RICHARD W. STORY, District Judge.
This case comes before the Court on Plaintiff American Family Insurance Company's Motion for Reconsideration of Rulings Staying the Case [254] and nine other motions: AmFam's Motion to Amend the Complaint [117]; Defendant Luisa Cruz Mezquital's Motion to Amend Answer and Affirmative Defenses [167]; AmFam's Emergency Motion for Sanctions Against Defendant Abdulmohsen Almassud [188] and AmFam's Motion for Leave to File a Supplemental Brief in Support of that Motion [235]; Cruz's Emergency Motion for Sanctions Against AmFam [189]; Cruz's Emergency Motion for Reconsideration [208]; Almassud's Partial Motion for Summary Judgment [216]; and AmFam's Emergency Motion for an Order Holding in Abeyance Almassud's Partial Motion for Summary Judgment [230]. After reviewing the record, the Court enters the following Order.
After a motor vehicle accident Cruz filed a personal injury suit against Almassud in the State Court of Fulton County (the "underlying case" or "state court action"). The underlying case went to trial and resulted in a jury verdict against Almassud and in favor of Cruz in the amount of $30,485,646.29.
After judgment was entered in Cruz's favor, Almassud's counsel filed a motion for new trial. The trial court heard argument on that motion on December 21, 2016 and denied it. As a result, Almassud appealed the verdict.
Meanwhile, AmFam brought this declaratory judgment action seeking a determination of its obligation to provide coverage to its insured, Almassud, for the underlying case. AmFam alleges that Almassud's coverage is void due to his failure to cooperate with AmFam in the defense of the underlying case and for providing AmFam with false and incomplete information. Cruz and Almassud each filed counterclaims against AmFam asserting claims for bad faith failure to settle, among other things. On March 15, 2017, the Court entered an Order [53] dismissing, without prejudice, Almassud's failure to settle claim as premature lacking a final and non-appealable excess judgment.
On March 15, 2018, the Court of Appeals of Georgia issued an opinion in the underlying case finding that "the trial court erred in failing to instruct the jury on a substantial and vital issue presented by the pleadings and the evidence. . . ."
In light of these developments in the state case-as well as a flood of motions crimping discovery and impeding forward progress-the Court ordered the parties (along with their clients) to appear for a status conference. The status conference was held on June 7, 2018, and during those proceedings, the Court indicated that it intended to dispose of all pending motions and stay this matter, sua sponte, until the underlying case is resolved. In its Motion for Reconsideration, AmFam asks the Court to reconsider this position.
Under the Local Rules of this Court, "[m]otions for reconsideration shall not be filed as a matter of routine practice[,]" but rather, only when "absolutely necessary." LR 7.2(E), N.D. Ga. Such absolute necessity arises where there is "(1) newly discovered evidence; (2) an intervening development or change in controlling law; or (3) a need to correct a clear error of law or fact."
A district court has the discretion to stay proceedings otherwise before it; this authority is "incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants."
A variety of factors may be considered when deciding whether to stay a case in favor of related litigation, such as issues of docket control and principles of abstention.
AmFam argues the Court should reconsider its oral rulings at the June 7 status conference and subsequent minute entry staying this matter because the stay is immoderate and the interests of all those involved are best served by allowing the case to proceed.
In arguing the stay is immoderate-or, essentially, unlimited in duration-AmFam relies predominately on the Eleventh Circuit's decision in
A conspicuous difference separates
Because of the broad discretion the Declaratory Judgment Act endows, the Court finds AmFam's arguments about the indefiniteness of the stay to be misplaced. Indeed, courts in this Circuit have stayed declaratory judgment actions until the resolution of underlying state court proceedings on many occasions,
Still, the Court recognizes that its discretion to stay "must not be exercised lightly."
However, some narrowing in scope is necessary given the present posture of the state court action. Specifically, the Court finds that discovery should be stayed until such time as the parties have briefed and the Court has considered certain arguments raised in Almassud's Partial Motion for Summary Judgment [216]-which could significantly narrow the issues before the Court—or the underlying case has been resolved, whichever is sooner.
"Matters pertaining to discovery are committed to the sound discretion of the district court. . . ." Patterson v. U.S. Postal Serv., 901 F.2d 927, 929 (11 Cir. 1990). And so a court has broad discretion to stay discovery. See Scroggins v. Air Cargo, Inc., 534 F.2d 1124, 1133 (5th Cir. 1976); Earwood v. Essex Ins. Co., No. 1:15-CV-4433-SCJ, 2016 WL 9000041, at *2 (N.D. Ga. Oct. 12, 2016) (staying discovery sua sponte in consolidated case until dueling motions for summary judgment could be resolved).
Weighing the competing interests, the Court finds there is good cause to stay discovery here. Indeed, many of the issues that have stymied discovery and the progression of this matter stem from the potential for a new trial in the underlying case. Those disputes have arisen from Cruz's fear of disclosing information not sought or not discoverable in the underlying case. To be sure, the brunt of discovery in this case concerns, as it must, the underlying matter. But AmFam has gone further and specifically targeted communications and evidence regarding trial strategy that, although likely discoverable in this action, (
Further, the Court recognizes that a great deal of discovery has already been accomplished, and as a result, potentially dispositive issues appear ripe for adjudication-at a minimum, the estoppel argument raised in Almassud's Partial Motion for Summary Judgment. These arguments, if successful, might render additional discovery unnecessary and avoid potential frustration of the state court proceedings. Thus, the Court finds it is in the interest of comity and most equitable to all those involved to stay discovery until the Court has had an opportunity to consider any potentially dispositive arguments supported by the current record or until a final resolution of the underlying case.
In light of the stay, the Court resolves all other outstanding Motions as follows:
Any party that filed a motion denied without prejudice shall have the right to refile that motion, if the party chooses to do so. As mentioned above, some of the arguments in these motions appear to be supported by the present record. At the same time, the Court recognizes that since these Motions were filed, a lot has transpired in this case that might affect their merits. Should they feel the contentions raised in these Motions are adequately supported by the present record, the parties may refile them, verbatim or revised, and the Court will decide the Motions. If not, the parties may refile their Motions once discovery has resumed and a sufficient record been developed.
As described above, the Court hereby