Westchester Surplus Lines Insurance v. Strongtower Financial Inc. et al

Filing 108

JUDGMENT signed by Magistrate Judge Barbara A. McAuliffe on 11/5/2014. (Marrujo, C)

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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 WESTCHESTER SURPLUS LINES INSURANCE COMPANY Plaintiff, 12 13 14 15 16 17 18 19 20 21 22 Case No. 1:13-CV-00383-LJO-BAM v. STRONGTOWER FINANCIAL INC., a California Corporation; DEANNA L. BUCHHOLZ, an individual; ERIC HIRSCHFIELD, an individual; JAMES WINTER an individual; KATHERINE S. WESTLAKE an individual; RAYMOND K. JONES an individual; ANA GONZALEZ, an individual and trustee of Gonzalez Trust UAD 5-29-07 and the Estate of Cesar T. Gonzalez; VICTOR MICHELS, an individual, JEFFREY S. RAYNES, an individual and as trustee of the Jeffrey S. Raynes Defined Benefit and 401K Profit Sharing Plan and Trust; RANDI ARMSTRONG, an individual, AND KATHERINE A. GARRETT, an individual; and DOES 1-250 JUDGMENT 23 Defendants 24 25 26 27 28 Pursuant to the stipulated judgment filed on October 28, 2014 (Doc. 107), judgment shall be entered between Plaintiff, Westchester Surplus Lines Insurance Company (“Westchester”) and Defendant, Strongtower Financial Inc. (“Strongtower”) as follows: 1 JUDGMENT 1 It is adjudicated, judged and decreed that: 2 1. The Wrongful Acts set forth in the Notice of Potential Claims letter and all other 3 Wrongful Acts alleged against Strongtower and its employees and representatives 4 up to the present date constitute Interrelated Wrongful Acts and all Claims arising 5 out of such Interrelated Wrongful Acts including, but not limited to, the Raynes, 6 Michels, Garrett, and Gonzalez Claims, constitute a single Claim made during the 7 First Policy period and not a Claim made under the Second Policy regardless of 8 when actually made or reported. 9 10 11 12 2. Under the First Policy, all Loss resulting from a single Claim is a single Loss and subject to a limit of $500,000 including Defense Costs. 3. All Claims under the First Policy arising out of Interrelated Wrongful Acts are subject to a single limit of $500,000 including Defense Costs. 13 4. Westchester has fully and completely exhausted its per Claim limit of the First 14 Policy. The First Policy has expired and Westchester has no further obligations 15 under the First Policy. 16 5. Other than Claims which allege Wrongful Acts which are Interrelated Wrongful 17 Acts with the Wrongful Acts set forth in the Notice of Potential Claims letter sent 18 during the First Policy Term, no Claims were made and reported to Westchester 19 during the Second Policy term or thereafter. 20 6. Other than notices of potential Claims which allege Wrongful Acts which are 21 Interrelated Wrongful Acts with the Wrongful Acts set forth in the Notice of 22 Potential Claims letter sent during the First Policy term, no notice was given to 23 Westchester of potential Claims or Wrongful Acts during the Second Policy term or 24 thereafter. 25 26 7. The Second Policy has expired and Westchester has no further obligations under the Second Policy. 27 8. Westchester has no duty to defend or indemnify any Claims until the Self Insured 28 Retention applicable to each such Claim is paid by the Insureds against whom such 2 JUDGMENT 1 Claim is made and may not be paid on any Insured’s behalf by any person or 2 organization. 3 9. Each party shall bear its own costs and attorney’s fees. 4 5 6 IT IS SO ORDERED. Dated: /s/ Barbara November 5, 2014 A. McAuliffe _ UNITED STATES MAGISTRATE JUDGE 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 JUDGMENT

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