Retail Management Solutions, L.L.C. v. Hartford Fire Insurance Company
Filing
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ORDER granting in part and denying in part 26 Denying Defendant's Motion to Dismiss; Granting Defendant's Motion to Stay; case stayed pending outcome of Minnesota action; signed by Judge Ronald B. Leighton.(DN) (Main Document 32 replaced on 9/10/2014, wrong version originally docketed) (DN). Modified on 9/10/2014 (DN).
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HONORABLE RONALD B. LEIGHTON
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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA
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RETAIL MANAGEMENT SOLUTIONS,
L.L.C.,
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Plaintiff,
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v.
CASE NO. C13-5246 RBL
ORDER DENYING DEFENDANT’S
MOTION TO DISMISS IN FAVOR
OF FIRST-FILED ACTION AND
GRANTING DEFENDANT’S
ALTERNATIVE MOTION TO STAY
HARTFORD FIRE INSURANCE
COMPANY,
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Defendant.
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THIS MATTER comes before the court on Defendant Hartford’s motion to dismiss in
favor of their first-filed action. Hartford is the plaintiff in a similar action filed in United States
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District Court for the District of Minnesota, filed March 29, 2013. Three days later, Plaintiff
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(and defendant in the other case) Retail Management Solutions, L.L.C. filed this action.
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Hartford argues that because the Minnesota action was filed first, this action should be
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dismissed in accordance with the “first-to-file” rule. The first-to-file rule permits a district court
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to decline jurisdiction over an action when a complaint involving the same issues and parties has
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already been filed in a court with concurrent jurisdiction. Pacesetter Sys., Inc. v. Medtronic, Inc.,
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678 F.2d 93, 94-95 (9th Cir. 1982) (citing Church of Scientology of Calif. v. U.S. Dep’t of the
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ORDER DENYING DEFENDANT’S MOTION TO DISMISS IN FAVOR OF FIRST-FILED ACTION AND
GRANTING DEFENDANT’S ALTERNATIVE MOTION TO STAY - 1
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Army, 611 F.2d 738, 749 (9th Cir. 1979); Great N. Ry. Co. v. Nat’l R.R. Adjustment Bd., 422
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F.2d 1187, 1193 (7th Cir. 1970)).
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There are, however, exceptions to this general rule. A court will not apply the first-to-file
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rule when there is evidence of bad-faith, anticipatory suit, or forum shopping. Z-Line Designs,
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Inc. v. Bell’O Int’l, L.L.C., 218 F.R.D. 663, 665 (N.D. Cal. 2003). Further, a court may refuse to
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apply the first-to-file rule if the balance of convenience weighs in favor of the latter-filed action.
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Id.
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In this case, two or more exceptions to the first-to-file rule potentially apply.
Nevertheless, judicial discretion cautions against accepting the second-filed action at this time.
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See Alltrade, Inc. v. Uniweld Products, Inc., 946 F.2d 622, 628 (9th Cir. 1991) (“The most basic
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aspect of the first-to-file rule is that it is discretionary.”). Rather, given the uncertain status of the
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Minnesota action, and the potential for statute of limitations problems to arise, the prudent course
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of action is to stay this proceeding pending the outcome of the Minnesota action. See, e.g.,
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Alltrade, 946 F.2d at 629 (finding that in cases where the first-filed action “presents a likelihood
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of dismissal,” the second-filed action should be stayed, not dismissed).
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Accordingly, Hartford’s motion to dismiss in favor of the first-filed action is DENIED,
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but their alternative motion to stay these proceedings, pending the outcome pending Motions in
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the Minnesota action, is GRANTED.
Dated this 10th day of September, 2014.
A
RONALD B. LEIGHTON (as authorized/dn)
UNITED STATES DISTRICT JUDGE
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ORDER DENYING DEFENDANT’S MOTION TO DISMISS IN FAVOR OF FIRST-FILED ACTION AND
GRANTING DEFENDANT’S ALTERNATIVE MOTION TO STAY - 2
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