Paul Evert's RV Country, Inc. et al v. Universal Underwriters Insurance Company

Filing 130

STIPULATED JUDGMENT signed by Senior Judge William B. Shubb on 1/27/17. Judgment is entered for Defendant on the issue of whether Plaintiffs and Aaron Lyon may recover damages from Defendant based on the Punitive Damages Award, pursuant to the Co urt's ruling on that issue in its 11/18/16 Order re: Cross-Motions for Summary Judgment, Docket No. 108 . All other claims in Plaintiffs' Complaint are DISMISSED with prejudice. This dismissal does not limit the relevant evidence that Plaintiffs may use to prove a claim for damages based on Universal's alleged breach of its duties relating to the Punitive Damages Award should they prevail on their appeal of this Judgment. Defendant's claim for declaratory relief relating to the Compensatory Damage Award is DISMISSED with prejudice. Defendant's claim for declaratory relief that it provided a defense in the underlying matter as required by the Policy is DISMISSED without prejudice. Each party shall bear its own costs and attorney's fees incurred in this matter. (Becknal, R)

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1 2 3 4 5 6 7 IN THE UNITED STATES DISTRICT COURT 8 MOUND COTTON WOLLAN & GREENGRASS LLP 2200 P OWELL S TREET S UITE 1125 E MERYVILLE , C ALIFORNIA 94608 T ELEPHONE : (510) 900-9371 FACSIMILE : (510) 900-9381 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 PAUL EVERT’S RV COUNTRY, INC., PAUL EVERT and CHARLES CURTIS, 12 Case No. 1:15-cv-00124 WBS SKO STIPULATED JUDGMENT Plaintiffs, 13 v. 14 15 UNIVERSAL UNDERWRITERS INSURANCE COMPANY, 16 Defendant. 17 _____________________________________ 18 UNIVERSAL UNDERWRITERS INSURANCE COMPANY, 19 Cross-Complainant, 20 v. 21 22 PAUL EVERT’S RV COUNTRY, INC., PAUL EVERT and CHARLES CURTIS, AARON LYON and ROES 1-50, inclusive, 23 Cross-Defendants. 24 25 26 27 28 30 31 This matter arises out of the Superior Court’s judgment and award in the matter of Fresno RV et al. v. Paul Evert’s RV Country Inc. et al., Fresno Superior Court Case No. 11-CE-CG-01433. On January 17, 2014, the Superior Court awarded $500,000 in compensatory damages (“the Compensatory Damage Award”); and $3,000,000 in punitive damages against Paul Evert, 1 [PROPOSED] STIPULATED JUDGMENT - CASE NO. 1:15-CV-00124 WBS SKO 1 2 3 4 $1,000,000 in punitive damages against Charles Curtis and $80,000 in punitive damages against Aaron Lyon (“the Punitive Damage Award”). The Superior Court’s award of compensatory and punitive damages was reduced to a Judgment, and that Judgment is currently on appeal in Fresno RV, Inc. et al. v. Paul Evert's RV Country, Inc. et al., Court of Appeal Case Number F071783. 5 6 7 Plaintiffs brought this action for breach of contract and breach of the covenant of good faith and fair dealing. Defendant filed a Counter-Complaint for Declaratory Relief against Plaintiffs and Aaron Lyon. 8 MOUND COTTON WOLLAN & GREENGRASS LLP 2200 P OWELL S TREET S UITE 1125 E MERYVILLE , C ALIFORNIA 94608 T ELEPHONE : (510) 900-9371 FACSIMILE : (510) 900-9381 9 10 11 12 13 14 Defendant moved for summary judgment or, in the alternative, partial summary judgment, on all claims in the Complaint and Counter-Complaint. Plaintiffs filed a motion for partial summary judgment on Plaintiffs’ Complaint. On November 18, 2016, this Court issued its Order re: Cross-Motions for Summary Judgment, Docket No. 108. The Court’s Order granted partial summary judgment for Defendant on the issue of whether Plaintiffs and Lyon may recover damages from Defendant based on their liability for punitive damages in the underlying Fresno RV action. The Court’s Order denied the remainder of the motions. 15 16 17 18 19 20 21 22 23 The Parties have reached an agreement that the November 18, 2016 Order should become the Stipulated Judgment of the Court on the issue of whether Plaintiffs or Lyon may recover damages from Defendant based on their liability for punitive damages in the underlying Fresno RV action, subject to appeal. Plaintiffs stipulate to the dismissal with prejudice of each of Plaintiffs’ remaining claims for damages not based on the Punitive Damages Award. Defendant stipulates that in the event that the Judgment is overturned on appeal, Plaintiffs may seek damages based on Universal’s denial of coverage for the Punitive Damages Award under any theory whatsoever, including but not limited to the contention that Defendant failed to provide a defense in the underlying litigation. 24 25 26 27 28 30 31 Defendant stipulates to the dismissal with prejudice of its claim for declaratory relief relating to insurance coverage for the Compensatory Damage Award. Defendant stipulates to the dismissal of its claim for declaratory relief that it provided a defense in the underlying matter as required by the Policy, without prejudice. /// 2 [PROPOSED] STIPULATED JUDGMENT - CASE NO. 1:15-CV-00124 WBS SKO 1 2 3 The parties stipulate that each party shall bear its own costs and attorney’s fees incurred in this matter. DATED: January 27, 2017 WILKINS, DROLSHAGEN & CZESHINSKI LLP 4 By: /s/James Wilkins James H. Wilkins Attorneys for Paul Evert’s RV Country, Inc., Paul Evert and Charles Curtis 5 6 7 8 DATED: January 27, 2017 LAW OFFICES OF PETER SEAN BRADLEY MOUND COTTON WOLLAN & GREENGRASS LLP 2200 P OWELL S TREET S UITE 1125 E MERYVILLE , C ALIFORNIA 94608 T ELEPHONE : (510) 900-9371 FACSIMILE : (510) 900-9381 9 By: /s/Peter Sean Bradley Peter Sean Bradley Attorneys for Aaron Lyon 10 11 12 13 DATED: January 27, 2017 MOUND COTTON WOLLAN & GREENGRASS LLP 14 15 16 By: /s/Jonathan Gross Jonathan Gross Attorneys for Universal Underwriters Insurance Company 17 18 19 20 21 22 23 24 25 26 27 28 30 31 3 [PROPOSED] STIPULATED JUDGMENT - CASE NO. 1:15-CV-00124 WBS SKO 1 2 3 4 5 6 7 8 MOUND COTTON WOLLAN & GREENGRASS LLP 2200 P OWELL S TREET S UITE 1125 E MERYVILLE , C ALIFORNIA 94608 T ELEPHONE : (510) 900-9371 FACSIMILE : (510) 900-9381 9 10 11 12 13 14 PURSUANT TO THE PARTIES’ STIPULATION, AND GOOD CAUSE APPEARING, THE COURT ENTERS JUDGMENT AS FOLLOWS: Judgment is entered for Defendant on the issue of whether Plaintiffs and Aaron Lyon may recover damages from Defendant based on the Punitive Damages Award, pursuant to the Court’s ruling on that issue in its November 18, 2016 Order re: Cross-Motions for Summary Judgment, Docket No. 108. All other claims in Plaintiffs’ Complaint are dismissed with prejudice. This dismissal does not limit the relevant evidence that Plaintiffs may use to prove a claim for damages based on Universal’s alleged breach of its duties relating to the Punitive Damages Award should they prevail on their appeal of this Judgment. Defendant’s claim for declaratory relief relating to the Compensatory Damage Award is dismissed with prejudice. Defendant’s claim for declaratory relief that it provided a defense in the underlying matter as required by the Policy is dismissed without prejudice. Each party shall bear its own costs and attorney’s fees incurred in this matter. 15 16 17 IT IS SO ORDERED. Dated: January 27, 2017 18 19 20 21 22 23 24 25 26 27 28 30 31 4 [PROPOSED] STIPULATED JUDGMENT - CASE NO. 1:15-CV-00124 WBS SKO

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