Evans et al v. ZB, N.A.

Filing 94

STIPULATION and ORDER signed by Senior Judge William B. Shubb on 2/17/2022 ORDERING: All Expert Disclosures due by 9/23/2022, Discovery completed by 11/18/2022, Motions filed by 1/20/2023, Scheduling Conference set for 12/19/2022 at 01:30 PM in Courtroom 5 (WBS) before Senior Judge William B. Shubb, and Joint Conference Report due by 12/15/2022. (Huang, H)

1
2
3

Robert L. Brace, State Bar No. 122240
[e-mail]
1807 Santa Barbara Street
Santa Barbara, CA 93101
Telephone: [phone]

4

7

Michael P. Denver, State Bar No. 199279
[e-mail]
514 West Pueblo St., Ground Floor
Santa Barbara, CA 93101
Telephone: [phone]

8

Attorneys for Plaintiffs and all others similarly situated

5
6

9
10

UNITED STATED DISTRICT COURT

11

FOR THE EASTERN DISTRICT OF CALIFORNIA

12
13
14
15
16
17

RONALD C. EVANS, an individual; JOAN
M. EVANS, an individual; DENNIS
TREADAWAY, an individual; and all others
similarly situated,

CASE NO.: 2:17-cv-01123-WBS-DB
STIPULATION AND ORDER
CONTINUING CASE DEADLINES DUE
TO OMICRON VARIANT

Plaintiffs,
vs.

Complaint Filed:
Trial Date:

ZB, N.A., a national banking association, dba
California Bank & Trust,
Defendant.

18
19
20
21
22
23
24
25

ZIONS BANCORPORATION, N.A., a
national banking association, formerly known
as ZB, N.A., doing business as California Bank
& Trust,
Third-Party Plaintiff
vs.
JTS COMMUNITIES, INC., a California
Corporation; LARRY A. CARTER, an
individual; JACK T. SWEIGART, an
individual; and BRISTOL INSURANCE
COMPANY, a dissolved Utah corporation; and
ROES 1-20 inclusive
Third-Party Defendants

26
27
28

1
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2

May 26, 2017
None set

1

Plaintiffs and putative class representatives Ronald C. Evans, Joan M. Evans, and

2

Dennis Treadaway, (the “Evans Plaintiffs”); Defendant, Zions Bancorporation, N.A., a national

3

banking association, formerly known as ZB, N.A., doing business as California Bank & Trust

4

(“Zions”); and Third Party Defendants JTS Communities, Inc., Larry A. Carter, Jack T.

5

Sweigart, and Bristol Insurance Company (“Third Party Defendants”), (collectively, the

6

“Parties”) by and through their respective counsel of record, enter into the following stipulation

7

(the “Stipulation”):

8

1.

9

(a) All experts must be disclosed, and all reports on all issues, including liability,

On October 28, 2021, in Document 92, the Court ordered that:

10

damages, and class certification, must be produced in accordance with Federal Rule

11

of Civil Procedure 26(a)(2) on or before May 24, 2022;

12

(b) Discovery on all issues, including depositions for preservation of testimony, must

13
14

be completed by July 19, 2022;
(c) All motions, including motions for summary judgment or partial summary judgment

15

and including motions for class certification, shall be filed on or before September

16

20, 2022; and

17

(d) The Court shall conduct a further Scheduling Conference in Courtroom 5 (WBS) on

18
19

August 29, 2022 at 1:30 p.m.
2.

The Evans Plaintiffs filed their case in Federal Court (the “Evans Federal Class

20

Action”) on May 26, 2017. On June 1, 2017, the Third-Party Defendants sued Zions in a

21

factually related case entitled JTS Communities, Inc., et al. v. Z.B., N.A., et al., Sacramento

22

County Superior Court, Case No. 34-2017-00213368-CU-FR-GDD (hereinafter the “JTS State

23

Court Action”). On February 21, 2020, Zions countersued the Third-Party Defendants in the

24

Evans Federal Class Action. (Doc. #55).

25
26

3.

In the JTS State Court Action, the Third-Party Defendants in this action, are

acting as Plaintiffs, and they have alleged claims against Zions arising out of the same fraud

27
28

2
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2

1

scheme (committed by now-imprisoned Deepal Wannakuwatte) from which the claims in this

2

action arise.

3

4.

Discovery has been proceeding in the JTS State Court Action and the Evans

4

Federal Class Action. Over 2,200 exhibits have been marked for examination during the

5

roughly 50 depositions that have been taken. Discovery is completed in the JTS State Court

6

Action. Discovery continues in the Evans Federal Class Action.

7

5.

The Evans Federal Class Action was filed in 2017 a week before the JTS State

8

Court Action was filed. Due to the 9th Circuit appeal in the Evans Federal Class Action, the JTS

9

State Court Action advanced more rapidly against Zions and is ready for trial. An eight-week

10

trial was scheduled to begin in November 2021. The trial date was vacated due to a stay issued

11

by the California Court of Appeal. On January 21, 2022, after the denial of a petition for review

12

by the Court of Appeal, the trial court held a status conference, following which the Court

13

entered a minute order stating, “[t]he Court communicated to counsel the department's schedule

14

and informed that trial proceedings may not commence until early June.” The court also stated

15

that the postponement was due to public safety concerns brought on by the Covid-19 Omicron

16

variant.

17

6.

The trial court in the JTS State Court Action also ordered mandatory mediation

18

to be held by the parties before one of three mediators selected by the Court. A mediator has

19

been selected by Zions and the Third-Party Defendants with mediation set to take place on

20

March 16, 2022.

21

7.

Additionally, on June 8, 2015, the Bankruptcy Trustee for International

22

Manufacturing Group, Beverly McFarland, filed an adversary action against Third-Party

23

Defendants, McFarland v. Carter, et al., U.S. Bankruptcy Court, Eastern District of California

24

Case No. 14-25820-D-11, Adv. No. 15-2122-D (the “Carter Adversary Action”), also arising

25

out of the same fraud scheme from which the claims in this action arise. A pretrial conference

26

is scheduled for March 29, 2022.

27
28

3
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2

1

8.

The Evans Plaintiffs and Zions have also agreed to attend a settlement

2

conference before a paid mediator and are in the process of scheduling that mediation. The

3

parties expect it to occur within the next 60 days, mediator’s schedule permitting.

4

9.

Due to the 6-month public health delay in the trial of the JTS State Court

5

Action, and Zions’ and the Evans Plaintiffs’ agreement to mediate this action, the Parties agree

6

that the deadlines in the Evans Federal Class Action should be continued for 4-months or

7

approximately 120 more days. With the Court’s permission, the following new deadlines would

8

apply:

9

(a) All experts must be disclosed, and all reports on all issues, including liability,

10

damages, and class certification, must be produced in accordance with Federal Rule

11

of Civil Procedure 26(a)(2) on or before September 23, 2022;

12

(b) Discovery on all issues, including depositions for preservation of testimony, must

13

be completed by November 18, 2022;

14

(c) All motions, including motions for summary judgment or partial summary judgment

15

and including motions for class certification, shall be filed on or before January 20,

16

2023; and

17

(d) The Court shall conduct a further Scheduling Conference in Courtroom 5 (WBS) on
or about December 16, 2022, based on the Court’s schedule.

18
19
20

10.

This Stipulation does not waive, alter, or modify any rights, defenses, or claims

of any of the parties in this case.

21
22

Dated: February 17, 2022

23

BUCHALTER, A Professional Corporation
By:

24
25
26
27
28

/s/ Robert S. McWhorter
Robert S. McWhorter
Jarrett S. Osborne-Revis
Attorneys for Defendant,
Zion Bancorporation, N.A., a national
banking association, formerly known as
ZB, N.A., doing business as California
Bank & Trust

4
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2

1

Dated: February 17, 2022

2

LAW OFFICES OF IAN W. CRAIG, PC
By:

3
4
5
6

/s/ Ian W. Craig
Ian W. Craig
Attorneys for Third-Party Defendants,
JTS Communities, Inc., a California
Corporation, Larry A. Carter, an
individual; Jack T. Sweigart, an individual
and Bristol Insurance Company, a
dissolved Utah corporation

7
8

Dated: February 17, 2022

PETERSON WATTS LAW GROUP, LLP

9
By:__/s/ Glenn W. Peterson
Glenn W. Peterson
Attorneys for Third-Party Defendants,
JTS Communities, Inc., a California
Corporation, Larry A. Carter, an
individual; Jack T. Sweigart, an individual
and Bristol Insurance Company, a
dissolved Utah corporation

10
11
12
13
14
15
16

Dated: February 17, 2022

By:

/s/ Robert L. Brace
Robert L. Brace
Attorneys for Plaintiffs and all other
similarly situated

Dated: February 17, 2022

By:

/s/ Michael P. Denver
Michael P. Denver
Attorneys for Plaintiffs and all other
similarly situated

17
18
19
20
21
22
23

I, the filer of this document, attest that each of the other signators have consented to the filing

24

of this document.

25

Dated: February 17, 2022

By:

26

/s/ Michael P. Denver
Michael P. Denver

27
28

5
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2

1
2
3
4

ORDER
Based upon the Parties’ Stipulation, and good cause appearing:
IT IS HEREBY ORDERED that:
a. All experts must be disclosed, and all reports on all issues, including liability,
damages, and class certification, must be produced in accordance with Federal Rule

5

of Civil Procedure 26(a)(2) on or before September 23, 2022;

6
7

b. Discovery on all issues, including depositions for preservation of testimony, must
be completed by November 18, 2022;

8
9

c. All motions, including motions for summary judgment or partial summary judgment
and including motions for class certification, shall be filed on or before January 20,

10

2023;

11
12

d. The Scheduling Conference is continued from August 29, 2022 to December 19,
2022 at 1:30 p.m. ; and

13
14

e. The Parties shall meet and confer on Rule 26 issues and file a joint conference
report no later than December 5, 2022.

15
16
17

Dated: February 17, 2022

18
19
20
21
22
23
24
25
26
27
28

6
STIPULATION AND ORDER CONTINUING DEADLINES
BN 40787824v2