Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_15-cv-01638/USCOURTS-cand-3_15-cv-01638-14/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 09:1 U.S. Arbitration Act

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

FLINTKOTE COMPANY, et al.,

Plaintiffs,

v.

AVIVA PLC, et al.,

Defendants.

Case No. 15-cv-01638-SI 

THIRD ORDER ON BOND

Re: Dkt. Nos. 156, 161, 164, 167

On May 16, 2016, following multiple rounds of briefing on the issue, the Court ordered 

defendants to post a total bond amount of $2.442 million (USD) “with all deliberate haste.” Dkt. 

No. 164. Defendants were additionally ordered to “timely notify the Court of the posting of the 

bond.” Id. No bond has been posted. On July 20, 2016, defendants were ordered to show cause 

why no bond had been posted, or, if the bond had been posted, why no notice was provided to the 

Court. Dkt. No. 167. Defendants were additionally ordered to show cause as to why they should 

not be sanctioned for failure to comply with the Court’s order. Id.

The parties filed a joint statement explaining that “[n]o bond had been posted because the 

Parties are working to finalize a settlement of this matter[.] Dkt. No. 168 at 2. The parties “hope 

to conclude settlement negotiations in the next few weeks” and state that they “will advise the 

Court when final settlement documents are executed.” Id. at 3.

As noted in prior order of this Court, the clear language of California Insurance Code 

section 1616 mandates that defendants post a bond to secure the payment of any final judgment 

which may be rendered in the present action. See, e.g., Dkt. No. 161; see also Cal. Ins. Code 

§ 1616 (“Before any nonadmitted foreign or alien insurer shall file or cause to be filed any 

pleading in any action, suit or proceeding instituted against it, the insurer shall . . . give a bond in 

Case 3:15-cv-01638-SI Document 169 Filed 07/27/16 Page 1 of 2
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United States District Court

Northern District of California

the action, suit or proceeding in an amount to be fixed by the court sufficient to secure the 

payment of any final judgment which may be rendered in the action, suit, or proceeding.”

(emphasis added)).

In light of this, the parties are ORDERED file a joint status update advising the Court of 

the progress they have made concluding these settlement discussions by August 19, 2016. Should 

the matter not settle by this date the Court ORDERS the parties to file a status update every 14 

days until the matter has settled. The Court retains the authority to ORDER defendants to 

immediately post the bond.

IT IS SO ORDERED.

Dated: July 27, 2016

______________________________________

SUSAN ILLSTON

United States District Judge

Case 3:15-cv-01638-SI Document 169 Filed 07/27/16 Page 2 of 2