Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-03734/USCOURTS-cand-3_14-cv-03734-8/pdf.json

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

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GUY O. KORNBLUM (SBN 39974)

WALTER G. CRUMP (SBN 203743)

NICHOLAS J. PETERSON (SBN 287902)

KORNBLUM, COCHRAN, 

ERICKSON & HARBISON, LLP

1388 Sutter St., Suite 505

San Francisco, CA 94109

Telephone: (415) 440-7800

Facsimile: (415) 440-7898

Attorneys for Plaintiffs, GEORGINA R. DUGGS, 

Individually and as Trustee of the EDWARD & 

GEORGINA DUGGS LIVING TRUST; ZANE 

DUGGS and GEMMA DUGGS, minors, by 

GEORGINA R. DUGGS, their natural guardian

DAVID P. BEITCHMAN (SBN 198953)

ANDRE BONIADI (SBN 266412)

BEITCHMAN & ZEKIAN, P.C.

16130 Ventura Blvd., Suite 570

Encino, CA 91436

Telephone: (818) 986-9100

Facsimile: (818) 986-9119

Attorneys for Defendant, JAMES EARL EBY.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO

GEORGINA R. DUGGS, Individually and 

as Trustee of the EDWARD & GEORGINA 

DUGGS LIVING TRUST; ZANE DUGGS and 

GEMMA DUGGS, minors, by GEORGINA R. DU

their natural guardian,

Plaintiffs,

v.

JAMES EARL EBY,

Defendant.

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Case No.: 3:14-cv-03734-RS

STIPULATION TO DISMISS WITH 

PREJUDICE FOLLOWING 

SETTLEMENT

Complaint Filed: August 18, 2014

IT IS HEREBY STIPULATED between the parties:

1. Effective, September 3, 2010, MetLife Investors USA Insurance Company (“Metlife”) 

issued an insurance policy, No. 210 227 420 USU, on the life of Edward L. Duggs, Jr. (“Mr. Duggs”), 

Stipulation for Dismissal and [Proposed Order] – Duggs, et al. v. Eby

No. 3:14-cv-03734-RS 0

ORDER

Case 3:14-cv-03734-RS Document 53 Filed 05/04/15 Page 1 of 4
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the husband of Plaintiff GEORGINA DUGGS, with death benefits valued at $1,500,000 (“the Policy”).

2. On January 5, 2013, during the last years of Mr. Duggs’ life, Mr. Duggs entered into a 

purported transaction in California to sell the Policy to Defendant JAMES EARL EBY (“Defendant”) 

in the form of a life settlement transaction (“the Life Settlement”).

3. On January 25, 2013, pursuant to the Life Settlement, Mr. Duggs executed a purported 

“Life Insurance Absolute Assignment” form to make Defendant the sole beneficiary of the Policy 

(hereinafter, the “Change of Beneficiary Form”).

4. Mr. Duggs passed away on December 8, 2013.

5. On August 18, 2014, Plaintiffs in this matter filed a Complaint against Defendant 

asserting claims for declaratory relief; statutory fraud and common law fraud; financial abuse of a 

dependent adult; breach of fiduciary duty; rescission; unfair competition and constructive trust, all 

related to the Life Settlement and Change of Beneficiary Form.

6. As noted by the Court in its rulings dated October 8, 2014 and February 5, 2015, and as 

now stipulated to by all parties in this action, since the attempted Life Settlement transaction did not 

abide by the requirements of California Insurance Code sections 10113.1-10113.3, the Life Settlement 

is deemed void ab initio as of the date of the attempted transaction of January 5, 2013. Further, the 

Change of Beneficiary Form dated January 25, 2013, is invalidated.

7. Plaintiffs GEORGINA R. DUGGS, Individually and as Trustee of the EDWARD & 

GEORGINA DUGGS LIVING TRUST; ZANE DUGGS and GEMMA DUGGS, minors, by 

GEORGINA R. DUGGS, their natural guardian (“Plaintiffs”), and Defendant reached a tentative 

settlement agreement on or about March 19, 2015, signed and executed in a written agreement on April 

14, 2015;

7. The parties fully performed their settlement agreement on April 16, 2015.

8. Therefore, Plaintiffs and Defendant hereby stipulate that this matter may be dismissed 

with prejudice, with all parties bearing their own costs and attorney’s fees.

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Stipulation for Dismissal and [Proposed Order] – Duggs, et al. v. Eby

No. 3:14-cv-03734-RS 1

Case 3:14-cv-03734-RS Document 53 Filed 05/04/15 Page 2 of 4
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DATED: May 1, 2015 KORNBLUM, COCHRAN,

ERICKSON & HARBISON, LLP

/s/ Nicholas J. Peterson____________

Nicholas J. Peterson, #287902

Attorneys for Plaintiffs

DATED: May 1, 2015 BEITCHMAN & ZEKIAN, P.C.

/s/Andre Boniadi___________

Andre Boniadi, #266412

Attorneys for Defendant

Stipulation for Dismissal and [Proposed Order] – Duggs, et al. v. Eby

No. 3:14-cv-03734-RS 2

Case 3:14-cv-03734-RS Document 53 Filed 05/04/15 Page 3 of 4
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[PROPOSED] ORDER

In accordance with this stipulation of the parties, IT IS SO ORDERED that:

1. The attempted Life Settlement transaction between Edward L. Duggs, Jr. and Defendant 

for the sale of the MetLife Investors USA Insurance Company insurance policy, No. 210 227 420 USU,

on the life of Edward L. Duggs, Jr. is deemed ineffective and void ab initio from the date of execution 

of January 5, 2013;

2. The attempted change of beneficiary for the MetLife Policy to Defendant is invalid and 

ineffective as part and parcel of the void Life Settlement; and

3. This action is dismissed with prejudice. Each party will bear their own attorney’s fees 

and costs.

________________________________

RICHARD SEEBORG

United States District Court Judge

Stipulation for Dismissal and [Proposed Order] – Duggs, et al. v. Eby

No. 3:14-cv-03734-RS 3

Dated: 5/4/15

Case 3:14-cv-03734-RS Document 53 Filed 05/04/15 Page 4 of 4