024, following a case management conference, Judge Freeman issued an order
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referring a dispute “regarding the amount of Defense Costs the Insurers must advance to 180 Life
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under the policies as construed by this Court’s Order Granting 180 Life Sciences Corporation’s
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Motion for Partial Summary Judgment (ECF 75) issued on February 12, 2024.” Dkt. No. 82 at 1-
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2. Pursuant to that referral order, defendant 180 Life Sciences Corporation (“180 Life”) filed its
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motion for payment of costs. Dkt. No. 85. Plaintiff AmTrust International Underwriters DAC
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(“AmTrust”) opposes the motion.1 The matter is fully briefed. Dkt. Nos. 93, 94. The Court heard
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180 Life’s costs motion does not seek relief from insurer Freedom Specialty Insurance Company,
which has since been dismissed pursuant to a stipulation and order. See Dkt. No. 99.
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United States District Court
Northern District of California
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the motion on October 22, 2024. Dkt. No. 115.
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Pursuant to Judge Freeman’s referral order, the only matter for the Court to determine is
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whether, as a “non-dispositive pretrial matter,” AmTrust has paid what it must under a Directors
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and Officers policy (“AmTrust policy”) to the extent its obligation to pay has already been
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determined on the merits by Judge Freeman. See Dkt. No. 82. Based on the parties’ briefing on
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180 Life’s costs motion, and as confirmed at the October 22, 2024 hearing, there is no dispute that
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(1) AmTrust has paid to 180 Life $2,569,206.51, which is the amount 180 Life advanced to Dr.
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Krauss and Mr. Hornig in connection with their responses to the subpoenas they received in
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connection with the SEC investigation, less the self-insured retention amount of $150,000; (2) the
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disputed amount that AmTrust has not paid is $430,793.49; and (3) the disputed $430,793.49
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represents the legal fees that Dr. Krauss incurred in litigating the action she filed against 180 Life
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in the Delaware Chancery Court to compel 180 Life to advance certain fees and expenses to her
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(the “Advancement Action”). See Dkt. No. 93 at 7; Dkt. No. 94 at 2 n.3. 180 Life now seeks a
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determination from the Court that AmTrust is obliged to pay the disputed $430,793.49 as a
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“Defense Cost” under the AmTrust policy and as determined by Judge Freeman’s February 12,
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2024 summary judgment order. 180 Life also seeks a ruling that it is entitled to the payment of
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prejudgment interest on all of the sums that Judge Freeman has determined AmTrust must pay.
The Court finds that 180 Life’s requested relief concerns matters that Judge Freeman was
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not asked to decide, and did not decide, in the prior summary judgment proceedings. See Dkt. No.
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52 at 12; Dkt. No. 59 at 19; Dkt. No. 60 at 1; Dkt. No. 75. Accordingly, the Court denies the relief
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sought by 180 Life’s costs motion as beyond the scope of Judge Freeman’s May 9, 2024 referral
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order.
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IT IS SO ORDERED.
Dated: October 23, 2024
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Virginia K. DeMarchi
United States Magistrate Judge
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