S-12-0983, Fred Breci, William Gallo, Henry Kammerer, Michael Kros, Carl Launder, Steven Slater, S. Anthony Siahpush (Appellants) v. St Paul Mercury Ins. Co. (Appellee) and Union Pacific Streamliner Federal Credit Union (Intervenor-Appellant).
Douglas County, Judge W. Russell Bowie, III
Attorneys: Amy Jorgensen, C. Thomas White, Thomas M. White (White & Jorgensen) (Appellants) – Thomas A. Grennan, Abbie M. Schurman (Gross & Welch) (Appellee)
Civil: Declaratory Judgment; insurance coverage
Proceedings Below: The district court granted summary judgment in favor of St. Paul Mercury Ins. Co.
Issues: (1) The District Court abused its discretion in vacating its Order granting declaratory judgment to the Plaintiff-directors. (2) The District Court abused its discretion in allowing the Appellee to amend its pleadings and assert various new defenses several years into litigation and after the Appellant detrimentally relied on the Appellee's stated defenses when it attended the court-ordered mediation. Upon reliance of those defenses and in compliance with the District Court's order to mediate, the Appellant accepted an assignment of the Plaintiff-Directors' rights as part of a settlement mediated in good faith. (3) The District Court abused its discretion by denying the Appellant discovery on St. Paul Mercury's new defenses before deciding summary judgment. (4) The District Court abused its discretion by denying the Appellant a postponement of the summary judgment hearings. (5) The District Court abused its discretion in granting the Appellee's Second Motion for Summary Judgment.