Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-00325/USCOURTS-caed-2_05-cv-00325-7/pdf.json

Nature of Suit Code: 130
Nature of Suit: Miller Act
Cause of Action: 28:1352 Miller Act

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

WILLIAM A. LICHTIG (107480) 

M. DAVID RUFF (222090) 

ERIN K. McDONOUGH (241664) 

McDONOUGH HOLLAND & ALLEN PC 

Attorneys at Law 

555 Capitol Mall, 9th Floor 

Sacramento, CA 95814 

Phone: 916.444.3900 

Fax: 916.444.0707 

Attorneys for Use-Plaintiff 

PETER A. FULLER, INDIVIDUALLY 

AND DOING BUSINESS AS

PETE FULLER CONSTRUCTION

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

THE UNITED STATES OF AMERICA FOR 

THE USE AND BENEFIT OF PETER A. 

FULLER, individually and doing business as 

PETE FULLER CONSTRUCTION, 

Plaintiff, 

vs. 

JAMES E. ZOUCHA, an individual, 

Defendant. 

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No. 2:05-CV-00325-DFL-DAD 

STIPULATION AND ORDER FOR 

SETTLEMENT AND TO STAY 

ACTION 

Plaintiff Peter A. Fuller, individually and doing business as Pete Fuller Construction 

("Fuller") and defendant James E. Zoucha ("Zoucha") (collectively, the "Parties"), by and through 

their respective counsel, stipulate as follows: 

RECITALS

1. Whereas a dispute has arisen between the Parties concerning the public works of 

improvement known as "Replace Well 2014 at Cypress Lakes Golf Course XDAT 02-7506," and 

"Replace Well 2006 at Cypress Lakes Golf Course XDAT 03-1063," located at Fairfield, California 

(collectively, the "Projects"), which are the subject of THE UNITED STATES OF AMERICA FOR 

THE USE AND BENEFIT OF PETER A. FULLER, individually and doing business as PETE 

Case 2:05-cv-00325-DFL-DAD Document 51 Filed 05/19/06 Page 1 of 8
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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

FULLER CONSTRUCTION v. JAMES E. ZOUCHA, United States District Court, Eastern District of 

California, Case No. 2:05-CV-00325-DFL DAD (the "Action"). 

2. Whereas the Parties wish to settle all claims asserted or which could have been 

asserted in the Action, they enter into this Agreement. 

STIPULATION FOR SETTLEMENT AND MUTUAL RELEASE

A. Payment of the Settlement Amount 

1. FOR AND IN CONSIDERATION of the total settlement of the Action, 

Zoucha shall pay to Fuller an amount not to exceed Four Hundred Forty-Six Thousand Two 

Hundred Twenty-Seven Dollars and Ninety-Four Cents ($446,227.94), but no less than Three 

Hundred Eighty-Four Thousand Two Hundred Twenty-Seven Dollars and Ninety-Four Cents 

($384,227.94) to be determined and paid as follows: 

 a) Two Hundred Sixty Thousand Nine Hundred Forty-Six Dollars 

and Fifty-Two Cents ($260,946.52) to be paid within thirty (30) days of execution of this 

Stipulation (the "First Settlement Payment"); and 

 b) One Hundred Twenty-Three Thousand Two Hundred Eighty-One 

Dollars and Forty-Two Cents ($123,281.42) to be paid within sixty (60) days of execution of this 

Stipulation (the "Second Settlement Payment"). 

 c) Following receipt of the Second Settlement Payment and confirmation 

that the First Settlement Payment and Second Settlement Payment have been paid by the banks upon 

which they were drawn, Fuller shall assign its claim in the bankruptcy proceeding of EAI 

International, referred to as In RE EAI INTERNATIONAL, INC., United States Bankruptcy Court for 

the Northern District of California Case No. 04-45829LT11 (the "EAI Bankruptcy Proceeding"), to 

Zoucha. 

 d) In addition to the First and Second Settlement Payments, Zoucha shall 

assign and pay to Fuller Sixty-Two Thousand Dollars ($62,000.00) to be paid from the first dollars 

recovered by Zoucha from the EAI Bankruptcy Proceeding (the "Third Settlement Payment"). 

Zoucha shall use all best efforts to effect this recovery and payment to Fuller. 

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

2. The term "execution" as provided in this Agreement shall mean the date on 

which the Agreement was signed by either Fuller or Zoucha, whichever is later. 

3. All settlement checks in the amounts set forth above shall be made payable to 

Pete Fuller dba Pete Fuller Construction and the law firm representing him, McDonough Holland & 

Allen PC, and delivered to Fuller's counsel; 

4. After 91 days following the latter of (1) payment of the Second Settlement 

Payment by the bank upon which it was drawn; (2) payment of the Third Settlement Payment by the 

bank upon which it was drawn; or (3) the conclusion of the EAI Bankruptcy Proceeding if Zoucha 

fails to recover from that proceeding, Fuller will cause a dismissal with prejudice to be filed in the 

Action. 

5. The Action, including the deadlines for discovery and all dispositive motions, 

including, but not limited to the deadline for motions for summary judgment, shall be stayed from 

the date of the full execution of this Stipulation until the latter of dismissal of the Action as provided 

above, or Fuller's notice to the Court, served on Zoucha, that Zoucha has failed to perform the terms 

of this Stipulation and that the Action may proceed. 

6. The United States District Court for the Eastern District of California shall 

retain jurisdiction to enforce the terms of this Stipulation. 

B. GENERAL MUTUAL RELEASE 

1. Excepting only the obligations of the Stipulation, and the limitations stated in 

subsection 3 below, Fuller, and each of its officers, directors, shareholders, partners, employees, 

representatives, successors, affiliated companies, subsidiaries, and assignees hereby release, 

discharge, and covenant not to sue Zoucha, and each of his agents, employees, heirs, executors, 

administrators, successors-in-interest, officers, directors, shareholders, attorneys, insurers, owners, 

representatives, and assigns from any and all claims, demands, actions, liabilities, damages, and 

causes of action, including costs and attorney fees, in regard to or in any way arising from or relating 

to the Projects and the Action. Fuller understands that, with the exception of the obligations of the 

Stipulation and the limitations stated in subsection 3, below, this release extends to any and all 

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

claims, demands, actions and causes of action of any and every kind or nature whatsoever, 

contractual, tortious, or otherwise, present or future, known or unknown, contemplated or 

uncontemplated, in connection with or in any way arising from or relating to the Projects or the 

Action. 

2. Excepting only the obligations of the Stipulation and the limitations stated in 

subsection 3 below, Zoucha and each of his agents, employees, heirs, executors, administrators, 

successors-in-interest, officers, directors, shareholders, attorneys, insurers, owners, representatives, 

and assigns hereby release, discharge, and covenant not to sue Fuller and each of its officers, 

directors, shareholders, partners, employees, representatives, successors, affiliated companies, 

subsidiaries, agents, attorneys, and sureties, from any and all claims, demands, actions, liabilities, 

damages, and causes of action, including costs and attorney fees, in regard to or in any way arising 

from or relating to the Projects and the Action. Zoucha understands that, with the exception of the 

obligations of the Stipulation and the limitations stated in subsection 3, below, this release extends to 

any and all claims, demands, actions and causes of action of any and every kind or nature 

whatsoever, contractual, tortious, or otherwise, present or future, known or unknown, contemplated 

or uncontemplated, in connection with or in any way arising from or relating to the Projects or the 

Action. 

3. The releases stated herein shall not apply to claims arising out of (1) latent 

deficiencies, as defined by Code of Civil Procedure section 337.15; (2) bodily injury or death 

suffered by any person; or (3) unexpired warranties on the Projects. 

C. COMPROMISE OF A DISPUTED CLAIM 

It is understood and agreed that this settlement involves a compromise of a disputed claim, 

liability for which is expressly denied by defendants. Neither this settlement, this Stipulation nor 

any payment of a sum of money due hereunder shall constitute or be deemed or construed as an 

admission of liability on the part of any releasee. 

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

D. WAIVER UNDER CIVIL CODE SECTION 1542 

With the exception of the obligations of the Stipulation and the limitations stated in section 

B(3), above, it is expressly agreed that the undersigned understand and agree that this full and final 

release covers and includes all claims of every kind and nature, past, present, or future, known or 

unknown, suspected or unsuspected, and that all claims under Section 1542 of the Civil Code of the 

State of California are hereby expressly waived. The undersigned understands that said Section 

1542 provides: 

A general release does not extend to claims which the creditor does not know or 

suspect to exist in his favor at the time of executing the release, which if known by 

him must have materially affected his settlement with the debtor. 

Each of the Parties understands and acknowledges the significance and consequence of this specific 

waiver of Civil Code Section 1542. 

E. ENTIRE AGREEMENT 

This Stipulation contains the entire agreement of the Parties and supersedes any prior written 

or oral agreements between them concerning the subject matters contained herein. No supplement, 

modification or amendment to this Stipulation shall be binding unless executed in writing. 

F. NO REPRESENTATIONS 

In making this Stipulation, it is understood and agreed that the Parties rely wholly on their 

own judgment, belief and knowledge of the nature, extent and duration of the alleged damages and 

injuries, and that the Parties have not been influenced to any extent in making this Stipulation by any 

representations or statements regarding alleged damages or regarding any other matter made by the 

releasees or by any person or persons representing them or any of them. The Parties to this 

Stipulation hereby declare and represent that they are effecting and executing this Stipulation after 

having had the opportunity to receive legal advice as to their rights and the significance of this 

Stipulation from legal counsel of their own choosing. 

G. GOOD FAITH SETTLEMENT 

In entering into this Stipulation, it is understood and agreed that the Parties, on behalf of their 

heirs, executors, administrators, agents, officers, directors, shareholders, successors in interest, 

attorneys, and assigns, acknowledge and agree that the releasees have at all times pertinent hereto 

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

negotiated, bargained, and settled this matter in good faith. It is agreed that this settlement shall 

constitute a "good faith settlement" in accordance with American Motorcycle Ass'n. v. Sup. Ct. and 

its progeny. 

H. WARRANTIES 

The Parties to this Stipulation hereby represent and warrant that they have not heretofore 

assigned or transferred, or purported to assign or transfer any claim, demand, action, cause of action, 

or right herein released or discharged, and as to any such claim or purported claim of assignment 

which may hereafter arise by any person, firm, corporation, or entity, the Parties will hold one 

another harmless and agree to defend, indemnify, save and hold the releasee free and harmless. 

The Parties represent and warrant that they will do all acts and execute and deliver all 

documents necessary, convenient or desirable to effect all provisions of this Stipulation. 

I. GOVERNING LAW 

The validity, interpretation and enforcement of this Stipulation shall be governed by the laws 

of the State of California. The Stipulation shall be enforceable by motion pursuant to California 

Code of Civil Procedure section 664.6, or by such other procedural mechanisms as may apply. 

J. RELEASE BINDING ON HEIRS AND OTHER SUCCESSORS IN INTEREST 

This release shall bind and be binding upon the heirs, executors, administrators, subsidiaries, 

and assigns of the undersigned. 

K. EACH PARTY TO BEAR THEIR OWN ATTORNEY'S FEES AND COSTS 

The Parties agree, except as contained in the settlement provisions described in section I, that 

each shall bear her or his or its attorney's fees and costs incurred with respect to the prosecution or 

defense of this action, including those incurred with respect to the settlement, preparation and 

execution of this Stipulation and any related documents. 

In any action or proceeding between or among the Parties to this Stipulation at law or in 

equity to enforce or otherwise interpret this Stipulation, or for damages by reason of any alleged 

breach, or for a declaration of rights or obligations, or otherwise related to this Stipulation, the 

unsuccessful party to that proceeding or action shall pay to the prevailing party, in addition to any 

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

 

other relief that may be granted, all costs and expenses and attorney fees actually and reasonably 

incurred by the prevailing party relative to that action or proceeding. 

L. PROVISIONS SEVERABLE 

If any provision of this Stipulation is determined to be invalid or unenforceable, the 

remainder shall be construed as valid and enforced so as to effectuate the intention of the Parties at 

the time the settlement was entered into. 

IT IS SO STIPULATED: 

Dated: PETER A. FULLER, individually 

 and doing business as Pete Fuller Construction 

 By: /s/ Pete A. Fuller 

 PETER A. FULLER 

Dated: JAMES E. ZOUCHA 

 By: /s/ James E. Zoucha 

JAMES E. ZOUCHA 

Dated: McDONOUGH HOLLAND & ALLEN PC 

 Attorneys at Law 

 By: /s/ Erin K. McDonough 

 

 ERIN K. McDONOUGH 

 Attorneys for Plaintiff 

 Peter A. Fuller, individually and doing business as 

 Pete Fuller Construction 

Dated: NAGELEY, MEREDITH & MILLER, INC. 

 By: /s/ James C. Keowen 

 JAMES C. KEOWEN 

 Attorneys for Defendant James E. Zoucha

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STIPULATION AND [PROPOSED] ORDER FOR SETTLEMENT AND TO STAY ACTION 917406v1 29619/0005

ORDER

Good cause appearing, IT IS HEREBY ORDERED that the Parties' stipulation is approved, 

that the Parties shall comply with its terms, that the court shall retain jurisdiction over this matter to 

fully enforce the terms of this Stipulation and Order, and that the Action, including the deadlines for 

discovery and all dispositive motions, including, but not limited to the deadline for motions for 

summary judgment, shall be stayed pending further order of the court or dismissal of the Action. 

Dated: 5/18/2006 

______________________________ 

DAVID F. LEVI 

United States District Judge

 

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