DISTRICT COURT OF THE VIRGIN ISLANDS
DIVISION OF ST. CROIX
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KISKIDEE, LLC d/b/a/ HIBISCUS BEACH
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RESORT and H2O RESTAURANT (a/k/a
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HIBISCUS HOTEL and H2O
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1:09-cv-77
RESTAURANT),
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Plaintiff,
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v.
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CERTAIN INTERESTED UNDERWRITERS 5
AT LLOYD’S OF LONDON SUBSCRIBING 5
TO POLICY NO. NB043060b, unicorporated
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foreign association of individuals,
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Defendant.
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__________________________________________5
TO:
Maxwell D. McIntosh, Esq.
Sharmane Davis-Brathwaite, Esq.
Matthew L. Litsky, Esq.
ORDER GRANTING DEFENDANTS’ MOTION TO STAY AND ABATE
PLAINTIFF’S CLAIM OF BAD FAITH
THIS MATTER is before the Court upon Defendants’ Motion to Stay and Abate
Plaintiff’s Claim of Bad Faith (Docket No. 10).  Because the First Amended Complaint
demonstrates Plaintiff’s concurrence that the bad faith claim contained in Count IV of said
complaint “should be stayed and abated until such time as the underlying case relating to
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Kiskidee, LLC v. Certain Interested Underwriters at Lloyd’s of London
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the action for damages is resolved,” First Amended Complaint at para. 42, this order is
issued without necessity of response.
Federal Rule of Civil Procedure 42(b) allows the Court to sever or bifurcate: “For
convenience, to avoid prejudice, or to expedite and economize, the court may order a
separate trial of one or more separate issues, claims, crossclaims, counterclaims, or
third-party claims.”  Id.  Under this rule, courts are “afforded large discretion in deciding
whether to sever claims for trial.”  Miller v. Hygrade Food Products Corp., 202 F.R.D. 142, 145
(E.D. Pa. 2001) (citations omitted) (cited in Nationwide Mutual Ins. Co. v. Garzone, Civil
Action Nos. 07-4767, 08-3895, 2009 WL 2996468, at *26 (E.D. Pa. September 17, 2009) (slip
copy)).
In the matter at bar, the Court finds that severance of the bad faith claim is required
because “in the Virgin Islands, in order to make out a cause of action for the tort of bad
faith a plaintiff [is] required to show . . . the existence of an insurance contract between the
parties and a breach by the insurer.”  Justin v. Guardian Inc. Co., Inc., 670 F. Supp. 614, 617
(D.V.I. 1987).  Thus, Plaintiff must prevail on Count I of its said complaint before it even can
make a prima facie bad faith claim.
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Kiskidee, LLC v. Certain Interested Underwriters at Lloyd’s of London
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Accordingly, it is now hereby ORDERED:
1.
Defendants’ Motion to Stay and Abate Plaintiff’s Claim of Bad Faith (Docket
No. 10) is GRANTED.
2.
Count IV of Plaintiff’s First Amended Complaint is SEVERED.
3.
All litigation relative to Count IV of Plaintiff’s First Amended Complaint is
STAYED until Count I of said complaint is resolved.
ENTER:
Dated: June 18, 2010
/s/ George W. Cannon, Jr.                           
GEORGE W. CANNON, JR.
U.S. MAGISTRATE JUDGE
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