Westborn Physical Therapy, LLC et al v. Esurance Insurance Company

Filing 6

ORDER re: 12/20/16 scheduling conference. Signed by District Judge George Caram Steeh. (MBea)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

WESTBORN PHYSICAL THERAPY,
LLC, et al.,
Plaintiffs,
Case No. 16-13940
vs.
HON. GEORGE CARAM STEEH
CORE HEALTH, LLC, et al.,
Intervening Plaintiffs,
vs.
ESURANCE INSURANCE CO.
Defendant.
___________________________________/

ORDER
This matter came before the court on the Rule 16 scheduling
conference, held December 20, 2016. This case was removed from Wayne
County Circuit Court by defendant Esurance Insurance Co. on November 7,
2016, after more than eight months of litigation in state court. The plaintiffs
oppose any further discovery inasmuch as the case in state court was well
past the discovery cut-off by the time it was removed. In addition,
-1-

defendant’s summary disposition motion had been heard and denied.
Plaintiffs complain that, at best, defendant is seeking to relitigate the entire
case after participating in the state court right up to the eve of trial in that
forum. Intervening plaintiffs’ counsel, Mr. Bloomberg, opined that the case
is not worth in excess of $75,000. Given that at least one intervening
plaintiff has claims totaling only about $16,000, and others are likewise very
limited in damages, the court was asked to limit or bar discovery and motion
practice in order to effectively address what plaintiffs believe are abusive
litigation tactics employed thus far by defendant.
Accordingly, the court indicated at the conference that it would allow
discovery for a period of 45 days, limited to permit defendant to depose
plaintiff’s accountant and to seek tax returns. Plaintiffs may depose
defendant’s claims adjuster during the same period if they wish. Discovery
addressed in the state court proceeding shall be permitted full use in this
case.
After the conference, counsel for the parties discussed a possible
agreement to remand with a cap on damages of $75,000. The court’s
allowance of discovery in this case shall not preclude potential sanctions if

-2-

evidence of an abusive litigation strategy by defendants is presented to the
court.
Dated: December 27, 2016
s/George Caram Steeh
GEORGE CARAM STEEH
UNITED STATES DISTRICT JUDGE

CERTIFICATE OF SERVICE
Copies of this Order were served upon attorneys of record on
December 22, 2016, by electronic and/or ordinary mail.
s/Marcia Beauchemin
Deputy Clerk

-3-