Scottsdale Insurance Company v. Therapeutic Health Services

Filing 18

ORDER granting Parties' 17 Stipulated Motion to Extend Stay of Proceedings Due to Mediation. The stay of this action and all litigation deadlines in the current Case Schedule is EXTENDED until 4/25/2025. The parties shall file a joint status report with the Court no later than 5/2/2025. Signed by Judge Marsha J. Pechman. (KRA)

THE HONORABLE MARSHA J. PECHMAN

UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
SCOTTSDALE INSURANCE
COMPANY,

Case No. 2:24-cv-01518-MJP
STIPULATED MOTION TO EXTEND STAY
OF PROCEEDINGS DUE TO MEDIATION
AND

Plaintiff,
v.
THERAPEUTIC HEALTH
SERVICES,

[PROPOSED] ORDER
NOTE ON MOTION CALENDAR:
March 11, 2025.

Defendant.
I.

STIPULATION

Plaintiff Scottsdale Insurance Company (“Plaintiff”) and Defendant Therapeutic Health
Services (“THS”), through their respective counsel, submit this Stipulated Motion and [Proposed]
Order to extend the Court’s previous stay of proceedings in this action [ECF. No. 16] from March
18, 2025, toApril 25, 2025. The Parties ask that the existing stay be extended for one month to
accommodate a mediation that has been scheduled for March 26, 2025, with The Honorable John
W. Thornton (ret.) of JAMS.
Plaintiff filed this lawsuit seeking a declaration that it has no coverage or defense
obligations under the policy issued to THS with respect to four underlying lawsuits filed in King
County Superior Court (“Underlying Lawsuits”). Plaintiffs in the Underlying Lawsuits allege that

STIPULATED MOTION TO EXTEND STAY
OF PROCEEDINGS DUE TO MEDIATION - 1
CASE NO. 2:24-CV-01518-MJP

K&L GATES LLP
925 FOURTH AVENUE, SUITE 2900
SEATTLE, WASHINGTON 98104-1158
TELEPHONE: [phone]
FACSIMILE: [phone]

THS failed to adequately safeguard its security systems, resulting in a data breach that exposed the
private and confidential information of an alleged class of affected individuals.
THS and the plaintiffs in the Underlying Lawsuits have been negotiating toward a potential
settlement. In furtherance of those discussions, Plaintiff and THS stipulated to a 90-day stay of the
case until March 18, 2025, which this Court granted. ECF No. 16. THS and the plaintiffs in the
Underlying Lawsuits, along with Plaintiff, have agreed to mediate the case with the Honorable
John W. Thornton (ret.) of JAMS on March 26, 2025. The various parties who need to be present
if the mediation is to succeed could not all accommodate a mediation date that would fall within
the existing stay of proceedings. Extending the stay for an additional month serves the same
purposes that supported issuance of a stay, without unduly delaying resolution of this case if
mediation is unsuccessful. See In re Zillow Grp., Inc. Session Replay Software Litig., No. 2024
WL 69732, *2 (W.D. Wash. Jan. 5, 2024) (quoting Landis v. North American Co., 299 U.S. 248,
254 (1936) (“The power to stay is ‘incidental to the power inherent in every court to control the
disposition of the causes on its docket with economy of time and effort for itself, for counsel, and
for litigants.’”)).
In light of the foregoing, IT IS HEREBY STIPULATED AND AGREED by and between
counsel for Plaintiff and THS that the stay in this action should be extended from March 18, 2025,
to April 25, 2025.
II.

ORDER

Pursuant to the parties’ stipulation, it is so ordered. The stay of this action and all litigation
deadlines in the current Case Schedule is EXTENDED until April 25, 2025. The parties shall file
a joint status report with the Court no later than May 2, 2025. If any resolution of the Underlying
Lawsuits is finalized and impacts the progress of the current case, or if efforts to resolve the

STIPULATED MOTION TO EXTEND STAY
OF PROCEEDINGS DUE TO MEDIATION - 2
CASE NO. 2:24-CV-01518-MJP

K&L GATES LLP
925 FOURTH AVENUE, SUITE 2900
SEATTLE, WASHINGTON 98104-1158
TELEPHONE: [phone]
FACSIMILE: [phone]

remaining claims are unsuccessful, the parties shall include in their joint status the normal
information submitted pursuant to FRCP 26(f) and LCR 26(f) regarding scheduling.
IT IS SO ORDERED.
DATED: March 12, 2025.

A
THE HONORABLE MARSHA J. PECHMAN
United States District Judge

DATED: March 11, 2025

STIPULATED TO AND PRESENTED BY:
K&L GATES LLP
By:

s/ Peter A. Talevich
Peter A. Talevich, WSBA #42644
925 Fourth Avenue, Suite 2900
Seattle, WA 98104-1158
Tel.: [phone]
Email: [e-mail]

I certify that this memorandum contains 480 words
in compliance with the Local Civil Rules.
Jeffrey J. Meagher (admitted pro hac vice)
K&L Gates Center
210 Sixth Avenue
Pittsburgh, PA 15222
Tel.: [phone]
Email: [e-mail]
Attorneys for Defendant Therapeutic Health Services
AND

STIPULATED MOTION TO EXTEND STAY
OF PROCEEDINGS DUE TO MEDIATION - 3
CASE NO. 2:24-CV-01518-MJP

K&L GATES LLP
925 FOURTH AVENUE, SUITE 2900
SEATTLE, WASHINGTON 98104-1158
TELEPHONE: [phone]
FACSIMILE: [phone]

BAILEY CAVALIERI LLC
By:

s/ Darius N. Kandawalla
Darius N. Kandawalla (admitted pro hac vice)
10 W Broad St., Suite 2100
Columbus, OH 43215
Tel.: [phone]
Email: [e-mail]

SELMAN LEICHENGER EDSON
HSU NEWMAN & MOORE LLP
By:

s/ Justin S. Landreth
Justin S. Landreth, WSBA #44849
600 University Street, Suite 2305
Seattle, WA 98101
Tel.: [phone]
Email: [e-mail]

Attorneys for Plaintiff Scottsdale Insurance Company

STIPULATED MOTION TO EXTEND STAY
OF PROCEEDINGS DUE TO MEDIATION - 4
CASE NO. 2:24-CV-01518-MJP

K&L GATES LLP
925 FOURTH AVENUE, SUITE 2900
SEATTLE, WASHINGTON 98104-1158
TELEPHONE: [phone]
FACSIMILE: [phone]