Opinion
COBLENTZ PATCH DUFFY & BASS LLP, JEFFREY G. KNOWLES, JULIA D. GREER, MARK L HEJINIAN, San Francisco, California,
LINDQUIST & VENNUM LLP, DANIEL J. SCHWARTZ (Admitted Pro Hac Vice), BRYAN A. WELP (Admitted Pro Hac Vice), Minneapolis, MN, Attorneys for Plaintiff, FIDELITY & GUARANTY LIFE INSURANCE COMPANY.
COBLENTZ PATCH DUFFY & BASS LLP, Jeffrey G. Knowles, Attorneys for Plaintiff, FIDELITY & GUARANTY LIFE INSURANCE COMPANY.
KAYE SCHOLER LLP, Steven S. Rosenthal, Attorneys for Defendant BETTY YEE, in her official capacity as CALIFORNIA STATE CONTROLLER.
STIPULATION AND ORDER STAYING THE CASE
JOHN A. MENDEZ, District Judge.
WHEREAS, Defendant California Controller Betty Yee (the "Controller") seeks to conduct an audit of Plaintiff Fidelity & Guaranty Life Insurance Company ("FGLIC") to identify unreported escheatable property to the State of California;
WHEREAS, FGLIC believes that the proposed audit violates the United States Constitution;
WHEREAS, FGLIC has appealed this Court's denial of its Motion for Preliminary Injunction (Dkt. 36) to the Ninth Circuit Court of Appeals (the "Ninth Circuit Appeal");
WHEREAS, there are three currently pending actions in California state court between life insurance companies and the Controller regarding proposed audits ("pending life insurance cases"):
A fourth case filed by FGLIC against the Controller in San Francisco County Superior Court ( Fidelity & Guaranty Life Insurance Co. v. Chiang, San Francisco County Superior Court Case No. CGC-14-540953, filed August 5, 2014) is to be dismissed without prejudice pursuant to an agreement between the parties.
• Chiang v. American National Insurance Company, Sacramento County Superior Court Case No. 34-2013-00144517, filed May 7, 2013, currently on appeal in Chiang etc., et al. v. American National Insurance Company, Third Appellate District Case No. C075248, filed November 18, 2013;
• Chiang v. Kemper Corporation, Sacramento County Superior Court Case No. 34-2013-00148154, filed July 17, 2013; and
• Thrivent Financial for Lutherans v. Chiang, et al., San Francisco County Superior Court Case No. CGC-13-535156, filed October 13, 2013;
WHEREAS, the Controller believes the outcome of the pending life insurance cases may affect the current litigation and wishes to devote its resources to those cases;
WHEREAS, the parties desire and agree to stay the current litigation pending the final resolution of the aforementioned pending life insurance cases including any and all appeals;
WHEREAS, the parties are simultaneously seeking a stay of the Ninth Circuit Appeal for the same period of time;
IT IS THEREFORE STIPULATED AND AGREED THAT:
(1) the above-captioned case should be stayed pending the final resolution of the pending life insurance cases, including the exhaustion of any and all appeals, and in any case, for a period of no less than two years; and
(2) the parties will submit a joint case management statement on March 1, 2017, and subsequent joint case management statements every six months thereafter, to update the Court regarding the procedural status of the pending life insurance cases and any and all applicable appeals.
ORDER
GOOD CAUSE APPEARING, IT IS SO ORDERED.