Yaghouti v. Standard Insurance Company

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 FARZAD YAGHOUTI, Case No.: 3:21-cv-01621-AJB-AHG 13 Plaintiff, ORDER GRANTING IN PART JOINT MOTION TO CONTINUE 14 v. EARLY NEUTRAL EVALUATION 15 STANDARD INSURANCE COMPANY, CONFERENCE AND CASE MANAGEMENT CONFERENCE 16 Defendant.

17 [ECF No. 11]

23 24 Before the Court is the parties’ joint motion to stay proceedings or continue the Early 25 Neutral Evaluation Conference (“ENE”) and Case Management Conference (“CMC”), 26 currently scheduled for December 8, 2021. ECF No. 11. 27 Parties seeking to continue an ENE must demonstrate good cause. ECF No. 10 at 7 28 (“An ENE may be rescheduled only upon a showing of good cause”); Chmb.R. at 2 (stating 1 that any request for continuance requires “[a] showing of good cause for the request”); see, 2 e.g., FED. R. CIV. P. 6(b) (“When an act may or must be done within a specified time, the 3 court may, for good cause, extend the time”). “Good cause” is a non-rigorous standard that 4 has been construed broadly across procedural and statutory contexts. Ahanchian v. Xenon 5 Pictures, Inc., 624 F.3d 1253, 1259 (9th Cir. 2010). The good cause standard focuses on 6 the diligence of the party seeking to continue the conference and the reasons for seeking 7 modification. See Johnson v. Mammoth Recreations, Inc., 975 F.2d 604, 609 (9th Cir. 8 1992) (“[T]he focus of the inquiry is upon the moving party’s reasons for seeking 9 modification. . . . If that party was not diligent, the inquiry should end.”) (internal citation 10 omitted). 11 Here, the parties have represented to the Court that they “have met and conferred 12 and have agreed that [Defendant] would voluntarily conduct an expedited review of 13 Plaintiff’s disability insurance claim in an effort to reach an informal resolution of the 14 dispute and obviate the need for further litigation.” ECF No. 11 at 2; ECF No. 11-1 at 2. 15 The parties “agree that 120 days should be adequate time to complete the expedited review 16 of the claim.” ECF No. 11 at 3. Thus, the parties have requested “a stay of the proceedings 17 … to permit the orderly completion of the expedited review of the claim, on which the 18 Parties will report to the Court upon completion” or, “in the alternative, that the Court 19 continue the ENE and Case Management Conference currently set for December 8, 2021, 20 by at least 120 days.” Id.; ECF No. 11-1 at 2. 21 The Court appreciates that the parties are working together. In lieu of a stay, the 22 Court finds good cause to continue the ENE and CMC. As such, the parties’ joint motion 23 is GRANTED IN PART. The ENE, originally rescheduled for December 8, 2021, is 24 hereby RESET for May 5, 2022 at 2:00 p.m. before Magistrate Judge Allison H. Goddard. 25 The Court issues the following Mandatory Procedures to be followed in preparation for 26 the ENE: 27 1. In accordance with the Local Rules, the Court requires personal attendance of 28 all parties, party representatives, including claims adjusters for insured defendants, and the 1 primary attorney(s) responsible for the litigation. CivLR 16.1(a). However, due to the 2 current COVID-19 public emergency,1 and upon due consideration, the Court hereby 3 MODIFIES the ENE to be via videoconference for all attendees. 4 2. Purpose of the Conference: The purpose of the ENE is to permit an informal 5 discussion between the attorneys and the settlement judge of every aspect of the lawsuit in 6 an effort to achieve an early resolution of the case. All conference discussions will be 7 informal, off the record, and confidential. 8 3. Full Settlement Authority Required: A party or party representative with 9 full and complete authority to enter into a binding settlement must be present via 10 videoconference or immediately available to join. Full authority to settle means that a 11 person must be authorized to fully explore settlement options and to agree at that time to 12 any settlement terms acceptable to the parties. Heileman Brewing Co., Inc. v. Joseph Oat 13 Corp., 871 F.2d 648, 653 (7th Cir. 1989). The person needs to have “unfettered discretion 14 and authority” to change the settlement position of a party. Pitman v. Brinker Int’l, Inc., 15 216 F.R.D. 481, 485–86 (D. Ariz. 2003). Limited or sum certain authority is not adequate. 16 Nick v. Morgan’s Foods, Inc., 270 F.3d 590, 595–97 (8th Cir. 2001). A person who needs 17 to call another person who is not present on the videoconference before agreeing to 18 any settlement does not have full authority. 19 / / 20 21 22 1 On March 2, 2021, Chief Judge Dana M. Sabraw issued an Order in response to the 23 COVID-19 public emergency (“CJO #62”) which, among other things, suspends the requirement under Civil Local Rule 16.1(a) that ENEs be conducted in person. See CJO 24 #62 at 1. CJO #62 is available on the Court website at 25 https://www.casd.uscourts.gov/_assets/pdf/rules/Chief%20Judge%20Order%2062%20- %20Civil%20Case%20Proceedings%20During%20the%20Covid- 26 19%20Public%20Emergency.pdf. The suspension of the requirement under Civil Local 27 Rule 16.1(a) that ENEs be conducted in person is also reiterated by CJO #62-B, filed on June 11, 2021. CJO #62-B is available on the Court website at 28 1 4. Confidential ENE Statements Required: No later than April 28, 2022, the 2 parties shall submit confidential statements of five (5) pages or less directly to the chambers 3 of Magistrate Judge Goddard outlining the nature of the case, the claims, and the defenses. 4 These statements shall not be filed or served on opposing counsel. They shall be lodged 5 via email at efile_goddard@casd.uscourts.gov. The ENE statement is limited to five (5) 6 pages or less, and up to five (5) pages of exhibits or declarations. Each party’s ENE 7 statement must outline: 8 A. the nature of the case and the claims, 9 B. position on liability or defense, 10 C. position regarding settlement of the case with a specific2 11 demand/offer for settlement,3 and 12 D. any previous settlement negotiations or mediation efforts. 13 5. Case Management Conference: In the event the case does not settle at the 14 ENE, the Court will immediately thereafter hold a Case Management Conference (“CMC”) 15 pursuant to Fed. R. Civ. P. 16(b). Appearance of the parties at the CMC is not required. 16 The Court orders the following to occur before the CMC: 17 A. The parties must meet and confer pursuant to Fed. R. Civ. P. 26(f) no 18 later than April 7, 2022.4 19 B. The parties must file a Joint Case Management Statement by 20 April 25, 2022. The Joint Case Management Statement must address 21 22 2 A general statement, such as that a party “will negotiate in good faith,” is a not a specific 23 demand or offer.

24 3 If a specific demand or offer cannot be made at the time the ENE statement is submitted, 25 then the reasons as to why a demand or offer cannot be made must be stated. Further, the 26 party must explain when they will be in a position to state a demand or offer. 27 4 Court sets this secondary deadline in case the parties did not already meet and confer pursuant to the previous deadline of November 15, 2021, which has already passed. See 28 1 all points in the “Joint Case Management Statement Requirements for 2 Magistrate Judge Allison H. Goddard,” which can be found on the 3 court website at: 4 https://www.casd.uscourts.gov/Judges/goddard/docs/Goddard%20Join 5 t%20Case%20Management%20Statement%20Rules.pdf. 6 C. Initial disclosures pursuant to Rule 26(a)(1)(A-D) must occur by 7 April 21, 2022. 8 6. Appearances via Videoconference Required: All named parties, party 9 representatives, including claims adjusters for insured defendants, as well as principal 10 attorney(s) responsible for the litigation must attend the ENE via videoconference. All who 11 attend the ENE must be legally and factually prepared to discuss and resolve the case. 12 Counsel appearing without their clients (whether or not counsel has been given settlement 13 authority) will be subject to immediate imposition of sanctions. To facilitate the 14 videoconference ENE, the Court hereby orders as follows: 15 A. The Court will use its official Zoom video conferencing account to hold 16 the ENE. If you are unfamiliar with Zoom: Zoom is available on 17 computers through a download on the Zoom website 18 (https://zoom.us/meetings) or on mobile devices through the 19 installation of a free app.5 Joining a Zoom conference does not require 20 creating a Zoom account, but it does require downloading the .exe file 21 (if using a computer) or the app (if using a mobile device). Participants 22 are encouraged to create an account, install Zoom and familiarize 23 themselves with Zoom in advance of the ENE.6 There is a cost-free 24 25 5 If possible, participants are encouraged to use laptops or desktop computers for the 26 video conference, rather than mobile devices. 27 6 For help getting started with Zoom, visit: https://support.zoom.us/hc/en- 28 1 option for creating a Zoom account. 2 B. Prior to the start of the ENE, the Court will email each participant an 3 invitation to join a Zoom video conference. Again, if possible, 4 participants are encouraged to use laptops or desktop computers for the 5 video conference, as mobile devices often offer inferior performance. 6 Participants shall join the video conference by following the ZoomGov 7 Meeting hyperlink in the invitation. Participants who do not have 8 Zoom already installed on their device when they click on the 9 ZoomGov Meeting hyperlink will be prompted to download and 10 install Zoom before proceeding. Zoom may then prompt participants 11 to enter the password included in the invitation. All participants will be 12 placed in a waiting room until the ENE begins. 13 C. Each participant should plan to join the Zoom video conference at least 14 five minutes before the start of the ENE to ensure that the conference 15 begins promptly at 2:00 p.m. 16 D. Zoom’s functionalities will allow the Court to conduct the ENE as it 17 ordinarily would conduct an in-person one. The Court will divide 18 participants into separate, confidential sessions, which Zoom calls 19 Breakout Rooms.7 In a Breakout Room, the Court will be able to 20 communicate with participants from a single party in confidence. 21 Breakout Rooms will also allow parties and counsel to communicate 22 confidentially without the Court. 23 / / 24 / / 25 26 27 7 For more information on what to expect when participating in a Zoom Breakout 28 1 E. No later than April 28, 2022, counsel for each party shall send an e- 2 mail to the Court at efile_goddard@casd.uscourts.gov containing the 3 following: 4 i. The name and title of each participant, including all parties 5 and party representatives with full settlement authority, claims 6 adjusters for insured defendants, and the primary attorney(s) 7 responsible for the litigation; 8 ii. An e-mail address for each participant to receive the Zoom 9 video conference invitation; and 10 iii. A telephone number where each participant may be reached 11 so that if technical difficulties arise, the Court will be in a 12 position to proceed telephonically instead of by video 13 conference. (If counsel prefers to have all participants of their 14 party on a single conference call, counsel may provide a 15 conference number and appropriate call-in information, 16 including an access code, where all counsel and parties or party 17 representatives for that side may be reached as an alternative to 18 providing individual telephone numbers for each participant.) 19 iv. A cell phone number for that party’s preferred point of 20 contact (and the name of the individual whose cell phone it is) 21 for the Court to use during the ENE to alert counsel via text 22 message that the Court will soon return to that party’s Breakout 23 Room, to avoid any unexpected interruptions of confidential 24 discussions. 25 F. All participants shall display the same level of professionalism during 26 the ENE and be prepared to devote their full attention to the ENE as if 27 they were attending in person, i.e., cannot be driving while speaking to 28 the Court. Because Zoom may quickly deplete the battery of a 1 participant’s device, each participant should ensure that their device is 2 plugged in or that a charging cable is readily available during the video 3 conference. 4 G. Counsel are advised that although the ENE will take place on Zoom, all 5 participants shall appear and conduct themselves as if it is proceeding 6 in a courtroom, i.e., counsel must dress in appropriate courtroom attire. 7 H. If the case does not settle during the ENE, the Court will hold the CMC 8 immediately following the ENE with counsel only in the main session. 9 7. Requests for Continuances: Local Rule 16.1(c) requires that an ENE take 10 place within forty-five (45) days of the filing of the first answer. Requests to continue ENEs 11 are rarely granted. An ENE may be rescheduled only upon a showing of good cause and 12 adequate notice to the Court. Absent extraordinary circumstances, requests for 13 continuances will not be considered unless submitted in writing no less than seven (7) days 14 before the ENE. All requests for continuances must be made by a joint motion. The request 15 must state: 16 A. The original date; 17 B. The number of previous requests for continuances; 18 C. A showing of good cause for the request; 19 D. Whether the request is opposed and why; 20 E. Whether the requested continuance will affect other case management 21 dates; and 22 F. A declaration from the counsel seeking the continuance that describes 23 the steps taken to comply with the existing deadlines, and the specific 24 reasons why the deadlines cannot be met. 25 8. New Parties Must be Notified by Plaintiff or Plaintiff’s Counsel: 26 Plaintiff’s counsel must give notice of the ENE to any Defendants who have been served 27 but who have not yet filed responsive pleadings as of the date of this Order. If any 28 Defendants have not yet been served, Plaintiff’s counsel must serve them with a copy of 1 || this Order along with the summons and complaint. 2 9. The failure of any party to follow these mandatory procedures shall result 3 ||in the imposition of sanctions. 4 10. Questions regarding this case or these mandatory guidelines may be directed 5 || to Judge Goddard’s law clerks at (619) 557-6162. Lodged statements should be emailed to 6 goddard@casd.uscourts.gov. 7 8 IT IS SO ORDERED. 9 || Dated: November 22, 2021 10 _Abiomt. Xl Honorable Allison H. Goddard 11 United States Magistrate Judge 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28