Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-00212/USCOURTS-cand-3_06-cv-00212-10/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1332 Diversity-Insurance Contract

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STOEL RIVES LLP

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FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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SCOTT J. KAPLAN (#143478)

ANDREW F. BRIMMER (#179146)

STOEL RIVES LLP

900 SW Fifth Avenue, Suite 2600

Portland, OR 97204

Telephone: (503) 224-3380

Facsimile: (503) 220-2480

Attorneys for Plaintiffs/Counter-Defendants

THE PACIFIC LUMBER COMPANY,

SCOTIA PACIFIC COMPANY LLC;

MAXXAM INC., MAXXAM GROUP INC.,

MAXXAM GROUP HOLDINGS INC.,

CHARLES E. HURWITZ, GARY CLARK

JOHN CAMPBELL and ROBERT MANNE

ALAN H. BARBANEL (#108196)

KATY A. NELSON (#173759)

ALEX H. AHARONIAN (#231850)

BARBANEL & TREUER, P.C.

1925 Century Park East, Suite 350

Los Angeles, CA 90067

Telephone: (310) 282-8088

Facsimile: (310) 282-8779

Attorneys for Defendant, Counterclaimant,

Cross-Claimant and Third-Party Plaintiff

GENERAL STAR INDEMNITY COMPANY

SHERMAN C. LEE (#145765)

JANINE SCHIESS (#203791)

COLLIAU ELENIUS MURPHY CARLUCCIO

KEENER & MORROW

405 Howard Street, Suite 600

San Francisco, CA 94105

Telephone: (415) 932-7000

Facsimile: (415) 932-7001

Attorneys for Defendant and

Counter-Complainant

TRANSPORTATION INSURANCE

COMPANY

REBECCA R. WEINREICH (#155684)

LEWIS BRISBOIS BISGAARD & SMITH LLP

221 North Figueroa Street, 12th Floor

Los Angeles, CA 90012

Telephone: (213) 250-1800

Facsimile: (213) 481-0621

Attorneys for Third-Party Defendant

NATIONAL UNION FIRE INSURANCE

COMPANY OF PITTSBURGH, PA

Case 3:06-cv-00212-EDL Document 158 Filed 04/16/08 Page 1 of 6
STOEL RIVES LLP

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FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

Case No. C-06 0212 EDL

FOURTH SUPPLEMENTAL JOINT

CASE MANAGEMENT STATEMENT

AND PROPOSED ORDER

Judge: Honorable Elizabeth Laporte

THE PACIFIC LUMBER COMPANY, a

Delaware corporation; SCOTIA PACIFIC

COMPANY LLC, a Delaware corporation;

MAXXAM INC., a Delaware corporation;

MAXXAM GROUP INC., a Delaware

corporation; MAXXAM GROUP HOLDINGS

INC., a Delaware corporation; CHARLES E.

HURWITZ, an individual; GARY CLARK, an

individual; JOHN CAMPBELL, an individual;

and ROBERT MANNE, an individual,

Plaintiffs,

v.

GENERAL STAR INDEMNITY COMPANY,

a Connecticut corporation;

TRANSPORTATION INSURANCE

COMPANY, an Illinois corporation,

Defendants.

TRANSPORTATION INSURANCE

COMPANY, an Illinois corporation,

Counter-Complainant,

v.

THE PACIFIC LUMBER COMPANY, a

Delaware corporation; SCOTIA PACIFIC

COMPANY LLC, a Delaware corporation;

MAXXAM INC., a Delaware corporation;

MAXXAM GROUP INC., a Delaware

corporation; MAXXAM GROUP HOLDINGS

INC., a Delaware corporation; CHARLES E.

HURWITZ, an individual; GARY CLARK, an

individual; JOHN CAMPBELL, an individual;

ROBERT MANNE, an individual; and DOES 1

TO 25,

Counter-Defendants.

GENERAL STAR INDEMNITY COMPANY,

a Connecticut corporation,

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STOEL RIVES LLP

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FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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Third-Party Plaintiff,

v.

NATIONAL UNION FIRE INSURANCE

COMPANY OF PITTSBURGH, PA, a

Pennsylvania corporation,

Third-Party Defendant.

Pursuant to the Court’s Order entered January 11, 2008, the parties to this action jointly

submit this Fourth Supplemental Case Management Statement and Proposed Order.

The parties have consented to trial before Magistrate Judge Laporte. Discovery among

plaintiffs and defendants has been completed, and plaintiffs’ and defendants’ summary judgment

motions have been briefed and filed. (The parties have agreed that third-party defendant National

Union Fire Insurance Company of Pittsburgh, PA need not file its motion for summary judgment

against defendants General Star Indemnity Company and Transportation Insurance Company, if

at all, until after the disputes among plaintiffs and defendants have been adjudicated.) At oral

argument on December 19, 2006, the Court requested additional summary judgment submissions

be filed. However, before those submissions were filed, on January 18, 2007, plaintiffs and

counter-defendants The Pacific Lumber Company (“PALCO”) and Scotia Pacific Company, LLC

(“Scotia”) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the

Southern District of Texas, Corpus Christi Division, case numbers 07-20028-C-11 and 70-20032-

C-11 (jointly administered under case number 07-20027-C-11).1The bankruptcy is a complex

one involving six related companies and hundreds of creditors and remains pending.

In this action, plaintiffs seek insurance coverage for certain lawsuits filed against them in

Humboldt County Superior Court, referenced during these proceedings as the Cave, Cook and

Johnson actions. Those actions have been stayed pursuant to the bankruptcy automatic stay,

11 U.S.C. § 362(a). The Cave, Cook and Johnson plaintiffs filed proofs of claims in the

bankruptcy cases in Corpus Christi, Texas. These claims were settled between Debtors (and

individual plaintiff herein, Gary Clark) and the Cave, Cook and Johnson plaintiffs pursuant to the

1 Hereafter PALCO and Scotia are jointly referred to as “Debtors.”

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STOEL RIVES LLP

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FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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Stipulation and Agreed Order (“Stipulation”) entered by the Bankruptcy Court on February 1,

2008, attached hereto as Exhibit 1. The Stipulation provides, among other things, in paragraph 8

that at the earlier of the effective date of any plan of reorganization of Debtors, or by June 1,

2008, whichever is earlier, the automatic stay will be lifted for the limited purpose of allowing the

Cave, Cook and Johnson plaintiffs to reactivate the cases as against the nondebtor plaintiffs

herein other than Mr. Clark.

Consequently, there are four areas of potential disputes remaining among the parties:

(a) the nondebtor plaintiffs’ claims for a declaratory judgment on the defendant insurance

companies’ duty to defend; (b) debtor PALCO’s claim for defense costs it contends it paid on

behalf of all of the plaintiffs herein, a claim listed as an asset on PALCO’s bankruptcy schedules;

(c) defendants’ counterclaims against plaintiffs herein, which to the extent they are against

Debtors, Debtors contend are subject to the bankruptcy automatic stay; and (d) cross-claims and

third-party claims among the defendants and third-party defendants. The parties agree that it

makes the most sense to continue the stay of this case to (a) determine whether the Cave, Cook

and Johnson plaintiffs will continue their litigation against the nondebtor plaintiffs herein and

(b) obtain the determination of the Bankruptcy Court about how PALCO’s claim for defense

costs will proceed. The former question is likely to be answered on or shortly after June 1, 2008.

Consequently, in the interests of justice, judicial economy and the conservation of the

parties’ resources, the parties hereby request that this action be stayed for a period of an

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STOEL RIVES LLP

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FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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additional 90 days, after which the parties will report back to the Court about the status of the

bankruptcy and whether the stay should be lifted or continued.

DATED: April 15, 2008. STOEL RIVES LLP

By: /s/

SCOTT J. KAPLAN

Attorneys for Plaintiffs/Counter-Defendants

THE PACIFIC LUMBER COMPANY,

SCOTIA PACIFIC COMPANY LLC;

MAXXAM INC., MAXXAM GROUP INC.,

MAXXAM GROUP HOLDINGS INC.,

CHARLES E. HURWITZ, GARY CLARK

JOHN CAMPBELL and ROBERT MANNE

DATED: April 15, 2008. COLLIAU ELENIUS MURPHY CARLUCCIO

KEENER & MORROW

By: /s/

SHERMAN C. LEE

Attorneys for Defendant and

Counter-Complainant TRANSPORTATION

INSURANCE COMPANY

DATED: April 15, 2008. BARBANEL & TREUER, P.C.

By: /s/

KATY NELSON

Attorneys for Defendant, Counterclaimant,

Cross-Claimant and Third-Party Plaintiff

GENERAL STAR INDEMNITY

COMPANY

DATED: April 15, 2008. LEWIS BRISBOIS BISGAARD & SMITH LLP

By: /s/

REBECCA R. WEINREICH (#155684)

Attorneys for Third-Party Defendant

NATIONAL UNION FIRE INSURANCE

COMPANY OF PITTSBURGH, PA

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STOEL RIVES LLP

ATTO RN EY S AT LA W

POR TLA ND

FOURTH SUPPLEMENTAL JOINT CASE

MANAGEMENT STATEMENT AND PROPOSED

ORDER

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DECLARATION REGARDING SIGNATURES

I, Scott J. Kaplan, declare under penalty of perjury that I obtained concurrence to file this

document from each of the other signatories to this document.

/s/

Scott J. Kaplan

ORDER

This action is stayed until further order from the Court. Counsel shall submit a further

joint status report to the Court no later than ______________, 2008.

Dated: ____________, 2008 _________________________________________

THE HONORABLE ELIZABETH D. LAPORTE

July 15 April 16

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge Elizabeth D. Laporte

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