Continental Cas. Co. v. Kinsey
Decision Date | 08 March 1994 |
Docket Number | No. 930277,930277 |
Citation | 513 N.W.2d 66 |
Parties | CONTINENTAL CASUALTY COMPANY, Plaintiff and Appellee, v. Robert W. KINSEY, Robert W. Kinsey, P.C., Defendants and Appellants, and Anita Bjorgen, Defendant. Civ. |
Court | North Dakota Supreme Court |
Christian A. Preus (argued), Minneapolis, MN, and Fleck, Mather & Strutz, Bismarck, for plaintiff and appellee. Appearance by Steven A. Storslee.
James L. Norris (argued), P.C., Bismarck, for defendants and appellants.
Robert Kinsey and his professional corporation (Kinsey) appeal from a final judgment, dated July 9, 1993, dismissing Kinsey's counterclaim against Continental Casualty Company (Continental). We conclude that Kinsey has failed to raise a genuine issue of material fact on the counterclaim and that Continental is entitled to summary judgment. We affirm.
The facts underlying this litigation are fully set forth in Bjorgen v. Kinsey, 466 N.W.2d 553 (N.D.1991), and Continental Casualty Co. v. Kinsey, 499 N.W.2d 574 (N.D.1993) (Kinsey I ), and will be repeated here only when relevant to the issues presented in this appeal. In October 1989, Anita Bjorgen obtained a judgment in the amount of $526,964.30 against Kinsey for his fraud and deceit in providing legal services for her. Continental then brought a declaratory judgment action to determine whether Bjorgen's judgment was covered by Kinsey's professional liability insurance policy with Continental. In Kinsey I, we concluded that Kinsey's professional liability policy afforded coverage for the punitive damages portion of Bjorgen's damage award against Kinsey, up to the policy limits of $250,000, but did not cover the compensatory damages portion of the judgment. We also determined that Kinsey must reimburse Continental for amounts paid to Bjorgen under the policy.
Kinsey filed a counterclaim, alleging that Continental did not act in good faith in defending him against Bjorgen's action. The trial court summarily dismissed that counterclaim. Kinsey appealed from the summary judgment dismissal, and in Kinsey I we remanded the counterclaim to the trial court for reconsideration:
Kinsey I, supra, 499 N.W.2d at 582.
Upon remand, the trial court held a conference on June 21, 1993. The court explained the purpose of the conference:
After the conference, the trial court summarily dismissed Kinsey's counterclaim, stating:
"After reconsideration, this Court continues to believe there is no genuine issue of material fact and the order of summary judgment is affirmed."
Kinsey argues on appeal that the trial court erred in deciding to summarily dismiss the counterclaim after the June 21, 1993 conference, without giving the parties an opportunity to present additional evidence and argument. We disagree. We remanded the counterclaim to the trial court to reconsider the summary dismissal of it in light of our determination in Kinsey I that there was partial insurance coverage and, consequently, that Continental did owe Kinsey, as its policyholder, a duty of good faith and fair dealing. See, e.g., Corwin Chrysler-Plymouth, Inc. v. Westchester Fire Ins. Co., 279 N.W.2d 638 (N.D.1979). Our remand did not require the trial court to hold an evidentiary hearing, but only to reconsider its summary dismissal of the counterclaim in view of our holding in Kinsey I.
Kinsey also asserts that the trial court erred in refusing to give Kinsey additional time for discovery under Rule 56(f), N.D.R.Civ.P.:
"Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present by affidavit facts essential to justify the party's opposition, the court may refuse the application for judgment or may order a continuance to permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other order as is just."
Our rule is identical to Rule 56 of the Federal Rules of Civil Procedure, so federal court interpretations of the federal rule are persuasive. Severson v. Surita, 506 N.W.2d 410 (N.D.1993); Moon v. Moon, 499 N.W.2d 597, n. 10 (N.D.1993). A request for additional time for discovery under Rule 56(f) invokes the trial court's discretion, and absent an abuse of that discretion the trial court's decision will not be overturned on appeal. American Lease Plans, Inc. v. Silver Sand Co., 637 F.2d 311 (5th Cir.1981). The trial court can, within its discretion, cut off discovery prior to ruling on a summary judgment motion, when the record indicates that further discovery will not likely produce facts necessary to defeat the motion. Fisher v. Metropolitan Life Ins. Co., 895 F.2d 1073 (5th Cir.1990); United States v. Light, 766 F.2d 394 (8th Cir.1985). It is incumbent upon the party requesting additional discovery time to bring to the court's attention reasons justifying that request. Federal Land Bank of St. Paul v. Asbridge, 414 N.W.2d 596 (N.D.1987).
Kinsey listed facts in his appellate brief that he wanted to obtain through additional discovery:
In denying the request for additional discovery, the trial court concluded that Kinsey already had considerable time to conduct discovery. We agree, and we conclude that the court did not abuse its discretion in refusing to grant Kinsey additional time for discovery under ...
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