Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-01071/USCOURTS-azd-2_09-cv-01071-6/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Dr. Guenter Stetter, 

Plaintiff/Counterdefendant,

vs.

Blackpool, LLC; John R. Bickley IV;

and Burton D. Gould,

Defendants/Counterclaimants.

Burton D. Gould,

Counterclaimant,

vs.

John P. Dunbar,

Counterdefendant.

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No. CV-09-1071-PHX-DGC (MEA)

ORDER

The parties have filed a host of motions over the past two months. This order

addresses most of the motions and certain case management issues.

I. Gould’s Motion to Continue Case.

Burton Gould has filed a motion seeking a six-month continuance of the case due to

his recent heart surgery. Dkt. ##89, 92. No response has been filed. The Court will grant

the motion in part. The case is stayed through May 31, 2010 with respect to claims asserted

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by and against Gould. The case will remain active as to all other claims and parties, and all

applicable deadlines shall remain effective.

Gould shall promptly notify the Court and the other parties if his health improves such

that he is able to proceed with the case. The Court will require Gould to file a report

regarding the status of his health every 30 days beginning on February 1, 2010.

Dr. Guenter Stetter’s motion to dismiss Gould’s counterclaim (Dkt. #93) will be

denied without prejudice to refiling after the stay is lifted.

II. Stetter’s Motion for an Order to Show Cause and Other Relief.

On October 21, 2009, the Court issued an order expanding the amended preliminary

injunction (Dkt. #32) to include a requirement that John Bickley IV produce, by November 6,

2009, a detailed accounting of the $180,000 in disbursements discussed at the case

management conference (Dkt. #69). Dkt. #70. Because Kelly Olson is a person in active

concert or participation with Bickley, the Court ordered Olson to cooperate with Bickley in

compiling the information necessary for the accounting. Id.

Stetter has filed a motion for an order requiring Bickley and Olson to show cause why

they should not be held in contempt for failing to comply with the October 21, 2009 order.

Dkt. #83. The motion also seeks orders compelling Bickley’s compliance with his initial

disclosure obligations and imposing terminating sanctions against Bickley. Id. No response

has been filed.

The Court will grant the motion to the extent it seeks an order to show cause hearing.

A hearing will be held on January 21, 2010, at 1:00 p.m. Bickley and Olson shall appear

at the hearing and show cause why they should not be held in contempt for failing to comply

with the Court’s order of October 21, 2009 (Dkt. #70). Bickley also shall be prepared to

address Stetter’s request for terminating sanctions and Bickley’s compliance, or lack thereof,

with his disclosure obligations. Bickley shall provide Olson with a copy of this order.

III. Stetter’s Motion to Extend Time to Amend Pleadings.

The case management order established a December 21, 2009 deadline for joining

parties and amending pleadings. Dkt. #72 at 1, ¶ 2. Stetter has filed a motion seeking a

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60-day extension of that deadline on the ground that he is unable to determine the existence

and viability of claims against potential third parties due to Bickley’s non-compliance with

the rules and orders. Dkt. #97.

The Court will deny the motion without prejudice. Rule 16 of the Federal Rules of

Civil Procedure requires district judges to enter case management schedules and provides

that such schedules “may be modified only for good cause[.]” Fed. R. Civ. P. 16(b)(4); see

Johnson v. Mammoth Recreations, Inc., 975 F.2d 604, 608 (9th Cir. 1992). “Good cause”

exists when a deadline “cannot reasonably be met despite the diligence of the party seeking

the extension.” Fed. R. Civ. P. 16 Advisory Comm.’s Notes (1983 Am.). Because Stetter

does not presently seek to join additional parties or amend the pleadings, the Court cannot

determine whether good cause exists to extend the case management schedule. The Court

will address this issue if and when Stetter seeks to amend his claims.

IV. Wells Fargo Bank’s Motion to Modify Orders.

Stetter named Wells Fargo Bank as a defendant in the original complaint. Dkt. #1.

Wells Fargo, through counsel, filed an answer to the complaint. Dkt. #5. The Court

subsequently granted Stetter’s request for injunctive relief (Dkt. #7) and issued orders

restraining Wells Fargo from transferring funds held in Blackpool, LLC accounts (Dkt. #12

at 3, ¶ 3; Dkt. #17 at 4, ¶ 3). Wells Fargo has filed a motion requesting that the Court modify

those orders to allow Wells Fargo to deduct its attorneys’ fees and costs from the Blackpool

accounts pursuant to the parties’ account agreements. Dkt. #73. Stetter opposes the motion.

Dkt. #95.

The Wells Fargo account agreement entitles it to deduct from an account the

attorneys’ fees and expenses Wells Fargo incurs as a result of an adverse claim being made

against the account. Dkt. #73-1 at 10. Stetter has made a claim against Blackpool’s accounts

with Wells Fargo. Dkt. ##1, 74. Wells Fargo asserts that the attorneys’ fees it incurred as

result of Stetter’s claim is greater than the $6,000 in the Blackpool accounts (Dkt. #73

at 2-3), but presents no evidence in support of this assertion. The Court will require Wells

Fargo, by January 15, 2010, to present evidence establishing the specific balance of the

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Blackpool accounts and the amount of attorneys’ fees and costs incurred by Wells Fargo in

this action.

V. Defendant Blackpool.

Stetter stated in the joint case management report that he intended to seek default of

Blackpool for failure to answer the complaint. Dkt. #66 at 3, ¶ 5. The case management

order directed Stetter to seek default by October 30, 2009. Dkt. #72 at 5, ¶ 9. Stetter failed

to comply with that requirement. Stetter shall have until January 15, 2010 to seek default of

Blackpool. The failure to meet this deadline will result in Blackpool’s dismissal.

VI. Settlement Efforts.

Following the case management conference held on October 20, 2009, the Court

referred this matter to Magistrate Judge Mark Aspey for purposes of conducting a settlement

conference and directed the parties to contact Judge Aspey’s chambers to schedule a hearing.

Dkt. #69. The case management order requires the parties and their counsel to engage in

good faith settlement talks, with the assistance of a magistrate judge, by January 29, 2010.

Dkt. #72 at 4, ¶ 8. The parties shall, by January 15, 2010, file a joint report describing the

efforts made to comply with the Court’s order regarding settlement discussions.

IT IS ORDERED:

1. Burton Gould’s motion to continue case (Dkt. #89) is granted in part and

denied in part. The case is stayed until May 31, 2010 with respect to all

claims asserted by or against Gould. The case remains active as to all other

claims and parties.

2. Gould shall file a report regarding the status of his health every 30 days

beginning on February 1, 2010. Gould shall promptly notify the Court and

the other parties if his health improves such that he is able to proceed with the

case.

3. Dr. Guenter Stetter’s motion to dismiss Gould’s counterclaims (Dkt. #93) is

denied without prejudice to refiling after the partial stay is lifted.

4. Stetter’s motion for order to show cause and other relief (Dkt. #83) is granted

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in part. An order to show cause hearing is set for January 21, 2010, at 1:00

p.m. John Bickley IV and Kelly Olson shall appear at the hearing and show

cause why they should not be held in contempt for failing to comply the

Court’s order of October 21, 2009 (Dkt. #70). Bickley shall provide Olson

with a copy of this order.

5. Stetter’s motion to extend time to file an amended complaint (Dkt. #97) is

denied without prejudice.

6. Wells Fargo Bank’s motion to modify orders (Dkt. #73) is taken under

advisement. Wells Fargo shall, by January 15, 2010, submit evidence

establishing the specific balance of the Blackpool accounts and the amount of

attorneys’ fees and costs incurred by Wells Fargo in this action.

7. Stetter’s motion for relief from late filing (Dkt. #96) is granted.

8. Stetter shall seek default of Blackpool by January 15, 2010. Blackpool will

be dismissed from this action if Stetter fails to comply with this order.

9. The parties shall file a joint report regarding settlement efforts by

January 15, 2010.

DATED this 7th day of January, 2010.

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