Allied World National Assurance Co., et al. v. SK PM Corp. et al.

Filing 109

STIPULATION and ORDER Re Settlement Notice and Continuing Deadlines signed by District Judge Lawrence J. O'Neill on 12/20/2012. (Sant Agata, S)

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TROUTMAN SANDERS LLP
Terrence R. McInnis, Bar No. 155416
[e-mail]
Kevin F. Kieffer, Bar No. 192193
[e-mail]
Peter R. Lucier, Bar No. 246397
[e-mail]
5 Park Plaza, Suite 1400
Irvine, CA 92614-2545
Telephone: [phone]
Facsimile: 949.622.2739
Attorneys for Plaintiffs Allied World National
Assurance Company and Allied World Assurance
Company (U.S.) Inc.
Please see continuation page for a complete list
of parties and their counsel

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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ALLIED WORLD NATIONAL
ASSURANCE COMPANY, a New
Hampshire corporation, and ALLIED
WORLD ASSURANCE COMPANY (U.S.)
INC., a Delaware corporation,
Plaintiffs,

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v.

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SK PM CORP., a California corporation aka
“S.K. Foods PM Corp.,” SK FOODS, L.P., a
California limited partnership, FREDERICK
SCOTT SALYER, an individual,
BLACKSTONE RANCH, a California
corporation aka “Blackstone Ranch Calif ‘S’
Corp,” SCOTT SALYER REVOCABLE
TRUST, a trust, THE CAROLINE GAZELLE
SALYER IRREVOCABLE TRUST, a trust,
THE STEFANIE ANN SALYER
IRREVOCABLE TRUST, a trust, SS FARMS,
LLC, a California limited liability company,
SK FOODS, LP

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Case No. 1:10–CV–01262–LJO–JLT
Hon. Lawrence J. O’Neill
Hon. Jennifer L. Thurston
NOTICE OF SETTLEMENT AND
STIPULATION AND ORDER
CONTINUING DEADLINES

COURT LANGUAGE ADDED
TO ORDER

(caption continued on next page)

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Trial set for: April 1, 2014

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401K PLAN, an ERISA plan aka “SK Foods
L.P. Blackstone Ranch & SK Foods L.P. 401K
Plan,” SARS, LLC, a California limited
liability company, CSSS LP, a California
limited partnership d/b/a Central Valley
Shippers, SK FOODS LLC, a Nevada limited
liability company, S.K. FOODS PM CORP., an
entity or a d/b/a of unknown legal capacity,
SKF AVIATION, LLC, a California limited
liability company, SSC FARMING, LLC, a
California limited liability company, RHM
INDUSTRIAL/SPECIALTY FOODS, INC., a
California corporation d/b/a Colusa County
Canning Company and d/b/a SK Foods –
Colusa Canning, CARMEL WINE
MERCHANTS LLC, a California limited
liability company, CIRCLE PACIFIC LTD., a
New Zealand company, SUNRISE COAST
JAPAN, an entity or a d/b/a of unknown legal
capacity, SSC FARMS I, LLC, a California
limited liability company, SSC FARMS II,
LLC, a California limited liability company,
SK FARM SERVICES, LLC, a California
limited liability company, SK FROZEN
FOODS, LLC, a California limited liability
company, SALYER AMERICAN
INSURANCE SERVICES, a California limited
liability company, SSC FARMS III, LLC, a
California limited liability company, SALYER
AMERICAN COOLING, a general
partnership, , and SALYER AMERICAN
FRESH FOODS, a California corporation,

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Defendants.
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Continuation Page

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Gregory C. Nuti (CSBN 151754)
[e-mail]
Kevin W. Coleman (CSBN 168538)
[e-mail]
Kathryn N. Richter (CSBN 100129)
[e-mail]

Attorneys for Bradley D. Sharp, Chapter 11
Trustee

SCHNADER HARRISON SEGAL & LEWIS LLP

One Montgomery Street, Suite 2200
San Francisco, California 94104-5501
Telephone: [phone]
Facsimile: 415.364.6785
LAW OFFICES OF DAVID C. WINTON
David C. Winton, Bar No. 152417
[e-mail]
2 Ranch Drive, Suite 8
Novato, CA 94945
415.421.5800 Tel
415.358.4122 Fax

Counsel for Frederick Scott Salyer individually
and as trustee for the Scott Salyer Revocable
Trust, Robert Pruett, Trustee for the Caroline
Gazelle Salyer 1999 Irrevocable Trust, the
Caroline Gazelle Salyer 2007 Irrevocable
Trust, the Stefanie Ann Salyer 1999 Irrevocable
Trust and the Stefanie Ann Salyer 2007
Irrevocable Trust, SK PM Corp., aka “S.K.
Foods PM Corp.,” Blackstone Ranch, aka
“Blackstone Ranch Calif ‘S’ Corp,” SS Farms,
LLC, SARS, LLC, CSSS LP, d/b/a Central
Valley Shippers, SK Foods LLC, S.K. Foods
PM Corp., SKF Aviation, LLC, SSC Farming
LLC, SSC Farms I, LLC, SSC Farms II, LLC,
SSC Farms III, LLC, SK Farm Services, LLC,
SK Frozen Foods, LLC

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NOTICE OF SETTLEMENT AND STIPULATION AND
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TO THE COURT, ALL PARTIES, AND/OR THEIR ATTORNEYS OF RECORD:

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PLEASE TAKE NOTICE THAT Plaintiffs Allied World National Assurance Company

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(“Allied World”) and Allied World Assurance Company (U.S.) Inc. (“AWAC”) (collectively

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“Plaintiffs”) have reached a settlement in principle with all remaining defendants in the above-

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captioned action, with the exception of the defendants against whom the Clerk has already

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entered default.1 Accordingly, as set forth below, the parties stipulate and respectfully request

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that the Court enter an Order continuing certain upcoming deadlines to allow time to complete the

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settlement and dismissal of this action.

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WHEREAS, the Plaintiffs have reached separate agreements with two groups of

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defendants. First, Plaintiffs have reached a settlement in principle with the Chapter 11 Trustee for

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SK Foods, L.P. and RHM Industrial/Specialty (collectively the “Debtors”). Second, the Plaintiffs

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have reached a settlement in principle with the following parties, who are referred to collectively

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as the “Salyer Parties”:
1) Frederick Scott Salyer, individually and as trustee for the Scott Salyer

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Revocable Trust,

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2) Robert Pruett, Trustee for the Caroline Gazelle Salyer 1999 Irrevocable Trust

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and the Caroline Gazelle Salyer 2007 Irrevocable Trust (sued as The Caroline

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Gazelle Salyer Irrevocable Trust), the Stefanie Ann Salyer 1999 Irrevocable

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Trust and the Stefanie Ann Salyer 2007 Irrevocable Trust (sued as The

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Stefanie Ann Salyer Irrevocable Trust),

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3) SK PM Corp., aka “S.K. Foods PM Corp.,”

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4) Blackstone Ranch, aka “Blackstone Ranch Calif ‘S’ Corp,”

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5) SS Farms, LLC,

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6) SARS, LLC,

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On May 5, 2011, the Clerk entered default against Defendants Circle Pacific Ltd., SK Foods, LP
401K Plan, and Sunrise Coast Japan. (Doc. # 62.) On May 6, 2011, the Clerk entered default
against Salyer American Fresh Foods, Salyer American Insurance Services. (Doc. No. 65.)
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10) SKF Aviation, LLC,

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11) SSC Farming LLC,

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12) SSC Farms I, LLC,

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13) SSC Farms II, LLC,

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14) SSC Farms III, LLC,

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15) SK Farm Services, LLC,

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16) SK Frozen Foods, LLC,

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17) Carmel Wine Merchants LLC, and

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9) S.K. Foods PM Corp.,

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8) SK Foods LLC,

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7) CSSS LP, d/b/a Central Valley Shippers,

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18) Salyer American Cooling;

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WHEREAS, the parties are in the process of preparing formal settlement documentation.
The parties anticipate that the settlements will be finalized within the next two weeks;
WHEREAS, upon finalization of Plaintiffs’ settlement with the Salyer Parties, Plaintiffs
and the Salyer Parties shall file a dismissal of the present action as to the Salyer Parties;
WHEREAS, Plaintiffs’ settlement with the Chapter 11 Trustee will be contingent on the

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issuance of orders from the Bankruptcy Court approving the settlement agreement in the Debtors’

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consolidated bankruptcy proceedings, captioned In re SK Foods, L.P., No. 09-29162-D-11

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(Bankr. E.D. Cal.), and In re RHM Industrial/Specialty Foods, Inc., No. 09-29161-D-11 (Bankr.

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E.D. Cal.) (collectively the “Bankruptcy Proceedings”).

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WHEREAS, as soon as Plaintiffs’ settlement with the Chapter 11 Trustee is finalized, the

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Chapter 11 Trustee shall file a motion to approve the settlement in the Bankruptcy Proceedings

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pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure (“Motion to Approve

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Compromise”). Subject to the Bankruptcy Court’s calendar, the Parties anticipate that the Motion

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to Approve Compromise will be heard on January 16, 2012.

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WHEREAS, as soon as possible after the Bankruptcy Courts’ approval of the settlement

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with the Chapter 11 Trustee, Plaintiffs and the Chapter 11 Trustee shall file a dismissal of this

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action as to the Chapter 11 Trustee.

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WHEREAS, in light of the anticipated settlement of the present action, which is

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contingent on a Bankruptcy Court order approving the Plaintiffs’ settlement with the Chapter 11

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Trustee, the parties believe that good cause exists to modify certain upcoming deadlines in this

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action, as described below;

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NOW THEREFORE, the parties, through counsel, hereby STIPULATE and REQUEST
that the Court enter an Order that:
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That the deadline for the Chapter 11 Trustee to respond to the First Amended

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Complaint is extended until 14 days after the Bankruptcy Court rules on the Motion to Approve

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Compromise, and all rights to appeal have elapsed;

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2.

That the deadline for Plaintiffs and the Chapter 11 Trustee to exchange initial

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disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is extended until 14 days after the Bankruptcy

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Court rules on the Motion to Approve Compromise, and all rights to appeal have elapsed;

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3.

That the deadline for the Salyer Parties to respond to the First Amended Complaint

is extended until February 1, 2013;
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That the deadline for Plaintiffs and the Salyer Parties to exchange initial

disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is extended to February 1, 2013;
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That the Mid-Discovery Status Conference currently set for January 11, 2013, at

9:15 a.m., is continued until further Order of the Court; and
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That the Settlement Conference currently set for January 17, 2013, at 1:30 p.m., is

continued until further Order of the Court.

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Dated: December 19, 2012

TROUTMAN SANDERS LLP

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By: /s/ Peter R. Lucier
Terrence R. McInnis
Kevin F. Kieffer
Peter R. Lucier

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Attorneys for Plaintiffs Allied World National
Assurance Company and Allied World Assurance
Company (U.S.) Inc.

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Dated: December 19, 2012

LAW OFFICES OF DAVID C. WINTON

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By: /s/ David C. Winton (as authorized 12/14/2012)
David C. Winton

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Counsel for the “Salyer Defendants,” listed above

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Dated: December 19, 2012

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SCHNADER HARRISON SEGAL & LEWIS LLP

By: /s/ Kathryn N. Richter (as authorized 12/13/2012)
Gregory C. Nuti
Kevin W. Coleman
Kathryn N. Richter

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Attorneys for Bradley D. Sharp, Chapter 11
Trustee

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CERTIFICATION

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Pursuant to Local Rule 131(e), I, PETER R. LUCIER, certify that on December 13 and

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14, 2012 David C. Winton and Kathryn N. Richter authorized me to submit this Notice of

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Settlement and Stipulation and [Proposed] Order Continuing Deadlines on their behalf.

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ORDER

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Pursuant to the foregoing, this Court hereby Orders:

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That the deadline for the Chapter 11 Trustee to respond to the First Amended

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Complaint is extended until 14 days after the Bankruptcy Court rules on the Motion to Approve

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Compromise, and all rights to appeal have elapsed;

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2.

That the deadline for Plaintiffs and the Chapter 11 Trustee to exchange initial

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disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is extended until 14 days after the Bankruptcy

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Court rules on the Motion to Approve Compromise, and all rights to appeal have elapsed;

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3.

That the deadline for the Salyer Parties to respond to the First Amended Complaint

is extended until February 1, 2013;
4.

That the deadline for Plaintiffs and the Salyer Parties to exchange initial

disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is extended to February 1, 2013;
5.

That the Mid-Discovery Status Conference currently set for January 11, 2013, at

9:15 a.m., is continued until further Order of the Court; and
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That the Settlement Conference currently set for January 17, 2013, at 1:30 p.m., is

continued until further Order of the Court.

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This Court FURTHER ORDERS the parties to diligently complete settlement and to

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file status reports every 45 days, starting January 30, 2013, to address the completion

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of settlement.

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IT IS SO ORDERED.
Dated:

/s/ Lawrence J. O’Neill

December 20, 2012

UNITED STATES DISTRICT JUDGE
DEAC_Signature-END:

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