Zurich American Insurance Company et al v. Trans Cal Associates et al

Filing 78

STIPULATION and ORDER 77 signed by Judge William B. Shubb on 7/26/11, ORDERING that the hearing on Plaintiffs' 70 Motion to Strike Defendants' Answer and Trans Cal's Cross Complaint and Enter Default is CONT'D to 9/12/2011 at 02:00 PM in Courtroom 5 (WBS) before Judge William B. Shubb. (Kastilahn, A)

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J. RUSSELL CUNNINGHAM, State Bar #130578
J. LUKE HENDRIX, State Bar #271424
DAVID R. WIKSELL, State Bar #272490
DESMOND, NOLAN, LIVAICH & CUNNINGHAM
1830 15th Street
Sacramento, California 95811
Telephone: [phone]
Facsimile: [phone]
Attorneys for J. MICHAEL HOPPER,
in his capacity as trustee of the bankruptcy
estate of defendant MARK SCOTT

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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SACRAMENTO DIVISION

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ZURICH AMERICAN INSURANCE
COMPANY; AMERICAN GUARANTEE AND
LIABILITY INSURANCE COMPANY; AND
AMERICAN ZURICH INSURANCE
COMPANY
Plaintiffs
vs.
TRANS CAL ASSOCIATES; TRANS CAL
INSURANCE ASSOCIATES, INC.;
SACRAMENTO SURPLUS LINES
INSURANCE BROKERS, INC.; MARK
SCOTT; GRAY SCOTT; and DOES 1-50,

Case No. 2:10-CV-01957-WBS-KJN
Chapter 7
STIPULATION TO CONTINUE
HEARING ON PLAINTIFFS’
MOTION TO STRIKE
DEFENDANTS’ ANSWER AND
TRANS CAL’S CROSS COMPLAINT
AND ENTER DEFAULT
Date: August 1, 2011
Time: 2.00 p.m.
Place: Courtroom 5, 14th Floor
501 “I” Street
Sacramento, CA 95814
Judge: William B. Shubb

Defendants.

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J. MICHAEL HOPPER (“Trustee”), in his capacity as trustee of the bankruptcy estate of
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defendant MARK SCOTT (“M. Scott”), on the one hand, and plaintiffs ZURICH AMERICAN
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INSURANCE COMPANY; AMERICAN GUARANTEE AND LIABILITY INSURANCE
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COMPANY; AND AMERICAN ZURICH INSURANCE COMPANY (collectively “Zurich”), on
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the other hand, in support for their stipulation, recite that:
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A.

WHEREAS, David F. Anderson and Hefner, Stark and Marois, former counsel

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for defendants TRANS CAL ASSOCIATES; TRANS CAL INSURANCE ASSOCIATES, INC.;

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SACRAMENTO SURPLUS LINES INSURANCE BROKERS, INC.; M. Scott; and GRAY SCOTT

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(“G. Scott”) (collectively “Defendants”), withdrew as counsel effective May 10, 2011.

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B.

WHEREAS, on May 18, 2011, Zurich filed a motion to strike the Answer filed by

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defendants TRANS CAL ASSOCIATES; TRANS CAL INSURANCE ASSOCIATES, INC., and

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SACRAMENTO SURPLUS LINES INSURANCE BROKERS, INC. (collectively “Entity

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Defendants”) to Zurich’s First Amended Complaint and to strike TRANS CAL ASSOCIATES’

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Cross-Complaint, and requesting entry of default against the Entity Defendants, on the basis that the

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Entity Defendants do not have legal counsel, and therefore are unable to defend Zurich’s complaint

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or prosecute a cross-complaint.

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C.

WHEREAS, on June 21, 2011, M. Scott filed a voluntary Chapter 7 bankruptcy

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petition in the United State Bankruptcy Court, Eastern District of California, Sacramento Division,

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in Case No. 11-35381-D-7.

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D.

WHEREAS, Trustee is the duly appointed trustee of M. Scott’s bankruptcy estate.

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E.

WHEREAS, on June 30, 2011, G. Scott filed a Chapter 13 bankruptcy petition in the

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United State Bankruptcy Court, Eastern District of California, Sacramento Division, in Case No. 11-

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36226-A-13.

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F.

WHEREAS, on June 30, 2011, this Court issued an order requesting briefing from

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the non-bankrupt parties addressing the effect of the automatic stay provisions of 11 U.S.C. § 362

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on further proceedings in this action and continuing the hearing on Zurich’s motion to strike, set for

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July 5, 2011, to August 1, 2011 at 2:00 p.m.

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G.

WHEREAS, Trustee is informed that M. Scott is an officer, director, and controlling

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shareholder in TRANS CAL INSURANCE ASSOCIATES, INC. and SACRAMENTO SURPLUS

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LINES INSURANCE BROKERS, INC., and that TRANS CAL INSURANCE ASSOCIATES, INC.

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and SACRAMENTO SURPLUS LINES INSURANCE BROKERS, INC. are the sole partners of

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TRANS CAL ASSOCIATES.

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H.

WHEREAS, Trustee and Zurich are not aware of any legal counsel having been
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retained on behalf of the Entity Defendants.
I.

WHEREAS, Trustee has sought legal counsel to assist him in assessing the

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bankruptcy estate’s interest in the above-captioned proceeding, and for that purpose, Trustee and

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Zurich have agreed to continue the hearing on Zurich’s motion to strike.

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NOW, THEREFORE, IT IS HEREBY STIPULATED by and between Trustee and
Zurich, as follows:
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The hearing set for August 1, 2011 at 2:00 p.m., in Courtroom 5 in the above-

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captioned Court, on Zurich’s motion to strike the Entity Defendants’ Answer to Zurich’s First

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Amended Complaint and TRANS CAL ASSOCIATES’ Cross-Complaint and enter default, shall

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be continued to September 12, 2011, at 2:00 p.m. in Courtroom 5 of the above-captioned Court to

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allow Trustee an opportunity to assess the interest of the bankruptcy estate of M. Scott in the above-

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captioned proceeding.

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GREENBERG TRAURIG, LLP

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DATED: July 25, 2011
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By: /s/ MARC B. KOENIGSBERG (as authorized on 7/25/11)
MARC B. KOENIGSBERG
ZURICH AMERICAN INSURANCE COMPANY; AMERICAN
GUARANTEE AND LIABILITY INSTURANCE COMPANY;
AND AMERICAN ZURICH INSURANCE COMPANY

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DESMOND, NOLAN, LIVAICH & CUNNINGHAM

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DATED: July 25, 2011
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By: /s/ J. LUKE HENDRIX
Attorneys for J. MICHAEL HOPPER, in his capacity as trustee of the
bankruptcy estate of MARK SCOTT

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IT IS SO ORDERED.

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DATED: July 26, 2011
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