Lloyd's Acceptance Corp. v. Affiliated FM Insurance Company

Filing 154

MEMORANDUM AND ORDER: IT IS HEREBY ORDERED that the motion of defendant Affiliated FM Insurance Company for a protective order (Doc. 137) is denied. Plaintiffs may depose Mr. Gerardo L. Alonso under the following conditions: Unless otherwise agree d by the parties, (a) the deposition shall be taken during one calendar day, of two three-hour sessions; (c) there shall be a ten-minute break midway through each three-hour session; (d) there shall be a break for lunch between the sessions; (e) each question shall be answered and there shall be no direction to the witness not to answer any question, except those questions objected to on the basis of privilege; (f) the parties shall state their objections directly to the court reporter and not t o each other; and (g) no conference or colloquy shall occur between counsel except that which is intended to enhance the efficient progress of the deposition. IT IS FURTHER ORDERED that any party may timely request that the court preside over the dep osition of Mr. Alonso in the courtroom of the undersigned. IT IS FURTHER ORDERED that the joint motion of plaintiffs Lloyds Acceptance Corp. d/b/a Lloyds Development Co. and Affordable Communities LP and defendant Travelers Insurance Company for an e xtension of time to complete discovery (Doc. 149) is sustained, in that: (a) the parties shall complete discovery no later than August 31, 2012; (b) the parties shall file any dispositive motions and expert opinion motions no later than September 14, 2012; and (c) the hearing on dispositive and expert opinion motions is reset to October 11, 2012 at 10:00 a.m. in the courtroom of the undersigned. IT IS FURTHER ORDERED that the parties shall confer and agree on the deadlines concerning the initial filing of such motions, the responses thereto, and reply memoranda. ( Discovery Completion due by 8/31/2012. Dispositive Motions due by 9/14/2012., Dispositive Motion Hearing set for 10/11/2012 10:00 AM in Courtroom 17N before Magistrate Judge David D. Noce.) Signed by Magistrate Judge David D. Noce on 7/27/2012. (KMS)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
LLOYD’S ACCEPTANCE CORP., d/b/a
LLOYD’S DEVELOPMENT CO., et al.,
Plaintiffs,
v.
AFFILIATED FM INSURANCE COMPANY,
et al.,
Defendants.

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No. 4:05 CV 1934 DDN

MEMORANDUM AND ORDER
On July 25, 2012 the court heard oral arguments on the motion of
defendant

Affiliated

FM

Insurance

Company

for

a

protective

order

prohibiting plaintiffs from deposing its corporate official, Gerardo L.
Alonso (Doc. 137).
Movant

Affiliated

FM

argues

that

Mr.

Alonso

has

no

personal

knowledge of the facts underlying plaintiffs’ claims and that plaintiffs’
conduct of other depositions was abusive and harassing.

(Doc. 137.)

Plaintiffs’ claims include one for vexatious refusal to pay.

Affiliated

FM’s motion is supported by Mr. Alonso’s documentary declaration.

(Doc.

138-17.) Mr. Alonso is currently Affiliated FM’s “Senior Vice-President-Manager, Claims and Enterprise Learning;” he is “the top company
official

concerning

claims

handling;”

he

is

responsible

for

the

management of employees who adjust claims; and he oversees the training
of employees worldwide.

(Doc. 137 at ¶¶ 8-11.)

The parties agree that

during the processing of the claim, plaintiffs claim exceeded $900,000.00
Plaintiffs argue and the record reflects that during 2004 and 2005,
when

plaintiffs’

claim

was

made

to

Affiliated

FM,

Mr.

Alonso

was

Affiliated FM’s “Western Division Claims Manager” (Doc. 137 at ¶ 12) and
plaintiffs’ claim was processed in Affiliated FM’s Western Division. Mr.
Alonso’s declaration states at one point that he “was not personally
involved in the handling of the subject claim.”

(Doc. 138-17 at ¶ 3.)

At another point in his declaration he states, “It is likely that, at the
time the claim was being handled, I would have been advised of the

existence of plaintiffs’ claim, and the determination of coverage,

but

I would not have had a direct role in the adjustment, investigation, or
coverage decisions made concerning the claim.”

(Id. at ¶4.)

Given Mr. Alonso’s corporate position as Western Division Claims
Manager when plaintiffs’ nearly $1 million claim was being processed, the
answers to questions during an oral deposition may provide the parties
with information relevant to the plaintiffs’ claims.
The court has also reviewed the other deposition portions referred
to by movant Affiliated FM and does not find that the conduct of other
depositions in the action was abusive or harassing.

During the hearing

the court offered to Affiliated FM the option of requesting that the
deposition be conducted in the courtroom of the undersigned, so that if
an objection is made to a question, the court can be called upon to
promptly rule the objection.
For these reasons,
IT IS HEREBY ORDERED that the motion of defendant Affiliated FM
Insurance
Plaintiffs

Company
may

for

depose

a

protective

Mr.

Gerardo

order
L.

(Doc.

Alonso

137)

under

is

the

denied.

following

conditions: Unless otherwise agreed by the parties,
(a)

the deposition shall be taken during one calendar day,
of two three-hour sessions;

(c)

there shall be a ten-minute break midway through each
three-hour session;

(d)

there shall be a break for lunch between the sessions;

(e)

each question shall be answered and there shall be no
direction to the witness not to answer any question,
except those questions objected to on the basis of
privilege;

(f)

the parties shall state their objections directly to the
court reporter and not to each other; and

(g)

no conference or colloquy shall occur between counsel
except that which is intended to enhance the efficient
progress of the deposition.

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IT IS FURTHER ORDERED that any party may timely request that the
court preside over the deposition of Mr. Alonso in the courtroom of the
undersigned.
IT IS FURTHER ORDERED that the joint motion of plaintiffs Lloyd’s
Acceptance Corp. d/b/a Lloyd’s Development Co. and Affordable Communities
LP and defendant Travelers Insurance Company for an extension of time to
complete discovery (Doc. 149) is sustained, in that:
(a)

the parties shall complete discovery no later than
August 31, 2012;

(b)

the parties shall file any dispositive motions and
expert opinion motions no later than September 14, 2012;
and

(c)

the hearing on dispositive and expert opinion motions
is reset to October 11, 2012 at 10:00 a.m. in the
courtroom of the undersigned.

IT IS FURTHER ORDERED that the parties shall confer and agree on the
deadlines concerning the initial filing of such motions, the responses
thereto, and reply memoranda.

/S/
David D. Noce
UNITED STATES MAGISTRATE JUDGE
Signed on July 27, 2012.

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