Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-04000/USCOURTS-cand-3_06-cv-04000-7/pdf.json

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

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

FEDERAL INSURANCE COMPANY,

Plaintiff,

v.

ALBERTSON'S, INC., AMERICAN

STORES COMPANY, and DOES 1 through

50, inclusive,

Defendants.

___________________________________/

No. C 06-04000 MHP

ORDER 

Re: Pre-judgment interest

Having considered the parties' arguments and submissions regarding whether plaintiff is

entitled to interest on any judgment amount that may be awarded against defendants in this action,

the court enters the following order:

1. The amount of the settlement award that plaintiff was to pay was fixed and known as of

May 2003 when the underlying employment litigation was settled amongst Federal

Insurance, Dean Foods and the individual dairy employees. 

2. Under the Facilitation Agreement signed by Albertson's and Dean Foods, Albertson's

agreed to indemnify, defend and reimburse Dean Foods for any liability arising from

employment of the dairy employees prior to March 1998, the closing date of the transfer of

the dairy from Albertson's to Dean Foods. 

Case 3:06-cv-04000-MHP Document 150 Filed 10/19/07 Page 1 of 2
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3. Federal Insurance is therefore entitled to interest on the percentage of the settlement

amount allocated to Albertson's, with interest beginning to accrue on the date of the

settlement agreement. 

4. In awarding an interest amount, the court will consider Albertson's refusal to contribute to

the settlement even though Federal Insurance gave timely notice of the litigation upon its

commencement in 2002, made repeated requests for Albertson's participation in the

litigation and settlement discussions, and issued repeated demands for Albertson's

contribution after settlement was reached. 

5. On the other hand, the court acknowledges that plaintiffs did not file the present action until

June 2006, three years after the settlement agreement was executed. The court will

therefore consider any undue delay by Federal Insurance in bringing this action to compel

Albertson's contribution to the settlement amount after it had become apparent that

Albertson's would not otherwise willingly contribute. 

IT IS SO ORDERED.

Dated: October 18, 2007 _______________________________

MARILYN HALL PATEL

United States District Court Judge

Northern District of California

Case 3:06-cv-04000-MHP Document 150 Filed 10/19/07 Page 2 of 2