Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-00456/USCOURTS-azd-2_11-cv-00456-0/pdf.json

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

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Westchester Fire Insurance Company,

Plaintiffs, 

v.

ML Liquidating Trust et al.,

Defendants. 

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No. CV 11-0456-PHX-SMM

JUDGMENT 

Pursuant to the parties’ Stipulation for Entry of Judgment filed by the attorneys for

all parties having been named or having intervened herein, except those parties previously

defaulted, and it appearing that the Motion To Intervene/Objection To Settlement and Motion

To Stay Mediation filed by William Lewis, et al. (Doc. 116) having been withdrawn by

formal Notice dated February 27, 2012 (Doc. 117), and it appearing that all parties now

claiming or asserting a right to the funds herein having joined in this Stipulation for

allocation and distribution of the funds held by this court, and for good cause appearing,

IT IS HEREBY ORDERED, ADJUDGED AND DECREED that the $3,740,870

(“the Interpleaded Funds”) interpleaded and deposited by Westchester Fire Insurance

Company (Doc. 69) from the Directors & Officers (“D&O”) section of Mortgages Ltd.'s

Business and Management Indemnity Policy No. BMI20047145 ("the Policy") shall be

allocated and disbursed forthwith as follows:

1. Defendants Robert Facciola, The Robert Maurice Facciola Trust dated

December 2, 1994, Honeylou C. Reznik, The Morris Reznik and Honeylou C. Reznik Trust,

Jewel Box Loan Company, Inc., Jewel Box, Inc., H-M Investments, LLC, Fred C. Hagel and

Case 2:11-cv-00456-SMM Document 123 Filed 04/09/12 Page 1 of 4
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Jacqueline M. Hagel Revocable Trust dated March 15, 1995, and Judith A. Baker (“the

Facciola group”) will receive one-million four-hundred twenty-three thousand and

eight-hundred seventy dollars ($1,423,870) plus 38% of the interest that has accrued on the

principal amount of $3,740,870, as described below. The Clerk will forthwith make a check

in this amount jointly payable to “Bonnett, Fairbourn, Friedman & Balint, PC and Tiffany

& Bosco, PA, in trust.” The check shall be delivered to Francis J. Balint, Bonnett, Fairbourn,

Friedman & Balint, PC, 2901 N. Central Avenue, Suite #1000, Phoenix, AZ 85012.

2. Defendants Joseph L. Baldino, Helen M. Baldino, Baldino Family Revocable

Living Trust Dated May 26, 1994, Helen M. Baldino And Joseph L. Baldino Meridian

Financial Corporation Profit Sharing Plan and Retirement Trust, Eva Sperber-Porter,

Baseline & Val Vista Associates, LP, and Litchfield Road Associates, LP (“the Baldino

group”) will receive one-million one-hundred-and-fifty-thousand dollars ($1,150,000) plus

31% of the interest that has accrued on the principal amount of $3,740,870, as described

below. The Clerk will forthwith make a check in this amount payable to “Gordon Silver

Trust Account.” The check shall be delivered to Ronald Warnicke, Gordon Silver, One East

Washington Street, Suite 400, Phoenix, AZ 85004.

3. Defendant Victims Recovery, LLC will receive seven-hundred thousand dollars

($700,000) plus 19% of the interest that has accrued on the principal amount of $3,740,870,

as described below. The Clerk will forthwith make a check payable to “Victims Recovery,

LLC” in the amount of five-hundred and thirty-thousand dollars ($530,000) plus the accrued

interest, and the Clerk will forthwith make a check payable in the amount of one-hundred and

seventy-thousand ($170,000) dollars to “Zeitlin & Zeitlin, P.C. as Trustee for Victims

Recovery.” Both checks shall be delivered to Dale S. Zeitlin, 5050 N. 40th Street, Suite 330,

Phoenix, AZ 85018.

4. Defendants Michael Denning, Todd Brown, and Manuel Alemany (“the

Denning, Brown, and Alemany group”) will receive three-hundred-and-seventeen-thousand

dollars ($317,000) plus 8% of the interest that has accrued on the principal amount of

Case 2:11-cv-00456-SMM Document 123 Filed 04/09/12 Page 2 of 4
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$3,740,870, as described below. The Clerk will forthwith make a check in this amount

payable to the “Roshka DeWulf & Patten PLC IOLTA Account.” The check shall be

delivered to Jeffrey Gardner, Roshka DeWulf & Patten, PLC, One Arizona Center, 400 East

Van Buren St., Suite 800, Phoenix, AZ 85004.

5. Defendant Robert Furst (“Furst”) will receive one-hundred-and-fifty-thousand

dollars ($150,000) plus 4% of the interest that has accrued on the principal amount of

$3,740,870, as described below. The Clerk will forthwith make a check in this amount

payable to “Robert G. Furst.” The check shall be delivered to Robert Furst, 4201 North 57th

Way, Phoenix, Arizona 85018.

To the extent the Interpleaded Funds have accrued any interest, it is further

ORDERED, ADJUDGED AND DECREED that such interest shall be distributed to the

Facciola group, the Baldino group, Victims Recovery, the Denning, Brown, and Alemany

group, and Furst on a pro rata basis in accordance with their respective percentages of the

total Interpleaded Funds.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Defendants

Ryan Walter, Phillip Sollomi, Jr., the Estate of Scott M. Coles, SMC Revocable Trust Dated

December 22, 1994, Yi Yang, George Everette, and Ashley Coles shall, each and every one

of them, receive no amount of the Interpleaded Funds.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the above

allocations represent the total amount of insurance proceeds available to each of the

Defendants under the D&O section of the Westchester Policy that is the subject of this

litigation.

IT IS FURTHER ORDERED, ADJUDGED, and DECREED that Westchester has

fully and in good faith satisfied all of its obligations to Defendants and its insureds under the

D&O section of the Policy.

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Case 2:11-cv-00456-SMM Document 123 Filed 04/09/12 Page 3 of 4
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IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all parties shall

bear their own attorneys' fees, costs and expenses incurred in this action.

DATED this 9th day of April, 2012.

Case 2:11-cv-00456-SMM Document 123 Filed 04/09/12 Page 4 of 4