Century Surety Company v. Kashama et al

Filing 39

ORDER Re Supplemental Briefing. Signed by Judge Edward M. Chen on 7/16/2012. (emcsec, COURT STAFF) (Filed on 7/16/2012)

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1 2 3 4 5 UNITED STATES DISTRICT COURT 6 NORTHERN DISTRICT OF CALIFORNIA 7 8 CENTURY SURETY COMPANY, 9 Plaintiff, ORDER RE SUPPLEMENTAL BRIEFING v. 11 For the Northern District of California United States District Court 10 No. C-11-5482 EMC ISAAC K. KASHAMA, et al., 12 Defendants. ___________________________________/ (Docket No. 35) 13 14 15 Plaintiff Century Surety Company has filed suit against Defendants Osman Othman and 16 Isaac K. Kashama. The claims against Mr. Othman are currently subject to a bankruptcy stay. After 17 Mr. Kashama failed to respond to the complaint, the Clerk of the Court entered his default on May 18 25, 2012. See Docket No. 33 (notice). Century has now filed a motion for default judgment against 19 Mr. Kashama. Having reviewed the motion and accompanying submissions, the Court hereby 20 orders Century to provide supplemental briefing on the following issues. 21 (1) Whether a default judgment against Mr. Kashama should be deferred pursuant to 22 Frow v. De La Vega, 82 U.S. 552 (1872), in which the Supreme Court held that, under certain 23 circumstances, a court should not enter a default judgment against one or more defendants which is, 24 or likely to be, inconsistent with judgment on the merits in favor of the remaining answering 25 defendants. See, e.g., Shanghai Auto. Instrument Co. v. Kuei, 194 F. Supp. 2d 995, 1006 (N.D. Cal. 26 2001) (report and recommendation) (noting that courts, “including the Ninth Circuit, have held that 27 Frow is not limited to claims asserting joint liability, but extend to certain circumstances in which 28 the defendants have closely related defenses or are otherwise similarly situated”). 1 (2) Whether Century’s request for a declaration that no party (i.e., persons other than Mr. 2 Kashama) may sue Century on the insurance policy pursuant to the “Legal Action Against Us” 3 clause is ripe for review. 4 The supplemental briefing shall be filed by July 23, 2012. 5 Century shall serve a copy of this order on Mr. Kashama within three days of the date of this 6 order and shall file a proof of service on that same date certifying that service of process has been 7 effected. 8 9 IT IS SO ORDERED. 11 For the Northern District of California United States District Court 10 Dated: July 16, 2012 12 _________________________ EDWARD M. CHEN United States District Judge 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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