Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_99-cv-05583/USCOURTS-caed-1_99-cv-05583-38/pdf.json

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

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PROPOSED ORDER ON AON’S MOTION TO - 1 - Case No. 1-99-CV-5583 OWW SMS

AMEND PRE-TRIAL ORDER SANF~368125.1

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

UNITED STATES FIDELITY &

GUARANTY COMPANY, a Maryland

corporation,

Plaintiff

v.

LEE INVESTMENTS, LLC dba THE

ISLAND, a California limited liability

company, and DIANA CONLEY, an

individual,

Defendants.

Case No. 1:99–cv 5583 OWW SMS 

ORDER ON AON’S MOTION TO

AMEND PRE-TRIAL ORDER 

AND RELATED COUNTERCLAIMS AND

THIRD-PARTY COMPLAINANTS.

Upon the agreement of the parties, the oral motion of Aon Risk Services, Inc. of Central

California Insurance Services ("Aon") to modify the pre-trial order to permit Margaret Parker and/or

Matthew Covington to testify as witnesses in the Court phase of the trial, came on for telephonic

hearing at 1 p.m. on March 30, 2007 in the above-referenced Court, the Honorable Oliver W. Wanger

presiding. Matthew Covington, Esq. appeared for Aon. Keith White, Esq. appeared for Lee

Case 1:99-cv-05583-LJO-SMS Document 751 Filed 04/05/07 Page 1 of 3
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PROPOSED ORDER ON AON’S MOTION TO - 2 - Case No. 1-99-CV-5583 OWW SMS

AMEND PRE-TRIAL ORDER SANF~368125.1

Investments, LLC ("Lee"), and Bruce Smyth appeared for United States Fidelity & Guaranty Company

("USF&G") and American Specialty Insurance Services ("American Specialty").

Upon considering the arguments of counsel, the Court hereby finds and orders as follows. 

 1. The Pre-Trial Order is hereby modified to permit Matthew Covington and/or Margaret

Parker to testify at the Court trial concerning attorneys’ fees and costs claimed by Aon in this matter. 

2. The Court finds that this modification is in the interests of sound judicial

administration and in the interests of justice, and is necessary to prevent manifest injustice, for the

following reasons: 

a) Changed circumstances make the modification appropriate. When the PreTrial Order was being drafted the entire case (including the attorneys’ fees issue) was scheduled to be

tried to the jury. Because it would have been inappropriate to have trial counsel testify as witnesses in

a jury trial, Aon reasonably did not list Mr. Covington or Ms. Parker as trial witnesses at that time, and

they instead listed an associate attorney (Steve Chiari) as a witness. Circumstances changed part way

through the trial when all parties stipulated that the attorneys’ fees issue would be tried to the Court. 

Because Ms. Parker and Mr. Covington are quite familiar with the background facts in this matter, it

would be most efficient for one of them to testify. 

b) The amendment will not prejudice or surprise any party. Well prior to trial,

Lee knew that Aon would call an attorney witness (then Mr. Chiari) to testify about its attorneys’ fees. 

Also, during oral proceedings in this matter at the end of February 2007, Aon’s counsel mentioned in

open court that either Mr. Covington and/or Ms. Parker planned to testify at the Court trial in this

matter, and no party objected. 

Case 1:99-cv-05583-LJO-SMS Document 751 Filed 04/05/07 Page 2 of 3
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PROPOSED ORDER ON AON’S MOTION TO - 3 - Case No. 1-99-CV-5583 OWW SMS

AMEND PRE-TRIAL ORDER SANF~368125.1

c) Should this amendment not be allowed, Aon would necessarily suffer some

prejudice since it would incur additional attorneys’ fees and costs in having Mr. Chiari prepare to

testify and testify. The Court also notes that Aon has a claim against Lee for attorneys’ fees in this

matter. Accordingly, allowing the amendment will avoid prejudice to Lee since it will reduce the

amount of Aon’s claim for fees against Lee. 

3. The Court finds that it will not draw any positive or adverse influences from the fact

that Mr. Covington and/or Ms. Parker (as trial counsel) will testify for Aon. 

4. This Order is without prejudice to any party applying for an order modifying the PreTrial Order in other respects. 

IT IS SO ORDERED.

Dated: April 5, 2007 /s/ Oliver W. Wanger 

emm0d6 UNITED STATES DISTRICT JUDGE

Case 1:99-cv-05583-LJO-SMS Document 751 Filed 04/05/07 Page 3 of 3