PEDRO A. DELGADO-HERNÁNDEZ, District Judge.
The Federal Deposit and Insurance Corporation as receiver of Eurobank ("FDIC-R") initiated this action to recover approximately $55 Million in losses that it attributes to the gross negligence of the bank's former directors in approving twelve loans (Docket No. 1 at ¶ 81). As part of the same action, it sued Liberty Mutual Insurance Company, ACE Insurance Company, and XL Insurance Company, maintaining the insurers issued policies covering the claims asserted against the Directors.
The parties presented these motions and related filings between December 16, 2016 and February 27, 2017. For the reasons explained below, Arrillaga-Torrens' and SBSMN's motions must be DENIED. The motions deal with separate issues: (1) the merits, involving the FDIC (Dockets Nos. 595, 613, 614, 615, 622, and 632); and (2) attorney's fees, involving Liberty Mutual (Docket Nos. 626, 634, 637-1, 644, 649, and 652).
In this case, Arrillaga-Torrens' motion was not filed within a reasonable timeframe. The operative Opinion and Order was entered on August 26, 2016 (Docket No. 561). The same day the court issued the Opinion and Order, it ordered the parties to file a Joint Pretrial Conference Report not later than October 3, 2016 (Docket No. 562). The FDIC-R requested an extension to file (Docket No. 565). However, Arrillaga-Torrens opposed the extension request, stating that he "is ready for trial" (Docket No. 566 at p. 1).
Arrillaga-Torrens' motion focuses on the role of the FDIC-C and related pre-receivership defenses, which were extensively briefed in connection with the motions ruled on by the Opinion and Order. Considering the issues on which the motion for reconsideration is based, it could and should have been filed earlier in the litigation, not nearly four times the amount of time available to request reconsideration of a final judgment, and certainly not after time and resources were invested preparing the Joint Pretrial Conference Report. This is more so, for as Arrillaga-Torrens stated in September 2016, he is ready for trial. Similarly, the authorities he brings forth in support of his view that there was a manifest error of law do not persuade the court to deviate from its previous rulings. In the main, his arguments are a rehash of arguments previously raised, argued, evaluated, and rejected. The court stands by the rulings set in the Opinion and Order at Docket No. 561. In consequence, the reconsideration request must be DENIED.
There is no reasonable excuse for Arrillaga-Torrens to have brought the interlocutory certification petition 112 days following entry of the Opinion and Order, after the Joint Pretrial Conference Report was prepared and filed, when he is ready for trial and the petition essentially refers to the FDIC-C's pre-receivership role (Docket No. 595 at p. 20), a matter of which he was fully aware before the motions for summary judgment were filed, and was extensively briefed at the summary judgment stage. At this point, in the absence of alternate disposition, the case should move forward in its entirety to trial. Therefore, the interlocutory certification petition must be DENIED.
SBSMN and Arrillaga-Torrens take issue with the way Liberty Mutual has handled payment of attorney's fees, basically calling into question the insurer's good faith, and thus, its compliance with the court's order at Docket No. 610. From the motions and related documentation, the court cannot conclude that Liberty has violated the order to negotiate in good faith.
Liberty has paid a significant amounts in fees, and explained to Arrillaga-Torrens's counsel the basis for its decision to object the disputed time entries. Likewise, it has asked an explanation for Arrillaga-Torrens' counsel's proposed 4.6% across-the-board deduction. As relates to SBSMN, the court must infer that due to an unintended problem, SBSMN did not receive the information leading up to the filing of the contempt request. Yet, the matter should have been clarified and corrected with a phone call or e-mail. The court will not refer these disputes to U.S. Magistrate Judge McGiverin. Although important, the fees controversy is essentially collateral and separate from the merits.
As of today, the court is satisfied with Liberty's explanations. The court will continue to monitor developments, and will not tolerate bad faith attempts to sidetrack the ultimate disposition of the case with unreasonable delay in payment of fees due in accordance with the parameters under which they should be evaluated and paid. For the same reason, modification of previous orders, contempt, sanctions and attorney's fees are not warranted. Hence, the requests by Arrillaga-Torrens and SBSMN must be DENIED.
In light of the foregoing, "Rafael Arrillaga-Torrens' Motion to Reconsider the August 26, 2016 Opinion and Order, or in the Alternative, to Certify the Order for Appeal under 28 U.S.C. Sec. 1292(B)" (Docket No. 595); "Arrillaga's Motion to Strike the FDIC's Opposition to the Motion for Reconsideration" (Docket No. 614); SBSMN's "Restricted Motion to Enforce and for Contempt" (Docket No. 626); and "Rafael Arrillaga-Torren's Motion to Modify the Court's January 4th Order" (Docket No. 640) are DENIED. Arrillaga-Torrens' lead counsel shall make a good faith effort to meet in Puerto Rico during the period of February 28-March 7, 2017 with Liberty's counsel to discuss the disputed time entries and reach an agreement.