Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-05268/USCOURTS-cand-3_04-cv-05268-0/pdf.json

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

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United States District Court

For the Northern District of California

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

G&L REBAR, INC., a California

corporation,

Plaintiff,

 v.

NAVIGATORS INSURANCE

COMPANY, a New York corporation,

and DOES 1 through 50, inclusive

Defendants. /

No. C 04-5268 FMS

ORDER STAYING ACTION

Plaintiff G&L Rebar, Inc. (“G&L”) filed this action against Defendant Navigators Insurance

Company (“Navigators”) seeking liability insurance benefits for defense costs and indemnity

regarding an underlying lawsuit. Parties state that on January 6, 2004, Navigators agreed to defend

G&L in the underlying lawsuit, but after an investigation of the facts and allegations in that lawsuit,

Navigators withdrew its defense on April 5, 2004. On or about April 18, 2005, after consideration

of what Navigators believed to be newly discovered evidence and/or asserted allegations of damage

to third party property arising out of the work of G&L, Navigators again agreed to defend G&L in

the underlying lawsuits. Navigators also agreed to reimburse G&L for the defense fees and

subsequent to its withdrawal of the defense on April 5, 2004. Trial in the underlying lawsuit has

been continued until at least the fall of 2005 and may not proceed until early 2006. 

Case 3:04-cv-05268-VRW Document 10 Filed 05/13/05 Page 1 of 2
United States District Court

For the Northern District of California

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Because Navigators is once again defending G&L, Navigators believes that the issue of

whether Navigators owes any indemnity obligations under its policies is not ripe. Navigators

requests that this action be stayed until resolution of the underlying lawsuit against G&L. G&L’s

position is that the case should move forward with respect to Navigators’s breach of its duty to

defend. 

This Court has the inherent power to stay proceedings in order to control the disposition of

the causes on its docket with economy of time and effort for itself, for counsel and for litigants. See

Landis v. North American Co., 299 U.S. 248, 254-255, 81 L. Ed. 153, 57 S. Ct. 163 (1936). Having

considered the arguments of the parties, the Court orders that this action be STAYED until

November 11, 2005. 

IT IS SO ORDERED.

Dated: May 13, 2005 /s/ _______________________________

FERN M. SMITH

UNITED STATES DISTRICT JUDGE

Case 3:04-cv-05268-VRW Document 10 Filed 05/13/05 Page 2 of 2