Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-03904/USCOURTS-cand-5_05-cv-03904-3/pdf.json

Nature of Suit Code: 365
Nature of Suit: Personal Injury - Product Liability
Cause of Action: 28:1446 Petition for Removal- Personal Injury

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JOINT UPDATED CASE MANAGEMENT STATEMENT

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THE BOCCARDO LAW FIRM, INC.

 ATTORNEYS AT LAW 

 111 W. ST. JOHN STREET, SUITE 400 

 P.O. BOX 15001 

 SAN JOSE, CALIFORNIA 95115-0001 

 TELEPHONE (408) 298-5678 

 FACSIMILE (408) 298-7503 

 jstein@boccardo.com 

JOHN C. STEIN, SBN 39417 

ATTORNEYS FOR PLAINTIFF 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA - SAN JOSE DIVISION 

GERVACIO AND ROSA MARTINEZ 

 Plaintiffs, 

 vs. 

WERNER CO., HOME DEPOT, USA, 

INC., and DOES 1-50, 

 Defendants. 

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Case No.: C 05-03904 JW 

JOINT UPDATED CASE MANAGEMENT 

STATEMENT 

and 

PROPOSED ORDER 

 Pursuant to Rule 26(f) of the Federal Rules of Civil Procedure 

and Local Rules 16-9 and 16-10, the parties, Plaintiffs, Gervacio 

and Rosa Martinez, and Defendants, Werner Co. and Home Depot, USA, 

Inc., hereby submit this Joint Updated Case Management Statement. 

As this court is aware, In Re Werner Holding Co. (DE), Inc., et 

al., Case No. 06-10578 (KJC) is still pending in the United States 

Bankruptcy Court for the District of Delaware. The bankruptcy stay 

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge James Ware

Case 5:05-cv-03904-JW Document 22 Filed 10/23/07 Page 1 of 4
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JOINT UPDATED CASE MANAGEMENT STATEMENT

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applied therein was extended to Werner Co.’s retailers, including 

Home Depot, U.S.A., Inc. in pending product liability actions. 

An asset purchase agreement dated March 20, 2007 was approved 

by the bankruptcy court in which significant assets were sold to 

certain primary creditors of Werner Co. As a result, the action was 

converted from a Chapter 11 reorganization to a Chapter 7 

dissolution. Issues as to the impact of the asset sale on pending 

product liability claims are still unresolved. In the interim, the 

automatic stay entered in the Delaware Bankruptcy Court is still in 

place as to the enjoined Plaintiff. 

Attached to this status report is a copy of “Revised Second 

Amended Liquidating Plan pursuant to Chapter 11 of the United States 

Bankruptcy Code Filed by the Official Committee of Unsecured 

Creditors. Counsel in this action have not had the opportunity to 

discuss with the identified counsel for the unsecured creditors what 

impact this proposed plan would have on this action. It appears 

that there is a hearing regarding this plan currently scheduled for 

October 25, 2007. The plan appears to call for the creation of a 

“Liquidation Trust” and the appointment of a liquidation trustee.” 

Tort Claims appear to be addressed in paragraph E, page 31. If 

the plan is approved it appears that the stay may be lifted to allow 

the case to proceed to judgment or that the trustee may settle such 

claims. However, it also notes that any such judgment entered in 

violation of the stay is null and void. It is unclear as to whether 

plaintiff in this action would meet the definition of a creditor who 

could seek full or partial recovery from the trust, the procedural 

Case 5:05-cv-03904-JW Document 22 Filed 10/23/07 Page 2 of 4
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JOINT UPDATED CASE MANAGEMENT STATEMENT

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mechanism to accomplish same, i.e. whether the stay will be lifted 

to allow this action to proceed to judgment, if plaintiff has to 

petition to allow the case to proceed and the stay lifted, whether 

the funds will apply to/protect Home Depot, whether Home Depot has 

equitable or contractual indemnity rights against Werner, whether 

the litigation trust or trustee have to be substituted in as the 

real party in interest, etc. Further the plan does not appear, at 

first reading, to address the stay currently protecting certain of 

Werner’s vendors. It is hoped that if the plan is approved that 

some guidance, orders and clarification will be forthcoming to 

contingent creditors. It is possible that approval of the plan may 

create a conflict of interest which will necessitate separate 

counsel for Home Depot, where no such conflict existed prior to the 

bankruptcy stay and during the period of attempted reorganization. 

The parties respectfully request that this matter be put over 

until January 2008 to allow time for some of these issues to be 

sorted out. 

DATED: October 19, 2007 THE BOCCARDO LAW FIRM, INC. 

 BY: _______/s/_______________ 

 JOHN C. STEIN 

 Attorneys for Plaintiffs 

DATED: October 19, 2007 SHAW, TERHAR & LAMONTAGANE 

 BY: _______/s/______________ 

 MICHAEL TERHAR 

 Attorneys for Defendants 

Case 5:05-cv-03904-JW Document 22 Filed 10/23/07 Page 3 of 4
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JOINT UPDATED CASE MANAGEMENT STATEMENT

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ORDER

 The District Court has reviewed the foregoing Joint Updated 

Case Management Statement. 

 GOOD CAUSE HAVING BEEN SHOWN, IT IS HEREBY ORDERED that the this 

matter be removed from the active civil calendar pending resolution 

of the bankruptcy of Defendant and that the Case Management 

Conference be continued to _______________, 2008, at ______ in 

Department ___. 

DATED: _________________ ____________________________ 

 HON. JAMES WARE 

 UNITED STATES DISTRICT JUDGE 

January 1410 AM.

October 22, 2007 the STAY is continued from October 29, 2007 to January 14, 2008

Case 5:05-cv-03904-JW Document 22 Filed 10/23/07 Page 4 of 4