Westminster House, LLC v. Jao et al

Filing 69

ORDER DENYING GOOD FAITH SETTLEMENT WITH PLAINTIFF AND VACATING HEARING by Hon. William Alsup denying 53 Motion for Settlement (whalc4, COURT STAFF) (Filed on 10/15/2013) Modified on 10/15/2013 (whalc4, COURT STAFF).

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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For the Northern District of California

United States District Court

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WESTMINSTER HOUSE, LLC, a
Delaware limited liability company,
Plaintiff,

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No. C 12-02026 WHA

ORDER DENYING GOOD
FAITH SETTLEMENT WITH
PLAINTIFF AND VACATING
HEARING

v.

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FRANK JAO, an individual; HAI NGOC
DINH, an individual,

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Defendants.

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/
This case is scheduled for trial NOVEMBER 18, 2013, AT 7:30 A.M., in Courtroom 8,

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19th Floor, 450 Golden Gate Avenue, San Francisco, California, 94102. Defendant Frank Jao

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remains a party in this litigation and is expected to go to trial unless he is dismissed from the

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case, which has not happened yet. Defendant Jao has entered into a term sheet with plaintiff

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Westminster, but no final settlement has yet been reached.

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Significantly, the term sheet is not contingent upon obtaining a good faith settlement bar.

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Nonetheless, based solely on the term sheet, defendant Jao now seeks a determination of a good

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faith settlement under Section 877 of the California Code of Civil Procedure, without a final

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written agreement. This relief is DENIED without prejudice to raising the issue if and when the

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other defendant, Hai Ngoc Dinh, loses the case on the merits and seeks contribution from

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defendant Jao. This is the just and proper outcome inasmuch as the term sheet is not a final

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agreement and the term sheet is not contingent on such a determination. Moreover, as defendant
Dinh points out, the financial condition of Jao and his ability to pay more is in question.

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Discovery on that issue would be appropriate before making a determination under Section 877.

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The motion is DENIED and the hearing is VACATED.

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If a dismissal of Jao is not entered before trial, he is fully expected to go to trial. Please
do not ask for continuances.

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IT IS SO ORDERED.

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Dated: October 15, 2013.

WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE

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For the Northern District of California

United States District Court

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