Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_11-cv-00871/USCOURTS-casd-3_11-cv-00871-2/pdf.json

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

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NO 21 2011 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF CALIFORNIA 

PAMELA STONEBREAKER, an CASE NO.: 3:11cv00871 WQH (WVG) 

individual, 

ORDER DISBURSING THE PRUCO 

Plaintiff, LIFE INSURANCE COMPANY 

POLICY MONEY PREVIOUSLY 

v. DEPOSITED WITH THE COURT 

PRUCO LIFE INSURANCE 

COMP ANY, a corporation, 

Defendant. 

(AND RELATED CROSS-COMPLAINT 

AND THIRD-PARTY COMPLAINT) 

The Court has reviewed the joint motion by all parties to this action, including the 

plaintiff, Pamela Stonebreaker; the defendant, counterclaimant and third-party claimant 

Pruco Life Insurance Company ("Pruco"); and the Honorable Patricia Cowett, Guardian 

Ad Litem for minors Kristen Stonebreaker, Kelli Stonebreaker, and Ryan Stonebreaker 

("the Stonebreaker children"), for an order disbursing the death benefit proceeds, claim 

interest and premium refund that became due under Individual Pruco Life Insurance 

number L5044422 ("Policy"), which is the subject of this lawsuit, and which were 

previously deposited with the Court. 

All of the parties to this action have reached agreement on a comprehensive and 

global settlement to resolve this lawsuit in its entirety, the terms of which are as follows: 

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Case No. 3:11cv00871 WQH (WMC) 

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l. 	Plaintiff Pamela Stonebreaker and the Stonebreaker Children are enjoined 

from instituting or prosecuting any proceeding in any State or United States 

court against Pruco with respect to the Death Benefit deposited with the 

Court by Pruco on or about October 20, 2011 , in the amount of $421 ,823.73 , 

pursuant to the Court's November 4,2011 Order (docket number 51) and 

pursuant to plaintiff Pamela Stone breaker' s voluntary settlement and 

dismissal of her claim for breach of the implied covenant of good faith and 

fair dealing, and Plaintiff Pamela Stonebreaker and the Stonebreaker 

Children release all rights under the Policy; 

2. 	 Defendant Pruco waives any claim for reimbursement of any portion of its 

attorneys' fees and costs; 

3. 	 the Death Benefit shall be released for the benefit of Plaintiff Pamela 

Stonebreaker and the Stonebreaker Children under the additional terms set 

forth below; 

4. 	 Plaintiff Pamela Stonebreaker and the Stonebreaker Children forever 

discharge Pruco from any and all liability relating to the Policy and/or the 

Death Benefit, and all parties herein are permanently enjoined from making 

any further actual or implied claims, demands and causes of action, asserted 

or unasserted, express or implied, foreseen or unforeseen, real or imaginary, 

suspected or unsuspected, known or unknown, liquidated or unliquidated, of 

any kind or nature or description whatsoever, that they jointly and severally 

ever had, presently have, may have, or claim or assert to have, or hereinafter 

have, may have, or claim or assert to have, against Pruco with respect to the 

Policy and/or the payment of the Death Benefit previously due thereunder; 

and 

5. 	 Plaintiff Pamela Stonebreaker will dismiss this entire action with prejudice, 

with all parties consenting to such dismissal, and with all parties to bear their 

own attorneys' fees and costs. The parties have prepared and joined in, and 

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Case No.3: 11 cv0087I WQH (WMC) 

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Plaintiff Pamela Stonebreaker will submit, a second joint motion seeking a 

dismissal with prejudice of this lawsuit in its entirety, including any and all 

counterclaims, and third-party complaints, and expressly releasing Pmco 

from any and all future liability as it relates to any and all current or future 

claims by any party against Pmco with respect to the Policy and/or the 

payment of the Death Benefit previously due thereunder. 

The Court finds good cause for the requested order. Accordingly: 

IT IS SO ORDERED that pursuant to the parties' settlement, as soon as reasonably 

possible, the Clerk of the Court shall issue a check in the amount of $75,000 payable to 

"Law Office of Mark W. Hansen Trust Account." Within three business days of the date 

that such funds have been deposited and cleared the bank, Mr. Hansen shall disburse the 

entirety of such $75,000 to establish three separate Internal Revenue Code Section 529 

college savings accounts, in the amount of $25,000 each, one for each of the three 

Stonebreaker Children, with the Stonebreaker Children listed as the beneficiaries of such 

accounts and their mother, Pamela Stonebreaker, listed as the person establishing and 

administering such accounts. 

IT IS FURTHER ORDERED that within three business days after establishing the 

Section 529 college savings accounts as described above, Mr. Hansen shall prepare and 

file with the Court and serve on all parties a "Notice of Deposit of Funds" in which he will 

report on the status of the creation of such accounts, including the name of the bank or 

other federally insured savings institution and the account number for each of the Section 

529 savings accounts. 

IT IS FURTHER ORDERED that simultaneously with the $75,000 check described 

above, or as soon as possible thereafter, the Clerk of the Court should issue a separate 

check payable to "Pamela Stonebreaker and Mark W. Hansen, her attorney" in the amount 

of$346,823.73, plus whatever interest is payable on the deposit of the Death Benefit while 

it has been held in the Court's account from the date of the October 20,2011 deposit with 

the Court until the date of the Court's payment of the two checks as described above. The 

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base amount (without interest) of this second check ($346,823.73) represents the balance 

of the Pruco deposited funds, calculated as follows: $421,823.73 - $75,000 = $346,823.73. 

The Clerk of the Court is authorized to deduct ten percent of the earned interest, as 

authorized by the Judicial Conference of the United States. 

IT IS SO ORDERED. 

Dated: //4r~ WILLIAM Q. H 

U.S. District J ge 

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