Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_03-cv-05376/USCOURTS-cand-4_03-cv-05376-0/pdf.json

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

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United States District Court

For the Northern District of California

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES FIDELITY AND

GUARANTY COMPANY, et al.,

Plaintiffs,

v.

THE SCOTT COMPANIES, INC., et al.,

Defendants.

___________________________________/

No. C-03-5376 SBA (EMC)

ORDER RE SETTLEMENT

The parties have submitted letters to the Court seeking resolution of a dispute in the drafting

of settlement papers. The dispute concerns the length of time within which St. Paul must pursue its

rights under the Final Settlement Agreement against Individual Indemnitors in the event St. Paul

believes it has discovered an unlisted or undervalued asset. Pursuant to the settlement placed on the

record, the parties have stipulated that this Court has final and binding authority to resolve disputes

such as the instant one. Having reviewed the parties’ letters and good cause appearing therefor, the

Court rules as follows.

As to undervalued assets, St. Paul must file an enforcement proceeding within one year of

the date of the Effective Date of the Final Settlement Agreement. Given the disclosure requirements

contained in the Final Settlement Agreement, the one year limitations period afford ample time to

take action as to disclosed but undervalued assets.

As to unlisted assets, St. Paul shall have three years within which to file an enforcement

proceeding. By definition, unlisted assets, if any, are likely to require more investigation and time to

discover than undervaluation of known assets. Three years reflects a fair balance between that need

Case 4:03-cv-05376-SBA Document 213 Filed 08/01/05 Page 1 of 2
United States District Court

For the Northern District of California

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and the Individual Indemnitor’s need for finality. Cf. C.C.P. Section 338(d) (three year statute of

limitations for fraud).

The parties shall forthwith complete the Final Settlement Agreement and have it executed.

IT IS SO ORDERED.

Dated: August 1, 2005

 EDWARD M. CHEN

United States Magistrate Judge

Case 4:03-cv-05376-SBA Document 213 Filed 08/01/05 Page 2 of 2