Scottsdale Insurance Company v. Therapeutic Health Services

7 The Honorable Marsha J. Pechman 8 IN THE UNITED STATES DISTRICT COURT 9 WESTERN DISTRICT OF WASHINGTON 10 AT SEATTLE SCOTTSDALE INSURANCE Case No. 2:24-CV-01518-MJP COMPANY, 12 STIPULATED MOTION TO STAY Plaintiff(s), PROCEEDINGS AND [PROPOSED] 13 ORDER v. 14 NOTE ON MOTION CALENDAR: THERAPEUTIC HEALTH DECEMBER 10, 2024 SERVICES, 16 Defendant(s).

18 I. STIPULATION 19 Plaintiff Scottsdale Insurance Company (“Plaintiff”) and Defendant Therapeutic Health Services (“THS”), through their respective counsel, submit this Stipulated Motion and [Proposed] Order to stay proceedings in this action until March 18, 2025.

22 Plaintiff filed this lawsuit seeking a declaration that it has no coverage or defense obligations under the policy issued to THS with respect to four underlying lawsuits filed in King County Superior Court (“Underlying Lawsuits”). Plaintiffs in the Underlying Lawsuits allege that THS failed to adequately safeguard its security systems, resulting in a data breach that exposed the private and confidential information of an alleged class of affected individuals.

1 THS and the plaintiffs in the Underlying Lawsuits are negotiating toward a potential settlement. Given the extensive issues in the Underlying Lawsuits and their evitable impact on the resolution of this case, the Parties in the present case respectfully request a 90-day stay of the proceedings. The requested time frame is likely sufficient to determine whether settlement discussions in the Underlying Lawsuits may be productive and result in a settlement in principle, which would assist the Parties in this case in identifying the proper next steps. In addition, a stay is warranted to conserve judicial resources and avoid unnecessary litigation expenses while the settlement efforts in the Underlying Lawsuit progress.

9 “The power of a federal trial court to stay its proceedings, even for an indefinite period of time, is beyond question.” Cherokee Nation of Oklahoma v. U.S., 124 F.3d 1413, 1416 (Fed. Cir. 1997), citing Landis v. North American Co., 299 U.S. 248, 254-55, 57 S. Ct. 163, 82 L. Ed. 153 (1936). As held by the Supreme Court, “[T]he power to stay proceedings 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.” Landis, 299 U.S. at 254.

15 The Parties desire to stay this action, including, without limitation, THS’ responsive pleading deadline, discovery, expert disclosures, motions, and trials. The Parties have agreed that resolution of the issues would be aided by a stay until March 18, 2025. The Parties agree to submit a joint status report to the Court by March 26, 2025.

19 If any resolution of the Underlying Lawsuits is finalized and impacts the progress of the current case, or if efforts to resolve the remaining claims are unsuccessful, the Parties shall include in their joint status report all information normally included in the initial joint status report and discovery plan submitted under FRCP 26(f) and LCR 26(f).

23 In light of the foregoing, IT IS HEREBY STIPULATED AND AGREED by and between counsel for Plaintiff and Defendant that this action, including all deadlines and dates, should be stayed until March 18, 2025. The Parties respectfully request the Court issue an Order staying this case until March 18, 2025.

1 II. ORDER 2 Pursuant to the parties’ stipulation, it is so ordered. This action and all litigation deadlines in the current Case Schedule are hereby STAYED until March 18, 2025. The parties shall file a joint status report with the Court no later than March 26, 2025. If any resolution of the Underlying Lawsuits is finalized and impacts the progress of the current case, or if efforts to resolve the remaining claims are unsuccessful, the parties shall include in their joint status the normal information submitted pursuant to FRCP 26(f) and LCR 26(f) regarding scheduling.

9 DATED this 11th day of December, 2024.

A HONORABLE MARSHA J. PECHMAN 13 UNITED STATES DISTRICT JUDGE DATED: December 10, 2024. STIPULATED TO AND PRESENTED BY: By: /s/ Justin Landreth_______________ 18 Justin Landreth, WSBA# 44849 SELMAN LEICHENGER EDSON HSU 19 NEWMAN & MOORE LLP University Street, Suite 2305 20 Seattle, WA 98101 Telephone: 206.447.6461 21 [email protected] By: /s/ Darius N. Kandawalla 24 Darius N. Kandawalla, pro hac vice BAILEY CAVALIERI LLC 25 10 W Broad St # 2100, Columbus, OH 43215 26 Telephone: 614.229.3255 Email: [email protected] Attorneys for Scottsdale Insurance Company 4 By:/s/ Peter A. Talevich Peter A. Talevich, WSBA# 42644 5 Jeffrey J. Meagher, pro hac vice K & L Gates LLP 6 925 4th Ave #2900, Seattle, WA 9810410 7 Telephone: 206.623.7580 Email: [email protected] 8 Email: [email protected] 9 Attorneys for Therapeutic Health Services