Opinion
Case Number: 04-CV-04089 (DLC).
February 8, 2005
STIPULATION AND ORDER
Counterclaimants Associated Electric Gas Insurance Services Limited ("AEGIS"), Continental Casualty Company ("CNA"), Gulf Insurance Company ("Gulf"), Twin City Fire Insurance Company ("Twin City"), and SR International Business Insurance Company ("SRI") (collectively "Excess Insurers") and defendant on counterclaim Scott D. Sullivan ("Sullivan"), by their attorneys, hereby agree that this action shall be, and hereby is, stayed as to defendant Sullivan subject to the following provisions:
1. Sullivan agrees to be bound by any court determinations made or issued in this Action, including decisions, judgments, orders and rulings, during the period this stay is in effect insofar as and to the same extent that such determinations apply to all defendants who have appeared, except to the extent that such decisions, judgments, orders and rulings might be inconsistent with the stay agreed to herein;
2. Excess Insurers agree to be bound by any court determinations made or issued in this Action, including decisions, judgments, orders and rulings, during the period this stay is in effect to the same extent that they would be bound if Sullivan were an active party in the Action, except to the extent that such decisions, judgments, orders and rulings might be inconsistent with the stay agreed to herein;
3. During the period this stay is in effect, Excess Insurers agree not to seek any discovery from Sullivan except as to the extent provided in paragraph 7 of this stipulation;
4. During the period this stay is in effect, Sullivan agrees not to assert any alleged rights with respect to the Excess Insurance Policies, and agrees not to assert in any proceeding that the Excess Insurers breached any alleged obligations they had under the Excess Insurance Policies during this period;
5. Sullivan is not required to respond to the counterclaim while this stay is in effect;
6. This stay shall automatically terminate immediately following Sullivan's sentencing for conspiracy to commit securities fraud, making false filings with the SEC, keeping false books and records, securities fraud and willfully causing WorldCom to file false and misleading financial documents, to which Sullivan pleaded guilty on March 2, 2004;
7. Sullivan agrees that until such time as this stay automatically terminates pursuant to paragraph 6 of this stipulation, the Counterclaimants shall be permitted to participate in any depositions of Sullivan taken in the underlying securities action, consistent with the order of Judge Cote dated October 7, 2004. It is further agreed that the Counterclaimants may issue requests for and/or subpoena documents in the possession of Sullivan in connection with their participation in such depositions and will be permitted the additional reasonable time necessary to complete such depositions;
8. Parties may seek to terminate or modify this order at any time by agreement or by appropriate application to the court.