Madison Services, Inc. v. Travelers Casualty and Surety Company of America et al

Filing 7

STIPULATION AND ORDER signed by District Judge Troy L. Nunley on 2/8/17 ORDERING that all proceedings in this action are STAYED pending conclusion of the Arbitration Proceeding between Madison and Gilbane; Travelers, Gilbane and Madison shall be bo und by the decision rendered in the Arbitration Proceeding with regard to amounts due, if any, to Madison by Gilbane, however reserved for Travelers are all claims and defenses that Travelers may have in this action, including but not limited to those arising from the terms and conditions of the bond furnished by Travelers. (Becknal, R)

1 EHLERS LAW CORPORATION
WESLEY C.J. EHLERS (SBN 181537)
2 2600 Capitol Avenue, Suite 300
Sacramento, CA 95816-5930
3 Telephone: [phone]
Facsimile: [phone]
4 e-mail: [e-mail]
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Attorneys for Plaintiff

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VARELA LEE METZ & GUARINO
NICHOLAS A. MERRELL (SBN 240795)
333 Bush Street, Suite 1500
San Francisco, CA 94104
Telephone [phone]
Facsimile: [phone]
e-mail: [e-mail]

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Attorneys for Defendant

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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UNITED STATES f/b/u/o MADISON
16 SERVICES, INC.
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Plaintiff,
v.
TRAVELERS CASUALTY AND
SURETY COMPANY OF AMERICA
AND ITSI GILBANE COMPANY
(N/K/A GILBANE FEDERAL); DOES 1 –
100, inclusive
Defendants.

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Case No.: 2:16-CV-02684 TLN AC
STIPULATION AND ORDER
STAYING PROCEEDINGS
PENDING ARBITRATION

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Plaintiff United States f/b/u/o Madison Services, Inc. (hereafter “Madison”) and
Defendants Travelers Casualty and Surety Company of America and ITSI Gilbane
Company (n/k/a Gilbane Federal) (hereafter “Travelers” and “Gilbane”, respectively)
hereby stipulate to seeking a stay of these proceedings pending arbitration between
-1STIPULATION AND ORDER STAYING PROCEEDINGS

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Madison and Gilbane, and request this Court being fully advised in the premises finds, as

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follows:
1.

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Madison and Gilbane entered into a subcontract in connection with Prime

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Contract No. N69450-12-D-1273 awarded to Gilbane by the Naval Facilities Engineering

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Command for, among other things, certain renovation and construction of housing units at

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Guantanamo Bay (hereafter “Project”).

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2.

Travelers furnished the Miller Act Payment Bond (“bond”) on behalf of

Gilbane for the Project.

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3.

Disputes involving payment and performance issues arose between Madison

and Gilbane, and the subcontract between them provides for arbitration of such disputes.
4.

On or about September 12, 2016, Madison filed its Demand for Arbitration

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against Gilbane before the American Arbitration Association (hereafter “AAA”) seeking to

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recover amounts Madison alleges are due to it for the Project. The AAA docketed the

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proceeding initiated by Madison as AAA Case No. 01-16-0003-9412 (“Arbitration

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Proceeding”).

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5.

On or about October 20, 2016, Gilbane filed its Answering Statement and

Counterclaim against Madison in the Arbitration Proceeding.
6.

Madison, Gilbane, and Gilbane’s surety Travelers have agreed to stay

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proceedings in this action pending conclusion of the Arbitration Proceeding between

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Madison and Gilbane before the AAA.

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7.

Travelers, Gilbane and Madison agree to be bound by the decision rendered

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in the Arbitration Proceeding with regard to amounts due, if any, to Madison from Gilbane
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in connection with the Project, however, Travelers reserves all other claims and defenses
that Travelers may have in this action, including, but not limited to those arising from the

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-2STIPULATION AND ORDER STAYING PROCEEDINGS

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terms and conditions of the bond furnished by Travelers, which is the subject of the
Complaint in this action.
Respectfully submitted,

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Dated: February 8, 2017

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/S/ WESLEY EHLERS
By ________________________________
Wesley C.J. Ehlers
Attorneys for Plaintiff

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EHLERS LAW CORPORATION
WESLEY C.J. EHLERS

Dated: January 31, 2017

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VARELA LEE METZ & GUARINO
NICHOLAS A. MERRELL
/S/ NICHOLAS MERRELL
[as authorized on 1/31/17]
By ________________________________
Nicholas A. Merrell
Attorneys for Defendant

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ORDER

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WHEREFORE, PREMISES CONSIDERED, it is hereby ORDERED that all
proceedings in this action are stayed pending conclusion of the Arbitration Proceeding
between Madison and Gilbane.

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IT IS FURTHER ORDERED that Travelers, Gilbane and Madison shall be bound

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by the decision rendered in the Arbitration Proceeding with regard to amounts due, if any,

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to Madison by Gilbane, however reserved for Travelers are all claims and defenses that

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Travelers may have in this action, including but not limited to those arising from the terms
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and conditions of the bond furnished by Travelers.
Dated: February 8, 2017

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Troy L. Nunley
United States District Judge

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-3STIPULATION AND ORDER STAYING PROCEEDINGS