Falls Lake National Insurance Company v. 270 West Street LLC

Background

After consulting with the parties, the court adopted a case-management and scheduling order under Federal Rule of Civil Procedure 16. Falls Lake had amended its complaint. 270 West Street LLC and Capstone Contracting Corp. had answered the amended complaint, and 270 West had asserted counterclaims and crossclaims that had been answered by the parties that appeared.

The court stated that the parties had not complied with an earlier order requiring a joint pre-conference statement. Falls Lake submitted a report and proposed discovery plan on its own, while 270 West and Capstone submitted a separate letter and report. The court warned that future violations of its orders would result in sanctions.

Orders and Deadlines

The court ordered that the parties could not further amend their pleadings or add parties without permission from the court. Falls Lake had to serve the amended complaint on Cristhian Ochoa and Fernhill Construction Corp. by April 24, 2020, and promptly file proof of service. Falls Lake, 270 West, and Capstone also had to exchange the initial disclosures required by Federal Rule of Civil Procedure 26(a)(1) by April 24, 2020, with additional disclosures due after any new defendant appeared.

If Ochoa or Fernhill failed to answer or otherwise respond after service, Falls Lake could renew its request for a default judgment, with motion papers due by May 26, 2020, if it chose to do so. A default judgment is a judgment based on a party’s failure to respond, rather than on a decision after the claims are contested.

Crossclaims and Conference

Falls Lake sought permission to move against crossclaims that it said duplicated claims in another action and were improperly asserted in this case. The court clarified that only 270 West had asserted crossclaims, and those claims were against Capstone and Fernhill. Citing the general rule that a party ordinarily may not seek dismissal of claims that are not asserted against that party, the court scheduled a telephone conference for May 19, 2020, to discuss Falls Lake’s anticipated motion.

Before that conference, counsel for Falls Lake and 270 West had to meet and confer in real time and in good faith. If Falls Lake still wished to file the motion, the parties had to submit a joint letter by May 12, 2020, describing their positions. They also had to be prepared to discuss discovery scheduling.

Other Provisions

Requests to extend deadlines or adjourn conferences had to be made by letter-motion under Judge Moses’s individual practices as soon as the need became reasonably apparent. Requests made after a deadline expired could be summarily denied.

The order also provided that an inadvertent disclosure of material protected by attorney-client privilege, the work-product doctrine, or another privilege or immunity would not waive that protection in the case or in another federal or state proceeding, to the maximum extent allowed by Federal Rule of Evidence 502(d). During the COVID-19 public health emergency, conferences and hearings were to be conducted by telephone unless the court ordered otherwise. Depositions could be conducted remotely, but the order preserved the applicable requirements concerning the deposition officer and placing the witness under oath.

Disposition and Significance

Falls Lake National Insurance Company v. 270 West Street LLC is a procedural case-management order. Judge Barbara Moses set litigation procedures and deadlines, directed service and disclosures, scheduled a conference concerning anticipated motion practice, and authorized remote proceedings. The order did not decide the merits of the claims, rule on a motion to dismiss the crossclaims, or enter a default judgment.