KURT D. ENGELHARDT, District Judge.
Presently before the Court are the "Motion for New Trial" that was filed by Defendant Seneca Specialty Insurance Company ("Seneca")(Rec. Doc. 23) and the "Motion to Strike Certain Defenses Raised by Seneca" that was filed by Plaintiffs AMA Discount, Inc. d/b/a Chef Discount Market ("AMA"), Ali M. Allan, and Mohammed Allan (collectively, "AMA Discount") (Rec. Doc. 26). The Court rules on the motions as stated herein.
Seneca's motion for new trial is directed to the Court's January 12, 2016 Order and Reasons (Rec. Doc. 15) in which it granted AMA Discount's motion for summary judgment (Rec. Doc. 9) in part. Specifically, the Court determined that Seneca was obligated to defend AMA Discount against the entirety of claims brought against it by Krispy Krunchy Foods, L.L.C. ("Krispy Krunchy") in a prior related action (Civil Action No. 15-590, hereinafter, the "KKF suit"). In support of its determination, the Court reasoned:
See Rec. Doc. 15 at 5. Seneca's instant motion asks the Court to change its prior conclusion regarding Seneca's duty of defense based on a consideration of all of the Coverage B exclusions set forth in its policy, rather than the single exclusion, i.e. the "Knowing Violation of the Rights of Another," on which it previously relied in opposing AMA Discount's motion for summary judgment.
Although Seneca's motion is styled as one seeking a new trial, no trial in this matter has yet occurred. Nor has a final judgment been rendered. Under these circumstances, Federal Rule of Civil Procedure 54(b) "authorizes a district court to reconsider and reverse its prior rulings on any interlocutory order `for any reason it deems sufficient.'" United States v. Renda, 709 F.3d 472, 479 (5th Cir. 2013) (quoting Saqui v. Pride Cent. Am., LLC, 595 F.3d 206, 210-11 (5th Cir. 2010)). Thus, a court retains jurisdiction over all claims in a suit and may alter its earlier decisions until a final judgment has been issued. Medecor Pharma LLC v. Fleming Pharm., Inc., Civil Action No. 12-291, 2014 WL 412353, at *1 (M.D. La. Feb. 3, 2014)(Brady, J.).
Nevertheless, "rulings should only be reconsidered where the moving party has presented substantial reasons for reconsideration." Medecor Pharma LLC.,2014 WL 412353 *1 (quoting Louisiana v. Sprint Communications Co., 899 F.Supp. 282, 284 (M.D. La. 1995). Furthermore, a "motion for reconsideration is not to be viewed as a readily available `back up' plan for curing any briefing deficiencies of a motion for summary judgment or opposition memorandum." Brauninger v. Default Mgmt. Sols., L.L.C., Civil Action No. 05-0688, 2007 WL 128809, *2 n. 6 (E.D. La. Jan. 16, 2007) (Engelhardt, J.), aff'd sub nom. Brauninger v. Motes, 260 F. App'x 634 (5th Cir. 2007). In other words, there should be no "trial runs" in motion practice.
Under the circumstances presented here, the Court declines to reconsider its prior ruling regarding Seneca's duty of defense. When previously confronted with AMA Discount's motion for summary judgment on the issue, Seneca, with knowledge of all of the several exclusions set forth in its policy, and having the benefit of counsel, admittedly chose to rely on its "Knowing Violation of the Rights of Another" exclusion.
In the KKF suit, Krispy Krunchy sued AMA Discount for trade dress infringement and related violations, and Seneca, in accordance with the Louisiana Direct Action Statute, in its capacity as AMA Discount's commercial general liability insurer. The record does not reflect that AMA Discount ever asserted a cross-claim against Seneca in the KKF suit. Rather, after Seneca refused to defend it against Krispy Krunchy's claim, AMA Discount filed the instant action (Civil Action No. 15-2845) contending that Seneca had breached its insurance contract and violated Louisiana's "bad faith" insurance statutes, La. R.S. 22:1892 and La. R.S. 22:1973.
In both this action and the KKF suit, Seneca has taken the position that its policy provides neither coverage or defense relative to Krispy Krunchy's claims against AMA Discount. Thus, as set forth above, AMA Discount was forced to fund its own defense against Krispy Krunchy's claims in the KKF suit. Because of the rising costs of the litigation and the uncertainties presented by trial, AMA Discount ultimately agreed to a settlement of Krispy Krunchy's claims against it. Both parties, however, reserved their rights against Seneca.
Thereafter, just before trial between Krispy Krunchy and Seneca commenced in the KKF suit, the Court granted a motion filed by Krispy Krunchy (Civil Action No. 15-590, Rec. Doc. 66) seeking to strike Nos. 6-11 of Seneca's "Proposed Conclusions of Law" (Civil Action No. 15-590, Rec. Doc. 63). In support of its motion, Krispy Krunchy contended that Seneca had not previously provided it with adequate notice of the affirmative defenses set forth in those proposed conclusions of law. Specifically, except for the "knowing violation exclusion" set forth in its earlier motion to dismiss, Seneca's first specification in the KKF suit of any other allegedly applicable policy exclusion was its inclusion of the "Material Published Prior To Policy Period" exclusions (Proposed Conclusion of Law No. 7) in the parties' proposed pretrial order (Civil Action No. 15-590, Rec. Doc. 65, pp. 11-12). Concluding that Seneca had failed to provide Krispy Krunchy with prior notice of its assertion of additional policy exclusions in sufficient time to allow for appropriate pretrial discovery and, if warranted, motion practice, the Court, on January 25, 2016, ordered Nos. 6-11 of Seneca's Proposed Conclusions of Law stricken to the extent that they would not be considered by the Court. See Civil Action No. 15-590, Rec. Doc. 78.
On the second day of trial in the KKF suit, Seneca and Krispy Krunchy reached a settlement of the remaining claims between them and the case was closed. Now, in the instant action between AMA Discount and its insurer, Seneca, AMA Discount contends that Seneca is "attempting to mount a `kitchen-sink' defense . . . through which it asserts defenses that it either failed to assert in the underlying [KKF suit] or that this Court previously found were inapplicable in the [KKF suit]." See Rec. Doc. 26-1 at 3. Pointing to the Court's January 25, 2016 Order in the KKF suit (Civil Action No. 15-590, Rec. Doc. 78), AMA Discount further submits that it would be inefficient and inequitable to allow Seneca to litigate questions of insurance coverage concerning Krispy Krunchy's claims based on defenses that were unavailable to Seneca during its trial with Krispy Krunchy. Thus, AMA Discount maintains that the record upon which any remaining coverage determinations will turn is that established in the underlying KKF suit and, thus, moves for an order (1) confirming that the record developed in the KKF suit provides the relevant factual and legal backdrop for determining the remaining coverage issues presented herein, and (2) striking — and precluding any future attempts to raise — any defenses beyond the scope of those available to Seneca at trial in the KKF suit. In the alternative, AMA Discount's motion references Seneca's amendment of its answer to assert the "Material Published Prior to Policy Period" and "Contractual Liability" exclusions as additional affirmative defenses (see Rec. Docs. 20 and 25), and urges that they be stricken as being neither factually nor legally applicable.
On the instant showing made, the Court declines to limit Seneca, in this action, to only the affirmative defenses allowed at trial in the KKF suit. Although AMA Discount was a party in the KKF suit, having been named a defendant by Krispy Krunchy, it never asserted a cross-claim against Seneca in that matter. As previously stated, AMA Discount instead chose to sue Seneca in this independent action. Further, in settling Krispy Krunchy's claims against AMA Discount, prior to trial in the KKF suit, both AMA Discount and Krispy Krunchy simply reserved their respective rights against Seneca, rather than reaching a global settlement with Seneca of all of the pending claims in both suits. And, though Krispy Krunchy and Seneca eventually reached a settlement of the claims pending between the two, AMA Discount has not shown itself to have been either a party to the agreement or even a third-party beneficiary thereof.
Furthermore, the Court's January 25, 2016 Order and Reasons in the KKF suit (Civil Action No. 15-590, Rec. Doc. 78) struck the additional affirmative defenses set forth in Seneca's Proposed Conclusions of Law Nos. 6-11 on procedural, rather than substantive, grounds. Specifically, those affirmative defenses were stricken solely because they were not asserted in sufficient time to allow Krispy Krunchy to conduct pre-trial discovery and, if warranted, motion practice. No ruling on the merits of those defenses was made. In this suit, on the other hand, Seneca timely asserted, in its answer, affirmative defenses beyond those allowed in the KKF suit. Thus, unlike Krispy Krunchy in the KKF suit, AMA Discount has been provided with adequate prior notice of the defenses to allow for appropriate discovery and pre-trial motion practice. Given that, the Court declines to strike affirmative defenses asserted herein by Seneca solely because they were stricken from the Court's consideration in the KKF suit.
Turning to AMA Discount's alternative request for relief, the Court notes that Seneca has not opposed AMA Discount's request that the "Material Published Prior to Policy Period" and "Contractual Liability" exclusions in the Seneca policy be stricken from Seneca's answer as factually and legally inapplicable. For that reason, and because the Court agrees, on the showing made, that the exclusions are inapplicable here, the Court will grant the alternative request for relief set forth in AMA Discount's motion. Accordingly, to the extent stated herein,