SR Hospitality, LLC v. Mt. Hawley Insurance Company

Background

SR Hospitality, LLC and Mt. Hawley Insurance Company are parties to two related insurance lawsuits in the Southern District of New York. The first case concerns alleged losses from Hurricanes Delta and Zeta in October 2020; the second concerns alleged losses from Hurricane Ida in August 2021. Both cases arise under the same property insurance policy, involve similar alleged conduct by Mt. Hawley, and seek the same general relief. The complaints raise common questions, including whether Mt. Hawley breached the policy or breached the duty of good faith and fair dealing.

Mt. Hawley had also asked in both cases for permission to amend its answer to add a defense based on alleged concealment and misrepresentation of material facts during its investigation of SR Hospitality’s insurance claim. The opinion describes those motions as part of the procedural history but does not rule on them here.

Discovery Consolidation

The parties jointly agreed to consolidate the two actions for discovery only. They also agreed that one magistrate judge should handle a discovery dispute concerning SR Hospitality’s request to take the deposition of Mt. Hawley’s underwriter. The court explained that Federal Rule of Civil Procedure 42(a) permits consolidation when separate actions share questions of law or fact and that consolidation can reduce duplication and promote efficient case administration.

Because the two lawsuits share legal and factual issues and the parties agreed that consolidation was appropriate, the court granted the joint stipulations under Rule 42(a). The consolidation does not merge the cases for all purposes; it applies only to discovery.

Order

The court ordered that the two actions be consolidated for discovery purposes only. All discovery filings and submissions must be made in the Delta/Zeta action, No. 23-CV-8148. The parties must file a proposed Fourth Amended Case Management Plan and Scheduling Order governing discovery in the consolidated case by October 20, 2025. The Clerk was directed to designate Magistrate Judge Ricardo in both actions and to file the opinion in both cases.

The order addresses case administration and discovery. It does not decide whether Mt. Hawley breached the insurance policy, breached the duty of good faith and fair dealing, or is liable for the alleged losses.