Shaba v. Allstate Indemnity Company

Filing 19

ORDER granting 13 Motion to Compel. Signed by District Judge Terrence G. Berg. (Chubb, A)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
RITA SHABA,
Plaintiff,
v.
ALLSTATE INDEMNITY CO.,

CIV. NO. 13-10690
HON. TERRENCE G. BERG
HON. LAURIE J. MICHELSON

Defendant.
______________________________/
ORDER GRANTING DEFENDANT’S MOTION TO
COMPEL NONPARTY ROBERT SHABA TO PRODUCE
DOCUMENTS AND TESTIFY AT A DEPOSITION (DKT. 13)
This case involves a claim for fire insurance proceeds. Plaintiff
Rita Shaba (“Plaintiff”) owns a rental property – 19385 Charest,
Detroit, Michigan – that was damaged by a fire on November 24, 2012.
Plaintiff’s property was insured by Defendant Allstate Indemnity
Company (“Defendant”). Following the fire, Plaintiff submitted an
insurance claim to Defendant. Defendant denied Plaintiff’s insurance
claim, due to a suspicion that the fire was intentionally set by Plaintiff
or by someone at Plaintiff’s direction.

This matter is before the Court on Defendant’s motion to compel
nonparty Robert Shaba to produce documents and to give deposition
testimony (Dkt. 13). Robert Shaba is Plaintiff’s brother. Plaintiff
testified at her deposition that her brother “managed” the rental
property at issue in this case. Defendant avers that Mr. Shaba has
owned or managed at least three other rental properties, that were
damaged by suspicious fires. Defendant further avers that Plaintiff
may be a “straw owner” of the property at issue in this case, and that
Mr. Shaba was the true owner.
Defendant noticed a deposition for Mr. Shaba, which was held on
June 5, 2013; Defendant did not subpoena Mr. Shaba. Defendant’s
deposition notice requested that Mr. Shaba produce, amongst other
things, his 2009-2011 tax returns, W-2s, documents relating to any
property insurance claims he submitted, documents relating to any real
estate he owns, bank statements, loans and mortgages. Mr. Shaba
refused to produce any documents and refused to respond to nearly
every question Defendant’s counsel asked him.
For the reasons stated on the record during the July 23, 2013
hearing, Defendant’s motion to compel is GRANTED. Defendant is
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directed to subpoena Mr. Shaba to re-request the production of the
documents listed in the prior deposition notice and to schedule a second
deposition of Mr. Shaba. Mr. Shaba is directed to produce the
documents requested in the subpoena and to answer the questions of
Defendant’s counsel, subject to any privilege he may assert, including
any privilege arising under the Fifth Amendment. Mr. Shaba is
cautioned that, should he fail to produce the documents requested or
fail to answer questions during his deposition, the Court will consider
imposing sanctions.
SO ORDERED.
s/Terrence G. Berg
TERRENCE G. BERG
UNITED STATES DISTRICT JUDGE
Dated: July 23, 2013

Certificate of Service
I hereby certify that this Order was electronically submitted on
July 23, 2013, using the CM/ECF system, which will send notification to
each party.
s/A. Chubb
Case Manager
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