National Interstate Insurance Company v. Nova Casualty Company

Filing 13

ORDER: Motion to Amend Pleadings due by 10/31/2014. Discovery due by 11/21/2014. Dispositive Motions due by 12/19/2014. Telephone Conference set for 1/20/2015 at 10:00 AM before Magistrate Judge Joe Brown. Trial set for 5/19/2015 at 9:00 AM before Senior Judge John T. Nixon. Pretrial Conference set for 5/8/2015 at 10:00 AM before Senior Judge John T. Nixon. Signed by Magistrate Judge Joe Brown on 8/28/14. (DOCKET TEXT SUMMARY ONLY-ATTORNEYS MUST OPEN THE PDF AND READ THE ORDER.)(dt)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF TENNESSEE
NASHVILLE DIVISION
NATIONAL INTERSTATE INSURANCE
COMPANY,
Plaintiff
v.
NOVA CASUALTY COMPANY,
Defendant

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No. 3:14-1327
Judge Nixon/Brown

INITIAL CASE MANAGEMENT ORDER
Pursuant to Local Rule 16.01(d)(2), the following Initial Case Management
Plan is adopted.
A.

JURISDICTION: The Court has jurisdiction pursuant to 28 U.S.C. § 2201(a) and

28 U.S.C. § 1332.
B.

BRIEF THEORIES OF THE PARTIES:
1)

PLAINTIFF: This declaratory judgment action stems from an automobile

collision which occurred in Illinois on August 11, 2011 involving the use of a leased bus.
Pioneer Coach, Inc. (“Pioneer”) leased the bus from the owner and then
subleased the bus to Four Seasons Coach Leasing, Inc. (“Four Seasons”). Four Seasons then
entered into a sub-sublease of the bus with Miranda Rolls, Inc. At the time of the collision, the
bus was in the possession of Four Seasons or its sub-lessee.

Plaintiff National Interstate Insurance Company (“NIIC”) insured Pioneer on a primary
basis with limits of $5,000,000.00. Defendant Nova insured Four Seasons on a primary basis
with limits of $5,000,000.00. NIIC also insured Pioneer through an excess policy.
Plaintiff NIIC asserts, pursuant to T.C.A. § 56-7-1101(c), that Nova owes the sole
primary duty to defend and indemnify Pioneer and the bus driver under the terms of the Nova
policy because Nova’s insured agreed to provide insurance in compliance with state and federal
laws.
NIIC also asserts, in the alternative, that if the NIIC policy is deemed to alone afford
primary coverage, the Nova policy alone affords coverage upon the exhaustion of NIIC’s primary
coverage, such that the NIIC excess policy is excess to the Nova primary policy.
2)

DEFENDANT: Defendant Nova has answered Plaintiff's Complaint and

counterclaimed for declaratory judgment and monetary relief with regard to coverage under
the Nova and NIIC policies. At the time of the motor vehicle accident, the Bus was being driven
by Pioneer's employee. Four Seasons did not agree to provide insurance coverage for the Bus in
the Pioneer/Four Seasons Agreement. NIIC's policy is primary because the agreement between
Pioneer and the owner is an "insured contract" and because Pioneer, Four Seasons and the driver
have valid and collectible insurance through the NIIC Policy. Further, Pioneer has valid and
collectible insurance through the NIIC Excess Policy as well. Nova's coverage, if any, is excess
to that provided by NIIC.
Defendant Nova further asserts, pursuant to T.C.A. § 56-7-1101(a)(1) that NIIC owes the
sole primary duty to defend and indemnify Pioneer and the bus driver under the terms of the
NIIC policy because NIIC provides insurance coverage for the owner of the Bus as an additional
insured. Nova seeks attorney's fees and costs it has already incurred in the defense of Four
Seasons in the underlying lawsuits.

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C.

ISSUES RESOLVED:

Jurisdiction and venue.

D.

ISSUES STILL IN DISPUTE: The priority of coverage between the respective

policies.
E.

INITIAL DISCLOSURES: The parties shall exchange initial disclosures pursuant to

Fed. R. Civ. P. 26(a)(1) on or before September 15, 2014.
F.

DISCOVERY:

The parties shall complete all written discovery and depose all

fact witnesses on or before November 21, 2014. Discovery is not stayed during dispositive
motions, unless ordered by the Court.

Local Rule 33.01(b) is expanded to allow 40

interrogatories, including subparts. No motions concerning discovery are to be filed until after
the parties have conferred in good faith and, unable to resolve their differences, have
scheduled and participated in a conference telephone call with Magistrate Judge Brown.
G.

MOTIONS TO AMEND: The parties shall file all motions to amend on or before

October 31, 2014.
H.

DISCLOSURE OF EXPERTS:

Experts are not anticipated.

I.

JOINT MEDIATION REPORT: The parties shall file a Joint Mediation Report

on or before September 1, 2014.
J.

DISPOSITIVE MOTIONS:

The parties shall file all dispositive motions on or

before December 19, 2014. Responses to dispositive motions shall be filed within 28

days after service. Briefs shall not exceed 25 pages without leave of Court. Optional
replies, limited to five pages, shall be filed within 14 days after service of the
response. If dispositive motions are filed early, the response and reply dates are moved
up accordingly.

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K.

ELECTRONIC DISCOVERY:

The parties have reached agreements on how to

conduct electronic discovery. Thus, the default standard contained in Administrative Order
No. 174 need not apply to this case.
L.

ALTERNATIVE DISPUTE RESOLUTION (ADR): At the current time, the parties do

not know whether ADR would be appropriate. In the event the parties determine ADR is
appropriate, the parties will report on the use of ADR by October 15, 2014.
M.

CONSENT TO TRIAL BEFORE THE MAGISTRATE JUDGE:

The parties at the

present time do not consent to trial before the Magistrate Judge.
N.

SUBSEQUENT CASE MANAGEMENT CONFERENCE:

A telephone conference

with Magistrate Judge Brown to discuss case progress and alternative dispute resolution
is set for January 20, 2015, at 10:00 a.m. To participate in the conference call,
parties will call 877-873-8017 and enter Code 1958322# at the scheduled time. A
joint statement of any unresolved issues must be submitted at least one full business
day prior to the conference call.
O.

TRIAL: The parties estimate that this Bench trial will take two to three

days, depending on what issues remain for trial. After consulting with Judge Nixon’s
courtroom deputy, this matter is set for trial on May 19, 2015, at 9:00 a.m. Judge
Nixon will conduct the final pretrial conference on May 8, 2015, at 10:00 a.m. Judge
Nixon will issue a separate order covering his requirements for the final pretrial
conference order.

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It is so ORDERED.
/s/
Joe B. Brown
Joe B. Brown
United States Magistrate Judge