Johnson v. Vallejo et al
Filing
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ORDER & OPINION Entered by Judge Joe Billy McDade on 10/20/2011. IT IS THEREFORE ORDERED that Defendants' Motion to Stay AllProceedings 12 is GRANTED IN PART AND DENIED IN PART. This matteris hereby STAYED until Tuesday, February 14, 2012, on which date Defendants SHALL file a status report as described in this Order & Opinion.(RP, ilcd)
E-FILED
Thursday, 20 October, 2011 03:28:33 PM
Clerk, U.S. District Court, ILCD
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF ILLINOIS
PEORIA DIVISION
MICHAEL JOHNSON,
Plaintiff,
v.
FRANCISCO JAVIER-GUERRA
VALLEJO and ALSIRA CARRIERS,
INC.,
Defendants.
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Case No. 11-cv-1132
ORDER & OPINION
This matter is before the Court on Defendants’ Motion to Stay All
Proceedings. (Doc. 12). Plaintiff has not responded to the Motion. For the reasons
stated below, Defendants’ Motion is granted in part and denied in part.
Plaintiff’s Amended Complaint in this action charges Defendant Vallejo with
common-law negligence in causing the accident, and alleges that Vallejo was acting
in the scope of his employment for Defendant Alsira Carriers when he caused the
accident, such that Alsira Carriers was liable for his negligence. (Doc. 9). A Rule 16
scheduling conference was held on May 24, 2011, and the parties have begun the
discovery process, which is set to be completed by May 31, 2012, with a jury trial set
for October 15, 2012.
In the instant Motion, Defendants state that, at the time of the accident,
Defendant Alsira Carriers had an insurance policy with Federal Motor Carriers
Risk Retention Group (“FMC”), and that they have just learned that as of August
17, 2011, FMC is in liquidation. (Doc. 12 at 1). Defendants assert that the Delaware
Court of Chancery has ordered a “stay of all proceedings,” including this one:
All officers, directors, agents, servants and employees of FMCCAPTIVE and FMC-RRG, and all other persons or entities having
notice of these proceedings or of this Order, are hereby enjoined and
restrained from instituting or further prosecuting any action at law or
in equity, or proceeding with any pretrial conference, trial, application
for judgment or proceedings on judgment or settlements and such
action at law, in equity, special or other proceedings in which FMCCAPTIVE and FMC-RRG are obligated to defend themselves or any
other party for a period of 180 days from the date hereof.
(Doc. 12, Ex. A at 9). Thus, the Delaware court orders a 180-day stay of all actions,
such as this one, in which FMC is “obligated to defend…any other party.”
Defendants ask the Court to stay these proceedings “until further notice.” (Doc. 12
at 3).
The Court will not stay this matter “until further notice.” Plaintiff has a right
to a timely trial of his claims, and the fact that Defendants’ insurer may no longer
be available to defend them or pay out on any judgment or settlement should not
impair his rights. Further, the Court itself has an interest in the timely resolution
of pending matters, and does not find that it is in the interest of justice for this case
to remain open indefinitely. Indeed, even the Delaware court orders only a 180-day
stay.
This matter will be stayed for 180 days from August 17, 2011, at which point
Defendants must file a status report explaining the current state of the liquidation
proceedings and whether the stay should be extended. Plaintiff may file a brief on
the question of extending the stay at that time, as well. The Court will then
establish new discovery and dispositive motions deadlines, and will set new dates
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for the final pretrial conference and trial in this matter, unless Defendants show
that an extension of the stay is justified.
IT IS THEREFORE ORDERED that Defendants’ Motion to Stay All
Proceedings (Doc. 12) is GRANTED IN PART AND DENIED IN PART. This matter
is hereby STAYED until Tuesday, February 14, 2012, on which date Defendants
SHALL file a status report as described in this Order & Opinion.
Entered this 20th day of October, 2011.
s/ Joe B. McDade
JOE BILLY McDADE
United States Senior District Judge
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