Camp 1382 LLC v. Lancer Insurance Company
- Ronnie Abrams
- 1:20-cv-03336
- U.S. District Court · Southern District of New York
- 2
In Camp 1382 LLC v. Lancer Insurance Company, Judge Abrams stayed discovery while considering Lancer’s motion to dismiss.
Discovery in Camp 1382 LLC’s action against Lancer Insurance Company, including discovery concerning the proposed nationwide and New York policyholder classes, was paused until the court rules on Lancer’s motion to dismiss.
What happened
Camp 1382 LLC sued Lancer Insurance Company on behalf of itself and proposed classes of policyholders. Lancer asked the court to pause discovery while it considered Lancer’s motion to dismiss.
Lancer argued that the complaint did not allege covered physical loss or physical damage and that policy exclusions for viruses or ordinances barred coverage. Lancer also argued that discovery would be costly and burdensome because the case involved proposed nationwide and New York classes.
Judge Ronnie Abrams ruled that discovery should be stayed until the court decides the motion to dismiss. The court had not yet decided that motion and found that Camp 1382 had not shown it would suffer serious prejudice from the pause.
The detailed version
- Camp 1382 LLC v. Lancer Insurance Company · No. 1:20-cv-03336
- Ronnie Abrams
- Oct. 14, 2020
Background
Camp 1382 LLC, doing business as Campagnola Restaurant, brought this action against Lancer Insurance Company on behalf of itself and proposed classes of policyholders, including a proposed nationwide class and a proposed New York subclass. The opinion addresses only whether discovery should proceed while the court considers Lancer’s motion to dismiss.
The Discovery-Stay Request
Lancer asked the court to stay, or pause, discovery until the court ruled on its motion to dismiss. Camp 1382 opposed the request.
The court explained that requests to stay discovery involve consideration of whether the defendant has made a strong showing that the claim lacks merit, the scope and burden of discovery, and the risk of unfair prejudice to the party opposing the stay. The party seeking the stay must show good cause.
Court’s Analysis
The court stated that it had not yet decided Lancer’s motion to dismiss but found that Lancer had raised substantial dismissal arguments. Those arguments included that Camp 1382 had not alleged direct physical loss of or physical damage to property, and that the policy’s Virus Exclusion and/or Ordinance Or Law Exclusion might preclude coverage under the circumstances.
The court also found that Lancer had shown discovery would be costly and burdensome, particularly because Camp 1382 sought to represent proposed nationwide and New York classes. The court concluded that Camp 1382 had not shown it would be seriously prejudiced by a stay.
Ruling
Judge Ronnie Abrams ordered that discovery in the action be stayed pending the court’s ruling on Lancer’s motion to dismiss. The order did not decide the motion to dismiss or the underlying insurance-coverage issues.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.