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

Filing 111

Joint Report Regarding Settlement Status and STIPULATION and ORDER Continuing Deadlines, signed by District Judge Lawrence J. O'Neill on 1/30/2013. (The deadline for the Salyer Parties to respond to the First Amended Complaint is further ex tended until 3/15/2013, the deadline for Plaintiffs and the Salyer Parties to exchange initial disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is further extended to 3/15/2013, and the parties are to continue to complete settlement diligently and to file status reports every 30 days, starting 3/1/2013 to address completion of settlement.)(Gaumnitz, R)

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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.

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

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,” LISA CRIST, an individual, MARK
MCCORMICK, an individual,
(caption continued on next page)

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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
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, SALYER WESTERN COOLING
COMPANY, a general partnership, YUMA
AMERICAN COOLING CORPORATION, an
entity or a d/b/a of unknown legal capacity,
SAWTOOTH COOLING, LLC, a California
limited liability company, and SALYER
AMERICAN FRESH FOODS, a California
corporation,

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Defendants.
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Continuation Page
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

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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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This status report is being filed pursuant to this Court’s December 20, 2012 order that the

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parties file status reports addressing the completion of settlement every 45 days beginning on

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January 30, 2013. As the parties previously reported to the Court in their Notice of Settlement

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and Stipulation and [Proposed] Order Continuing Deadlines (“Notice of Settlement”), Plaintiffs

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Allied World National Assurance Company (“Allied World”) and Allied World Assurance

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Company (U.S.) Inc. (“AWAC”) (collectively “Plaintiffs”) have reached a settlement in principle

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with all remaining defendants in the above-captioned action, with the exception of the defendants

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against whom the Clerk has already entered default.1

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A.

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The Settlement Involves Two Separate Agreements With Two Groups of
Defendants

As the parties previously reported to the Court, Plaintiffs have reached separate

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agreements with two groups of defendants. First, Plaintiffs have reached a settlement in principle
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with the Chapter 11 Trustee for SK Foods, L.P. and RHM Industrial/Specialty (“Chapter 11
Trustee”). Second, the Plaintiffs have reached a settlement in principle with the following parties,
who are referred to collectively as the “Salyer Parties”:

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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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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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6) SARS, LLC,

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

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8) SK Foods LLC,

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9) S.K. Foods PM Corp.,

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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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18) Salyer American Cooling.

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B.

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Counsel for Plaintiffs have exchanged proposed settlement agreements with respective

The Formal Settlement Agreements are Largely Finalized

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counsel for both groups of defendants. The formal settlement agreements have largely been

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finalized, but still await final approval of their form by the respective parties.

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C.

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Finalization of the Salyer Parties’ Settlement Has Been Delayed Due to a
Recent Discovery that Receivers Have Been Appointed for Several of the
Salyer Parties

On December 21, counsel for the Salyer Parties first informed counsel for Plaintiffs that

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several of the Salyer Parties have had entered receivership. As a result, there is some uncertainty

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regarding who has the authority to execute the settlement agreement on behalf of these parties.

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Counsel for the Salyer Parties has been in contact with the receiver for these parties, and

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expects to have confirmation regarding who has the authority to execute the settlement agreement

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within the next several days. Once the confusion over who has authority to enter into the

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settlement agreement is resolved, the parties expect to finalize the settlement agreements and

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proceed with seeking bankruptcy court approval of the Chapter 11 Trustee settlement agreement

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and the dismissal of this action as more fully set forth in the parties’ Notice of Settlement.
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At the present time, the parties do not believe that the current confusion over who has
authority to enter into the settlement agreement will jeopardize the settlement in any way.

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D.

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NOW THEREFORE, in light of the foregoing, the parties, through counsel, hereby

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The Parties Stipulate and Request that Certain Deadlines Are Continued

STIPULATE and REQUEST that the Court enter an Order that:
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That the deadline for the Salyer Parties to respond to the First Amended Complaint

is further extended until March 15, 2013; and
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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 further extended to March 15, 2013.

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Dated: January 30, 2013

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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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TROUTMAN SANDERS LLP

Dated: January 30, 2013

LAW OFFICES OF DAVID C. WINTON

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By: /s/ David C. Winton (as authorized 1/29/2013)
David C. Winton

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Counsel for the “Salyer Defendants,” listed
above

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Dated: January 30, 2013

SCHNADER HARRISON SEGAL & LEWIS LLP

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By: /s/ Kathryn N. Richter (as authorized 1/29/2013)
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 January 29, 2013

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David C. Winton and Kathryn N. Richter authorized me to submit this Joint Report Regarding

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

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JOINT REPORT REGARDING SETTLEMENT JOINT REPORT
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ORDER

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Pursuant to the foregoing, this Court hereby Orders:

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1.

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

is further extended until March 15, 2013; and
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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 further extended to March 15, 2013.

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This Court FURTHER ORDERS the parties to continue to complete settlement

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diligently and to file status reports every 30 days, starting March 1, 2013 (or sooner

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as necessary), to address completion of settlement.

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IT IS SO ORDERED.
Dated:

/s/ Lawrence J. O’Neill

January 30, 2013

UNITED STATES DISTRICT JUDGE
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