Prescott v. Nationwide Mutual Insurance Company

FiLii IN CLERK'S OFFICE U.S. DISTRICT COURT E.D.w.Y. UNITED STATES DISTRICT COURT * JAN 2020 * EASTERN DISTRICT OF NEW YORK Cae acaransnees Se oa See SE PSs SX BROOKLYN OF JO ANN PRESCOTT, ET AL., OFFICE Plaintiffs, : : MEMORANDUM AND ORDER -against- : 17-CV-6508 (ENV) (ST) NATIONWIDE MUTUAL INSURANCE : COMPANY, : Defendant. x VITALIANO, D.J. Jo Ann Prescott commenced this action on behalf of herself and Prescott Coverage, LLC d/b/a Prescott Insurance & Financial Services (collectively “Prescott”), against Nationwide Mutual Insurance Company (“Nationwide”) alleging fraud in the assignment of servicing rights to plaintiffs in 2008 in that it concealed the existence of a federal lawsuit filed by Carlos Balcarcel (“Balcarcel’’), who was the previous assignee of the servicing rights. See Complaint 4 31-33. Before the Court is the August 27, 2019 Report and Recommendation (“R&R”) of Magistrate Judge Steven L. Tiscione, which recommends that (1) Nationwide’s motion for summary judgment be granted and, (2) Nationwide’s motion for sanctions be denied. Dkt. 36; see also Dkts. 34, 35. On September 10, 2019, Prescott filed timely written objections to portions of the R&R, and, on September 24, 2019, Nationwide responded.! See Dkts. 37 (“Objections”), 38 (“Response to Objections”). For the reasons that follow, the R&R is ' Rule 72(b) does not permit reply briefing unless filed with leave. Prescott having neither sought nor received leave, the reply briefing will not be considered on plaintiffs’ objections to the R&R. See Duncan v. Cigna Life Ins. Co. of New York, No. 10-CV-1164 SJF ARL, 2011 WL 6960621 , at *1 (E.D.N.Y. Dec. 30, 2011), aff'd, 507 F. App’x 61 (2d Cir. 2013); MTC Elec. Techs. S’holder Litig., 74 F. Supp. 2d 276, 281 (E.D.N.Y. 1999). adopitinet edsn tiarste hotepy i noitfoh Cneo urt. Background ThCeo uprrte stuhmpeea srt fiaemsi'l wiitathrhpei r toyc ehdiusartnaoudlrn yd erlying factwsh,ir cehlt aNota et ionrweildaetw'iisoBt nahsl hcitaphra ecg eeplnr,te vicoounstlrya cted thoa ntdhlseee rtveircreti hwtaaottsr hs yeu bojPfer cets ccoontttar'nwasdhc ett her Nationswuipdpceoo'snsec de oaffal cmrteesnl tta iott pesrd ir oerl atwiioBtnahsl hciapr cel maskafre adui dtn h ien ducoefPmr eensttcco oo tnttw riaNtcahtt ioAnnwyfurti hdeerr.e citation otfh ehmew roeu blemd e rreeldyu anndndaoh ntet l tpanofu uln dersotftah Rne&d Rani ndtg h e Couratd'ospo tifit o.n StandoafRr edv iew Inr eviaem waignigsj turdaRgt&eeR'a ,ds i sjturdi"gcmetaa yc creepjtoe,mrc o td,ii fyn, whoolirepn a trhtfie,n dionrrg esc ommemnaddbaetyt i hmoean gsi sjturdag2te8Ue. . "S .C. §636)(()b1T. hdei sjturdingceetoe ndbl esy a ti"stfihteahdtei n rsoec learo nthe efarr cooerf three ctoaorcd c"te hRpe&t R p,r ovniotd iemdoe bljye hcatbsie omenan d iewn r itUirnevgn..a NeYwo r1k6F,0S. u p2pd6. 0 660,9 (-S1.0D 2.0N0.(1Yq).u oNteilnvsgS.o m ni 6t1hF8,S. u pp. 118161,8( 9S .D1.9N8.s5Ye).ae) l ;Ts hoo mvAa.rs 4n 7,U4 . 1S4.10 5,10 0,S6 C. t 4.6 868L, . Ed2.d4 3(51 985). Thdei sjturdiogcntet h,o e t hhearni drs,e quti"ord eedt edrenm oivanonpe y a ortfth e magisjturdadgtiees' pso tshhiaattbsi e openrn o perly FoebRdj.C.e i cPvt7..e2 d( bst)eo(e.3 ") ; alAsroi staL RLveCD.c o o3er6, d0sF4,. 1 31d10 1,(6 2 Cdi 2r0.1 S0i)g.n ifitchaonutglhy,, objectthaiarogtene sno ecrro anlc lourts ho"armtye ,rr eelctyihs teae ma er gumpernetstseo n ted thmea gisjturddagoten e,oc "to nstitute proapnaedrr e wrroeinvtfolitryeec wnle edoar b jec errSoarn.dv eC.ri ostyNf e Ywo rNko1,.2 -CV(-P0K1(C1L)3B2 )0,1W 5L1 469a5*t01 6 , (E.DM.aN3r.0.Y2, .0 1(5c)i toamtiitoCtnle edea)rr.re oxri" swthseu rpeoar,n e voitfe hwe entrierce[ot rhddei, s jturdiigclsete w] fti tthhde e finainfitdre cm o nvitchatam itio snth aakse beceonm mitStaevde.r"iI anvJcF.F.l K, u ghWaifeAenGn,N, o 1.5 -CV(-R6R1(M9R)5L M), 201W7L1 194a6*t52 (6 E,. DM.aN3r.0.Y2,. 0 17). Discussion Ianp re-emptNiavtei opsnutrwttiihsrkde uee lo, efe sn gagieinms escnuoten ,t etnhdaitn g alolfP resocbojtte'cesti itrohenessort r aitgoeib njaelco tarit ottnahRsce& k Ri ang enoerr al conclmuannseorar,nya d ss u cshh,ob uerl edv ifoercw leeedar rrP orra.c tsipceaalkliyn g howeNvaetri,o ncwoindteei'onssfnt oim oantb teecra,u sitefh oeeb vjeenca trrieeo vnise wed de novtoh,fae iyal n add opottfih Roe&n Ri int esn tiartseh otepy i noitfoh ne iCwsoa urrrt2a nted. Itnh oevierr aorbcjheipcnltgai ioannttt,ati chffRkes& Rc'osn cltuhNsaaitto ino nwide's failtudori es ctlh"oecs ier cumusntdwaehnrict cehBhser " o otkelryrwnia atsvo ariyal nadb le offetroe dP rweanssoc mtoa tttet rthoie fra alu duilnednutcc elmaeinmt. a rPgrueessc,o tt essentthtiahaRtel& lRiy wrs,o nognt hleaa wn tdh iaantn ,ey v etnhtei,ars g e e nudiinseop fu te facatts to h mea tetreiroamfcls o ntforramcattD iko3tn a.7.It T.ha er gucmaennnwotit t hstand den ovsoc rumtuiclnheyt s,hps er opaeprpllyic claeebarlrrse ot ra nodfra ervd3i ew. 2N eiPtrheesrnc oNorat tti oonbwjietdcJoetu edTdgi es cicoonnec'lisupn sa Iir.otoAn ft he R&Rr egaNradtiinognc woindteet'nhPstar iteo sncc loatiitbsm'a srb ryte hdse t aotfu te limitfoarfrt aiucodln asoi Jrmu sd,Tg ies ciroenceo'msm einpnda aIrttIthi taohMtneo tfoiro n Sancbtedi eonnise d. tThheseserece tofoitfroh Rene&,s Ra rree vifoercw leeedra rrSo ere. DafHeennggw Teeix Ctoiv.lA. ec eIcnod &u Cso.m meCrocri5pa4F.l S., u p3pd2. 7 298,3 (E.D.N.Y. 20w1it4th)hsa. tt a CntodhnCaesor oudfinr,nat dbn sotr t uhl tibone cg osr rweecltl­, reasaonnfrdee odefa ncyl eearrr or. 3O na d iffetraecPnkrt,e scottt'arsg JeoutbdsTjg ieesc cticiooonnnec 'ltsuh" satitrho eend lining discussioinpn l [ahiiongpthpiloffisstgis'ohtu timeomdna ry ij.sua. 'd .ng ecmwle anoitrm] ' 'chaonftg hee"' o.Dr ky3t7a. 5t . B utth,oe b jeicbste ilobinye rdte hceto hred ," redlining discuissis,ni doaenn ee dcw,l aoicrm h aontfgh ee poufortry tfo hrt hfier tsitim pnel aintiffs' oppostioNt aitoino nmwoitfodireos 'nus m mjaurdyg mSeeDnekt 3t.4. a- 1t46 -J2u2d.g e Tob egtihnec,ra benen os ubstdanitsiapastulc ot o en trNoelYwlo irlnkagw w h,i ch requapi arrteteosys tatbhfoleli lsohfow uiernl ge mteponr tesov naac illao ifrfma u"d[:a1 ] misreproerasm eantteoarmtiiiasoolsnffa i cowtnh iwcahfas l asnekd n otwbone fa lbsye defend[a2mn]at dfo,ert hpeu rpooifsn ed utchoietn hpgea rrt troye u lpyoi n[t 3,j] u stifiable relioathfne oc tehp earro tnty hm ei sreproemrs aetnetoramitiaislaos nni[d o4i n]n, j ury." PremMiourmCt ogr.vp E..q uifIaxn,5c 8.F3,. 130d13 0,(8 2 Cdi 2r0.0 (9q)u oLtaimHnaog l ding Cov.S. m iBtahr Inne8cy8.N ,. Y4.123d, (4N2.1Y .1996)). Drilfulritnahpg ear rtm,ya b yel iaubnldNeee rYw o rlkafo wre itfrhaeuirdtn h e inducreemqeunaitm r,ii snrge preocsroe nntcaetarileomqneua,nid tru,itt ndoygi scmlaotseer ial informaSte2ie8No .nPY.r. aCco.n,tL raa§wc§5t : 55:,1T 8op. r eovnaac illao ifrfma udulent concea"lapm leanimtnu,tsa itlpff sr oo tvhteah dtee fenhdaaadnd tut tdoyi sctlhmoeas tee rial informaBtainoAqnru.ae"eb It en ternDa'tlinovneasvltM.eia srysleNamaneBtdna. tn 5 k7F, . 3d 14165,(3 2 Cdi 1r9.9 T5h)o.uP grhe saclolt"etFg reiastnu h dIe n ducetmhseeun bts"ot,fa nce thceo mpfolcauisonentfrs a uducloenncte anlammeetnlhNtyaa,,tt iofaniwltiedoddi e s ctlhoes e exisottfeh nBeca el claarwcseTulhi etr.eP forreesm,cu ossttat tt ihfoseufy er l emoefcno tmsm on lafrwa updl,su hsot whN aatt iohnawaddi udttedoy i sctlheoexs ies ottfeh nsecu ei t. Presccoonttc'lsau lsloergcyaa tnsinaoopvntles a icnltaiSiffemsBe.'e llSouth TelecommIunnvciW...cR aG.tr iao&cnC eso ,. -C7o7Fn .n63.0d,63 1,(52 Cdi 1r9.9 W6o)r.s e Tisccioorrnececo tnlcylt uhtdahetnid esc w l a"itmhN,aa tt iodnewfriadtuehd ebemyde ngaging irne dloiurns iionntggh' edri scrtiamcittnpoiar ctesotv'rhe ysen a tola feu to-itnloso uwr ance incpormoes piencstuiirBnver edo so k(lRy&anR2t" 2 b)e,an rors e latPtori eosnoc roitgti'nsa l claoiffrm a uduilndeunctre emletantotth es ede rvaigcrieneagmn tedhBn eat l claarwcseIuiltis t . setltaliwethn di C si rtchuiaiittits n apprtoropa rniiesfaawect teau lalle goalrte igtohanelso ries fort hfier tsitim sneu bmiisonsp ipoonstsiso tu imomjnaru yd gmSeeBneut sv.Fh. o rdham Uni4v5.F2,S. u p2pd3. 9 440,(6S .D2.0N0.B6Yr).o; vw M.na giNsot1.r0 o-,C V(-C3S7)0 5 (PE2D0)1W,1L 6 399a5*t13 (4 S,. DD.eN2c.0.Y2, .0 1P1r)e.s ocbojtettc'totsh Ri e&o Rno n thpiosii wnsit t hmoeurti t. yePtr,e secnogtaitgtn eh bdea lodfse psetc uilhnae otrbi joenct thtiahRoten& sRw aesr roneous becatuhseweraa esg enudiinseap tsuo ott ehfr earu ducloenndbtuyN c att ionnawmitedhleey, post-imnovteionofatnp i uotnar teidvlceil naaiignmag Ni antsito wnhwiitcdhRhee& , R effectsihvoceriltry c Tuhilitasers det.sa orrgtu imafen nytt,ih lilnugts,htb era asteelosef s sness Presocbojtetc'tsi on. AsJ udTgies ccioornrfoeeu cnttdlhe,yex isottfeh nleca eww saunsio mtta temruicahl , leasn"s e ssfaecntwt"hi oansloe n diswcolurolesdnu tdrhteeerr a nsaction I"dinhere Presocbojtetcd'tosni ocoton msap d eilff ecroennctl Nuosr ieoans.oj nucarobyul filend d Natiohnawaddi udttedoy i sctlhloeas wesI usniu tNm.a, t iodninwdoih tda eavd eu taysa, matotfelrta dowi ,s ctlheoexs ies otBfea nrccesar l cietlia'gnaPdtr ieosncc oontctl'uss ory assesreteiktoieonns sgt aabm laitsefahrcd itia slup nudteer tmhicanotin ncgl ruesvihioevnre,ed itnh oebijre carteni oostnu sffi,ct iuoep nstteh Rte& Ra'wsar odfs ummjaurdyg tmoe nt NatioBnwuisvFdh.oe r.d Uhnaim4v 5.F2S,. u p2pd3. 9 440,(6 S .YD.2. 0N0.B6 a)r;b va.r a MarinIenMNcaxo.,1., 2 -CVA-R0R32,60 81W 2L6 025a6*t01 4(1,E .DD.eN4c.2,.Y0 . 1 2). SeparParteeslocybo,jt etac'ltsrsi eoolo nint e htseh etohraayast l ,o ngstanding Natioenmwpildoseyh weeae ss,o meihanos wp erceilaalt wiioNtnahst hiiopan nwtdih,tda hete "spefaccitdasol"c tarpipnlteih eursse,,q uthiarNtia ntgi ohnawaddi udttedoy i sctlhoes e BalclaarwcseAulgi atti.hna e,c knowlPerdegsmmceaonddtteuts r d iinsgc toovreptrehyde o objecRteigoanro.dfw l heapstos s itthpieao rnmt aihyea sbv eeie anntt h set oatfrh te ir negotaittah tteii omnceso ,no tftr hfaaecc attls lietngh eBeda lclaracwehslau bdie tpe rno vided tPor esicdnoi tstc lanodds oucruemse nts. Iann cya sJeu,dT gies ciRo&nRae lc'sosorr eccotnlcytl hueadvteie,sfan ,r guendo, Natiohnawaddi udttedoy i scfalcomtsaset etrcoio anltfo rramcattt iheoexn i,s ottfe hnec e Balclaarwcwseoului nltobd te m atearasmi aatlot lfe arw" .As tatoeormm einstis msia otne rial itfh eiarss e u bstlanitkieatllhia ahr oteo ads o[cn oanbtlrpeaart cywt]oi unclgod n siitd er impoirdnte acnithd oitwnao gc t!.B"EL Wo cUanliN oon5. 8P ensTirFo.un n& dA nnuFiutyn d vR.oyBaalno kSf c otGlrapPn.Ld,C7 ,8F 3. 338d33 8,(92 Cdi 2r0.1 (5c)i toamtiitotne d). Asm adcel eitanhr Re & Rt,hr ee csohrodtw hsPa rte swcawoset altwl a ortfeh m ea terial conctehrnaaspt p tehoaa rpv reo mtphtBeea dl claarwcasegulai Nitan tsito nAwsti hRde&e R. concltuhdewerandeso,g enudiinsethp auPttr ee swcanosott at w aortfe hc eo arsetsatlr aitc tion thtei pmlea iennttiieffnrstte hsodee rvaigcrieneagmn sedhn aetd ,mt ihtNasat t iopnrwoivdied ed thewmii tnhfo rmaantrdie oprnoe rgtastr hdbeiu nsgib neefoPsrrsee sccoontttrw aictthe d Natiofonrtw hisede er vriicgiIhnntgds pe.le adi,Jn oAt niPnffr eshceorttsetes lttfih tfiaheted flawistn h beu sihna"edns ost thdoio wn igMt rhB. a lcaDrkc3te4.la- "5t4.. D ivofrrocme d theusned erfalcyatilsnr gke naodtwypon l aitnhtfieil ffiosnfal,g a wrseu-iatl tlheeignmsio ntg alomnaet eSreieea.,Slg u..l lviD.vB Ia nnv esItnm6ce6.nF7,t. s23,7d 33 1,(03 Cdi 2r0.1 1). Conseqtuhoeebn jtelccyot,ni toetnnh tdahiRten& gRr ecommtheeng driaonnsfgtu mmary judgtmNoea ntti oineswr irdoebn eecoautushs eiearsg e e nudiinseap tsuwo th ee tthhfaeeir l ure tdoi sctlheoexs ies ottfeh nBeca el carcel ltafrowa suudiutl eanmtco auinnnbtndeeou dtc emen sustoandi enn oevrdoe vmiuecwlh,et shasep plicclaeebarrlrose rt anodfra ervdi ew. Conclusion In line with the foregoing, Judge Tiscione’s R&R is adopted in the entirety, Prescott’s objections are overruled, and Nationwide’s motion for summary judgment is granted and its motion for sanctions is denied. The Clerk of Court is directed to enter judgment accordingly and to close the case. So Ordered. Dated: Brooklyn, New York December 18, 2019 s/ Eric N. Vitaliano ERICN.VITALIANO. United States District Judge