CHS/Community Health Systems, Inc. et al v. Lexington Insurance Company et al

Filing 104

ORDER: Telephone Conference held on 7/26/2012. Parties shall have until 8/6/2012, to file such a stipulation. Defendant Lexington shall produce its claim file to the plaintiffs, along with a privilege log. Such production shall be made no later than 8/10/2012. By 8/10/2012, the parties shall also file a proposed protective order relating to the claims file. Signed by Magistrate Judge Juliet E. Griffin on 7/27/12. (dt)

IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF TENNESSEE
NASHVILLE DIVISION
CHS/COMMUNITY HEALTH
SYSTEMS, INC.; TRIAD
HEALTHCARE CORPORATION; and
QUORUM HEALTH RESOURCES,
LLC,
Plaintiffs/Counter-Defendants
and
UNITED TORT CLAIMANTS,
Plaintiff Intervenor
v.
LEXINGTON INSURANCE
COMPANY,
Defendant/Counter-Plaintiff
and
IRONSHORE SPECIALTY
INSURANCE COMPANY
Defendant.

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No. 3-11-0449
Consolidated with Case No. 3-12-0248

ORDER
As scheduled during the conference call on July 24, 2012, and as provided in the order
entered July 26, 2012 (Docket Entry No. 101), a conference call with counsel for the parties and the
Court was held on July 26, 2012,1 at which time the following matters were addressed:
1.

Plaintiffs' counsel shall request that counsel in the Bankruptcy case filed by the

hospital2 in New Mexico modify the proposed order to provide that Nautilus Insurance Company
("Nautilus") will pay $6,000,000.00 on behalf of Quorum Health Resources, LLC ("QHR"), and
$2,450,000.00 on behalf of the hospital and Dr. Schlicht.
2.

The parties in this case have agreed to stipulate that if Nautilus pays $6,000,000.00

on behalf of QHR and $2,450,000.00 on behalf of the hospital and Dr. Schlicht, that will satisfy a
$6,000,000.00 SIR under the Lexington excess policy.

1

2

Counsel for the intervenor did not participate in the conference call.

The "hospital" refers to Otero County Hospital Association, Inc. d/b/a Gerald Champion
Regional Medical Center.

3.

Assuming the parties execute such a stipulation, the need for the parties to file cross

motions for partial summary judgment on the "shared limits" issue, as contemplated in the order
entered May 14, 2012 (Docket Entry No. 70), will be rendered moot.
4.

The parties shall have until August 6, 2012, to file such a stipulation.

5.

As addressed during the July 24, 2012, conference call, defendant Lexington shall

produce its claim file to the plaintiffs, along with a privilege log. Such production shall be made no
later than August 10, 2012.3
6.

By August 10, 2012, the parties shall also file a proposed protective order relating to

the claims file.
7.

The plaintiffs have agreed to cancel the deposition of Lexington's claims adjustor

scheduled the week of July 30, 2012, and the deposition of Ironshore's adjustor scheduled the week
of August 6, 2012.
8.

Plaintiffs' counsel represented that all other discovery issues addressed during the

July 24, 2012, conference call have been rendered moot as a result of the parties' stipulation.
9.

The parties have requested oral argument on the pending motions for partial summary

judgment (Docket Entry Nos. 82, 83, and 87), which will be addressed by further order.
Any party desiring to appeal any order of the Magistrate Judge may do so by filing a motion
for review no later than fourteen (14) days from the date of service of the order. The motion for
review must be accompanied by a brief or other pertinent documents to apprise the District Judge
of the basis for the appeal. See Rule 72.02(b)(1) of the Local Rules of Court and Rule 72(a) of the
Federal Rules of Civil Procedure.
It is so ORDERED.
JULIET GRIFFIN
United States Magistrate Judge

3

Plaintiffs' counsel indicated that, after reviewing the claims file, he might seek to make a
further filing related to the pending motions for partial summary judgment.
2