Blue Lake Rancheria, et al v. Morgenstern, et al.,

Filing 120

STIPULATION and ORDER signed by District Judge John A. Mendez on 6/8/2021 DIRECTING the clerk to return the funds on deposit and any accrued interest to the California Employment Development Department. (cc Financial Department) (Coll, A)

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ROB BONTA
Attorney General of California
SARA J. DRAKE
Senior Assistant Attorney General
COLIN A. WOOD
Deputy Attorney General
JENNIFER HENDERSON
Deputy Attorney General
State Bar Number 206231
1300 I Street, Suite 125
P.O. Box 944255
Sacramento, CA 94244-2550
Telephone: [phone]
Fax: [phone]
E-mail: [e-mail]
Attorneys for Defendants David Lanier, Patrick
Henning, Jr., Pam Harris, Jack Budmark, Talbott
Smith, Kathy Dunne, Sarah Reece and California
Employment Development Department

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IN THE UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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CIVIL DIVISION

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BLUE LAKE RANCHERIA, a federallyrecognized Indian Tribe; et al.,

Case No. 2:11-CV-01124-JAM-KJN

STIPULATION REGARDING
Plaintiffs, DISPOSITION OF FUNDS ON DEPOSIT;
NON-OBJECTION BY INTERVENOR
UNITED STATES OF AMERICA;
ORDER

v.

JULIE A. SU, in her official capacity as
Secretary of the California Labor and
Workforce Development Agency, et al.,

Judge:
Hon. John A. Mendez
Action Filed: April 26, 2011

Defendants.
UNITED STATES OF AMERICA,
Intervenor.

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Plaintiffs Blue Lake Rancheria, a federally recognized Indian tribe, Blue Lake Rancheria

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Economic Development Corporation, and Mainstay Business Solutions (collectively, Plaintiffs)

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STIPULATION REGARDING DISPOSITION OF FUNDS (2:11-CV-01124-JAM-KJN)

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and Defendants Julie A. Su,1 as successor to David Lanier, sued in his official capacity as

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Secretary of the Labor and Workforce Development Agency, Rita Saenz, as successor to Patrick

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W. Henning, Jr., sued in his official capacity as Director of the Employment Development

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Department, Pam Harris, Jack Budmark, Talbott Smith, Kathy Dunne, and Sarah Recce

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(collectively, Defendants or EDD) hereby stipulate and request as follows:

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1.

On August 11, 2011, this Court ordered Defendants to deposit monies with the Court

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to satisfy a bond requirement. (ECF No. 40.) These monies were collected from Plaintiff

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Mainstay Business Solutions by EDD in the service of levies that were the basis of the dispute

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between Plaintiffs and Defendants. On August 25, 2011, Defendants deposited the money as

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ordered, in the amount of $537,284.67. It remains on deposit with the Court.
2.

On August 24, 2012, the United States of America filed a Motion to Intervene as

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Defendant-Claimant. (ECF No. 55.) In its Motion to Intervene, the United States “concede[d]

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that the state’s tax lien on the Funds is superior to the federal tax lien, provided that the state’s

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pre-suit levies were valid. See proposed United States' Answer and Claim filed herewith. Thus,

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if the plaintiffs prevail on their cause of action against the defendants, the Funds should go to the

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United States. Otherwise, the Funds should go back to EDD.” The Court granted the United

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States’s motion on October 1, 2012 (ECF No. 61), and the United States filed an answer in this

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matter on October 2, 2012 (ECF No. 62).

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3.

Plaintiffs and Defendants reached a settlement of this matter that was fully executed

on April 15, 2021.
4.

Pursuant to the terms of that settlement, Plaintiffs and Defendants jointly stipulate

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and request that the Court release back to EDD all monies placed on deposit with the Court by

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EDD pursuant to the Court’s August 25, 2011 Order with accrued interest, if any.

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Pursuant to Federal Rule of Civil Procedure 25(d), Secretary Julie A. Su is substituted
as a party in place of former Secretary David Lanier, and Director Rita Saenz is substituted as a
party in place of former director Patrick Hemming, Jr.
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STIPULATION REGARDING DISPOSITION OF FUNDS (2:11-CV-01124-JAM-KJN)

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Defendant-Intervenor United States of America does not object to the monies on deposit

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with the Court being returned to EDD.

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Dated: June 5, 2021

BOUTIN JONES INC.

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/s/ Michael E. Chase (as authorized
on 6/5/21)

By:

MICHAEL E. CHASE
Attorneys for Plaintiffs

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Dated: June 7, 2021

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ROB BONTA
Attorney General of California
SARA J. DRAKE
Senior Assistant Attorney General
WILLIAM P. TORNGREN
Supervising Deputy Attorney General
COLIN WOOD
Deputy Attorney General

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By:

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/s/ Jennifer T. Henderson
JENNIFER T. HENDERSON
Attorneys for Defendants

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__

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Dated: June 4, 2021

U.S. Department of Justice
/s/ Y. Jeannette Tran (as authorized
on 6/4/21)

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By:

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Y. JEANNETTE TRAN
Attorneys for Defendant-Intervenor
United States of America

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PURSUANT TO THE ABOVE STIPULATION, IT IS SO ORDERED. THE CLERK
IS DIRECTED TO RETURN THE FUNDS ON DEPOSIT AND ACCRUED INTEREST, IF
ANY, TO THE CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT.
Dated: June 8, 2021

/s/ John A. Mendez
THE HONORABLE JOHN A. MENDEZ
UNITED STATES DISTRICT COURT JUDGE

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STIPULATION REGARDING DISPOSITION OF FUNDS (2:11-CV-01124-JAM-KJN)