DeVore v. Allstate Property and Casualty Insurance Company

Filing 19

ORDER granting 14 Motion to Bifurcate by Judge Benjamin H. Settle.(TG)

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1 2 3 4 5 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA 6 7 8 ANNA DEVORE, 9 Plaintiff, 10 v. 11 ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY, 12 Defendant. 13 CASE NO. C14-5706 BHS ORDER GRANTING DEFENDANT’S MOTION TO BIFURCATE AND STAY 14 This matter comes before the Court on Defendant Allstate Property and Casualty 15 Insurance Company’s (“Allstate”) motion to bifurcate and stay (Dkt. 14). The Court has 16 considered the pleadings filed in support of and in opposition to the motion and the 17 remainder of the file and hereby grants the motion for the reasons stated herein. 18 I. PROCEDURAL HISTORY 19 On July 24, 2014, Plaintiff Anna DeVore (“DeVore”) filed a complaint against 20 Allstate in Pierce County Superior Court for the state of Washington. Dkt. 1, Exh. 1. 21 22 ORDER - 1 1 DeVore asserts nine causes of action, including breach of an insurance contract and extra2 contractual bad faith claims. Id. 3 On September 5, 2014, Allstate removed the matter to this Court. Dkt. 1. 4 On November 6, 2014, Allstate filed a motion to bifurcate and stay. Dkt. 14. On 5 November 18, 2014, DeVore responded. Dkt. 16. On November 21, 2014, Allstate 6 replied. Dkt. 17. 7 8 II. FACTUAL BACKGROUND This matter arises from a motorcycle accident that occurred on June 18, 2011. 9 DeVore has settled with the other party involved in the accident and seeks underinsured 10 coverage from her carrier Allstate. While it appears that both parties concede that there 11 exists some liability, they have been unable to agree on the amount that Allstate should 12 pay under the policy of coverage. Thus, DeVore has asserted claims against Allstate for 13 breach of the policy of coverage and for bad faith handling of the insurance claim. 14 15 III. DISCUSSION For convenience, to avoid prejudice, or to expedite and economize, the court may 16 order a separate trial of one or more separate issues, claims, crossclaims, counterclaims, 17 or third-party claims. Fed. R. Civ. P. 42(b). Only one of these criteria need be met to 18 justify bifurcation. MCI Communications Corp. v. American Telephone & Telegraph 19 Co., 708 F.2d 1081, 1166 (7th Cir.), cert. denied, 464 U.S. 891 (1983). A decision 20 ordering bifurcation is dependent on the facts and circumstances of each case. Idzojtic v. 21 Pennsylvania Rr. Co., 456 F.2d 1228 (3rd Cir. 1972). 22 ORDER - 2 1 In this case, Allstate has met its burden of showing substantial prejudice if the 2 contract and extra-contractual claims are not bifurcated. Allstate has shown that 3 disclosing evidence in relation to the bad faith claims would substantially prejudice its 4 defense of the contract claim. Dkt. 17 at 2. Moreover, Allstate has shown that there 5 exists a substantial risk that the jury could either be confused by the combined evidence 6 and claims or be improperly influenced by the liability evidence when considering 7 whether Allstate acted in good faith. Id. at 3–4. DeVore does not directly address these 8 issues of prejudice, and instead argues that bifurcation is the exception rather than the 9 rule. Dkt. 16. The Court agrees that bifurcation should be used sparingly and depends on 10 the facts and circumstances of each case. However, this is a unique case and Allstate has 11 sufficiently shown that it would be substantially prejudiced if the claims were not 12 bifurcated. Therefore, the Court grants Allstate’s motion to bifurcate and stay DeVore’s 13 bad faith claims. 14 15 IV. ORDER Therefore, it is hereby ORDERED that Allstate’s motion to bifurcate and stay 16 (Dkt. 14) is GRANTED. 17 Dated this 22nd day of December, 2014. A 18 19 BENJAMIN H. SETTLE United States District Judge 20 21 22 ORDER - 3

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