Opinion
Civil Action 20-00404-BAJ-EWD
07-29-2021
JOANNE CLEMENT REULET, ET AL. v. LAMORAK INSURANCE COMPANY, ET AL.
RULING ORDER
JUDGE BRIAN A. JACKSON UNITED STATES DISTRICT COURT
Before the Court is Defendant Lamorak Insurance Company's (“Lamorak”) Notice Of Liquidation And Statutory Stay (Doc. 65) and Motion To Enforce Stay And Notice Of Liquidation And Statutory Stay (Doc. 69) (collectively, the “Motion”). Defendants Huntington Ingalls Incorporated and Albert L. Bossier, Jr. (collectively, the “Avondale Interests”) are each insureds of Lamorak, and join Lamorak's Motion. (Doc. 71). Plaintiffs oppose Lamorak's Motion. (See Docs. 66, 73).
Through its Motion, Lamorak (i) notifies the Court that on March 11, 2021, its corporate parent-Bedivere Insurance Company-was declared insolvent and placed into liquidation by the Commonwealth Court of Pennsylvania, and (ii) seeks a temporary (six month) stay of these proceedings, pursuant to La. R.S. § 22:2068. Plaintiffs oppose any stay, arguing that § 22:2068 does not apply to federal court proceedings. (See Docs. 66, 73). Alternatively, Plaintiffs contend that even if § 22:2068 does apply in this forum, its protections should extend only to Lamorak, and not to “the entire matter.” (Doc. 73 at 5).
Lamorak and the Avondale Interests have sought similar relief in other pending federal court actions to which they are parties. Indeed, the U.S. District Court for the Eastern District of Louisiana recently entertained an identical request for stay by Lamorak and the Avondale Interests, ruling that Lamorak is entitled to a 6-month stay in light of the Commonwealth Court of Pennsylvania's March 11 Order, and that the same relief should extend to all Defendants “to ensure that litigation proceeds in an efficient and orderly fashion.” Norfleet v. CBS Corp., No. 21-cv-759, 2021 WL 2457141, at *4 (E.D. La. June 16, 2021) (Vance, J.).
There is no meaningful difference between the facts resulting in the temporary stay in the Eastern District's proceedings, and those at issue here. Having carefully considered Lamorak's Motion, Plaintiffs' opposition, and related filings, the Court will adopt the reasoning and analysis set forth by the Eastern District in the Norfleet matter, and incorporate it by reference.
Accordingly, for the reasons set forth by the Eastern District in Norfleet v. CBS Corp., No. 21-cv-759, 2021 WL 2457141 (E.D. La. June 16, 2021) (Vance, J.), IT IS ORDERED that Lamorak's Motion (Docs. 65, 69) be and is hereby GRANTED. The above-captioned action is STAYED and ADMINISTRATIVELY CLOSED until September 12, 2021.
IT IS FURTHER ORDERED that the parties shall file a joint status report on or before September 17, 2021, specifically addressing whether and to what extent the Louisiana Insurance Guaranty Association intends to intervene in the above- captioned proceedings.