Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_05-cv-01548/USCOURTS-casd-3_05-cv-01548-5/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1332 Diversity-Insurance Contract

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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

CENTURY SURETY COMPANY, CASE NO. 05 CV 1548 L (LSP)

ORDER ON DEFENDANTS’ 

MOTION TO APPROVE 

SUPERSEDEAS BOND 

Plaintiff, 

v. 

350 W.A. LLC, A California limited 

liability company; JACQUELINE 

HELLEIS, individually and doing 

business as FLAGSHIP 

RESEARCH, 

Defendant. 

AND RELATED 

COUNTERCLAIMS. 

On November 13, 2007 at 10:30 a.m., the Motion of 350 W.A., LLC, David 

A. Blackburn, The David A. Blackburn Family Trust, B&H property Systems, Inc., 

and 350 West Ash Urban Homes (collectively, the “Judgment Debtors”) for 

approval of a supersedeas bond, came on for hearing before the Honorable M. 

James Lorenz of the above-captioned Court. Mathew Yarling of Vivoli & 

Associates appeared on behalf of Judgment Debtors. Marilyn Klinger of 

Sedgwick, Detert, Moran & Arnold, LLP appeared on behalf of judgment creditor, 

Century Surety Company. 

/// 

-1- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 1 of 8
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Having considered the Judgment Debtors’ Motion, all papers and evidence 

submitted in support of and opposition to the Motion, and the arguments of 

counsel: 

IT IS HEREBY ORDERED that Judgment Debtors’ Motion to Approve 

Supersedeas Bond is GRANTED on the following conditions and subject to the 

following procedure: 

1. The bond to be submitted pursuant to Paragraph 2 below is to be 

issued by surety admitted to issue surety bonds in the State of California with a 

Best rating of A or better in substantially the form attached hereto as Exhibit “A,” 

in the amount of $1,500,000. Century consents to and this Court approves 

American Contractors Indemnity Company as the supersedeas bond surety. 

Century will have the right to object to any other surety that Judgment Debtors 

offer for issuance of the supersedeas bond. The Court’s execution of this Order 

shall signify its approval of a bond in that form and amount and its approval of 

American Contractors Indemnity Company (“ACIC”) as the surety thereon. If an 

alternate surety is proffered, the Court will enter and provide to Southern District 

of California Magistrate Judge Leo S. Papas, pursuant to the escrow procedure 

described below, a supplemental order approving the alternate surety. Upon the 

Court’s execution of this Order and the Supplemental Order, if necessary, Judge 

Papas will proceed forward with the following “escrow” procedure: 

2. On or before January 2, 2008, Judgment Debtors will deposit, in 

original form, a fully executed and issued supersedeas bond issued in the form and 

amount required by this Order with Judge Papas. 

3. On or before January 2, 2008, Century will lodge with Judge Papas 

releases pertaining to its levies and attachment liens on the Judgment Debtors’ 

assets, up to the $1,500,000 amount of the bond. 

4. On or before January 2, 2008, Judgment Debtors will lodge whatever 

documents, in the way of deeds of trusts, other voluntary liens, security interests, 

-2- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 2 of 8
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assignments, and UCC-1 Financing Statements as the surety issuing the 

supersedeas bond requires in connection with its issuance of the supersedeas bond 

to Judge Papas. In this regard, the surety issuing the supersedeas bond will provide 

to Judge Papas the name, mailing address, email, telephone and fax information for 

the surety’s representative. 

5. Upon and only upon confirmation by Judge Papas of the lodging of 

(a) the original executed supersedeas bond in the form and amount set forth in 

Exhibit “A” and compliance with Paragraphs 1 and 2 above, and (b) the releases 

and documents in compliance with Paragraphs 3 and 4, above, Judge Papas will 

(i) file the supersedeas bond with the Court, (ii) provide Century’s releases to 

counsel for the Judgment Debtors for their service, filing, and recordation as 

appropriate, and (iii) provide the documents that the surety issuing the supersedeas 

bond requested to its designated representative. 

6. Should Judge Papas determined that any of the procedures applicable 

to the escrow described in this Order should be altered so as to effectuate the 

purpose of this Order, including allowing Judgment Debtors to file a supersedeas 

bond while at the same time protecting Century’s rights as judgment creditor, he 

shall issue his recommendation to this Court and, after the parties’ have an 

opportunity to be heard on his recommendation, this Court shall issue an 

appropriate supplemental order, as necessary. 

7. The temporary stay as to Century’s enforcement procedures with 

respect to the judgment is continued through January 2, 2008. Should Judge Papas 

not receive the original executed supersedeas bond in the form and amount set 

forth in Exhibit “A” and complying with Paragraphs 1 and 2 above by January 2, 

2008, the stay as to Century’s enforcement procedures is hereby vacated as of 

// 

// 

// 

-3- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 3 of 8
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January 2, 2008 and Century may proceed to execute upon the judgment as 

allowed by law. 

DATED: November 29, 2007. 

 

_______________________ 

M. James Lorenz 

Judge, United States District Court 

Southern District of California 

 

-4- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

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EXHIBIT A 

-5- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 5 of 8
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UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

CENTURY SURETY COMPANY, CASE NO. 05 CV 1548 L (LSP)

Plaintiff, SUPERSEDEAS BOND 

FRCP, Rule 62(d)

v. 

350 W.A. LLC, A California limited 

liability company; JACQUELINE 

HELLEIS, individually and doing 

business as FLAGSHIP 

RESEARCH, 

Defendant. 

AND RELATED CROSS-ACTION 

KNOW ALL MEN BY THESE PRESENTS: 

That we, Appellants 350 W.A., LLC, David A. Blackburn, The David A. 

Blackburn Family Trust, B&H Property Systems, Inc., and 350 West Ash Urban 

Homes (collectively, the “Judgment Debtors”), as Principals, and 

____________________________________, as Surety, are held and truly bound 

unto Appellee Century Surety Company (“Century”) as Obligee, for the purpose of 

satisfying the Judgment described below, plus any award of costs, fees and 

statutory interest in the above-captioned case, in the amount of, and not to exceed, 

One Million, Five-Hundred Thousand Dollars ($1,500,000), we bind ourselves and 

our respective successors and assigns, jointly and severally, by these presents. 

-6- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

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WHEREAS, on September 25, 2007, this Court entered a judgment in the 

above-captioned case in favor of Century and against the Judgment Debtors, IN 

THE TOTAL AMOUNT OF $1,201,088.16 (“the Judgment”); and 

WHEREAS, Judgment Debtors filed a Notice of Appeal pertaining to the 

Judgment on October 25, 2007, to the United States Court of Appeals for the Ninth 

Circuit; 

NOW THEREFORE, the condition of this obligation is such that if 

Judgment Debtors shall pay the Judgment, plus any award of costs, fees and 

statutory interest incurred in the above-captioned case and/or the Appeal, or in the 

event that the Judgment is vacated or overturned in its entirety, then this obligation 

shall be null and void and released; otherwise, the obligation is to remain in full 

force and effect, provided, however, that the maximum liability for the Surety shall 

not exceed the sum of $1,500,000. 

Dated: November __, 2007 350 W.A., LLC 

By: 

Title: 

Dated: November __, 2007 DAVID A. BLACKBURN 

By: David A. Blackburn 

Dated: November __, 2007 THE DAVID A. BLACKBURN FAMILY 

TRUST 

By: David A. Blackburn 

Title: Trustee 

-7- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 7 of 8
1 Dated: November , 2007 B&H PROPERTY SYSTEMS, INC. 

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By: 

Title: 

Dated: November , 2007 350 WEST ASH URBAN HOMES 

By: 

Title: 

Dated: November , 2007 [surety] 

By: 

Attorney-in-fact 

Original Power of Attorney attached 

-8- CASE NO. 05 CV 1548 L (LSP) 

 ORDER ON DEFENDANTS’ MOTION TO APPROVE SUPERSEDEAS BOND 

Case 3:05-cv-01548-L-BGS Document 142 Filed 11/29/07 Page 8 of 8