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_________________________
Nos. 95-2286
95-2287
95-2288
IN RE:
_________________________
_________________________
Before
Circuit Judges.
_______________
_________________________
on brief, for
Central Nat'l
W. Mark Wood
____________
Ins. Co.,
appellants.
Joseph L. Golden for appellees Tertiary, Inc. et al.
________________
_________________________
_________________________
SELYA, Circuit
Judge.
These appeals
commemorate the
latest flight of the phoenix that rises repeatedly from the ashes
decade ago.
Today,
we review
the district
court's actions
in an earlier opinion.
See
___
In re Two Appeals Arising Out of the San Juan Dupont Plaza Hotel
_________________________________________________________________
Fire Litig.,
___________
that
the
parameters
district
court's
that we set in
Cir. 1993).
Finding,
determinations
comport
as we do,
with
the
I.
I.
BACKGROUND
BACKGROUND
We sketch
the background of
these appeals,
cognizant
that
at 959-60.
The
smoldering
sprawling litigation
embers
of
the
that
burst
charred hotel
forth from
encompassed
the
wrongful
by more
In
an
effort
proceedings,
management
liaison
to tame
the district
system.
counsels (to
as
among
this
the
The
behemoth
court
and
devised
system included
to orchestrate
an
the
facilitate interactions
innovative
the
case-
appointment
both between
of
the
lawyers themselves);
the
formation
of a
Joint
discovery initiatives;
and
the creation
resting
like.
place for
See
___
of a
Joint Document
all pleadings,
id. at 959.
___
To pay
Depository ("JDD")
discovery materials,
as a
and the
The
appellants
(whom
we
shall
call
"the
pre-fire
insurers")
the underlying
various
litigation.1
claimants
indemnification,
expired
original
prior
and
sued
notwithstanding
to the
plaintiffs
defendants.
then
the
that
conflagration.
joined
the
settled with
pre-fire
insurers
for
all
policies
had
Not
pre-fire
the
to be
outdone, the
insurers
as
direct
Though they had been brought late into the fray, the
roughly $41,500).
slated
for use
in defraying
the
expenses associated
were
with the
case-management scheme.
Fairly early
interval, the
district court
After a lengthy
costs.
but ordered
The court
opportunity to be heard.
afforded
Moreover, it
1Nineteen
appealed.
pre-fire
One of
insurers
Only
fourteen
Co., has
since capitulated.
were
sued.
deciding
of
a case-management
system.
to seek reallocation
might
ask
circumstances
burden.
In
the
See
___
id.
___
at 965.
of those
district
warranted
costs, we remanded
court
some
to
determine
redistribution
of
as part
Because the
fair chance
so that
whether
the
they
the
payment
unrequited.
Plaza Hotel Fire Litig., MDL-721, Order No. 581 (D.P.R. Aug. 17,
________________________
1995).
On appeal,
the
pre-fire
for
evaluating case-management
had
they
contend
cost-reallocation claims.
they did
that
the
established a prima
complain that
insurers
They
that they
reallocation.
Finally,
any benefit
from the
not receive
spent, or how
They develop no
depository accounts
much, if
legal argument
any, money
out of
this
See, e.g.,
___ ____
(describing the
in
895 F.2d 1, 17
perfunctory
manner,
developed argumentation,
unaccompanied
(1st Cir.)
issues adverted to
by
some
effort
at
II.
II.
DISCUSSION
DISCUSSION
Because
the
district
court
has
spelled
out
an
its refusal
to
grant a
special dispensation
to the
pre-fire
insurers, we
First:
First:
_____
identified the
Order
here
The
general
insurers
No. 581.
because
pre-fire
They
the
trial
judge ignored
have
incorrectly
appellate review of
review is appropriate
and/or
mishandled
cost-reallocation claims
the
that we
This
be
considered in
mulling
whether
to reallocate
court-ordered
case-management expenses.
hoped
See
___
Although we
guidance
to the
at 967, we
made it very
element
to various factors.
By definition,
judge's
circumstances
conceived,
and
intimate knowledge
under
his
purposes of
Given the
which the
imposts were
familiarity with
the assessments,
of the
the nature
his front
his
to assign
of cost-sharing
of
stakes,
the
we are
to
the parties
in
progress
and
litigation's
convinced that
the district
if so,
how,
the
instance, whether,
initial
cost-sharing
Id. at 968.
___
This
issue
is
fact-sensitive,
and
even
cursory
reading of the record reveals that the district court stayed well
had suggested.
Stripped
of rhetorical
complaint
is
not
that
the judge
misunderstood
focus
is the
challenge
undeniable fact
the
that,
court's factbound
subsidize.
So
viewed,
where,
as here,
matter is
e.g.,
____
13, 1996).
conclusion
relevant
Emblematic of this
the appellants
that
the pre-fire
appeals
payments helped to
raise
judgments.
committed
id. at
___
the
at bottom,
these
insurers' real
fact-sensitive
In
to the
circumstances
trial
965, deference is
64 U.S.L.W. 4512,
due.
judge's
See,
___
in Koon, the
____
factbound dispute
on "a higher
for abuse
of the
seek to recharacterize
level of
generality."
Here, as
See id.;
___ ___
Id.
___
An
a search
see also
___ ____
875
(1st Cir.
equitable
judge,
1995)
remedies for
abuse of
trial
court's choice
discretion because
among
"the trial
evidence, is
in
scales
balance
into
a considerably
Rosario-Torres v.
______________
1989)
(reviewing a
(en
than
what
are
And
the
essentially
position to
appellate
Hernandez-Colon, 889
_______________
banc)).
transform
an
better
bring
tribunal'")
pre-fire
factual
insurers'
findings
the
(quoting
(1st Cir.
attempt
into
to
legal
standard
parties
of review.
to
costumery,"
profit
Since
by
appellate courts
dressing
factual
"will not
disputes
in
permit
`legal'
Co.,
___
880
remains
F.2d 575,
577 (1st
the appropriate
Cir.
benchmark
1989), abuse
against
of discretion
which the
district
Second:
Second:
______
that they had previously established "at least a prima facie case
_____ _____
at
968.
They
interpret this
language
as signifying
to
rebut
this prima
facie case,
and
evidence sufficient
that the
that on
district court
Two Appeals injects more into the quoted comment than the context
___________
will bear.
In
Two Appeals,
____________
reallocation because
969.
talisman
We
did not
indicating
remanded
at
we
use the
that the
the
question
of
the pre-
See id.
___ ___
phrase "prima
pre-fire
facie case"
insurers
as a
had proved
usage
was
intended merely
advisable because,
on the
hand neither a
to
Id. at
___
demonstrate
exiguous record
offered enough of
consideration of
arguments that
_________
that
968.
a remand
This
was
then before
us, the
an argument to
warrant
their claim.
We had
at
Thus, we
could say no more than that "it appears from the record
_______________
they
derived
minimal
(emphasis supplied).
benefits
And,
from
the
assessments."
Id.
___
erased any
doubt, we added:
Nonetheless,
unproven.
________
the
this
There may
hypothesis
remains
_______
. .
[T]here are
mulled on
trial
remand
judge's
important.
case must
We
pregnant questions to be
questions
viewpoint
on which
is
the
especially
be returned to the
district court
Judge Acosta.
authority
to
exercise
discretion
Judge Acosta,
in
both
therefore, had
marshalling
and
case" language
to attach
of context
insurers
Third:
Third:
_____
The district
did in
fact
receive a
an abuse-of-discretion
they received no
test.
significant
benefit from
The pre-fire
the
under
already had been completed at the time they were brought into the
case, (2)
they were
perfectly capable
rely
on the
material in
the JDD
of doing
for themselves
since they
sought
(and were
against them.3
581,
supra,
_____
We
at 9,
that these
assertions
stem from
an overly
pre-fire insurers.
though perhaps
See id.
___ ___
at 10.
not inevitable, is
We think that
supportable.
this finding,
The fact
that
concluded was
a two-edged sword.
While
it
____________________
3The
pre-fire insurers
concentrate their
The case-management
whole.
The
information
JDC
played
fire on
mattered.
the JDD
This is a myopic
pivotal
role
in
producing
the
meant
keep track of
ongoing discovery,
it also meant
service
lists,
proceedings,
memoranda,
pretrial
trial
as well
documents,
transcripts,
as docket
that they
pleadings, discovery,
records
evidence
"had
of
all
utilized
reference[s] as
court
at trials,
to all
that had
Id. at 8.
___
insurers
might have
management
devised
system
could
depended
not
preferred
that
within
the
scope
go
it
district
have operated
acted
the
to
on
alone.
court
to order all
its
case-
painstakingly
voluntary
of
so
The
basis.
It
parties both to
Since
case-management
the court
powers
in
1988),
we
give short
shrift to
the
notion that
at
(1st Cir.
the pre-fire
their defense in
Finally,
the district
that the
materials
insurers.
See
___
also
supportable.
fire insurers
the
After
discovery process.
searched,
supra, at 8-9.
_____
This finding
Thus, materials
in the
is
results of,
JDD had
to be
10
put
against them
the
underlying
litigation]
had
been
filed
[the
pre-fire
proceedings
and
have
readily
available
all
documentation
The proof of
Id. at 9.
___
the pudding is in
Faced
with
full-scale
trial preparations
discovery, and as
pretrial
resulting,
for
orders)
example,
ordering
the pendency
of
a necessary
applicable
documents and
notwithstanding
entailed
in
making
in excess
In
of
heavy use
copies
of
110 computer
terms of
of
the
over
the
JDD,
275,000
disks
that
The
of law.
In
little need
the basis
to rely on
outcome signifies
the JDD.
In an allied
that they
had
the JDD in
11
materials
(if
for no
other reason
possible denial
of their Rule 56
advantage
the
that
compilation
of
those
pre-assembled,
accessible.
materials
to guard
against the
materials were
than
In
to their
catalogued,
a similar vein,
necessarily
assisted
in
the
the
Furthermore,
litigation
of
other
issues
court to resolve
relative ease.
earlier in
trial
(including
The pre-fire
the
the burden
with
to
prove
answer
rather,
they are
to
entitled
this
ask
to reallocation)
observation
us to
accept on
in their
faith
offer no
appellate
convincing
briefs,
their assumption
but,
that the
the litigation,
in their favor.
We are
unwilling to buy so
large a pig
in so
recondite a poke.
Fourth:
Fourth:
______
the extent to
litigation
which the
affected
relative benefits
system.
and
the
district
court's
burdens imposed
In our judgment,
it is this
by
of the
underlying
evaluation
the
of
the
case-management
explains
12
their
contention that
compare
relative
the district
costs
and
court failed
benefits
between
adequately to
and
among
the
parties.
which
"dominates the
decision to
reallocating
constellation
of factors
bearing on
the
case-management
assessments
if
and
when
"it
determines that
a party
or group of
parties has
significantly
cost-sharing
derived
orders entered
those
benefits to
earlier in
the litigation,
significantly
greater or
F.2d at
966.
But
at the
same time
we
or has
lesser
emphasized that
"the
relative weight
from
to
at
situation
comparative
reallocation
expected
benefits
situation."
are
always
Id.
___
967.
salient
Even
aspect
though
of
the
This
compendium of cases)
theories of
standard.
liability
of imaginable and
illustrates
the
need for
unimaginable
flexible
13
justice, whether
benefits and
burdens demand
readjustment of a
distribution of
generic formula.
III.
III.
CONCLUSION
CONCLUSION
We need go no
this
convoluted case,
knowledge
of
strategies,
further.4
its
the issues,
the
Based on its
familiarity with
and
trial court
its
is in
awareness
the
experience with
the evidence,
of the
best position
its
parties'
to make
Here,
the trial
court
determined that
each pre-fire
expenses.
under an abuse-
v. Cryovac, Inc.,
_____________
at
liberty to
pristine
second-guess
page,
might
it.
have
Though we,
balanced
if
some
writing on
of
the
factors
____________________
4The
pre-fire
insurers
"frivolousness" of the
or
weakness
influence
Appeals,
_______
of
994 F.2d
at
decretory significance
on
what
the claims
the outcome
harp
of
is
a
967,
one of
quest
that
they
many
factors
does
Reallocating cost-sharing
the
for reallocation,
factor
term
assessments is a matter
not
that may
see
___
Two
___
carry
the
attach to it.
of equity; it
is
not a
award of
should not
be confused
with, an
under Fed.
R.
Civ. P. 11.
14
differently
systemic
or taken a divergent
benefits received
by
view of the
the pre-fire
importance of the
insurers, we
made
Affirmed.
Affirmed.
________
15