Union Pacific Railroad Company v. Zurich American Insurance Company

Filing 25

ORDER. IT IS ORDERED that Plaintiff's 8 Motion to Remand is GRANTED. (Clerk sent via USPS certified copy of this order and docket sheet to the Second Judicial District Court, Washoe County, Nevada, on 12/2/2010.) Signed by Judge Robert C. Jones on 11/30/2010. (Copies have been distributed pursuant to the NEF - KO)

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UN I ED STATES DI T R I T CO U RT T S C D I T R I T O F NEVADA SC

8 UNI N PACI I RAI ROAD COMPANY, ) O FC L ) 9 plitf ani , f ) ) 3:O- v 00410- CJ- AM 1 cRR 1 0 v. ) ) 1 ZURI H AMERI AN I SURANCE 1 C CN ) ORDER CO MPANY, ) 1 2 ) Def ndant e . ) 1 3 ) ) l4 Curent bef r t e Cour i a Motont Remand ( 8)fld by Plitf Unin Pacii r l oe h y ts io #i e a nif o fc
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Raioad Company td litf' on Jul 21,2010. Def ndantZurch Amerc Isur nce l r ' anirl p y e i ia n a Com pany(Def ndanrli danOpposiin(/ 2) August 2010, Plitfi daRepl 'e ' 'fl e to /1 on 6, and ani fl fe y

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Union Pacific Railroad Company v. Zurich American Insurance Company Doc. 25

T he Cour hear or lar um en on t e m oton on Novem ber 1 , t dag th i 5 2010.

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l Plitf wasIabl f rBed' serous peronalij r ivolig a tai r (d.at$ 8) Plitf an if i eo si s nu y n vn r l . I e . an if ' 2 s ug td f n e a d id mni fom De e d n u de t e is r n e p l y. (d.a ! 1 ) o h ee s n n e t r y f n a t n r h n ua c oi I t g 0 . c
3 Pl itf al ges Def ndant has del yed ac i n on is demands and been dif ul t a n if l e e a to t fi t o c

4 communiat wih.(d. ! 11) Thus,Piitfhasbeenf redt icurt ecost def ndig c e t I at ( . ani f oc o n h of e n 5 agaistt e Brsher 'lwsui.(J.at! 1 ) n h a sa t / (2 .
6 O n June 3,2010,Pl i tf fl d a com pi i tagai stDef ndantbased on t e f r goi g a n if ie an n e h oe n

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al gedmic nduct ( ompl) I t ecomplitPlitfal gescli sf rbr ac ofcontact l e so .C .. n h an , an i l fe am o e h r, badf ih, olton ofNevada' isur nc r gultons, at vi a i s n a e e a i Nev.Rev.Stt j686A. 1 , eachof a. 3 0 br fducir dut ,and acli f rpuniiedamages. (d.a W 13-42) Plitf s eks' ener l i ay y am o tv It . . a nif e ' a g and speci l ages i excessof$1 , 00. 0, ' peci l ages i excess of$10, 00. 0, a dam n 0 0 0 , ' a dam 's n 0 0' '

11 c ntac ualand c m pensat r dam ages i exc ss of$10, 00. 0, ' x m pl r and puniie o rt o oy ne 0 0 '' e a y 'e t v 1 dam ages i exc ss o $10, 00. 0, and ' os s ofsui .,.and r asonabl ator ey' f es. 2 nef 0 0' ' 't c t e e tn se ' '

1 ( om plat11:-15) 3C . 5. 1 4 On Jul 8,2010,Def ndantfid a petton f rr m ovalwih t i Cour. ( et f r y e i e ii o e t hs t P .o 1 Removal( 1). Def ndantassered j rsditon based on c m plt dier i bet een t e 5 #) e t u i ci o ee v st w y h 1 parisandamounti contoverygratrtan$75,00. 0.(J.at!5) Def ndantassered 6 te n r s eeh 0 0 / !. e t l t at'the cai f rpuniie damages alne exceedst e monet r j rs itonalamountof 7 h 'l l m o l tv o h a y u idci 1 $75,00.0. Def ndantalo assered t atPl itf' cii s do r c verbot def ns and 8 0 0' e ' s t h anif am i e o s t h ee 1 idemni f ra serous peronalij r c s ,'ad f ih'damages and punive damages' 9n to y i s nu y a e b at t i ' 20 exceededt ej rsditonal ni um .(d.at! 6) h u i ci mi m I (.
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'fatanytme beor fnaludgmentiappear t atte dititcour Ickss bect I l i fei j t s h h src la uj

23 mat r urs iton,he case s albe r m anded. 28 U. . . 1 47* .Removalsat t s te j id ci t hl e ' ' SC 5 4 t ue 2 ar srci c nstued agais r m ovalursdit n.Riche k.Up John C(,139 F.d 1 13. 4 e tity o r n te j i ci o t y' ), 33 2: 1 16 ( t Ci.1 98) Gauzk.f / s, F.d564,566 ( t Ci.1992) 'Feder l 5 3 9h r 9 ) ' // 98O 2 e 9h r .' ' a 26 j rs iton mustber j ced it er i anydoubtast t e rgh ofr movali t e frt u idc i ee t f h e s oh i t e n h is 27 hist nce.'l.( uot g Lihar t Sant lrr/a Daiy Co.592 F.d 1 62,1064 ( t n a ' d q i b tt ' n a to 3c z r . 20 9h
28 !Ci.979).Tfedef ndan ai ay tast e buren ofest bl hig t atr m ava!spr per r1 ) l e t w sn h d ain h e s io, j ' i ' N
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1 Gause,980 F. d at566. 2
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Dieriyj rsditonr quiestatt eamounti c ntoveryexceed $75,00.28 v st u i ci e r h h no r s 0

4 U. . . 1332( ) W hena plitf hasal ged a s ecii amoun i contoveryi hi SC j a. an i f l e p fc tn r s n s
5 c m pl i t hi al gaton i gi en wei ht I actons orgi al br ughti s at c ur,a o an , s l i s v e g .n i in l o y n te o t

6 plitl hasno icentv t ifat hi damagest achiv dieri jrsditon.Therf r j ani n ie o n i e s o e e v st u i ci y eoe
7 i a pl i t fbrngs an acton i st t coud and al ges an am ounti c ntover y gr at r f an i i f i n ae l e nor s ee

8 t ant e mii um f rdier i j rs it n,a diere def ndantmay r m ovet f der l h h nm o v st u idci y o vs e e oe a
9 c ur unl ss t er i a I gal t i t t atpl i t fw i notr coveran am ountabove t e o t e h e s e cera n y h a ni l fl e h

1 mii um f rdier i j rs iton.Becaus a plitf mayifat hi damagest achive 0 nm o v st u idci y e anif nl e s o e 11 dieri j rsditoni acinsorgial br ughti f der lc ur,iaplit brngsan v st u i ci n to y in l o y n e a o t f a ni i f
1 ac i n i f der l 2 to n e a cour and al ges i good f ih an amounti contover y gr at rt an t e t l e n at n r s eeh h

1 mii um f rdier i jrs iton,t ecour mayonl dimist eacton it er i a lgal 3 nm o v st u idci h y t yssh i fh e s e
1 cerai t t att e pl i tf w i notr c veran am ountabove t e m i i um f rdi er i 4 t ny h h an i l fl eo h nm o v st y

1 j rs iton.Sanche 1.MonumentlLie I s Co. 102 F. d398, ( t Ci.1996) 5 u id ci z a f n. , 3 4O2 9 h r .
1 6 W her a pl i t has notal ged a s ecii am ounti contover y, he def ndant e ani : l e p fc n r st e

1 cli ig r movalursditonbear t e bur en ofest bl hig a su f intamounti 7 am n e j i ci sh d ain s fi e c n
1 contover y by a pr ponder nce oft e evi enc . I .at404.M ccaa 1 M as ac usets 8 rs e a h d ed . sh t

1 Mut alLie Is.C(.330 F.Supp.2d 11 3,11 5 ( .Nev.2004) The def ndantc nnot 9 u f n ), 4 4D . e a
20 r l on bar al gatons. He m ustpr duce evi ence t suppor a sufi i ntam ount i ey el i e o d o t fc e n

2l c ntover yf rdieriyj rsditon.See Sanchez,1O2 F,d at405.Mccaa,330F.Supp. o r s o v st u i ci 3 ,
22 2d at11 6.A com pl i tt atpr y f rdam ages 'n excess of$10, 00. 0'does not 4 an h a s o i 0 0'

23 speciyan amounti conr ver ygr at rt an t e mii um f rdieriyj rsditonand f n to s e e h h nm o v st u i ci
24 t us a r m ovi g def ndantbear t e bur en ofpr vi g a sufi i ntam ounti con r ver y h e n e sh d on fe c n to s 25 by t e pr ponder nce oft e evi enc . M cc aa,330 F.Supp.2d at11 6. Because h e a h de 4

26 Nevada I w does notal w a pl itf t pl ad s ecii dam ages gr at rt an $10. 00,no a l o a n i o e p fc f eeh 0
27 adver e i f r nce shoul be t ken fom a pl i tf' f i r t specii al pl a6 dam ages s ne e d a r a n if a l e o su fc l e y

28 above$1 .00 ba beiz'he mii um f rdieriyj rsditon. l.at115O. 00 l ot nm o v st u i ci d

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A pl itf s cai s f rpuniie damages and ator ey' f es m ay be icl ded i t e a n ir l m o tv tn se nu nh

2 t t lusedt s tsyt e mii um amountf rdier i j rsditon.I .at1148-50. oa o a if h nm o v st u i ci d y
3 Howev r def ndantm us pr duc evi ence t show t atpi i tf i m or Ik l t an nott e, e to e d o h a n if s e ie y h o 4 r coverpuni ve dam ages and ator ey f es. I . e t i tn e d

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Deendantmus esabl hdieriyj rsditoni hi pett nf rr moval Hecannot f t t i v st u i ci n s io o e s i .

6 r l on m er concl sor al gatons i hi pet i n t att e am ounti con r ver y exc eds ey e u y l i n s io h h e t n to s e

7 t ej rs itonalmii um.The r movig def ndantmus r l on under igf csi hi h u idci nm e n e t ey in a t n s y
8 petton. How ever t e di ti tcour m ay,ati di cr ton,teat ac s and ar um entr i ed ii , h s rc t t s ei r f t s g as 9 by a def ndanti an opposii n t a m oton t r m and aferr m oval an am endm en t e n to o i oe te as to 1 t e orgi alpetton f rr m oval Cohn,281 F. d at84O n. . 0h in ii o e . 3 1

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Def ndantr l s entr l on t e f c t atPl itf seek punive dam ageswhih may e ei e ie y h ath a n if s t i c

1 exc ed $75,00.Thi i notenought satsf Def ndants bur en.Def ndantar uest at 2 e 0 ss o iy e 'd e g h 1 ipunivedamagesar al ged,t ej rs itonalamounti satsfed unisster i a Igal 3f t i el e h u id ci s ii e h es e 1 cerait t att e pl itf wi notr c v ri excess of$75, 00. Def ndantprm arl r l s 4 t n y h h a n if l l eoe n 0 e i i ei ye

1 on Colm an t.Ass r ntI c.463 F.Supp.2d 1164 ( .Nev 2006) However ast i 5 e / u a ,n , D . , hs
1 C oud has not d bef r , Col m an w as deci ed underan i c rec st ndar . 6 e oel e d nor t a d

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I Colm an,t ecour hel t atihad r m ovalursditon bas don dier i ne h ' dh t t e j i ci e v st y

1 bec use t e pl i tf assered a cl i f rpunii e dam ages, hi h m ay be unl ied i bad 8 a h an i f t am o tv wc it n m 1 f ih i sur nc ac i ns,and because t e pl i t r f s d t s i ul t t att e v i e of hi 9 a t n a e to h a n i e u e o tp a e h h a u f s

20 case was I sst an $75, 00. eh 0 463 F.Supp.2d at1168.The cour,however appled t e t , ih
21 wr ng st ndar . The cour hei t ati mustappeart a I gal t i t t att e pl i t f o a d t dh t o e cera n y h h a n i f

22 c ul notr coverabove $75,00 i or ert r m and.I .Thi t s wasrj ct d b t e od e 0 n d oe d s et ee e y h

23 Nit Cicui.See Sanchez 102 F.d 298,403 (t Ci.1996)7he Nit Cicuir as ned: nh r t , 3 9h r . nh r t e o
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plitf' c m plit does not speciy a pariulr amount of damages i an l s o an f f tc a s dier iyj rs iton. Forexampl ,i a piitf act al seekig $10,00 i v st u id ci e f an i u l f y n 0n

i appr prat sbecause i m ay r sul i an unw ar ant d expansi n of T der l n o ie t e tn re o ea dam ages w er t fi a com pi i ti st t c ul w hi h di nots eciyt e am ount eoi e an n a e o ' c d t p fh
l % L ' / tp ? ' 1'.. .T ..zL l.'11 . N(,:(t- ' '(((tl 20 1)B c 'S ' rg ). ..L- / . . ï t$. 1: . 3 ):J C ' -)$ 7 . ( ' L bj r S ; ih 1 a i ;) $ h
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woui f re te f der lcour t elerlej nsditon even l t er wasoql a d oc h e a to cs u ci fh j y Igalpossbit tatt e amouqtI contovery exc eded (he j rsditonal e i ly h h i n rs e t u i cl mli um ) Thl r suli clarylc nsit ntA1ht eI i whihCongr sshas nm . s e ts e l n g se t h i t c ms e plced onbot r m ovalanddierl j rs iton. a he v st u id cl y
The cour i Col m an r led on t e Supr m e Cour c s ofBel B Pr f r ed Li tn e ei h e tae l . eer f e

6 Assur Soc.ofMontomer A1. 32O U. . 64 S. t5, L.Ed.1 (943) I Bel,he . g y a, S 238, C . 88 5 1 .n lt
7 pl itf fld hi c m pl i ti f der lcoud and speciial ask d f r$200, 00 i ac ual a n if i e s o an n e a fc l y eo 0 n t and
8 puniie damages.32O U. .at239-40. tv S The Supr m e Coud not d t atr cov r ofac ual e e h e ey t

9 dam ages was l el l ied t $1, 00,bel w t e t en $3, 00 m i i um i yi t s 0 km phb 0 nm
1 am ounti - ontov r y r quiem ent I .a 240. The Supr m e Cour hel t att e di ti t 0 -n c r e s e r .d t e t d h h s rc

1 c ur h dj r dit n u ls t eamo ntnc n rv ry,o aIg l edait , sbeo 1 o t a u i ci ne s h so u i o to e s t e a c ny wa lw
1 $3,00. I .at241. Because punivedamagescoul meett ejrsditonal ni um ,he 2 0 d t i d h u i ci mi m t l Supr me Cour r v oedt edititcoud' dim isaloft ecase f rlckofj rsditon.I . 3 e te e h s rc sss h oa u i ci d
1 at241 43. 4 15 T he Supr m e Cour deal w ih a ver dif r ntsiuaton t an t e one i Col m an and e t tt y fe e tih h n e

1 t i case.I aplitf pladsdamagesi ex es oft ej rsditonal 6 hs f an if e n c s h u i ci amounti f der l ne a
l c ur,hi good f ih al gatons ar gi en wei htand di m i sali onl appr prat i t er 7 ots at l i e ev g ss s y o i e fh e

1 i a Iga c ranytat h a o ntnc nr v ryi b lw t ejrs it n l un . 8 s e l e tit h t e m u i o to e s s eo h u idci a amo t o
l S anc ez,102 F. d at402. I,as i C o em an and t i c se,t e pi i tf pl ads an 9 h 3 f nl hs a h a n if e 20 unspecfed am ounti s at cour , he def ndantm us pr ve t att e am ounti ii nte tt e to h h n

21 contovery i i excessoft ej rs itonalmii um bya pr ponder nce oft e evience r s sn h u idci nm e a hd 22 t est bl h r m ov lursditon basedondieriy.l .at404. I t i mater Def ndant o a i e a j i ci s v st d n hs t , e
23 has f i d t es abl h,by a pr ponder nc oft e evi ence, hatt e am ounti c ntov r y al o t i e s e ae h d th n o r es

24 i gr at rt an $75, 00.Ther f r , hi case m us be r m anded t t e s at c ur. s eeh 0 eoe t s te oh te o t

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l t i c se,Pl itf has notpl d an am ounti excess of$75, 00. 0. Jus because n hs a an i f e n 00 t

26 Plitfs ekspunive damagesdoesnotvestt i Courwihj rs iton. Def ndanthas ani e f t i hs t t u id ci e
2, pr vi ed no evience t att e am ounti contover y i i ex es of$75. 00. 0. Yet pr o od d ht n n r s sn c s 00 , of
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oo oft i as eri n i Def ndants bur i n t bear Furher or .t e C ouc r s l es doub hs s t s o e ' ce o . t meh e ov t
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l agais r mov lursditon.Therf r ,he Cour r m andst i case backt stt c ur. n t e a j i ci eoe t te hs o ae o t
2 Pl itl alo not st atDef ndantal ges i i bit undert e pol y may be I i d an i s eh e l e t i ly sa i h i c it me

3 t $30,00.0,( eeAns.( 5)9:-12) and ass rst ati damagesatte tm eoffl g i o 00s #7, et h t s hi in t is 4 motonwer appr xi at l $33,00.0. ( lsMot t Remand ( 8)4:-5:,6:9-7: ) i e o m ey 0 0 P. ' .o # 9 7 1 4.
5 Though Pl i t fr f r t an a t c ed afi avi ofChrs opherJ.Ral i h,ti notatached ani ee s o f ta h ft d it eg i s t
6 t Pl i tf ' m oton. o a n ifs i

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D ef ndantar ues t atf es ar bei g i cured i t e Br sherI w sui ata r t of e g he e n n r nh a a t ae

j $3,00 permont andwi exc ed $45,00 byt etm e t i moton i hear . ( ef' Opp' k0 h le l 0 h i hs i s d D. s n 9 1 0 11 1 2
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( 12)622 21) Thi hypot essi notenought caryDef ndantsbur enofsupporig # 1- , s h is or e 'd t n ispett nf rr moval t evienc t atshowst i Cour hasj rsdit n bya t ii o e o wi d e h h hs t u i ci o pr ponder nceoft e evienc .Nori Def ndantsbar ciatont lr ej r ver it i e a h de se ' e t i o a g u y d cs n ot ercas s. These ct tons show onl t atpuniie damages may exc ed $75, 00. 0, h e ia i yh tv e 00
C O N C LU S I N O

13 nott att ey ar Ikel t do so i t i m ater hh ei yo n hs t.

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Forte f r goig r as ns,I I ORDERED t atPlitf' Moton t Remand ( 8)i h oe n e o T S h anif s io #s

l6 G RA N T ED .
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DA T ED : s 30t day of Nov m ber Thi h e

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