Our plain-English summary of Cortez v. Lamorak Insurance Co. (U.S. District Court, Eastern District of Louisiana, May 20, 2021).
Callen Cortez sued several defendants, including the insurer Lamorak, the Avondale Interests (Huntington Ingalls and Albert Bossier), Eagle, Inc., and the Louisiana Insurance Guaranty Association (LIGA). He is over seventy and has terminal mesothelioma. He alleged he was exposed to asbestos while riding to Avondale Shipyards with co-workers whose clothes were contaminated with asbestos. After a Pennsylvania court placed Bedivere, which includes Lamorak by merger, in liquidation and stayed proceedings against it, Lamorak asked the federal court to stay the case. Cortez opposed, citing a Louisiana article giving expedited trials to people over seventy or gravely ill. The court held that article did not apply because the case was removed under the federal officer removal statute and federal procedural law governs. It did not decide whether Louisiana's six-month stay statute bound it. Weighing hardship, prejudice and judicial economy, it used its inherent power to stay and administratively close the whole case until September 12, 2021.
We wrote this summary from the court's opinion with the help of AI. It is not the court's wording, and it is not legal advice. The full opinion is below.
You don't need the product names or old records. No fee unless we recover compensation for your family.
The decision
- Court: U.S. District Court, Eastern District of Louisiana
- Decided: May 20, 2021
- Docket: Civil Action No. 20-2389
- Stage: Other
- State: Louisiana
Outcome. The court granted Lamorak's motion and stayed and administratively closed the whole case until September 12, 2021, over plaintiff Cortez's objection that he needed an expedited trial.
What the court held. A federal court has inherent discretionary power under Landis to stay an entire case, weighing hardship, prejudice and judicial economy, and an insurer's state-court liquidation stay must be honored. Louisiana's expedited-trial article is procedural and does not apply in a case removed under the federal officer removal statute.
Issues decided: Insurance Coverage, Trial Procedure and Discovery, Venue, Removal and Transfer.
The people and their exposure
- Callen J. Cortez: mesothelioma
| Who | Work | Where | When | Products |
|---|---|---|---|---|
| Callen J. Cortez | co-worker riding to Avondale Shipyards (shipyards and maritime work); worked near others using it | Avondale Shipyards |
The defendants
- Lamorak Insurance Company (insurer)
- Huntington Ingalls Incorporated (premises owner)
- Albert L. Bossier, Jr.
- Louisiana Insurance Guaranty Association (insurer)
- Eagle, Inc.
- McCarty Corporation
Other decisions in this case
Other rulings from the same court in the same case, in our library:
- Cortez v. Lamorak Insurance Co. (November 23, 2020). The court denied Callen Cortez's motion to remand, holding that Avondale (Huntington Ingalls, Lamorak Insurance and Albert Bossier) timely and properly removed the case under the Federal Officer Removal Statute.
- Cortez v. Lamorak Insurance Company (February 7, 2022). The court denied the Louisiana Insurance Guaranty Association's motion for summary judgment, so plaintiff Callen Cortez's claims arising from the Gabler Insulations insurance coverage go forward.
- Cortez v. Lamorak Insurance Company (April 4, 2022). The court granted Avondale's summary judgment motion in part, dismissing Cortez's tort claims against Avondale as his employer and his intentional-tort claim, but denied it as to his take-home exposure claims against Avondale as his brother's employer.
- Cortez v. Lamorak Insurance Company (April 18, 2022). The court granted plaintiff Callen Cortez's motion for summary judgment that he has mesothelioma and that asbestos caused it, over the defendants' oppositions, while leaving specific causation issues for the jury.
- Cortez v. Lamorak Insurance Company (May 3, 2022). The court granted summary judgment to Entergy, First State, USF&G, Berkshire and Insulations, LLC, granted GE's motion in part (insulation claims) and denied it in part (asbestos gasket claims), and denied Foster Wheeler's motion; it also granted LIGA's motion in limine excluding hearsay.
- Cortez v. Lamorak Insurance Company (May 11, 2022). The district court denied as moot plaintiff Cortez's motion for review of the Magistrate Judge's order allowing Eagle, Inc. to file a supplemental answer, because Eagle's later answer to the third amended complaint made the earlier order irrelevant.
- Cortez v. Lamorak Insurance Company (May 11, 2022). The court granted insurer USF&G's unopposed motion for partial summary judgment and dismissed plaintiff Callen Cortez's punitive-damages claims against it.
- Cortez v. Lamorak Ins. Co. (May 19, 2022). The court granted Continental Insurance Company's summary judgment motion, holding the LHWCA preempted Cortez's state-law tort claims against it as Halter Marine's insurer and that his intentional-tort claims failed for lack of evidence, and dismissed Continental's two other summary-judgment motions as moot.
- Cortez v. Lamorak Insurance Company (May 19, 2022). The court granted Trinity's summary judgment motion and the motions to dismiss by Continental, Liberty Mutual and Travelers, dismissing with prejudice Albert Bossier's third-party claims because no substitution was made within 90 days after notice of his death.
- Cortez v. Lamorak Ins. Co. (July 8, 2022). The court granted Westinghouse (ViacomCBS) partial summary judgment on claims about asbestos insulation used on its turbines and denied it on claims about asbestos gaskets it supplied or specified for those turbines.
- Cortez v. Lamorak Ins. Co. (July 13, 2022). The court granted Westinghouse (ViacomCBS) partial summary judgment dismissing the failure-to-warn claims, but denied it on the Halter Marine exposure and on whether its FRDM was a substantial factor in causing Cortez's mesothelioma.
- Cortez v. Lamorak Insurance Company (July 18, 2022). The court granted plaintiffs' motion to exclude Danny Joyce's hearsay testimony about Walsh-Healey inspectors, but denied it as to Avondale's expert relying on that testimony, so long as Avondale does not disclose the hearsay to the jury.
- Cortez v. Lamorak Insurance Company (July 20, 2022). The court denied as premature the motion in limine by Foster Wheeler, GE and Westinghouse to exclude plaintiffs' two medical causation experts as cumulative, leaving defendants free to object at trial.
- Cortez v. Lamorak Insurance Company (July 20, 2022). The court granted in part the motion by Eagle and LIGA to limit plaintiffs' industrial hygienist Gerard Baril, barring him from testifying that a supplier who puts its name on an insulation box should legally be considered its manufacturer, and denied the motion otherwise.
- Cortez v. Lamorak Insurance Company (July 25, 2022). The court granted partial summary judgment for Westinghouse (ViacomCBS), General Electric and Foster Wheeler, dismissing the plaintiffs' intentional-tort and fraud claims, and dismissed the punitive-damages part of the motion as moot.
- Cortez v. Lamorak Insurance Company (July 27, 2022). The court denied Goodrich's motion for summary judgment (joined by several co-defendants) on Callen Cortez's claim for loss of personal household services, so plaintiffs kept that claim.
- Cortez v. Lamorak Insurance Company (July 28, 2022). The court granted Travelers' summary judgment motion only on whether B&B was a professional vendor of asbestos (and so on strict products liability) and denied it on negligence duty and breach and on Article 2317 liability, so plaintiffs' other claims continued.
- Cortez v. Lamorak Insurance Company (August 10, 2022). The court granted Hopeman Brothers' motion for partial summary judgment, dismissing the plaintiffs' intentional-tort claims and their claims that Wayne Manufacturing was Hopeman's alter ego or part of a single business enterprise.
- Cortez v. Lamorak Insurance Company (August 16, 2022). The court granted third-party defendant Liberty Mutual's unopposed motion for partial summary judgment, ruling that Wayne Manufacturing was not a professional vendor of asbestos-containing wallboards, against third-party plaintiff Avondale; plaintiffs were found to lack standing to oppose.
- Cortez v. Lamorak Insurance Company (August 23, 2022). The court denied Hopeman Brothers and Liberty Mutual's motion to exclude or limit the testimony of plaintiffs' industrial hygienist Gerald Baril, so the plaintiffs' expert may testify.
- Cortez v. Lamorak Insurance Company (August 29, 2022). The court granted Hopeman Brothers partial summary judgment that it was not a manufacturer of the asbestos wallboards, but denied summary judgment on whether it was a professional vendor, so that question goes to trial against the Cortez plaintiffs and Avondale's opposition.
- Cortez v. Lamorak Insurance Company (September 9, 2022). The court denied Riley Power, Inc.'s motion for summary judgment on the statute of repose and exposure-sufficiency grounds, and denied its motion to strike as moot, so plaintiffs (the Cortez family) prevailed over Riley at this stage.
- Cortez v. Lamorak Insurance Company (September 29, 2022). The court granted in part and denied in part plaintiffs' motion in limine, excluding most of Westinghouse's expert Dr. Forman's testimony on insulation and general Navy requirements but allowing his testimony on shipyard asbestos-safety requirements relevant to the sophisticated-purchaser defense.
- Cortez v. Lamorak Insurance Company (October 4, 2022). The court denied Certain London Market Insurers' motion for partial summary judgment on the plaintiffs' claims arising from Avondale exposures after January 21, 1970, so the plaintiffs prevailed on the motion.
- Cortez v. Lamorak Insurance Company (October 7, 2022). The court granted defendants' motion for partial summary judgment, ruling that plaintiffs could not recover pre-death lost income or pre-death expenses as wrongful death damages.
- Cortez v. Lamorak Insurance Company (October 12, 2022). The court denied plaintiffs' Daubert motion in limine to limit the testimony of Hopeman Brothers' toxicologist, Dr. Brent Finley, so Hopeman prevailed on the motion.
- Cortez v. Lamorak Ins. Co. (October 14, 2022). The court granted plaintiffs' motion to strike eleven defense expert witnesses, including Hopeman Brothers' witness Max Richard, because no expert reports were produced.
- Cortez v. Lamorak Insurance Company (October 24, 2022). The court granted in part and denied in part defendants' omnibus motion in limine, barring terms like "asbestos industry" and the Bair memorandum, while allowing the "asbestos victim" label and lay testimony about dust.
- Cortez v. Lamorak Insurance Company (October 24, 2022). The court granted Travelers Indemnity Company's unopposed motion to quash the plaintiffs' trial subpoena, ruling against the plaintiffs.
Decisions this opinion cites
Earlier decisions in our library that the court cited:
- Wedgeworth v. Fibreboard Corp. (U.S. Court of Appeals, Fifth Circuit, 1983). The Fifth Circuit affirmed the Fontenot order denying a stay and vacated the stays in Wedgeworth and Davis, so the plaintiffs' claims against the co-defendants proceed. On rehearing it held that the Wedgeworth court did not abuse its discretion in refusing to let plaintiffs add Johns-Manville's and Unarco's insurers as defendants.
Later decisions citing this one
2 later decisions in our library cite this one:
- Falcone v. Anco Insulations, Inc. (U.S. District Court, Eastern District of Louisiana, 2021). The court granted insurer Lamorak's (joined by Avondale's) motion to stay, staying and administratively closing the whole case because Lamorak was in liquidation, and set a status conference for September 28, 2021.
- Hotard v. Avondale Industries, Inc. (U.S. District Court, Eastern District of Louisiana, 2021). The court granted Lamorak Insurance Company's motion, stayed the whole action and administratively closed it because of Lamorak's liquidation, denied Plaintiff Hotard's alternative request to sever claims involving Lamorak and its insureds, and set a status conference.
The court's opinion
The text below is Google Scholar's copy of the court's opinion, a public record. Numbers in brackets, such as [*921], mark where each page of the printed reporter begins.
CALLEN J. CORTEZ,
v.
LAMORAK INSURANCE CO., ET AL., SECTION "R" (1).
Civil Action No. 20-2389.
May 20, 2021.
United States District Court, E.D. Louisiana.
ORDER AND REASONS
SARAH S. VANCE, District Judge.
Defendant, Lamorak Insurance Company ("Lamorak"), moves to stay these proceedings.[1] Defendants, Huntington Ingalls Incorporated and Albert L. Bossier, Jr. (collectively "Avondale Interests"), adopt Lamorak's motion.[2] The Louisiana Insurance Guaranty Association ("LIGA") and defendant, Eagle, Inc., have filed memoranda in support of Lamorak's motion. [3] Plaintiff, Callen J. Cortez, opposes Lamorak's motion.[4] For the following reasons, the Court grants the motion, staying and administratively closing this case until September 12, 2021.
I. BACKGROUND
Lamorak raises three grounds upon which, it argues, a stay should be granted. First, Lamorak contends that, on March 11, 2021, a Pennsylvania state court declared Bedivere Insurance Company (Bedivere)—an entity that includes Lamorak by merger—insolvent and placed Bedivere in liquidation.[5] The Pennsylvania order stays all proceedings against Lamorak, and Lamorak asserts that comity principles require the Court to enforce that stay.[6] Second, Lamorak asserts that the Court is bound by Louisiana Revised Statute § 22:2068(A). Lamorak asserts that the Louisiana statute requires a six-month stay of claims from the date of insolvency against Lamorak and any insureds for which Lamorak was providing a defense.[7] Third, Lamorak invokes the Court's inherent authority to manage its docket and asserts that a stay of all proceedings is justified to manage this litigation efficiently.[8] Lamorak ultimately asks the Court to stay all discovery and pre-trial activity until September 12, 2021.[9] The Court considers the motion below.
II. DISCUSSION
It is well-established in the Fifth Circuit that "[f]ederal law consigns to the states the primary responsibility for regulating the insurance industry." Clark v. Fitzgibbons, 105 F.3d 1049, 1051 (5th Cir. 1997); see also Munich Am. Reinsurance Co. v. Crawford, 141 F.3d 585, 590 (5th Cir. 1998) (observing that Congress has consigned "to the States broad and primary responsibility for regulating the insurance industry"). The Court considers Lamorak's motion in light of this principle. A. The Pennsylvania Order
The parties agree that the Pennsylvania court's stay order, which stays proceedings against Lamorak alone, should be enforced by this Court.[10] The Pennsylvania order provides:
- Unless the Liquidator consents thereto in writing, no action at law or in equity, including, but not limited to, an arbitration or mediation, the filing of any judgment, attachment, garnishment, lien or levy of execution process against Bedivere or its assets, shall be brought against Bedivere or the Liquidator or against any of their employees, officers or liquation officers for acts or omissions in their capacity as employees, officers or liquidation officers of Bedivere or the Liquidator, whether in this Commonwealth or elsewhere, nor shall any such existing action be maintained or further prosecuted after the effective date of this Order. All above-
enumerated actions currently pending against Bedivere in the courts of the Commonwealth of Pennsylvania or elsewhere are hereby stayed; relief sought in these actions shall be pursued by filing a proof of claim against the estate of Bedivere pursuant to Section 538 of Article V, 40 P.S. § 221.38.
The Fifth Circuit's decision in Anshutz v. J. Ray McDermott Co., Inc., 642 F.2d 94 (5th Cir. Unit A Mar. 1981), is instructive. There, the Fifth Circuit considered whether it should stay an appeal in light of a state-court order that placed the insurer-defendant in liquidation. The Anshutz court stayed the appeal, noting that "[r]ecognition by this Court of the effectuation of the liquidation of this insurance company by the State of Illinois is in accordance with the federal policy which directs that the control over the insurance business remain[s] in the hands of the states." Id. at 95. The Anshutz court went on to note that "[a]n orderly liquidation requires that this Court not interfere with the order of the Circuit Court of Cook County." Id. In light of Anshutz, the Court finds that it must stay proceedings against Lamorak. See also Olin Corp. v. Lamorak Ins., 2021 WL 982426, at [*4] (S.D.N.Y. Mar. 15, 2021) (Rakoff, J.) (holding that the Pennsylvania court order required the Court to stay proceedings against Lamorak).
B. The Louisiana Statute
Lamorak also invokes the Louisiana Insurance Guaranty Association Law ("LIGAL"), La. Rev. Stat. § 22:2051, et seq. LIGAL creates LIGA, which it defines as "a private nonprofit unincorporated legal entity" that must perform certain duties under the LIGAL. La. Rev. Stat. § 22:2056. For example, the LIGAL provides that LIGA "shall. . . [b]e obliged to pay covered claims. . . existing prior to the determination of the insurer's insolvency. . . ." La. Rev. Stat. § 22:2058. "In the event that a membercarrier became insolvent, it was envisioned that LIGA would assume all the benefits and obligations of the direct insurance policies underwritten by the defunct carrier." Sifers v. Gen. Marine Catering Co., 892 F.2d 386, 388 (5th Cir. 1990) (applying Louisiana law); see also Morris v. E. Baton Rouge Par. Sch. Bd., 826 So. 2d 46, 51 (La. App. 1 Cir. 2002) ("Under the provisions of [LIGAL], when a claim is made against an insolvent insurer, LIGA steps into the shoes of the insolvent insurer."). The Court notes that plaintiff has sued LIGA as the alleged successor to American Mutual Liability Insurance Company ("AMLIC").[11]
Lamorak and LIGA assert that the Court must enforce a stay under the following provision of the LIGAL: All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall be stayed for six months and such additional time as may be determined by the court from the date the insolvency is determined to permit proper defense by the association of all pending causes of action.
La. Rev. Stat. § 22:2068(A). Lamorak and LIGA contend that, because Lamorak is an insolvent insurer within the meaning of the statute, the automatic stay is required. In addition, Lamorak contends that the automatic stay provision requires a stay not only of plaintiff's claims against Lamorak, but against the entities Lamorak is obligated to defend.[12] Lamorak represents that, before its insolvency, it was providing a defense to the Avondale Interests, Eagle Inc., and McCarty Corporation.[13] "The intent of [Section 22:2068(A) is] to give Louisiana Insurance Guaranty Association an adequate opportunity to review claims against the failed insurance company and enter a timely defense. . . ." Webb v. Blaylock, 590 So. 2d 643, 645 (La. App. 3 Cir. 1991), writ denied, 591 So. 2d 700 (La. 1992). Plaintiff asserts that LIGA does not need additional time to prepare in this case,[14] because LIGA has been a defendant in this action since the beginning of the case as the alleged successor to AMLIC.[15] LIGA does not dispute that it is familiar with the claims related to AMLIC's potential liability and that of its alleged insured, Gabler Insulations, Inc.[16] But plaintiff's complaint contains distinct factual allegations against Lamorak's insureds, which include the Avondale Interests. For example, plaintiff alleges that he was exposed to asbestos while riding to Avondale Shipyards with other co-workers, who were wearing clothes that were contaminated with asbestos. [17] LIGA contends that investigating these claims will involve additional discovery efforts that go to those alleged exposure theories.[18] As a result, LIGA contends that it requires additional time to investigate the claims related to Lamorak and its alleged insureds.[19]
Plaintiff also asserts that application of La. Rev. Stat. § 22:2068(A) is not required because he is entitled to an expedited trial under La. Code Civ. Proc. art. 1573.[20] This provision indicates:
The court shall give preference in scheduling upon the motion of any party to the action who presents to the court documentation to establish that the party has reached the age of seventy years or who presents to the court medical documentation that the party suffers from an illness or condition because of which he is not likely to survive beyond six months, if the court finds that the interests of justice will be served by granting such preference.
La. Code Civ. Proc. art. 1573. Plaintiff represents that he is both over the age of seventy and suffers from terminal mesothelioma, which would entitle him to an expedited trial in state court.[21]
This Court is not bound by Louisiana Code of Civil Procedure Article 1573. That provision relates to scheduling preferences and the Court's trial calendar, and is a paradigmatic procedural provision. Where, as here, a case is removed under the Federal Officer Removal Statute, 28 U.S.C. § 1442,[22] federal procedural law applies. Cf. Lamar Co., L.L.C. v. Mississippi Transportation Comm'n, 786 F. App'x 457, 460 (5th Cir. 2019) (noting that, when federal jurisdiction is fixed upon diversity jurisdiction, courts must "apply state substantive law and federal procedural law"); Bennett v. MIS Corp., 607 F.3d 1076, 1091 (6th Cir. 2010) (noting that when a case is removed under the Federal Officer Removal Statute "the substantive law to be applied is unaffected by removal" (emphasis added)).
Moreover, Federal Rule of Civil Procedure 40 governs the preferences that federal district courts are to give in scheduling matters for trial. It provides:
Each court must provide a rule for scheduling trials. The court must give priority to actions entitled to priority by a federal statute.
Fed. R. Civ. P. 40 (emphasis added). The Federal Rules require federal district courts to assign trial priorities when required by federal, not state, law. Plaintiff has cited to no provision of federal law that would require the Court to defer to the scheduling preferences set out in Louisiana Code of Civil Procedure Article 1573. Accordingly, Louisiana Code of Civil Procedure Article 1573 does not apply here.
Even though Article 1573 does not bar a stay under Section 22:2068(A), the Court need not resolve whether it is bound by the stay provision in Section 22:2068(A). As explained below, the Court invokes its inherent power to stay a proceeding to order a brief stay of this case.
C. Discretionary Authority
"A district court has inherent power `to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.'" United States v. Colomb, 419 F.3d 292, 299 (5th Cir. 2005) (quoting Landis v. N. Am. Co., 299 U.S. 248, 254 (1936)). This inherent authority extends to granting a stay in an appropriate proceeding. See, e.g., Landis, 299 U.S. at 254; Complaint of Hornbeck Offshore (1983) Corp., 981 F.2d 752, 755 (5th Cir. 1993); United States v. FEDCON Joint Venture, No. 16-13022, 2017 WL 897852, at [*1] (E.D. La. Mar. 7, 2017); Suzlon Infrastructure, Ltd. v. Pulk, No. 09-2206, 2010 WL 3540951, at [*4] (S.D. Tex. Sept. 20, 2010). Although the Court has discretion to grant a stay, that discretion "is not unbounded." Wedgeworth v. Fibreboard Corp., 706 F.2d 541, 545 (5th Cir. 1983). "[S]tay orders will be reversed when they are found to be immoderate or of an indefinite duration." McKnight v. Blanchard, 667 F.2d 477, 479 (5th Cir. 1982) (collecting cases). "Generally, the moving party bears a heavy burden to show why a stay should be granted absent statutory authorization, and a court should tailor its stay so as not to prejudice other litigants unduly." Coastal (Bermuda) Ltd. v. E.W. Saybolt & Co., 761 F.2d 198, 203 n.6 (5th Cir. 1985).
The U.S. Supreme Court's decision in Landis governs the Court's analysis in terms of the factors it must consider in deciding whether to grant a discretionary stay. See, e.g., Ha Thi Le v. Lease Fin. Grp., LLC, No. 16-14867, 2017 WL 2915488, at [*6] (E.D. La. May 9, 2017) (citing Landis in determining whether to grant a discretionary stay); FEDCON Joint Venture, 2017 WL 897852, at [*1] (same); Harch Hyperbarics, Inc. v. Martinucci, No. 09-7467, 2011 WL 2119077, at [*6] (E.D. La. May 26, 2011) (same). Under Landis, the Court "must weigh competing interests and maintain an even balance" when considering whether to grant a stay. Landis, 299 U.S. at 254-55. Courts consider the following factors in applying Landis: " (1) any hardship imposed on the moving party by proceeding with the action, (2) any prejudice to the non-moving party if the stay is granted, and (3) the interests of judicial economy." Maples v. Donzinger, No. 13-223, 2014 WL 688965, at [*2] (E.D. La. Feb. 21, 2014); see also Strong ex rel. Tidewater, Inc. v. Taylor, No. 11-392, 2013 WL 81889, at [*2] (E.D. La. Mar. 5,
- (considering these three factors); Collins v. Angiodynamics, Inc., No. 13-5431, 2013 WL 5781708, at [*2] (E.D. La. Oct. 15, 2013) (same).
The Court finds that the considerations here weigh in favor of a six-month stay. As to the first factor—the hardship imposed on the moving party—the Court has already found that because Lamorak, the moving party, was declared insolvent in liquidation proceedings, a stay is required so as not to interfere with its orderly liquidation. Further, absent a stay, LIGA would not have sufficient time to investigate the claims against Lamorak, now that LIGA stands in Lamorak's shoes as to those claims. In addition, Lamorak was providing a defense to the Avondale Interests, Eagle, Inc., and McCarty Corporation before Lamorak's insolvency.[23] The Court takes into account the hardships these litigants and LIGA would experience were litigation to proceed before LIGA had the opportunity to prepare a defense.[24] See Landis, 299 U.S. at 254 (noting that courts should weigh the interests of litigants other than the movant). The Court finds that the first factor weighs in favor of a stay.
As to the second factor—prejudice to the non-moving party—the Court considers Cortez's representation that he is over the age of seventy and suffers from terminal mesothelioma.[25] Plaintiff asserts that he will be harmed if trial is continued given the possibility that his health may further deteriorate before trial.[26] Although plaintiff does not style this argument in terms of his suffering legal prejudice to his claims,[27] the Court considers plaintiff's interest in proceeding to trial as a "competing interests" under the Landis balancing test. Landis, 299 U.S. at 254-55. The Court finds that the second factor weighs against granting the stay.
As to the third factor, the Court considers judicial economy. This case involves several alleged manufacturers of asbestos-containing materials, insurers, and other corporate entities.[28] The Court is required, at a minimum, to stay plaintiff's claims against Lamorak under the Pennsylvania state court's order. Lamorak was providing a defense to the Avondale Interests, Eagle, Inc., and McCarty Corporation.[29] Were the Court to stay proceedings against only Lamorak, and not plaintiff's claims against other parties, the Court finds that litigation would proceed in a haphazard and inefficient manner. The Court finds that the third factor weighs in favor of granting the stay.
Taking the above factors into account, the Court finds that a brief, six-month administrative stay of the entire case, from the date of the Pennsylvania state court's liquidation order—roughly four months from the date of this Order—is necessary to ensure that litigation proceeds in an efficient and orderly fashion.
III. CONCLUSION
Accordingly, this matter is STAYED and ADMINISTRATIVELY CLOSED until September 12, 2021.
[1] R. Doc. 228
[2] R. Doc. 238.
[3] R. Doc. 237; 232.
[4] R. Doc. 229
[5] R. Doc. 228-2 at 1.
[6] Id.
[7] Id. at 8.
[8] Id. at 7.
[9] R. Doc. 234-3 at 3.
[10] R. Doc. 229 at 2, 9; R. Doc. 234-3.
[11] R. Doc. 1-1 at 4 ¶ 6.
[12] R. Doc. 228-2 at 2.
[13] Id.
[14] R. Doc. 229 at 3.
[15] R. Doc. 1-1 at 4 ¶ 6.
[16] R. Doc. 237 at 3.
[17] Id. at 5 ¶ 8.
[18] R. Doc. 237.
[19] Id. at 3.
[20] R. Doc. 229 at 2.
[21] Id.
[22] R. Doc. 77 at 3.
[23] R. Doc. 228-2 at 2; R. Doc. 237 at 6.
[24] R. Doc. 228-2 at 5; R. Doc. 237 at 3.
[25] R. Doc. 229 at 2.
[26] Id. at 5.
[27] Id. at 5. Plaintiff does not specifically argue that he will be "prejudiced" by the stay. Prejudice, Black's Law Dictionary (11th ed. 2019) (defining "prejudice" as "[d]amage or detriment to one's legal rights or claims"). This is especially the case given that the Court has found that it is not bound by Louisiana Code of Civil Procedure Article 1573.
[28] R. Doc. 1-1 at 1-3 ¶ 2.
[29] R. Doc. 228-2 at 2; R. Doc. 237 at 6.
Sources
How to cite it
Cite the decision
Cortez v. Lamorak Insurance Co., No. Civil Action No. 20-2389 (U.S. District Court, Eastern District of Louisiana May 20, 2021).
Cite our summary
“Summary of Cortez v. Lamorak Insurance Co.” AsbestosClaims.Law Library. https://asbestosclaims.law/library/cases/cortez-v-lamorak-insurance-co-2021.
ACL Doc numbers and their short links never change. See how to cite the Library.
Talk with an asbestos lawyer
Start with what you remember, and we'll take it from there.
This page is provided for general informational purposes and does not constitute legal advice. Every asbestos case turns on its own facts, exposure history, diagnosis, deadlines, available evidence, and applicable law. Reviewing this page does not create an attorney-client relationship. For advice about your specific situation, call 833-4-ASBESTOS for a free case review.