Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_04-cv-02690/USCOURTS-caed-2_04-cv-02690-16/pdf.json

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

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Order Granting Motion to Exclude Witnesses and Confirming Effect of Prior Order of Terminating Sanctions 

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EILEEN M. DIEPENBROCK (SBN 119254) 

CHRIS A. McCANDLESS (SBN 210085) 

DIEPENBROCK HARRISON 

A Professional Corporation 

400 Capitol Mall, Suite 1800 

Sacramento, CA 95814-4413 

Telephone: (916) 492-5000 

Facsimile: (916) 446-4535 

Defendant and Counterclaimant 

CAVIAR CREATOR, INC., a Nevada corporation 

IN THE UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF CALIFORNIA 

DANIEL W. FAERFERS and KATJA 

FAERFERS, 

 Plaintiffs, 

v. 

CAVIAR CREATOR, INC., a Nevada 

Corporation, individually and as successor 

to CAVIAR CREATOR, INC., an Oregon 

Corporation 

 Defendants. 

AND RELATED COUNTERCLAIMS 

CASE NO. 2:04-CV- 2690 MCE/EFB 

[Judge Morrison C. England] 

ORDER GRANTING CAVIAR 

CREATOR, INC.’S MOTION TO 

EXCLUDE WITNESSES AND 

CONFIRMING AND CLARIFYING 

EFFECT OF PRIOR ORDER 

TERMINATING PLAINTIFFS’ 

COMPLAINT AND STRIKING 

ANSWER TO COUNTERCLAIMS 

Date: November 28, 2007 

Time: 9:00 a.m. 

Courtroom: 3 

On November 16, 2007, at 9:00 a.m., before the Honorable Morrison C. England, 

Jr., United States District Court Judge, in Courtroom 3 of the United States District Court, 

Eastern District, located at 501 I Street, Suite 4-401, Sacramento, California, 95814, this 

Court GRANTED Defendant Caviar Creator, Inc.’s (“Caviar Creator”) Motion for 

Terminating Sanctions Against Plaintiffs in its entirety and further ordered that 

Plaintiffs/Counter-defendants Daniel W. Faerfers and Katja Faerfers’ (“the Faerfers”) 

Answer to Caviar Creator’s counterclaims be stricken. The Court’s order was based on 

findings, including among other things, that plaintiffs willfully violated this Court’s very 

specific orders, and also apparently violated similar German court orders with respect to 

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Order Granting Motion to Exclude Witnesses and Confirming Effect of Prior Order of Terminating Sanctions 

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the transfer of United Food Technologies, AG (“UFT”) stock to a neutral third-party 

escrow agent pending the outcome of this case. The findings and rationale for this Court’s 

order terminating the Faerfers’ complaint and striking their answer to the counterclaims is 

set forth more fully on the record as reflected in Document No. 267 in this case 

[Reporter’s Transcript, Friday, November 16, 2007, Defendant’s Motion for Terminating 

Sanctions and Final Pretrial Conference]. 

During the Final Pretrial Conference, also held on November 16, 2007, Caviar 

Creator moved to exclude certain witnesses previously identified by the Faerfers. As a 

result, this Court allowed the parties an opportunity to submit written briefs and argument 

addressing the effect of this Court’s order involuntarily dismissing plaintiffs’ complaint 

and striking their answer, and the Court scheduled a further hearing to be held on 

November 28, 2007. Specifically, in light of the order terminating plaintiffs’ complaint 

and striking their answer, the Court allowed the parties an opportunity to address what, if 

any, rights the Faerfers now have to present witnesses to challenge Caviar Creator’s claim 

for damages made through its counterclaims. 

Caviar Creator later notified this Court that it waives its right to a jury trial in light 

of the termination of the Faerfers’ complaint and stricken answer and Caviar Creator 

requested that this matter proceed before the Court, without a jury. 

On November 28, 2007, at 9:00 a.m., Caviar Creator’s motion to exclude witnesses 

came on for hearing before this Court. Chris A. McCandless and Eileen M. Diepenbrock 

of Diepenbrock Harrison appeared on behalf of Caviar Creator, and Cris C. Vaughan of 

Vaughan & Associates appeared on behalf of the Faerfers. 

 After consideration of the briefs and arguments of counsel, and all other 

matters presented to the Court, the Court makes its findings and orders as follows 

and as stated on the record at the hearing on November 28, 2007: 

1. The Court confirms that its prior order, issued November 16, 2007, 

terminating the Faerfers’ complaint pursuant to Federal Rule of Civil Procedure, Rule 

41(b), is a terminating sanction for violation of court orders and is an adjudication on the 

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Order Granting Motion to Exclude Witnesses and Confirming Effect of Prior Order of Terminating Sanctions 

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merits of the Faerfers’ claims. Consequently, the Faerfers claims are dismissed with 

prejudice, and the effect of this order is to terminate and bar any further proceedings by 

the Faerfers, in any forum, based on the allegations of their complaint, subject to the 

particular laws governing the jurisdiction; 

2. The Court confirms that, as a result of their answer having been stricken, the 

Faerfers no longer have standing to appear in this case and shall not be permitted to 

participate in further proceedings;

3. The Court GRANTS Caviar Creator’s request to proceed without a jury, and 

orders that this case now proceed as a default prove-up hearing with respect to the 

damages to be awarded to Caviar Creator; 

4. The Court finds and orders that the UFT shares obtained by the Faerfers from 

Caviar Creator, shares now held by a neutral third-party in Germany, should be returned 

to Caviar Creator (subject to the appropriate jurisdiction over the UFT shares being 

established). This Court’s prior order that the UFT shares be held in a neutral escrow 

account is vacated. 

IT IS SO ORDERED. 

 

DATED: December 4, 2007

__________________________________ 

MORRISON C. ENGLAND, JR 

UNITED STATES DISTRICT JUDGE 

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