S.V. v. Delano Union Elementary School District, et al.
Filing
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ORDER Directing Plaintiff's Guardian Ad Litem to File Supplemental Documentation in Support of 73 Motion to Withdraw Funds signed by District Judge Dale A. Drozd on 8/3/2020. (Jessen, A)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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S.V., a minor, by and through her Guardian ad
Litem, CLAUDIA VALENCIA,
Plaintiff,
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v.
DELANO UNION ELEMENTARY SCHOOL
DISTRICT, et al.,
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Defendants.
No.: 1:17-cv-00780- LJO-JLT
ORDER DIRECTING PLAINTIFF’S
GUARDIAN AD LITEM TO FILE
SUPPLEMENTAL DOCUMENTATION IN
SUPPORT OF MOTION TO WITHDRAW
FUNDS
(Doc. No. 73)
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Before the court for decision is plaintiff’s third request to withdraw from the blocked account
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established in minor plaintiff S.V.’s name as part of the settlement of this action. (Doc. No. 73.) For
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the reasons discussed below, the court orders plaintiff, through her guardian ad litem, Claudia Valencia,
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to provide supplemental documentation in support of the motion to withdraw funds designated for
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minor S.V.
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BACKGROUND
In her underlying complaint, S.V. alleged that while she was in the fifth grade at Del Vista Math
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& Science Academy within Delano Union Elementary School District, she was verbally harassed in
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front of other students by one of her teachers who, among other things, used overtly discriminatory
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language to humiliate her. (Doc. No. 34.) In May 2019, S.V., through her guardian, entered into a
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settlement agreement to resolve this matter in its entirety. (Doc. No. 62.) Pursuant to that settlement
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agreement, defendants agreed to pay $45,000.00. (Doc. No. 64-1, Ex. 1 at 9.) After attorney’s fees and
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costs were awarded to plaintiff’s counsel, $25,713.53 of the total settlement fund was placed in a
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blocked account for S.V., designated to remain there until she reaches the age of 18. (Doc. No. 64-3.)
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The settlement provides that the “money distributed to Plaintiffs shall be placed in a blocked account or
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otherwise permitted by the court in approving this minor’s compromise.” (Doc. No. 64-1, Ex. 1 at 9.)
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In petitioning for approval of the settlement, S.V.’s guardian ad litem (GAL), her mother Claudia
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Valencia, acknowledged on June 14, 2019, that “these funds may not be withdrawn before S.V. reaches
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the age of majority, 18 years old.” (Doc. No. 64-2 ¶ 6.) Also contained in the petition for approval of
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settlement, plaintiffs requested the court to “issue an order that no withdrawal may be made from [the]
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blocked account without further Court order under this case number, signed by a judicial officer, and
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bearing the seal of this Court, until the minor, S.V., attains the age of 18 years old.”1 (Doc. No. 64 at 7
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(emphasis added).)
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On June 27, 2019, the assigned magistrate judge issued findings and recommendations,
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recommending that the petition to approve settlement of the minor’s claims be approved in full. (Doc.
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No. 65 at 6.) On July 19, 2019, the previously assigned district judge adopted the findings and
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recommendations, granting the petition to approve settlement of the minor’s claims. (Doc. No. 66.)
On September 3, 2019, Claudia Valencia filed a request to withdraw funds indicating that S.V.’s
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family has “personal matters” and that S.V. “needs money for her education, and essential necessities,”
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but did not provide any other details in support of that request apart from indicating that Claudia
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Valencia’s “husband’s salary is not enough to support our family at this time.” (Doc. No. 69.) The
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previously assigned district judge denied that request without prejudice. (Doc. No. 70.)
On September 26, 2019, Claudia Valencia filed a revised request, again seeking to withdraw
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$4,000.00 from the blocked account established in minor plaintiff S.V.’s name. (Doc. No. 71.) In the
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September 26, 2019 filing, Claudia Valencia indicated that: (1) she has a medical condition that
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prevents her from working; and (2) her husband was injured at work and had to be off work for an
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(See also Doc. No. 64-3 at 3) (plaintiff’s proposed order requesting the court to order that “[n]o
withdrawals of the principal or interest shall be made from the block[ed] account or accounts without a
written order under this case name and number, signed by a judge, and bearing the seal of this Court,
until the minor obtains the age of 18 years.”) (emphasis added).
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unspecified period of time beginning in September of this year; and (3) it was unclear at the time of her
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request whether her husband would receive workman’s compensation benefits. (Id.) Claudia Valencia
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indicated that if her husband is unable to work and/or does not receive workman’s compensation
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benefits, the family would be struggling to pay their upcoming expenses. (Id.) While the previously
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assigned district judge found Claudia Valencia’s assertions of financial difficulty to be credible and
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expressed sympathy regarding the family’s situation, the request for withdrawal was denied because
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“the minor’s funds cannot be used to support the family.” (Doc. No. 72.) The court indicated that “[t]o
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find otherwise would be to disregard the very reason why the funds were placed in a blocked account in
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the first place.” (Id.)
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In a letter dated July 12, 2020, S.V. now petitions the court to withdraw $5,000.00, indicating
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that she: (1) needs a new computer for school; and (2) wishes to purchase certain other, unspecified
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items and pay for driving classes because she wants to start her own business “and help my family
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because the pandemic really affected us.” (Doc. No. 73.)
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DISCUSSION
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No settlement or compromise of “a claim by or against a minor or incompetent person” is
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effective unless it is approved by the court. E.D. Cal. L.R. 202(b). The purpose of requiring the court’s
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approval is to provide an additional level of oversight to ensure that the child’s interests are protected.
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See R.D.G. v. City of Bakersfield, No. 1:13-cv-02057-JLT, 2015 WL 5732615, at *1 (E.D. Cal. Sept.
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28, 2015). “Federal courts generally require that claims by minors . . . be settled in accordance with
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applicable state law.” Walden v. Moffett, No. 1:04-cv-6680-LJO-DLB, 2007 WL 2859790, at *3 (E.D.
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Cal. Sept. 20, 2007); MAP v. City of Bakersfield, No. 1:08-cv-0540-DLB, 2009 WL 179771, at *2
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(E.D. Cal. Jan. 23, 2009). In California, a settlement or compromise of a minor’s claim is not
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enforceable without court approval. Cal. Prob. Code §§ 2504, 3611; Cal. Civ. Proc. Code § 372 (“The
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. . . guardian ad litem so appearing for any minor . . . shall have power, with the approval of the court in
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which the action or proceeding is pending, to compromise the same . . . .”). Further, under California
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law, a court may order that:
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[T]he remaining balance of any money paid or to be paid be deposited in an insured
account in a financial institution in this state . . . subject to withdrawal only upon
authorization of the court, and that the remaining balance of any other property delivered
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or to be delivered be held on conditions the court determines to be in the best interests of
the minor or person with a disability.
Cal. Prob. Code § 3611(b) (emphasis added).
“Under a blocked account, the proceeds are ordered deposited with a bank . . . or like financial
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institution, with any withdrawals subject to prior court approval during the child’s minority.” Haning,
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Flahavan, Cheng & Wright, Cal. Prac. Guide: Pers. Inj. Ch.4-G, § 4:1532 (Sept. 2019 update) (citing
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Cal. Prob. Code §§ 3413(a), 3611(b); Cal. R. Ct. 3.1384(b) (“An order for the . . . petition for the
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withdrawal of . . . [a minor’s] funds, must comply with rules 7.953 and 7.954”), 7.953 & 7.954); cf.
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Christensen v. Super. Ct., 193 Cal. App. 3d 139, 144 (1987) (“Certainly the court has a duty to protect
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the minor’s property from wrongful dissipation by a parent. But the need for doing so should be
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evaluated in each case and the method of safeguarding should be tailored to the circumstances.”);
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McCue v. South Fork Union Sch. Dist., No. 1:10-cv-00233-LJO-MJS, 2012 WL 2995666, at *6 (E.D.
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Cal. July 23, 2012) (noting court would be receptive to alternative distribution structure where minor’s
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net settlement funds were placed in “blocked savings account subject to withdrawal before age 25 only
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for educational purposes” to “protect the minor from a young adult’s often immature judgment”). For
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the withdrawal of funds deposited for a minor, the California Rules of Court require that the petition
“must be verified and must include the identity of the depository, a showing of the amounts previously
withdrawn, a statement of the balance on deposit at the time of the filing of the petition, and a
justification for the withdrawal.” Cal. R. Ct. 7.954(a). Rule 7.954(b) further provides that a “petition
for the withdrawal of funds may be considered ex parte or set for a hearing at the discretion of the
court.” Id. at R. 7.954(b).
Here, the previously assigned district judge approved the settlement of the minor’s claims.
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(Doc. Nos. 65, 66.) Pursuant to the settlement, the court ordered the funds designated for S.V. to be
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placed in a blocked account until she reaches age 18. (See id.) As noted above, on July 12, 2020, S.V.
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petitioned the court to withdraw $5,000 to pay for a new computer for school, to purchase certain other
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unspecified items, and to pay for driving classes because she wants to start her own business “and help
[her] family because the pandemic really affected [them].” (Doc. No. 73.)
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The petition for the withdrawal of funds has been verified by plaintiff, S.V, but not plaintiff’s
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GAL, Claudia Valencia. (Doc. No. 73.) The court therefore directs GAL Claudia Valencia to submit a
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petition for the withdrawal of funds for S.V., which shall include Claudia Valencia’s signature. Cal. R.
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Ct. 7.954(a). While S.V. includes her account number in the petition, S.V.’s petition fails to include the
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identity of the depository as required under California Rule of Court 7.954(a). (See generally Doc. No.
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73.) The court therefore directs plaintiff, through her GAL, to submit the requested information
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identifying the name and address of the financial institution in which her settlement funds are held. In
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her supplemental filing, Claudia Valencia should also indicate the account number, the amounts
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previously withdrawn from the account—which the court understands is $0—and the current account
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balance, including any interest that may have accrued. Cal. R. Ct. 7.954(a).
Finally, the undersigned is sympathetic to S.V.’s family’s difficulties and recognizes the impact
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the Covid-19 crisis has had on schools, with many requiring distance learning. Therefore, the court
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finds adequate justification for the withdrawal of funds to purchase a computer for S.V, as doing so
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would be in the minor’s best interests. See Cal. Prob. Code § 3611(b); Cal. R. Ct. 7.954(a); cf.
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Christensen, 193 Cal. App. 3d at 144 (“Certainly the court has a duty to protect the minor’s property
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from wrongful dissipation by a parent. But the need for doing so should be evaluated in each case and
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the method of safeguarding should be tailored to the circumstances.”); McCue, No. 1:10-cv-00233-
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LJO-MJS, 2012 WL 2995666, at *6 (noting prospective approval of alternative distribution structure
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where minor’s net settlement funds would be placed in “blocked savings account subject to withdrawal
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before age 25 only for educational purposes”). Accordingly, the court will allow plaintiff, through her
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GAL, to withdraw up to $1,000 of funds from the blocked account to purchase a computer. Before the
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court orders the release of the funds, plaintiff, through her GAL, is directed to submit supplemental
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documentation identifying the computer plaintiff wishes to purchase, the price of the computer, and the
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company from which she plans to purchase the computer. The court will then order the specified
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amount of funds to be available for plaintiff’s GAL’s withdrawal, not exceeding $1,000.
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The court also finds adequate justification for S.V.’s need to enroll in driving school classes.
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However, the petition does not indicate how much funds S.V. will need to enroll in the classes.
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Therefore, the court directs plaintiff, through her GAL, to submit supplemental documentation
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identifying the driving class in which she plans to enroll and the cost of the classes. The court will then
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order the specified amount of funds to be available for plaintiff’s GAL’s withdrawal.
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Finally, the petition includes a request for funds so that S.V. may start her own business without
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specifying any information regarding the potential business. The court does not find plaintiff’s request
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with respect to her planned business to be adequately justified. Therefore, the court will deny S.V.’s
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petition to withdraw funds from the blocked account for purposes of starting her own business without
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prejudice.
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For the foregoing reasons, the court orders:
1. Plaintiff, through her GAL Claudia Valencia, to submit supplemental documentation
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including:
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a. A petition for the withdrawal of funds signed by Claudia Valencia;
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b. The (i) name and (ii) address of the financial institution from which plaintiff
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seeks to withdraw funds from the blocked account, (iii) the account number, (iv)
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any amounts previously withdrawn, and (v) the current account balance;
c. Identification of the computer plaintiff wishes to purchase, the cost of the
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computer, and the company from which plaintiff plans to purchase the computer;
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and
d. Identification and cost of the driving class in which plaintiff plans to enroll.
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2. The Clerk of Court is directed to serve this order by mail to plaintiff S.V. and her
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guardian ad litem, Claudia Valencia, to the address indicated in Doc. No. 73 at 1.
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IT IS SO ORDERED.
Dated:
August 3, 2020
UNITED STATES DISTRICT JUDGE
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