Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_14-cv-01837/USCOURTS-caed-2_14-cv-01837-3/pdf.json

Nature of Suit Code: 950
Nature of Suit: Constitutionality of State Statutes
Cause of Action: 28:1331 Fed. Question

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15723.001 3064052v1 2:14-CV-01837-JAM-CKD

STIPULATION AND [PROPOSED] ORDER STAYING THE CASE 

COBLENTZ 

PATCH 

DUFFY 

&

BASS LLP 

One Ferry Building, Suite 200, San Francisco, California 94111-4213 

415.391.4800 • Fax 415.989.1663 

COBLENTZ PATCH DUFFY & BASS LLP 

JEFFREY G. KNOWLES (State Bar No. 129754) 

ef-jgk@cpdb.com 

JULIA D. GREER (State Bar No. 200479) 

ef-jdg@cpdb.com 

MARK L HEJINIAN (State Bar No. 281417) 

ef-mlh@cpdb.com 

One Ferry Building, Suite 200 

San Francisco, California 94111-4213 

Telephone: 415.391.4800 

Facsimile: 415.989.1663 

LINDQUIST & VENNUM LLP 

DANIEL J. SCHWARTZ (MN Bar #388907) (Admitted Pro Hac Vice) 

dschwartz@lindquist.com 

BRYAN A. WELP (MN Bar #391413) (Admitted Pro Hac Vice) 

bwelp@lindquist.com 

4200 IDS Center 

80 South Eighth Street 

Minneapolis, MN 55402 

Telephone: (612) 371-3211 

Attorneys for Plaintiff 

FIDELITY & GUARANTY LIFE 

 INSURANCE COMPANY 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

FIDELITY & GUARANTY LIFE INSURANCE 

COMPANY 

 Plaintiff, 

v. 

BETTY YEE, in her official capacity as 

CONTROLLER OF THE STATE OF 

CALIFORNIA, 

 Defendant. 

Case No.: 2:14-CV-01837-JAM-CKD 

STIPULATION AND ORDER 

STAYING THE CASE

Complaint filed: August 5, 2014 

Trial date: January 23, 2017

Case 2:14-cv-01837-JAM-CKD Document 48 Filed 03/02/15 Page 1 of 3
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15723.001 3064052v1 2:14-CV-01837-JAM-CKD

STIPULATION AND [PROPOSED] ORDER STAYING THE CASE 

COBLENTZ 

PATCH 

DUFFY 

&

BASS LLP 

One Ferry Building, Suite 200, San Francisco, California 94111-4213 

415.391.4800 • Fax 415.989.1663 

WHEREAS, Defendant California Controller Betty Yee (the "Controller") seeks to 

conduct an audit of Plaintiff Fidelity & Guaranty Life Insurance Company ("FGLIC") to identify 

unreported escheatable property to the State of California; 

WHEREAS, FGLIC believes that the proposed audit violates the United States 

Constitution; 

WHEREAS, FGLIC has appealed this Court's denial of its Motion for Preliminary 

Injunction (Dkt. 36) to the Ninth Circuit Court of Appeals (the "Ninth Circuit Appeal"); 

WHEREAS, there are three currently pending actions in California state court between life 

insurance companies and the Controller regarding proposed audits ("pending life insurance 

cases"):1

 

 Chiang v. American National Insurance Company, Sacramento County Superior 

Court Case No. 34-2013-00144517, filed May 7, 2013, currently on appeal in 

Chiang etc., et al. v. American National Insurance Company, Third Appellate 

District Case No. C075248, filed November 18, 2013; 

 Chiang v. Kemper Corporation, Sacramento County Superior Court Case No. 34-

2013-00148154, filed July 17, 2013; and 

 Thrivent Financial for Lutherans v. Chiang, et al., San Francisco County Superior 

Court Case No. CGC-13-535156, filed October 13, 2013; 

WHEREAS, the Controller believes the outcome of the pending life insurance cases may 

affect the current litigation and wishes to devote its resources to those cases; 

WHEREAS, the parties desire and agree to stay the current litigation pending the final 

resolution of the aforementioned pending life insurance cases including any and all appeals; 

WHEREAS, the parties are simultaneously seeking a stay of the Ninth Circuit Appeal for 

the same period of time; 

 

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 A fourth case filed by FGLIC against the Controller in San Francisco County Superior Court 

(Fidelity & Guaranty Life Insurance Company v. Chiang, San Francisco County Superior Court 

Case No. CGC-14-540953, filed August 5, 2014) is to be dismissed without prejudice pursuant to 

an agreement between the parties. 

Case 2:14-cv-01837-JAM-CKD Document 48 Filed 03/02/15 Page 2 of 3
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15723.001 3064052v1 2 2:14-CV-01837-JAM-CKD

STIPULATION AND [PROPOSED] ORDER STAYING THE CASE 

COBLENTZ 

PATCH 

DUFFY 

&

BASS LLP 

One Ferry Building, Suite 200, San Francisco, California 94111-4213 

415.391.4800 • Fax 415.989.1663 

IT IS THEREFORE STIPULATED AND AGREED THAT: 

(1) the above-captioned case should be stayed pending the final resolution of the 

pending life insurance cases, including the exhaustion of any and all appeals, and in any case, for a 

period of no less than two years; and 

(2) the parties will submit a joint case management statement on March 1, 2017, and 

subsequent joint case management statements every six months thereafter, to update the Court 

regarding the procedural status of the pending life insurance cases and any and all applicable 

appeals. 

DATED: February 27, 2015 COBLENTZ PATCH DUFFY & BASS LLP 

 By: /s/ Jeffrey G. Knowles 

 Jeffrey G. Knowles 

Attorneys for Plaintiff 

FIDELITY & GUARANTY LIFE INSURANCE 

COMPANY 

DATED: February 27, 2015 KAYE SCHOLER LLP 

 By: /s/ Steven S. Rosenthal 

Steven S. Rosenthal 

Attorneys for Defendant BETTY YEE, 

in her official capacity as CALIFORNIA STATE 

CONTROLLER 

ORDER 

GOOD CAUSE APPEARING, IT IS SO ORDERED. 

Dated: 2/27/2015 /s/ John A. Mendez________________________ 

 HON. JOHN A. MENDEZ 

 UNITED STATES DISTRICT COURT JUDGE 

Case 2:14-cv-01837-JAM-CKD Document 48 Filed 03/02/15 Page 3 of 3