Valley Boys, Inc. v. State Farm Fire and Casualty Company et al

Filing 18

MEMORANDUM AND ORDER - IT IS ORDERED: Michael F. Kinney is appointed Special Master for the purpose of assisting the court in the resolution and management of this case. Mr. Kinney shall report to the court every 45 days and shall ultimately prepar e findings and recommendations for submission to the court within six months of the date of this order. Upon receipt of this Order, the Special Master shall set a time and place to confer with counsel as to the appropriate scheduling of this case. Ordered by Senior Judge Joseph F. Bataillon. (Copy mailed to Mr. Kinney and PACER Service Center as directed)(Copy to Operations Administrator)(TCL )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEBRASKA
VALLEY BOYS, INC.,
Plaintiff,

8:15CV175

v.
MEMORANDUM AND ORDER
STATE FARM INSURANCE COMPANY,
Defendant.
This matter is before the court after a telephone conference with counsel for the
parties. This is an action for damages for alleged breach of contract and bad faith
denial of insurance claims in connection with roof repairs brought by assignees of State
Farm insureds.

The case is substantially identical to an action filed in this court

involving the same parties and attorneys. See Valley Boys, Inc. v. State Farm, No.
8:14cv159, Filing No. 43, Amended Complaint (D. Neb. March 16, 2015) (hereinafter,
"State Farm I"). In this case, Valley Boys has assignments of roof-repair claims from
approximately 56 State Farm insureds. On May 21, 2015, the court appointed Michael
F. Kinney as special master in State Farm I. See State Farm I, 8:14cv159, Filing No.
51. The court has discussed with counsel the appointment of Michael F. Kinney as a
Special Master to assist the court in handling this case as well and the parties agree to
his appointment.
Pursuant to Rules 16, 26, and 53 of the Federal Rules of Civil Procedure and the
inherent authority of the court to supervise and administer pending cases, the court
finds the appointment of a special master will aid the resolution of this case and the
formulation of a fair and efficient plan for the management of this case. The court finds
Mr. Kinney should be granted an exemption from fees imposed by the Judicial

Conference’s Electronic Public Access fee schedule with respect to the electronic case
files of this court that are available through the PACER System.
Mr. Kinney has filed an affidavit in State Farm I disclosing that he is not aware of
any grounds that would result in disqualification under 28 U.S.C. § 455, pursuant to
Fed. R. Civ. P. 53(b)(3)(A). See State Farm I, 8:14cv159, Filing No. 50. The court has
considered Michael Kinney's qualifications to serve as special master and finds him
highly qualified. Nothing in this order abrogates the litigants' rights to a trial by jury or
appellate rights. Accordingly,
IT IS ORDERED:
1.

Michael F. Kinney is appointed Special Master for the purpose of assisting

the court in the resolution and management of this case;
2.

Subject to any specifications or limitations stated in this Order, the Special

Master shall have all the rights, powers, and duties as provided for a master under Rule
53 of the Federal Rules of Civil Procedure;
3.

The Special Master may conduct meetings with counsel and parties jointly

or ex parte.
4.

Special Master Michael F. Kinney is instructed to:

(a)
examine the pleadings, briefs, and evidence submitted by the
parties;
(b)
determine whether and to what extent there are any preassignment bad-faith claims;
(c)
determine the best way to approach the damages from a
categorical standpoint, i.e., to determine whether certain categories of
claims, materials, and scope of work are common to the individual
assignments, in order to expeditiously resolve property loss issues; and

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(d)
determine an expeditious progression of discovery and pursue
settlement discussions.
5.

Mr. Kinney is authorized to look into any other matters that may arise and

may employ a construction expert and a paralegal if the Special Master reasonably
deems them necessary to assist the Special Master in accordance with this Order.
Such persons shall be under the Special Master's supervision and control and the
Special Master shall take appropriate action to ensure that these persons observe the
terms of this Order and preserve the confidentiality of matters submitted to the Special
Master for review. When identified, the expert will be granted judicial immunity from civil
liability and from compelled testimony.
6.

Mr. Kinney is authorized to utilize the services of one of Judge Joseph

Bataillon’s law clerks for research or other reasonably necessary services;
7.

Mr. Kinney shall bill the parties directly for his services;

8.

Mr. Kinney shall report to the court every 45 days and shall ultimately

prepare findings and recommendations for submission to the court within six months of
the date of this order. Pursuant to Fed. R. Civ. P. 53 (f), the parties will be afforded
notice and an opportunity to be heard before the court takes action on the Special
Master's order, report or recommendations.
9.

The Clerk of Court is directed to send this order to:

Michael F. Kinney
Cassem, Tierney, Adams, Gotch & Douglas
9290 West Dodge Rd., Suite 302
Omaha NE 68114

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10.

The Clerk of Court shall establish a PACER login and password for Mr.

Kinney's use during the course of his appointment. This exemption is valid for the
duration of this case and during any appeal, but the court may revoke the exemption at
any time. Special Master Kinney agrees that he will not transfer or sell for profit the
data obtained as the result of a fee exemption.
11.

The Clerk of Court is directed to send a copy of this order to the PACER

Service Center in San Antonio, Texas, so that Mr. Kinney is not billed for PACER fees
incurred during the course of his appointment.
12.

Upon receipt of this Order, the Special Master shall set a time and place to

confer with counsel as to the appropriate scheduling of this case.
13.

The Special Master shall perform such additional duties with respect to

this case as the court may direct.
Dated this 27th day of October, 2015
BY THE COURT:
s/ Joseph F. Bataillon
Senior United States District Judge

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