Opinion
CASE NO. 2:11-CV-00976-JAM-DAD
09-07-2011
ARROWOOD INDEMNITY COMPANY, a Delaware corporation formerly known as ROYAL INDEMNITY COMPANY, as successor to GLOBE INDEMNITY COMPANY, Plaintiff, v. BEL AIR MART, a California corporation: R. GERN NAGLER, as Trustee of the John W. Burns Testamentary Trust; ROBERT GERN NAGLER, an individual, Defendants. BEL AIR MART, a California corporation, Counterclaim Plaintiff, v. ARROWOOD INDEMNITY COMPANY, a Delaware corporation formerly known as ROYAL INDEMNITY COMPANY, as successor to GLOBE INDEMNITY COMPANY,
[PROPOSED] ORDER GRANTING BEL AIR MART'S MOTION TO STAY DISCOVERY, PRE-TRIAL
DATES, AND ACTION IN THE PRESENT ACTION
Hon. John A. Mendez
Bel Air Mart's ("Bel Air") Motion for Stay of Discovery, Pre-Trial Dates and Trial in the Present Action came on regularly for hearing on the 9:30 a.m. calendar on September 7, 2011, in Courtroom 6 of the above-entitled Court, located at 5011 Street, Sacramento, CA 95814, the Honorable John A. Mendez, presiding. Gary W. Osborne of Osborne & Nesbitt, LLP appeared for Bel Air and Alexandre E. Potente of Sedgwick LLP appeared on behalf of Arrowood Indemnity Company ("Arrowood").
Having considered the arguments of counsel, both written and oral, and good cause appearing, the Court hereby grants Bel Air's Motion and orders and all ____, pre-trial dates and trial of this action are hereby stayed until conclusion of the underlying lawsuit entitled Bel Air Mart, et al. v. Arnold Cleaners Inc., et al, pending before the United States District Court for the Eastern District of California, and assigned Case No. 2:10-CV-02392 MCE-EFB., or until further notice of this Court.
This ruling is based on the fact that Plaintiff and Counterclaim Defendant Arrowood Indemnity Company ("Arrowood") seeks herein to adjudicate coverage questions which turn on facts to be litigated in the underlying environmental litigation. Under such circumstances, a stay is required to avoid prejudice to Arrowood's insured, Bel Air, that would result if Arrowood were allowed to prosecute the present declaratory judgment action while the underlying action remains pending.
IT IS SO ORDERED.
THE HONORABLE JOHN A. MENDEZ
UNITED STATES DISTRICT COURT JUDGE