United Pacific Energy Operations And Consulting, Inc. et al v. Gas And Oil Technologies, Inc. et al
Filing
37
ORDER GRANTING Plaintiff's Motion Objecting to Sufficiency of Undertaking, Continuing the hearing of Plaintiff's petition to invalidate third party claim and issuing preliminary injunction, signed by Judge Oliver W. Wanger on 6/10/2011. (Kusamura, W)
1
2
3
4
5
.
6
7
8
9
UNITED STATES DISTRICT COURT
10
EASTERN DISTRICT OF CALIFORNIA
11
12
UNITED PACIFIC ENERGY
OPERATIONS AND CONSULTING, INC.,
etc., et al.,
13
Plaintiffs,
14
vs.
15
CASE NO. 1:11-CV-0756-OWW-SMS
ORDER GRANTING PLAINTIFF’S
MOTION OBJECTING
TO SUFFICIENCY OF UNDERTAKING,
CONTINUING THE HEARING OF
PLAINTIFF’S PETITION TO INVALIDATE
THIRD PARTY CLAIM AND ISSUING
PRELIMINARY INJUNCTION
16
17
GAS AND OIL TECHNOLOGIES, INC.,
etc. et al.,
18
Defendants.
19
20
21
The Petition (“Petition”) to Invalidate Third Party Claim and the Notice of Motion and
22
Motion Objecting to Sufficiency of Undertaking of Tearlach Resources (California) Ltd. (the
23
“Motion”) of Plaintiff and Judgment Creditor UNITED PACIFIC ENERGY OPERATIONS
24
AND CONSULTING, INC. (“Plaintiff”), both came on for hearing on June 9, 2011, at 1:30 p.m.
25
in Courtroom 3 of the above- entitled Court, Judge Oliver W. Wanger presiding. Jack A. Draper
26
appeared in court fo Plaintiff and Richard D. Farkas appeared telephonically for the third party
27
claimant Tearlach Resources (California) Ltd. (“TRC”). The matter was argued, testimony was
28
taken and the matter was then submitted. Having duly considered the matter, and good cause
1
appearing therefore, the court makes the following findings of fact and conclusions of law and
2
issues the following orders:
3
1. The amount of the undertaking to be provided in this matter is governed by CCP
4
Section 720.630 which requires an undertaking in the amount required to satisfy the creditor’s
5
judgment or twice the market value of the property concerned.
6
2. Based on the testimony given in this matter and the admitted Plaintiff’s Exhibits 6-1, 6-
7
2 and 6-3, the court finds that the value of the lease is such that the Motion is granted and the
8
undertaking of TRC is ruled to be insufficient and is hereby ordered exonerated and expunged,
9
and an undertaking of $100,000 is required if TRC chooses to provide a subsequent undertaking
10
in this matter. The court further finds provisionally on the evidence submitted at the hearing and
11
without precluding the matter for a further or different finding at trial, that Western States
12
International Inc. is the 100% lease owner of the BLM Lease Nos. CACA 45618 and 45619 as of
13
June 7, 2011.
14
3. The court further orders, without objection by counsel, that the concurrently noticed
15
Plaintiff’s Petition hearing be continued from this date to a trial date to be held August 2, 2011.
16
A telephonic pre-trial conference is set for July 22, 2011 at 12:00 p.m. in Courtroom 3 of this
17
court, telephonic appearances permitted by counsel. The court relieves counsel of the full
18
requirements of pre-trial rules for this special proceeding, except that a joint pre-trial statement
19
with witness lists, exhibit lists and a stipulation as to the exchange and marking of exhibits
20
thereunder on or before the pre-trial date, and a stipulation that no jury is required, shall be
21
provided to the court in a proposed joint pre-trial statement, which counsel are directed to meet
22
and confer about promptly. After such meet and confer is undertaken in good faith by counsel,
23
Plaintiff’s counsel shall prepare the proposed joint pre-trial statement and file it with the court on
24
or before July 19, 2011.
25
4. Without objection by TRC counsel, and because the court finds that irreparable injury
26
would occur to Plaintiff if the Leases were to be released or otherwise disposed of due to
27
expiration of the court’s currently in force temporary restraining order (“TRO”)enjoining the
28
release of the Leases by the U.S. Marshals Service, before the ultimate resolution of Plaintiff’s
- 2 -
1
Petition to Invalidate the TRC Third Party claim (“Petition”) which is pending before this Court,
2
the Court further orders that this Court’s previously issued temporary restraining order in this
3
case dated May 27, 2011 is hereby replaced effective immediately by a preliminary injunction
4
issued hereby enjoining the U.S. Marshals Service and its agents and officers from releasing the
5
Leases until the by further order the Court dissolves such preliminary injunction in connection
6
with a final resolution of the Petition occurs by trial or other disposition approved by this Court.
7
5. Plaintiff shall serve this Order on the U.S. Marshal, and the judgment debtor, by fax or
8
email by June 10, 2011, followed by mail service thereon by June 13, 2011. TRC shall be deemed
9
served by the court’s CM/ECF system which TRC counsel subscribes to.
10
6. The Court finds that this Order is justified because without issuance of a preliminary
11
injunction, the current TRO would expire and Plaintiff would lose rights to object to the
12
sufficiency of TRC’s undertaking and because the loss of such rights would result in irreparable
13
injury to Plaintiff since Plaintiff would then lose adequate recourse to a surety to compensate
14
Plaintiff for damages due to any loss of security in valuable oil properties in case of invalidity of
15
TRC’s third party claim, which could prevent Plaintiff from satisfying its judgment.
16
IT IS SO ORDERED.
17
DATED: June 10, 2011.
18
19
/s/ Oliver W. Wanger
Oliver W. Wanger
United States District Judge
20
21
22
23
24
25
26
27
28
- 3 -
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?