JOHN W. SEDWICK, District Judge.
At docket 7, plaintiff David N. Klungvedt ("plaintiff" or "Klungvedt") moves for an expedited pretrial hearing on his claim for declaratory relief. At dockets 11, 12, and 13, defendants Unum Group ("Unum") and Paul Revere Life Insurance Company ("Paul Revere"; collectively "defendants") move for judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c), move to strike plaintiff's motion, and oppose plaintiff's motion respectively. Oral argument was not requested and would not assist the court.
Klungvedt purchased a disability insurance policy from Paul Revere in 1988. Unum is the parent company of Paul Revere. Unum paid Klungvedt benefits under the policy from March 2006 until December 2008, because Klungvedt was diagnosed with an inoperable cyst in his brain. Klungvedt maintains that Unum wrongfully terminated his benefits under the policy.
Klungvedt filed suit in Arizona state court in 2012, asserting claims for breach of contract and bad faith, and seeking a declaratory judgment that 1) ERISA does not apply to the insurance policy at issue, and 2) that language in a letter from Unum to Klungvedt describing his rights was misleading.
Section 2201 of Title 28 states that "[i]n a case of actual controversy within its jurisdiction . . . any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought."
Plaintiff argues that a speedy hearing will narrow the issues for trial and expedite discovery. Plaintiff also argues that prompt declaratory relief will guide the parties' future conduct. The court will first address defendants' motions for judgment on the pleadings and to strike portions of plaintiff's brief.
Defendants argue first that plaintiff's declaratory judgment claim should be dismissed because there is no "actual controversy," as required by 28 U.S.C. § 2201. Specifically, defendants argue that there is no controversy because defendants do not presently contend that ERISA applies. An "actual controversy" exists where, "the facts alleged . . . show that there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant the issuance of a declaratory judgment."
Defendants emphasize that they "do not currently dispute that ERISA does not apply to [p]laintiff's policy or in this case."
Defendants also argue that plaintiff's declaratory judgment claim should be dismissed because it would constitute a waste of judicial resources. In deciding whether to exercise its discretion to issue declaratory relief, a district court "must balance concerns of judicial administration, comity, and fairness to the litigants."
Defendants argue that plaintiff did not "plead anything more than a speculative possibility of future harm" and therefore declaratory relief is "not warranted."
Defendants also move pursuant to Local Rule 7.2(m)(1) to strike the first eleven pages of plaintiff's motion for a speedy hearing, which include plaintiff's version of the relevant facts. Defendants argue that plaintiff included background information that is "not authorized . . . by a statute, rule, or court order."
In response to the merits of plaintiff's contention, defendants argue that the court should not exercise its discretion to consider plaintiff's claim for declaratory relief on an expedited basis because it would not "end the parties' controversy and would only potentially resolve minor parts of the action."
Defendants argue that plaintiff has not demonstrated urgency. A showing of urgency is not required by the relevant statute or the law of this circuit. However, expedited consideration of this issue could save the court and the parties tremendous expense.
For the reasons above, plaintiff's motion at docket 7 for a speedy hearing on his claim for declaratory relief is
1) The parties shall have 60 days from the date of this order to engage in factual discovery on the issue of whether ERISA applies to the insurance plan in question.
2) At the close of the 60-day period of limited discovery, either party may file a properly supported motion for summary judgment pursuant to Federal Rule of Civil Procedure 56 on the question of whether ERISA applies and therefore preempts plaintiff's state law claims.
Defendants' motion at docket 11 for judgment on the pleadings, construed in part as a motion to dismiss for lack of subject matter jurisdiction, is
Defendants' motion to strike at docket 12 is