Magistrate Judge James Francis
Ironshore’s Feb. 2007 investment management agreement (IMA) granted Western "sole power" over a $520 million investment portfolio. Western’s investment decisions were constrained by an "Investment Guidelines" document incorporated into the IMA. Alleging Western’s breach of contractual and fiduciary duties under the IMA, Ironshore terminated the IMA in May 2008 after losing $55.5 million. By the end of 2008 Ironshore’s net realized and unrealized losses exceeded $130 million. A pretrial scheduling order providing for expert reports and rebuttal disclosures did not provide for the exchange of reply reports. Except so as to amend certain exhibits within a rebuttal report by one of its own experts, district court denied Ironshore’s motion to serve two reply reports responding to matters which Ironshore claimed were first raised in Western’s rebuttal reports. Citing Lidle v. Cirrus Design Corp. and Brune v. Time Warner Entertainment Co. the court determined that because those rebuttal reports were limited to the same subject matters encompassed in Ironshore’s initial reports, they did not raise new, previously undiscussed matters. Thus reply expert reports by Ironshore were inappropriate.
