Electronically Served 19HA-CV-18-905

3/30/2020 1:48 PM
Dakota County, MN

March 30, 2020 Reply to St. Paul

VIA ODYSSEY AND REGULAR MAIL

Darin Evavold
Deirdre Evavold
3015 30th Street Court South
St. Cloud, MN 56301

Re: S tate Farm Fire and C as u alty C om pany v.D avid V .Ru c kietal.
Declaratory Judgment Action Court File No.19HA-CV-18-905
D avid V .Ru c kietal.v.D eird re E vavold etal.
Underlying Action Court File No. 19HA-CV-18-4286
Our File No. 71428

Dear Mr. and Mrs. Evavold:

I am one of the attorneys representing State Farm in the above-referenced declaratory

judgment action. It has come to our attention that you have made an inquiry of State
Farm regarding the outcome of the mediation session that took place on March 4, 2020
before (ret.) Judge Arthur Boylan. We have previously advised Judge Abrams that the
mediation was unsuccessful by letter dated March 19, 2020. A copy of the letter was
served upon all parties through the Court’s electronic filing system, Odyssey. A copy of
that letter is enclosed for your convenience.

As you know, by Order dated September 25, 2019, Judge Abrams compelled both of
you to appear for depositions. A copy of that Order is also attached for your
convenience. We are aware that you both violated this Order and refused to appear for
your noted depositions. We would again request that you provide us dates for your
depositions. Given the current COVID-19 situation, we understand that your depositions
will likely not go forward until sometime in late April or early May. If you refuse to supply
dates by April 10, 2020, we will notice your depositions for early May.

In the event you continue to refuse to abide by the Court Order and fail to appear for
your noted depositions, we reserve the right to seek other available remedies from the
Court including, but not limited to, adverse inferences, attorney’s fees and any
appropriate contempt sanctions.

Minnesota Office 30 East 7th Street, Suite 3200 Saint Paul, MN 55101 4919 P 651 227 9411 F 651 223 5199
North Dakota Office 220 N. 4th Street, Box 1776 Bismarck, ND 58502 1776 P 701 751 6300 F 651 223 5199
Wisconsin Office 1810 Crest View Drive, Suite 2B Hudson, WI 54016 9336 P 715 246 3910 F 651 223 5199

www.hkmlawgroup.com A Professional Association

 19HA-CV-18-905

March 30, 2020

Page 2

Thank you for your attention in this matter.

Yours truly,

s /W illiam L .M oran

William L. Moran
Attorney at Law
wmoran@hkmlawgroup.com

cc: All parties and counsel of record (via e-service)

4852-2381-8936, v. 1
 19HA-CV-18-905
Filed
Filed in District Court
Court
State of
of Minnesota
3/19/2020 9:28 AM

jHKM
INNOVATION qn Results

March 19, 2020 Reply to St. Paul

VIA E-FILING

The Honorable Jerome B. Abrams

Judge of District Court
Dakota County District Court
Judicial Center
1560 Highway 55
Hastings, MN 55033

Re: State Farm Fire and Casualty Company v. David V. Rucki et al.
Declaratory Judgment Action Court File No. 19HA-CV-1 8-905
David V. Rucki et al. v. Deirdre Evavold et al.
Underlying Action Court File No. 19HA-CV- 18-4286
Our File No. 71428

Dear Judge Abrams:

I am one of the lawyers retained to represent State Farm in the above-referenced

declaratory judgment action. Pursuant to the Court's Order dated January 15, 2020, we
write to advise the Court that the remaining parties (except for Deidre Evavold)
participated in a mediation before (ret.) Judge Arthur Boylan on March 4, 2020.

No settlement was reached at mediation.

Please let us know if you have any questions.

Very truly yours,

-{#VJ X' i'fj £?L4v\

William L. Moran
Attorney at Law
wmoran@hkmlawgroup.com

WLM/ltp

cc: All parties and counsel of record ( via e-service)

4815-1316-4726, v. 1

Minnesota Office 3D East 7th Street, Suite 32CSO Saint Paul, MN 551QI 49 19 P 65 1 227 941 1 F 65 1 223 5 1 99
North Dakota Office box 1776 22Q N. 4th STREET Bismarck, ND 5S5C32 1776 P 7D 1 75 1 63O F 6 5 1 223 5199
Wisconsin Office 1 8 1 O Crest View Drive, Suite 28 Hudson, Wi 54D16 9336 P 7 1 5 246 39 1 D F651 223 5199

www. hkm fa w group, cam

A Professional Association
Electronically Served 19HA-CV-18-905
Filed in District Court
9/30/2019 11:34 AM
State of Minnesota
Dakota County, MN
9/25/2019 4:30 PM

STATE OF MINNESOTA DISTRICT COURT

COUNTY OF DAKOTA FIRST JUDICIAL DISTRICT

File No. 19HACV—18—905

State Farm Fire and Casualty Company,

Plaintiff,

v.

David V. Rucki; Samantha Rucki; Gianna

Rucki; Sandra Sue Grazzini—Rucki; Deirdre
Elise Evavold; Destiny Equine Intervention
d/b/a White Horse Ranch, a Minnesota
nonprofit corporation; Gina Schmit Dahlen;
Douglas Dahlen; Destiny Church; Steve
Quernemoen; and Trish Quernemoen;

Defendants.

David Rucki, Samantha Rucki, Gianna Rucki, File No. 19HACV—18—4286

Plaintiffs,

FINDINGS OF FACT AND

ORDER
Sandra Sue Grazzini—Rucki, Deirdre Elise
Evavold,

Defendants.

The above-entitled matters came before the Honorable Jerome B. Abrams, Judge of

District Court, on September 18, 2019, at Dakota County Western Service Center, Apple

Valley, Minnesota, upon Plaintiff State Farm’s motion to compel depositions, modify the

scheduling order and for attorney’s fees. David Rucki, Samantha Rucki and Gianna Rucki

joined in the motions in the underlying action (19HA—CV—18—4286). Defendant Deirdre

 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

Evavold also filed a counter—motion.

Attorney C. Todd Koebele appeared on behalf of the Plaintiff State Farm.

Attorney Lisa M. Elliott appeared 0n behalf of David V. Rucki, Samantha Rucki and

Gianna Rucki. David V. Rucki was personally present.

Mrs. Evavold did not appear at the hearing.

Based upon the files, records and proceedings, this Court makes the following:

FINDINGS 0F FACT

1. There is an underlying action in which Defendants Rucki commenced an action

against Mrs. Evavold and others alleging Claims for (1) loss of services of Children; (2)

intentional infliction of emotional distress; (3) negligent infliction of emotional

distress; (4) false imprisonment; (5) intentional interference with custodial

relationship; and additional counts against Mrs. Evavold of (6) defamation and

defamation perse; and (7) defamation by implication. (Amended Complaint, Dakota

County Court File No. 19HA—CV-18—4286).

2. Mrs. Evavold notified her insurance provider, Plaintiff State Farm of the underlying

action and State Farm investigated coverage. Eventually, State Farm disclaimed

coverage for all of the counts under the governing Homeowner’s Policy and the

Personal Liability Umbrella Policy.

3. State Farm commenced this declaratoryjudgment action (19HA—CV-18—905) in

February 2018 seeking a declaration that it owed no duty to defend and no duty to

indemnify Mrs. Evavold in the underlying action.

4. State Farm was granted summaryjudgment as to all the claims except Count 4 of the

Amended Complaint (false imprisonment) by Order dated May 7, 2019. The Court
 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

found a fact question remained as to “whether [Mrs.] Evavold’s purpose was part of

an uncovered intentional plan or scheme; 0r fits within the realm of a covered false

imprisonment event."

The remaining issue in this declaratoryjudgment action is whether State Farm owes

coverage obligations under the Personal Liability Umbrella Policy for the count of

false imprisonment in the underlying Amended Complaint in Court File No. 19HA—CV—

18—4286.

Following the Court’s May 7, 2019 Order, State Farm initiated discovery by serving

Notices of Taking Deposition of Mrs. and Mr. Evavold. Notices were served on July 1,

2019 with the depositions scheduled for August 13 and 14, 2019 in St. Paul,

Minnesota. State Farm requested objections by July 15, 2019.

On July 17, 2019, Mrs. Evavold emailed State Farm requesting further information

and objecting to the location of the deposition. State Farm agreed to change the

location to St. Cloud, Minnesota and advised that her deposition would take a full

day, and Mr. Evavold’s would take a haIf—day.

Mrs. Evavold mailed a letter to State Farm dated August 8, 2019, which was received

by State Farm on the day prior to the scheduled deposition. The letter informed State

Farm that neither Mrs. nor Mr. Evavold would appear for their deposition until

coverage was determined.

9. Mrs. Evavold did not appearfor deposition as scheduled on August 13, 2019.

10.State Farm had previously believed that Mr. Evavold would voluntarily appear for his

deposition and did not believe issuing a subpoena was necessary. Based on the

August 8, 2019 communication from Mrs. Evavold, State Farm issued a subpoena to

Mr. Evavold and scheduled his deposition for September 30, 2019.
 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

11.8tate Farm filed this motion to compel the deposition of Dierdre Evavold, issue a

directive to Darin Evavold to comply with the subpoena and appear for his noticed

deposition, for attorney’s fees and to modify the scheduling order. This hearing was

scheduled to be heard on September 18, 2019 at the Dakota County Western

Service Center in Apple Valley to accommodate the Court’s assigned rotation.

12.0n September 13, 2019, Mrs. Deirdre Evavold filed a motion in opposition to

Plaintiff’s motion and a counter—motion, seeking a telephone conference of the

September 18 hearing, asking the Court to deny State Farm’s motions, seeking a

stay of proceedings, requesting a Change of venue, and ordering compliance of all

parties with the mediation order dated June 14, 2019, which is scheduled for

October 1, 2019.

13.Mrs. Evavold’s motion was noticed to be heard in Hastings, however the Plaintiff’s

motion had been previously scheduled in Apple Valley through court staff. Court staff

contacted Mrs. Evavold prior to the hearing by phone and email and advised herthat

the hearing would be held in Apple Valley and that her request for a telephone

hearing was denied; therefore she would need to appear in person.

14.The motion to stay the proceedings until the duty to defend is determined is illogical

based on the fact that the sole issue of this declaratoryjudgment action is to

determine the duty to defend.

15.This matter has been pending in Dakota County since February 2018 and the

underlying action is also venued in Dakota County. The undersigned has presided

over both files and issued substantive orders.

16.0n September 18, 2019, the undersigned waited until after 9:30 a.m. before

conducting the hearing. Mrs. Evavold did not appear nor did she contact the court
 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

staff regarding her lack of appearance.

CONCLUSIONS OF LAW

. Rule 26.02 ofthe Minnesota Rules of Civil Procedure provides “Parties may

obtain discovery regarding any nonprivileged matter that is relevant to any party's

claim or defense and proportional to the needs of the case, considering the

importance of the issues at stake in the action, the amount in controversy, the

parties' relative access to relevant information, the parties' resources, the

importance ofthe discovery in resolving the issues, and whether the burden or

expense of the proposed discovery outweighs its likely benefit. Information within

this scope of discover need not be admissible in evidence to be discoverable.”

Minn.R.Civ.P. 26.02(b).

. Neither Mr. nor Mrs. Evavold has disputed the relevancy or proportionality of their

deposition. The depositions sought are within the scope of discovery.

. State Farm’s need to depose Mr. and Mrs. Evavold outweighs any alleged expense or

burden on the Evavolds. Conducting the depositions of Mr. and Mrs. Evavold priorto

mediation will aid the parties in potentially reaching resolution.

. Mrs. Evavold failed to appear for a properly noticed deposition without seeking a

protective order or explaining why her deposition falls outside the scope of discovery.

. Venue of this matter in Dakota County is proper. The right to transfer venue pursuant

to Minnesota Statutes §542.1O is no longer available and Mrs. Evavold’s request is

untimely. Transferring venue pursuant to Minnesota Statutes §542.11 is

discretionary with the Court under certain Circumstances. Mrs. Evavold has not

demonstrated sufficient reason to change venue at this time.

 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

ORDER

. Plaintiff’s motion to compel the deposition of Deirdre Evavold is GRANTED.

Deposition shall occur prior to mediation scheduled for October 1, 2019.

. Darin Evavold shall comply with the subpoena issued for his deposition and appear

as noticed on the subpoena or any rescheduled deposition. If Mr. Evavold fails to

appear, State Farm’s counsel shall advise the Court and Mr. Evavold will be subject

to contempt proceedings.

. The depositions of Mr. and Mrs. Evavold may be scheduled for the same date and

held at a courthouse location. The parties may contact the undersigned’s staff

attorney regarding dates the Court will be available (either by phone or at the

location). The parties shall contact Court Administration in order to schedule and

reserve a conference room.

. The motion to modify the scheduling order in both files is GRANTED. The deadlines

for discovery and dispositive motions shall be extended. The parties shall contact the

undersigned’s staff attorney to coordinate a scheduling conference or phone

conference regarding an amended scheduling order.

. Mrs. Evavold’s motion for a change of venue is DENIED, both as untimely and on the

merits.

. Mrs. Evavold’s motion to stay the proceedings is DENIED.

. Mrs. Evavold’s motion to require compliance with the June 14, 2019 order to attend

mediation is GRANTED in part. The parties shall attend the scheduled mediation.

Depositions shall be conducted prior to mediation.

. Plaintiff State Farm’s motion for attorney's fees is GRANTED. Counsel shall submit an

affidavit as to attorney’s fees incurred for this motion.

 19HA-CV-18-905
Filed in District Court
State of Minnesota
9/25/2019 4:30 PM

9. Ruckis’ motion for attorney’s fees is GRANTED. Counsel shall submit an affidavit as

to attorney’s fees incurred for this motion.

10.Any motions not specifically addressed in this Order are denied.

7'25 '3‘”
Dated: Z BYTHE COURT:

OW
Jerom

Juzg/eof
B. Abrams
District Court