Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-02469/USCOURTS-cand-4_06-cv-02469-24/pdf.json

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

---

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

STIPULATION RE CASE RESOLUTION AND JUDGMENT

CASE NO. C06-2469 CW 

sf-2405885 

DILLINGHAM & MURPHY, LLP 

PATRICK J. HAGAN (SBN 68264) 

MARK J. ROGERS (SBN 173005) 

J. CROSS CREASON (SBN 209492) 

225 Bush Street, 6th Floor 

San Francisco, California 94104-4207 

Telephone: (415) 397-2700 

Facsimile: (415) 397-3300 

Attorneys for Defendant and Cross-Complainant 

Z-MAN FISHING PRODUCTS, INC. 

JENNIFER LEE TAYLOR (CA SBN 161368) 

GEOFFREY A. GRABER (CA SBN 211547) 

JTaylor@mofo.com 

MORRISON & FOERSTER LLP

425 Market Street 

San Francisco, California 94105-2482 

Telephone: 415.268.7000 

Facsimile: 415.268.7522 

Attorneys for Plaintiff/Counterclaimant 

APPLIED ELASTOMERICS, INCORPORATED 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

OAKLAND DIVISION 

APPLIED ELASTOMERICS, 

INCORPORATED, a California corporation, 

Plaintiff/ 

Counter-Defendant, 

v. 

Z-MAN FISHING PRODUCTS, 

INCORPORATED, a South Carolina 

corporation, 

Defendant/ 

Counter-Complainant. 

Case No. C06-02469 CW 

STIPULATION REGARDING CASE 

RESOLUTION AND JUDGMENT 

[Hon. Claudia Wilken] 

Action Filed: April 16, 2006 

Trial Date: November 13, 2007 

Case 4:06-cv-02469-CW Document 213 Filed 10/25/07 Page 1 of 4
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

STIPULATION RE CASE RESOLUTION AND JUDGMENT

CASE NO. C06-2469 CW 1

sf-2405885 

Plaintiff and Counter-Defendant Applied Elastomerics, Incorporated (“AEI”) and 

Defendant and Counter-Complainant Z-Man Fishing Products, Incorporated (“Z-Man”), 

collectively referred to herein as “the Parties,” through their respective attorneys of record, submit 

this stipulation and proposed order. 

WHEREAS the Court issued its September 25, 2007 Order Granting Plaintiff’s Motion 

for Summary Judgment and Granting Defendant’s Motion for Partial Summary Judgment (the 

“September 25, 2007 Order”); 

WHEREAS in the September 25, 2007 Order, the Court concluded that the parties entered 

into the License Agreement attached as Exhibit A to the Complaint (the “License Agreement”) 

and that the schedule of minimum payments required to be made by Z-Man pursuant to the 

License Agreement is that which is set forth in the License Agreement itself; 

WHEREAS Z-Man disagrees with the Court’s decision on AEI’s motion for summary 

judgment and, as it is the law of the case, contends that the September 25, 2007 Order precludes it 

from advancing most of its defense to AEI’s claims; 

WHEREAS, in light of the Court’s September 25, 2007 Order, the parties believe that the 

trial of this matter can be avoided by way of this stipulation; and 

WHEREAS, the parties are scheduled to participate in a private mediation before Martin 

Quinn on October 30, 2007. 

IT IS HEREBY STIPULATED between AEI and Z-Man as follows: 

1. Z-Man withdraws its affirmative defenses to AEI’s Complaint; 

2. Z-Man dismisses with prejudice its sole surviving counter-claim for breach of the 

implied covenant (AEI’s affirmative defenses are therefore moot); 

3. AEI dismisses without prejudice its claim for breach of the implied covenant of 

good faith and fair dealing. To the extent that the matter is returned to this Court following any 

successful appeal by Z-Man on the issues described in paragraph 6 below, AEI shall be entitled to 

reassert that claim in any proceedings moving forward in this Court. 

// 

// 

Case 4:06-cv-02469-CW Document 213 Filed 10/25/07 Page 2 of 4
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

STIPULATION RE CASE RESOLUTION AND JUDGMENT

CASE NO. C06-2469 CW 2

sf-2405885 

4. Judgment shall be entered against Z-Man and in AEI’s favor on AEI’s breach of 

contract claim on or after, but not before, November 13, 2007. That Judgment shall set forth 

AEI’s damages (consisting of past due minimum royalties owed under the License Agreement 

and interest accrued on the past due amount through November 13, 2007) in the amount of 

$1,522,807; 

5. The November 6, 2007 pretrial hearing and the November 13, 2007 trial are 

vacated; 

6. Z-Man reserves its right to appeal the Court’s ruling as to its offset claim and the 

issue of contract formation including its unjust enrichment claim and the issue of the applicable 

minimum royalty schedule, if any, and AEI reserves its right to appeal the issue of attorney’s fees, 

all of which were decided in the Court’s September 25, 2007 Order. Z-Man and AEI hereby 

expressly waive their right to appeal any other rulings in this case; 

7. To the extent that Z-Man files an appeal or cross-appeal and wishes to stay any 

enforcement on AEI’s Judgment past the initial ten-day automatic stay period following the filing 

of its Notice of Appeal or Notice of Cross-Appeal, it can submit to the Clerk of the Court either 

an irrevocable letter of credit or a supersedeas bond in the amount of $2,352,000; and 

Nothing in this stipulation shall survive in the event the parties resolve their dispute before any 

Judgment is otherwise entered pursuant to this stipulation. 

// 

// 

// 

// 

// 

// 

// 

// 

// 

// 

Case 4:06-cv-02469-CW Document 213 Filed 10/25/07 Page 3 of 4
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

STIPULATION RE CASE RESOLUTION AND JUDGMENT

CASE NO. C06-2469 CW 3

sf-2405885 

Dated: October 18, 2007 MORRISON & FOERSTER LLP

By: /s/ Jennifer Lee Taylor 

Jennifer Lee Taylor 

Attorneys for Plaintiff/Counterclaimant 

APPLIED ELASTOMERICS, 

INCORPORATED 

 

Dated: October 18, 2007 DILLINGHAM & MURPHY, LLP 

By: /s/ Mark J. Rogers 

Mark J. Rogers 

Attorneys for Defendant/Cross-Complainant 

Z-MAN FISHING PRODUCTS, INC. 

IT IS SO ORDERED. 

 10/25 

Dated: ______________________, 2007 

 United States District Judge 

 Honorable Claudia Wilken 

Case 4:06-cv-02469-CW Document 213 Filed 10/25/07 Page 4 of 4