Travelers Property Casualty Company of America v. Taisei Construction Corporation

Filing 166

JUDGMENT AFTER REMAND FROM THE NINTH CIRCUIT COURT OF APPEALS by Judge Philip S. Gutierrez: IT IS SO ORDERED, ADJUDGED AND DECREED (see document for further details) Related to: Stipulation for Judgment 164 (MD JS-6, Case Terminated). (bm)

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Case 2:15-cv-05677-PSG-PJW Document 166 Filed 02/19/20 Page 1 of 4 Page ID #:3601 E-FILED 3 FEB 19 ZQ~O 4 Document# s ~s-~ : ~~(:l~l~' ~ (,1 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA —WESTERN DIVISION 10 TRAVELERS PROPERTY CASUALTY) Case No. 2:15-cv-05677-PSG-PJW ) COMPANY OF AMERICA,a 12 Connecticut corporation; OSED]JUDGMENT AFTER ) [P MAND FROM THE NINTH 13 Plaintiff, ) CIRCUIT COURT OF APPEALS 11 14 v. 15 16 TAISEI CONSTRUCTION CORPORATION,a Delaware 18 corporation; and DOES 1 through 100 inclusive, 17 ) ) ) ) ) 19 Defendants. 2 0 ~ Date Action Filed: July 27,2015 ~ Trial Date: March 10, 2020 21 22 TO ALL PARTIES AND THEIR COUNSEL OF RECORD: 23 It appearing from the files and records in this action that: 4 2 1. On December 14, 2015, the Court granted the motion to dismiss filed by 25 TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA ("Travelers") 2 6 as to the First Amended Counter Claim filed by TAISEI CONSTRUCTION 27 CORPORATION ("Taisei"); 28 1 CASE NO.: 2:15-cv-05677-R-PJW [ PRorosEn]JUDGMENT AFTER REMAND FROM THE NINTH CIRCUIT COURT OF APPEALS /18/20 Page 4 5 Page ID 2:15-cv-05677-PSG-PJW Document 164-1 Filed 02 Case 2:15-cv-05677-PSG-PJW Document 166 Filed 02/19/20 Page 2 of3 ofPage ID #:3602 # :3554 1 2 . On November 22, 2016, the Court granted Travelers' Motion for Partial 2 Summary Judgment adjudicating Travelers' claims for declaratory relief in favor of 3 Travelers and establishing Taisei's liability as to Travelers' claims for breach of 4 ~ contract and equitable reimbursement; and 5 3. On May 15, 2017, with Taisei expressly reserving its right to appeal the 6 substantive elements of the Court's November 22, 2016, Order granting partial 7 summary judgment, Travelers and Taisei filed a stipulation that Travelers' total 8 ~ damages pursuant to its claims for breach of contract and equitable reimbursement 9 amounting to the total sum of $120,364.59; 10 4 . On May 23, 2017, the Court entered judgment in favor of Travelers; 11 5. On June 22, 2017, Taisei filed a notice of appeal; 12 6 . On February 8, 2019, the Ninth Circuit issued its Memorandum of 13 Decision affirming the dismissal of Taisei's counterclaims and remanding for further 14 proceedings as to the grant of summary judgment as to Travelers' claim for breach of 15 contract; 16 7 . On February 22, 2019, Travelers filed a petition for rehearing seeking 17 clarification as to the Memorandum ofDecision that was granted by the Ninth Circuit 18 19 on Apri125, 2019; 8 . On April 25, 2019, the Ninth Circuit issued its Amended Memorandum 2 of Decision as to the appeal by Taisei (1) affirming the dismissal of Taisei's 0 21 counterclaims, (2) confirming that the grant of summary judgment in favor of 22 Travelers as to its claim for equitable reimbursement is not disturbed by the ruling on 23 appeal,(3)remanding Travelers' breach of contract cause of action for consideration 24 ofthe settlement's effect on substantial prejudice, and (4)as for Travelers' claims for 25 declaratory relief, remanding only those that were implicated by the claim for breach 2 of contract; 6 27 28 9 . On May 17, 2019, the Ninth Circuit issued its Mandate resolving the appeal; 2 CASE NO.: 2:15-cv-05677-R-PJW [ PxorosEn]JUDGMENT AFTER REMAND FROM THE NINTH CIRCUIT COURT OF APPEALS 2:15-cv-05677-PSG-PJW Document 164-1 Filed 02 /18/20 Page 4 5 Page ID Case 2:15-cv-05677-PSG-PJW Document 166 Filed 02/19/20 Page 3 of4 ofPage ID #:3603 # :3555 1 10. On June 10, 2019, the District Court reopened this case for further 2 ~ proceedings pursuant to the Mandate of the Ninth Circuit; 3 4 1 1. On February 18, 2020, Travelers and Taisei filed a stipulation for dismissal of its breach of contract and equitable reimbursement claims, as well as the 5 ~ entry ofthis amended judgment; 6 7 Now,therefore, IT IS HEREBY ORDERED,ADJiJDGED and DECREED thatjudgment be entered as follows: 8 1. Counter-Claimant Taisei shall have no recovery against Travelers; 9 2 . Travelers' Second Cause of Action for Breach of Contract and Third 10 11 Cause of Action for Equitable Reimbursement are dismissed with prejudice; 3. As to its own duty to defend, Travelers had the right to control the defense 12 of Taisei provided by Travelers under the Valverde Policy in the underlying action of 13 Wilshire Vermont Housing Partners, LP v. Taisei Construction Corp. et al., filed in 14 the Superior Court of California for the County of Los Angeles, Case No. BC504178 15 ( Travelers had no right to control the defense provided by other carriers under different 16 17 18 policies); 4 . Taisei at no point had a right to independent counsel funded by Travelers for the defense of Taisei in the underlying action of Wilshire Vermont Housing 19 Partners, LP v. Taisei Construction Corp. et al., Los Angeles Superior Court case No. 2 0 21 BC504178; 5. Travelers is not obligated to pay for fees and costs incurred through any 22 other counsel after Travelers' appointment of the firm of Lee, Hernandez, Landrum, 23 Garofalo &Blake to defend Taisei in the underlying action of Wilshire Vermont 2 4 Housing Partners, LP v. Taisei Construction Corp. et al., Los Angeles Superior Court 25 case No. BC504178; 2 6 6 . Travelers' count for declaratory relief seeking a declaration that Taisei 27 breached its duty to cooperate with Travelers by demanding that the firm of Lee, 28 Hernandez, Garofalo &Blake withdraw as Taisei's counsel in the underlying action 3 CASE NO.: 2:15-cv-05677-R-PJW [ PxorosEn]JUDGMENT AFTER REMAND FROM THE NINTH CIRCUIT COURT OF APPEALS Case 2:15-cv-05677-PSG-PJW Document 166 Filed 02/19/20 Page 4 of5 ofPage ID #:3604 # 2:15-cv-05677-PSG-PJW Document 164-1 Filed 02/18/20 Page 4 5 Page ID # :3556 1 of Wilshire Vermont Housing Partners, LP v. Taisei Construction Corp., et al., Los 2 Angeles Superior Court case No. BC504178,is dismissed with prejudice; 3 7 . Each party is to bear its own costs in this action. 4 5 IT IS SO ORDERED,ADJUDGED AND DECREED. 6 7 8 9 ~' Dated: / g ~~ H hilip S. Gutierrez, United States District Judge 10 11 12 13 14 15 16 17 18 19 2 0 21 22 23 2 4 25 2 6 2 7 28 4 CASE NO.: 2:15-cv-05677-R-PJW [ PRorosEn]JUDGMENT AFTER REMAND FROM THE NINTH CIRCUIT COURT OF APPEALS

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