Opinion
Case No. 1:10-CV-01262-LJO-JLT
01-30-2013
ALLIED WORLD NATIONAL ASSURANCE COMPANY, a New Hampshire corporation, and ALLIED WORLD ASSURANCE COMPANY (U.S.) INC., a Delaware corporation, Plaintiffs, v. SK PM CORP., a California corporation aka "S.K. Foods PM Corp.," SK FOODS, L.P., a California limited partnership, FREDERICK SCOTT SALYER, an individual, BLACKSTONE RANCH, a California corporation aka "Blackstone Ranch Calif 'S' Corp," LISA CRIST, an individual, MARK MCCORMICK, an individual, SCOTT SALYER REVOCABLE TRUST, a trust, THE CAROLINE GAZELLE SALYER IRREVOCABLE TRUST, a trust, THE STEFANIE ANN SALYER IRREVOCABLE TRUST, a trust, SS FARMS, LLC, a California limited liability company, SK FOODS, LP 401K PLAN, an ERISA plan aka "SK Foods L.P. Blackstone Ranch & SK Foods L.P. 401K Plan," SARS, LLC, a California limited liability company, CSSS LP, a California limited partnership d/b/a Central Valley Shippers, SK FOODS LLC, a Nevada limited liability company, S.K. FOODS PM CORP., an entity or a d/b/a of unknown legal capacity, SKF AVIATION, LLC, a California limited liability company, SSC FARMING, LLC, a California limited liability company, RHM INDUSTRIAL/SPECIALTY FOODS, INC., a California corporation d/b/a Colusa County Canning Company and d/b/a SK Foods - Colusa Canning, CARMEL WINE MERCHANTS LLC, a California limited liability company, CIRCLE PACIFIC LTD., a New Zealand company, SUNRISE COAST JAPAN, an entity or a d/b/a of unknown legal capacity, SSC FARMS I, LLC, a California limited liability company, SSC FARMS II, LLC, a California limited liability company, SK FARM SERVICES, LLC, a California limited liability company, SK FROZEN FOODS, LLC, a California limited liability company, SALYER AMERICAN INSURANCE SERVICES, a California limited liability company, SSC FARMS III, LLC, a California limited liability company, SALYER AMERICAN COOLING, a general partnership, SALYER WESTERN COOLING COMPANY, a general partnership, YUMA AMERICAN COOLING CORPORATION, an entity or a d/b/a of unknown legal capacity, SAWTOOTH COOLING, LLC, a California limited liability company, and SALYER AMERICAN FRESH FOODS, a California corporation, Defendants.
TROUTMAN SANDERS LLP Terrence R. McInnis Kevin F. Kieffer Peter R. Lucier Attorneys for Plaintiffs Allied World National Assurance Company and Allied World Assurance Company (U.S.) Inc. LAW OFFICES OF DAVID C. WINTON : David C. Winton (as authorized 1/29/2013) David C. Winton Counsel for the "Salyer Defendants," listed above SCHNADER HARRISON SEGAL & LEWIS LLP Kathryn N. Richter (as authorized 1/29/2013) Gregory C. Nuti Kevin W. Coleman Kathryn N. Richter Attorneys for Bradley D. Sharp, Chapter 11 Trustee
TROUTMAN SANDERS LLP
Terrence R. McInnis, Bar No. 155416
terrence.mcinnis@troutmansanders.com
Kevin F. Kieffer, Bar No. 192193
kevin.kieffer@troutmansanders.com
Peter R. Lucier, Bar No. 246397
peter.lucier@troutmansanders.com
5 Park Plaza, Suite 1400
Irvine, CA 92614-2545
Telephone: 949.622.2700
Facsimile: 949.622.2739
Attorneys for Plaintiffs Allied World National
Assurance Company and Allied World Assurance
Company (U.S.) Inc.
Please see continuation page for a complete list
of parties and their counsel
Hon. Lawrence J. O'Neill
Hon. Jennifer L. Thurston
JOINT REPORT REGARDING
SETTLEMENT STATUS AND
STIPULATION AND ORDER
CONTINUING DEADLINES
Continuation Page
Gregory C. Nuti (CSBN 151754)
gnuti@schnader.com
Kevin W. Coleman (CSBN 168538)
kcoleman@schnader.com
Kathryn N. Richter (CSBN 100129)
krichter@schnader.com
SCHNADER HARRISON SEGAL & LEWIS LLP
One Montgomery Street, Suite 2200
San Francisco, California 94104-5501
Telephone: 415.364.6742
Facsimile: 415.364.6785
Attorneys for Bradley D. Sharp, Chapter 11
Trustee
LAW OFFICES OF DAVID C. WINTON
David C. Winton, Bar No. 152417
david@dcwintonlaw.com
2 Ranch Drive, Suite 8
Novato, CA 94945
415.421.5800 Tel
415.358.4122 Fax
Counsel for Frederick Scott Salyer individually
and as trustee for the Scott Salyer Revocable
Trust, Robert Pruett, Trustee for the Caroline
Gazelle Salyer 1999 Irrevocable Trust, the
Caroline Gazelle Salyer 2007 Irrevocable
Trust, the Stefanie Ann Salyer 1999 Irrevocable
Trust and the Stefanie Ann Salyer 2007
Irrevocable Trust, SK PM Corp., aka "S.K.
Foods PM Corp.," Blackstone Ranch, aka
"Blackstone Ranch Calif 'S' Corp," SS Farms,
LLC, SARS, LLC, CSSS LP, d/b/a Central
Valley Shippers, SK Foods LLC, S.K. Foods
PM Corp., SKF Aviation, LLC, SSC Farming
LLC, SSC Farms I, LLC, SSC Farms II, LLC,
SSC Farms III, LLC, SK Farm Services, LLC,
SK Frozen Foods, LLC
This status report is being filed pursuant to this Court's December 20, 2012 order that the parties file status reports addressing the completion of settlement every 45 days beginning on January 30, 2013. As the parties previously reported to the Court in their Notice of Settlement and Stipulation and [Proposed] Order Continuing Deadlines ("Notice of Settlement"), Plaintiffs Allied World National Assurance Company ("Allied World") and Allied World Assurance Company (U.S.) Inc. ("AWAC") (collectively "Plaintiffs") have reached a settlement in principle with all remaining defendants in the above-captioned action, with the exception of the defendants against whom the Clerk has already entered default.
On May 5, 2011, the Clerk entered default against Defendants Circle Pacific Ltd., SK Foods, LP 401K Plan, and Sunrise Coast Japan. (Doc. # 62.) On May 6, 2011, the Clerk entered default against Salyer American Fresh Foods, Salyer American Insurance Services. (Doc. No. 65.)
A. The Settlement Involves Two Separate Agreements With Two Groups of Defendants
As the parties previously reported to the Court, Plaintiffs have reached separate agreements with two groups of defendants. First, Plaintiffs have reached a settlement in principle with the Chapter 11 Trustee for SK Foods, L.P. and RHM Industrial/Specialty ("Chapter 11 Trustee"). Second, the Plaintiffs have reached a settlement in principle with the following parties, who are referred to collectively as the "Salyer Parties":
1) Frederick Scott Salyer, individually and as trustee for the Scott Salyer Revocable Trust,
2) Robert Pruett, Trustee for the Caroline Gazelle Salyer 1999 Irrevocable Trust and the Caroline Gazelle Salyer 2007 Irrevocable Trust (sued as The Caroline Gazelle Salyer Irrevocable Trust), the Stefanie Ann Salyer 1999 Irrevocable Trust and the Stefanie Ann Salyer 2007 Irrevocable Trust (sued as The Stefanie Ann Salyer Irrevocable Trust),
3) SK PM Corp., aka "S.K. Foods PM Corp.,"
4) Blackstone Ranch, aka "Blackstone Ranch Calif 'S' Corp,"
5) SS Farms, LLC,
6) SARS, LLC,
7) CSSS LP, d/b/a Central Valley Shippers,
8) SK Foods LLC,
9) S.K. Foods PM Corp.,
10) SKF Aviation, LLC,
11) SSC Farming LLC,
12) SSC Farms I, LLC,
13) SSC Farms II, LLC,
14) SSC Farms III, LLC,
15) SK Farm Services, LLC,
16) SK Frozen Foods, LLC,
17) Carmel Wine Merchants LLC, and
18) Salyer American Cooling.
B. The Formal Settlement Agreements are Largely Finalized
Counsel for Plaintiffs have exchanged proposed settlement agreements with respective counsel for both groups of defendants. The formal settlement agreements have largely been finalized, but still await final approval of their form by the respective parties.
C. Finalization of the Salyer Parties' Settlement Has Been Delayed Due to a Recent Discovery that Receivers Have Been Appointed for Several of the Salyer Parties
On December 21, counsel for the Salyer Parties first informed counsel for Plaintiffs that several of the Salyer Parties have had entered receivership. As a result, there is some uncertainty regarding who has the authority to execute the settlement agreement on behalf of these parties.
Counsel for the Salyer Parties has been in contact with the receiver for these parties, and expects to have confirmation regarding who has the authority to execute the settlement agreement within the next several days. Once the confusion over who has authority to enter into the settlement agreement is resolved, the parties expect to finalize the settlement agreements and proceed with seeking bankruptcy court approval of the Chapter 11 Trustee settlement agreement and the dismissal of this action as more fully set forth in the parties' Notice of Settlement.
At the present time, the parties do not believe that the current confusion over who has authority to enter into the settlement agreement will jeopardize the settlement in any way.
D. The Parties Stipulate and Request that Certain Deadlines Are Continued
NOW THEREFORE, in light of the foregoing, the parties, through counsel, hereby STIPULATE and REQUEST that the Court enter an Order that:
1. That the deadline for the Salyer Parties to respond to the First Amended Complaint is further extended until March 15, 2013; and
2. That the deadline for Plaintiffs and the Salyer Parties to exchange initial disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is further extended to March 15, 2013.
TROUTMAN SANDERS LLP
By:_________________________________
Terrence R. McInnis
Kevin F. Kieffer
Peter R. Lucier
Attorneys for Plaintiffs Allied World National
Assurance Company and Allied World Assurance
Company (U.S.) Inc.
LAW OFFICES OF DAVID C. WINTON
By:David C. Winton (as authorized 1/29/2013)
David C. Winton
Counsel for the "Salyer Defendants," listed
above
SCHNADER HARRISON SEGAL & LEWIS LLP
By: Kathryn N. Richter (as authorized 1/29/2013)
Gregory C. Nuti
Kevin W. Coleman
Kathryn N. Richter
Attorneys for Bradley D. Sharp, Chapter 11
Trustee
CERTIFICATION
Pursuant to Local Rule 131(e), I, PETER R. LUCIER, certify that on January 29, 2013 David C. Winton and Kathryn N. Richter authorized me to submit this Joint Report Regarding Settlement Status and Stipulation and [Proposed] Order Continuing Deadlines on their behalf.
ORDER
Pursuant to the foregoing, this Court hereby Orders:
1. That the deadline for the Salyer Parties to respond to the First Amended Complaint is further extended until March 15, 2013; and
2. That the deadline for Plaintiffs and the Salyer Parties to exchange initial disclosures pursuant to Fed. R. Civ. P. 26(a)(1) is further extended to March 15, 2013.
This Court FURTHER ORDERS the parties to continue to complete settlement diligently and to file status reports every 30 days, starting March 1, 2013 (or sooner as necessary), to address completion of settlement.IT IS SO ORDERED.
Lawrence J. O'Neill
UNITED STATES DISTRICT JUDGE