Barkley v. Nationwide Agribusiness Insurance Company
2:22-cv-04458
S.D. OhioMar 15, 2024Background
- Plaintiffs (Brian, Erin, Robert, and Donna Barkley, and Barkley Enterprises, Inc.) suffered a barn fire on December 29, 2020, with claimed losses exceeding $496,450.
- Plaintiffs were insured by Nationwide Agribusiness Insurance Company (NAIC) and submitted a claim, which NAIC denied after nearly two years, alleging lack of cooperation and policy breaches.
- Plaintiffs sued NAIC in state court, and the case was removed to federal court based on diversity jurisdiction.
- Plaintiffs later moved to dismiss certain plaintiffs (Barkley Enterprises, Robert Barkley, Donna Barkley) who did not own the property or sustain losses and to strike several of NAIC's affirmative defenses.
- NAIC opposed both motions, citing discovery and potential prejudice concerns, and also asserted a counterclaim and multiple affirmative defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper Rule for Dismissal of Parties | Rule 41(a) governs; want to drop parties with no loss | Rule 21 applies, not Rule 41; must retain for discovery | Rule 21 controls; dismissal of parties is warranted |
| Dismissal before Discovery | No relevant discovery from these parties, duplicative info | Must respond to discovery before dismissal to avoid prejudice | No prejudice to NAIC; duplicative or irrelevant discovery |
| Motion to Strike Affirmative Defenses | Defenses are untimely, vague, immaterial, or improper | Motion is untimely; defenses give fair notice | Granted in part, denied in part; only some defenses stricken |
| Heightened Pleading for Affirmative Ds | Fraud-based defenses not pled with particularity, Rule 9(b) | Not fraud; general fairness notice standard is met | No heightened standard applies; fair notice is sufficient |
Key Cases Cited
- Brown & Williamson Tobacco Corp. v. United States, 201 F.2d 819 (pleadings should only be stricken where plainly improper, drastic remedy)
- Lawrence v. Chabot, 182 F. App’x 442 (fair notice standard applies to affirmative defenses)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (pleading standard under Rule 8)
- Ashcroft v. Iqbal, 556 U.S. 662 (standard for plausibility in pleadings)
- Seeley v. Rahe, 16 Ohio St.3d 25 (comparative negligence not applicable to contract claims)
- Becker v. BancOhio Nat’l Bank, 17 Ohio St. 3d 158 (contributory negligence not a defense in contract breach)