ABC Industrial Laundry, LLC v. Federal Insurance Company

Filing 68

ORDER Granting 67 Stipulation to Extend Deadlines to Disclose Experts. New deadline: 8/31/2018. Signed by Magistrate Judge Cam Ferenbach on 7/9/2018. (Copies have been distributed pursuant to the NEF - SLD)

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JAMES P.C. SILVESTRI, ESQ.
Nevada State Bar No. 3603
BRIAN W. GOLDMAN, ESQ.
Nevada State Bar No. 6317
PYATT SILVESTRI
701 Bridger Avenue, Suite 600
Las Vegas, Nevada 89101
T. [phone]
F. [phone]
[e-mail]
[e-mail]
Attorney for Defendant
FEDERAL INSURANCE COMPANY

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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ABC INDUSTRIAL LAUNDRY. LLC, a
Nevada limited liability company, dba
UNIVERSAL LAUNDRY and SUPPLY,

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Plaintiff,

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vs.

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FEDERAL INSURANCE COMPANY, an
Indiana corporation; NATIONWIDE
MUTUAL INSURANCE COMPANY, an
Ohio corporation,

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CASE NO.: 2:15-cv-00869-RFB-VCF
THE PARTIES’ STIPULATION
AND (PROPOSED) ORDER
TO EXTEND THE DEADLINES
TO DISCLOSE EXPERTS

Defendants.

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Pursuant to LR 6-1 and LR 26-4, the Parties, by their counsel of record,

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hereby stipulate and request that this Court amend the current Scheduling Order of

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January 19, 2018 [Doc. 62] to extend the deadline to disclose expert witnesses until

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August 31, 2018 for the reasons outlined herein.1

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In support of this Stipulation and Request, the Parties state as follows:

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Plaintiff ABC INDUSTRIAL LAUNDRY, LLC (“ABC”) is a commercial

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laundry that specializes in laundering linens from high end resorts in Las Vegas,

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

The parties intend to participate in a discussion within the next seven days to
explore the feasibility and timing of mediation and remaining discovery.
Thereafter, the parties will submit a proposed Stipulation for the Court’s review
and approval.
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NV. This case is an action by ABC against FEDERAL INSURANCE COMPANY

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(“Federal”)

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(“Nationwide”) stemming from a loss suffered by one of ABC’s customers related

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to the alleged negligence of ABC’s chemical supplier. ABC alleges that there is

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coverage for the loss within Policies from both insurers. Both insurers deny that

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coverage exists. The case involves multiple complex insurance coverage issues

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and requires significant discovery of numerous party witnesses as well as

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numerous third-party witnesses.

and

NATIONWIDE

MUTUAL

INSURANCE

COMPANY

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Further complicating matters, ABC also has litigation pending against the

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Belgium based chemical manufacturer, Christeyns Laundry Technology, in Clark

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County District Court (the “state court action”). There is extensive overlap in the

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need for testimony between the two cases, and the Parties to this case and the state

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court action have been communicating several times per week to coordinate

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discovery efforts for the sake of efficiency and economy.

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The summary of the activity in this case to date is as follows:

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1.

On June 29, 2015, the Court granted the Proposed Discovery Plan and

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Scheduling Order of ABC and Defendant Federal setting expert disclosures

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deadlines of November 6, 2015 and December 7, 2015, and a discovery cut-off

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date of February 5, 2016 [Doc. 9]. At that time, Defendant Nationwide was not a

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party to the case.

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2.

On December 11, 2015, ABC and Federal filed a Stipulation and

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Order to Extend Discovery (First Request) requesting an extension of the discovery

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cut-off dates to allow ABC to amend its Complaint to add Nationwide as an

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additional defendant to the case [Doc. 10].

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3.

On December 14, 2015, the Court granted ABC’s and Federal’s

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Stipulation an Order to Extend Discovery (First Request), setting a new close of

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discovery deadline of June 5, 2016 [Doc. 12].

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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On December 15, 2015, the Court granted ABC’s and Federal’s

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Stipulation to Permit Plaintiff to File an Amended Complaint [Doc. 13] and ABC

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filed its First Amended Complaint adding Nationwide as a defendant on the same

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date [Doc. 14].

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5.

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Nationwide first appeared in this case on January 22, 2016, when it

filed its Answer to ABC’s First Amended Complaint [Doc. 19].
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On February 18, 2016, the Parties filed a Stipulation and Proposed

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Order to Amend the Discovery Plan and Scheduling Order (Second Request)

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because of Nationwide’s recent appearance in the case to allow time for the Parties

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to engage in discovery. On February 19, 2016, the Court granted the Parties’

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stipulation and entered an Order extending the deadlines and dates, setting a new

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discovery cut-off date of January 6, 2017 [Doc. 22].

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On September 13, 2016, the Parties filed a Stipulation and Proposed

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Order to Amend the Discovery Plan and Scheduling Order (Third Request)

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because the Parties needed additional time to coordinate and complete depositions

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of necessary fact witnesses and were awaiting responses to numerous document

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subpoenas served on various Non-Parties believed to have relevant and discovery

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information relating to the claims in this case. On September 22, 2016, the Court

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granted the Parties’ Stipulation and Proposed Order to Amend Discovery Plan and

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Scheduling Order (Third Request), setting a May 5, 2017 close of discovery

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deadline, and deadlines of February 7, 2017 to disclose experts and March 7, 2017

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to disclose rebuttal experts [Doc. 31]. The Court also granted the Parties’ proposed

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Stipulated Protective Order [Doc. 30].

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8.

On January 17, 2017, the Parties filed a Stipulation and Proposed

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Order to Amend the Discovery Plan and Scheduling Order (Fourth Request)

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because the Parties needed additional time to coordinate and complete depositions

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of necessary fact witnesses, the Parties believed, among other things, were

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necessary for their respective experts to formulate opinions in this case.

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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On

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January 18, 2017, the Court granted the Parties’ Stipulation and Proposed Order to

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Amend Discovery Plan and Scheduling Order (Fourth Request), setting an October

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6, 2017 close of discovery deadline, and deadlines of June 6, 2017 to disclose

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experts and July 7, 2017 to disclose rebuttal experts [Doc. 37].

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On May 16, 2017, the Parties filed a Stipulation and Proposed Order

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to Amend the Discovery Plan and Scheduling Order (Fifth Request) because the

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Parties needed additional time to coordinate and complete depositions of necessary

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fact witnesses the Parties believed, among other things, were necessary for their

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respective experts to formulate opinions in this case. On May 17, 2017, the Court

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granted the Parties’ Stipulation and Proposed Order to Amend Discovery Plan and

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Scheduling Order (Fifth Request), setting a January 1, 2018 close of discovery

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deadline, and deadlines of September 6, 2017 to disclose experts and October 6,

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2017 to disclose rebuttal experts [Doc. 50].

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10.

On October 25, 2017, the Parties participated in hearing regarding

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Stipulation for Extension of Time [Doc. 56] before Magistrate Judge Cam

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Ferenbach [Doc. 58].

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On January 30, 2018, the Court approved the Parties’ Discovery Plan

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and Scheduling Order setting an October 15, 2018 close of discovery deadline, and

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deadlines of July 17, 2018 to disclose experts and August 16, 2018 to disclose

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rebuttal experts [Doc. 63].

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12.

The discovery that has been completed to date includes:
a. Exchange of Fed. R. Civ. P. 26(a)(1) Initial Disclosures, including
documents, and supplemental disclosures;

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b. The Parties have exchanged written discovery, including requests

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for admissions, requests for production of documents, and

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interrogatories;

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c. A stipulated protective order was entered on September 22, 2016,

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to facilitate the discovery and production of documents deemed

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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confidential, proprietary or otherwise trade secret by the

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producing party, including certain Non-Parties who have indicated

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they cannot produce documents in response to document

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subpoenas without a protective order in place;

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d. Defendants Nationwide and Federal have identified their

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respective Fed. R. Civ. P. 30(b)(6) witnesses in response to

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categories presented by ABC, and the Parties are working to

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coordinate scheduling of the various depositions;

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e. To date, document subpoenas have been served on the following
Non-Parties:

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1. Christeyns Laundry Technology, LLC;

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2. Companion Commercial Insurance Company;

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3. International Textile Analysis Laboratory;

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4. Liberty Mutual Insurance Company;

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5. Nationwide

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Union

Fire

Insurance

Company

of

Pittsburgh, PA.

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6. Rimkus Consulting Group, Inc.;

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7. Sobel Westex Quality Control;

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8. Textile Solutions, LLC;

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9. Universal Garment Wash & Dye, LLC;

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10. Wynn Las Vegas, LLC;

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11. Brown & Brown Northwest;

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12. Exponent Failure Analysis Associates;

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13. CHEM-BAC Laboratories, Inc.; and

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14. Frank Campagna, Swarts & Swarts.

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f. Over 125,000 pages of documents have been produced by ABC in

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response to discovery served by Federal and Nationwide.

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addition, in response to the subpoenas above, the Parties have

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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In

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received more than 130,000 additional pages of documents from

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Non-Parties.

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g. Defendants Nationwide and Federal, upon the agreement of ABC,

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visually inspected ABC’s commercial laundry facility and

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laundering equipment located at 240 Spectrum Boulevard, Las

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Vegas, Nevada, and samplings of the Wynn Las Vegas, LLC’s

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affected linens or other goods identified to be in ABC’s

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possession.

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h. On April 11, 2017, all Parties, through their attorneys, met at

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ABC’s facilities to distribute and obtain samples of linens for

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further testing and analysis by the Parties and/or their respective

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experts and/or consultants. The testing is now underway.

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i. On August 15, 2017 and August 16, 2017, the Parties proceeded in

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Boston, MA, with the deposition of Rudi Moors, person most

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knowledgeable for Christeyns Laundry Technology.

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j. On March 9, 2018 and April 13, 2018, the Parties proceeded with

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the deposition of FRCP 30(b)(6) witnesses of non-party, Wynn Las

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Vegas, LLC.

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13.

The discovery that is anticipated and remains to be completed is:

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a. Additional non-party document subpoenas identified as necessary;

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b. Additional exchange of written discovery;

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c. Depositions of fact witnesses (discussed below); and

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d. Expert disclosures and depositions.

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Additionally, on February 17, 2017, Federal filed a Motion for

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Summary Judgment on ABC’s claims against Federal (“MSJ”) [Doc. 38].

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Pursuant to approval of the Court, ABC filed its opposition to Federal’s Motion for

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Summary Judgment on March 31, 2017 [Doc. 43], and Federal filed its reply to the

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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opposition on April 28, 2017 [Doc. 46].

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2017.

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The Motion was heard on August 24,

The Parties have been working diligently to exchange discovery and

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documents, and to identify and coordinate the depositions each party believes are

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necessary in preparation for trial. To allow the Parties more time to complete this

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discovery, and coordinate and complete the depositions discussed below, and

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because of the approaching expert disclosure deadline for which the Parties’

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experts will need deposition testimony to formulate their opinions, the Parties

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request a short continuance of the current deadlines for the following reasons:

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a.

The case involves complex insurance coverage questions

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involving both property and liability claims under policies of

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insurance issued by different insurers (Federal and Nationwide),

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as well as allegations by ABC relating to Federal’s and

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Nationwide’s handling of ABC’s claims.

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Parties intend to conduct discovery on at least the following

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subjects:

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(1)

Accordingly, the

the factual and legal basis for ABC’s breach of contract,

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tortious breach of the duty of good faith and fair dealing, and

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breach of statutory duties (NRS §686A.310) claims;

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(2)

claimed damages, including alleged consequential damages;

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the factual and legal basis, extent, amount, and nature of ABC’s

(3)

facts surrounding the damage to Wynn’s linens and other goods

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alleged by ABC, upon information and belief, to have resulted

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from the negligence on the part of Christeyns Laundry

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Technology USA (“Christeyns”);

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(4)

claimed damage to its products;

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facts surrounding the lawsuit filed by Wynn against ABC for

(5)

Federal’s and Nationwide’s affirmative defenses in this matter;

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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and

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(6)

the investigation of and response by Federal and Nationwide to

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ABC’s respective claims submitted under the policies of

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insurance which are at issue in this litigation.

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b.

On August 15 and August 16, 2017, the Parties finally

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proceeded with the Fed. R. Civ. P. 30(b)(6) deposition of non-

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party Christeyns Laundry Technology USA (“Christeyns”) in

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Boston, MA.

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managed and coordinated the laundry chemical formulation and

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injection into the laundry system in ABC Industrial Laundry,

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LLC’s (“ABC”) commercial laundry facility, and who ABC

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contends is responsible for the damage to the Wynn Las Vegas,

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LLC’s (“Wynn”) linens and other goods at issue in this case. In

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addition to Christeyns being a material fact witness in this case,

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ABC has sued Christeyns in state District Court, Clark County

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(docketed as case no. A-15-720810-C).

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engaged in lengthy meet and confer discussions to coordinate

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Mr. Moors’ deposition to occur at the same time for both cases

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in Boston, MA (where Christeyns’ North America subsidiary

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and counsel are located).

Christeyns is the company ABC contends

The Parties have

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Initially, Christeyns had previously agreed to produce Mr. Moors for

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deposition in Las Vegas and the deposition was set for February 15, 2017 in Las

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Vegas. However, just days prior to this scheduled deposition, a dispute arose

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between ABC and Christeyns over Christeyns’ production of documents. The

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deposition was reset for March 15, 2017, and just two (2) business days before the

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deposition was to commence, Christeyns attempted to retract certain documents

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from production upon the assertion of privilege, which resulted in the need for

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ABC to continue Christeyns’ deposition and engage in a meet and confer on the

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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document production issues that arose.

The deposition finally proceeded in

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Boston, MA, on August 15 and August 16, 2017.

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c.

Additional depositions anticipated include:

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(1)

ABC’s principals and employees, Ran Brisman, Avi Cohen,

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and Jim Smail;

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(2)

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requested by ABC, for which Federal currently estimates designating

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three; witnesses in response to the categories served by ABC, two of

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whom are in Southern California, and the third is in Northern

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California, and Nationwide has identified four witnesses in response

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to the categories served by ABC, two of whom are located in

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Northern California, one is located in Southern California, and the

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fourth is located in Columbus, Ohio; and

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(3)

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Plaintiff’s former management team, Moshe Levy, Kobi Levy, and

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Yhuda Levy.

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Federal and Nationwide Fed. R. Civ. Pro. 30(b)(6) witnesses

deposition subpoenas have been issued for the depositions of

The Parties have been working diligently to coordinate the depositions

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each party believes are necessary in preparation for trial, and specifically expert

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disclosures.

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produced more than 45,000 documents as a supplemental response to Federal

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Insurance Company’s Subpoena dated July 15, 2016. The Parties are continuing to

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complete the discovery outlined above.

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However, on June 7, 2018 Non-Party Wynn Las Vegas, LLC

For the reasons set forth above, and because good cause exists, the

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Parties hereby agree and stipulate to, and request the following proposed new

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schedule for disclosing experts and rebuttal experts be entered by the Court:

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Event

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Disclosure of Experts

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Current Deadline
7/17/18

8/31/18

If the Court is not inclined to grant this request based on the above, or

Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

New Deadline

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requires additional information, the Parties request a Scheduling Conference at the

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Court’s convenience.

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Dated: June 26, 2018.

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LAW OFFICES OF STEVEN J. PARSONS

HINES HAMPTON, LLP

/s/ Steven J. Parsons
STEVEN J. PARSONS, ESQ.
Nevada Bar No. 363

/s/ Christine Emanuelson
CHRISTINE M. EMANUELSON
Nevada Bar No. 10143

Attorney for Plaintiff,
ABC INDUSTRIAL LAUNDRY, LLC
PYATT SILVESTRI

Attorney for Defendant, NATIONWIDE
MUTUAL INSURANCE COMPANY
REMPFER MOTT LUNDY, PLLC

/s/ Brian Goldman
BRIAN W. GOLDMAN
Nevada Bar. No. 6317

/s/ Joseph Mott
JOSEPH N. MOTT
Nevada Bar No. 12455

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Attorney for Defendant,
FEDERAL INSURANCE COMPANY

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Attorney for Plaintiff, ABC INDUSTRIAL
LAUNDRY, LLC

ORDER

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IT IS SO ORDERED.

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Dated: July

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, 2018.
U.S. MAGISTRATE JUDGE

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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ATTESTATION OF CONCURRENCE IN FILING

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I hereby attest and certify that on, June 26, 2018, I received concurrence

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from Plaintiff’s counsel, Steven J. Parsons and Joseph N. Mott, as well as

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Nationwide Mutual Insurance Company’s counsel, Christine Emanuelson, to file

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this document with their electronic signatures attached.
I certify under penalty of perjury under the laws of the United States of

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America that the foregoing is true and correct.
June 26, 2018.

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/s/ Brian W. Goldman
BRIAN W. GOLDMAN
Nevada Bar No. 6317

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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CERTIFICATE OF MAILING

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I hereby certify that on the 26th day of June, 2018, I electronically filed the

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foregoing document or paper with the Clerk of the Court using the CM/ECF
System which will send notification of such filing to the e-mail addresses denoted
on the attached Electronic Mail Notice List, and I hereby certify that I have mailed

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the foregoing document or paper via the United States Postal Service to the non-

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CM/ECF participants indicated on the attached Manual Notice List.

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I certify under penalty of perjury under the laws of the United States of

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America that the foregoing is true and correct. Executed on June 26, 2018.
Steven J. Parsons, Esq.
10091 Park Run Drive, Suite 200
Las Vegas, NV 89145-8868
T. [phone]
F: [phone]
Attorney for Plaintiff
ABC INDUSTRIAL LAUNDRY, LLC
Christine Emanuelson, Esq.
Whitney C. Wilcher, Esq.
1601 Diamond Oaks Court
Las Vegas, NV 89117
T. [phone]
F: [phone]
Attorney for Defendant,
NATIONWIDE MUTUAL INSURANCE COMPANY
and

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...
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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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Joseph N. Mott, Esq.
Rempfer Mott Lundy, PLLC
10091 Park Run Dr., Suite 200
Las Vegas, NV 89145-8868
T: [phone]
F: [phone]
Attorney for Plaintiff
ABC INDUSTRIAL LAUNDRY, LLC

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/s/Susan Clokey
Susan Clokey

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Pyatt Silvestri
701 E. Bridger Avenue
Suite 600
Las Vegas, Nevada 89101
[phone]

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