Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_03-cv-03394/USCOURTS-cand-5_03-cv-03394-26/pdf.json

Nature of Suit Code: 470
Nature of Suit: Civil (Rico)
Cause of Action: 18:1961 Racketeering (RICO) Act

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 This disposition is not designated for publication and may not be cited.

Case No. C 03-3394 JF (PVT)

ORDER GRANTING MOTION FOR GOOD FAITH SETTLEMENT DETERMINATION

(JFLC1)

**E-Filed 1/12/2007**

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

EDWARD L. SCARFF, et al.,

 Plaintiffs,

 v.

WELLS FARGO BANK, N.A., et al.,

 Defendants.

Case Number C 03-3394 JF (PVT)

ORDER1 GRANTING MOTION FOR

GOOD FAITH SETTLEMENT

DETERMINATION

[re: docket no. 384]

AND RELATED CLAIMS

Defendant and counter-claimant Wells Fargo Bank (“Wells Fargo”) and defendant Carol

Barber (“Barber”) move for good faith settlement determination under Cal. Civ. Code § 877.6. 

The motion is unopposed. The Court heard oral argument on January 12, 2006, and will now

grant the motion.

On February 23, 2006, the Court issued an order which reduced the active claims in the

First Amended and Consolidated Complaint (“FACC”) to the following:

A. Ninth claim for relief: fraud and deceit—secondary liability only and limited to losses

from the alleged “credit line scheme”

Case 5:03-cv-03394-JF Document 394 Filed 01/12/07 Page 1 of 5
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Case No. C 03-3394 JF (PVT)

ORDER GRANTING MOTION FOR GOOD FAITH SETTLEMENT DETERMINATION

(JFLC1)

Plaintiff: Edward Scarff

Defendants: Wells Fargo, Comerica Bank (“Comerica”), Barber, and Joan Burtzel

(“Burtzel”)

B. Eleventh claim for relief: negligence in connection with the alleged “credit line scheme”

Plaintiff: Edward Scarff

Defendants: Comerica Bank (“Comerica”) and Burtzel

C. Twelfth claim for relief: liability pursuant to 12 U.S.C. § 503 and 18 U.S.C. § 215 in

connection with the alleged “credit line scheme”

Plaintiff: Edward Scarff

Defendants: Barber and Burtzel

D. Fifteenth claim for relief: declaratory relief—not injunction, restitution, or attorney’s fees

Plaintiffs: Edward and Nancy Scarff

Defendants: Wells Fargo and Comerica

See February 23, 2006 Order 33-34.

On June 22, 2005, Wells Fargo filed a counterclaim seeking a judgment against Edward 

Scarff; Scarff, Sears & Associates (“SSA”); and Pentoga Partners (“Pentoga”). The counterclaim

asserts four claims for relief, including a claim for $1,000,000 based on Mr. Scarff’s execution of

loan documents over a ten year period which established a $1,000,000 line of credit. 

On May 9, 2006, Plaintiffs Edward Scarff; Nancy Scarff; SSA; and Pentoga agreed to

execute a release in favor of Wells Fargo and Barber in return for Wells Fargo and Barber

releasing them from any liability on the $1,000,000 line of credit. This settlement requires the

dismissal of the FACC and the Bank’s counterclaim, with prejudice, as to the settling parties. 

Wells Fargo states that the United States Bankruptcy Court for the Northern District of California

approved the settlement on October 27, 2006. Demko Declaration ¶ 16. 

 The Court has reviewed the settlement agreement and the supporting documents and

concludes that the settlement is in good faith as required by Cal. Code Civ. Pro. § 877.6. 

Accordingly, the Court will grant the motion.

Case 5:03-cv-03394-JF Document 394 Filed 01/12/07 Page 2 of 5
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Case No. C 03-3394 JF (PVT)

ORDER GRANTING MOTION FOR GOOD FAITH SETTLEMENT DETERMINATION

(JFLC1)

IT IS SO ORDERED. 

DATED: January 12, 2007.

 

JEREMY FOGEL

United States District Judge

Case 5:03-cv-03394-JF Document 394 Filed 01/12/07 Page 3 of 5
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Case No. C 03-3394 JF (PVT)

ORDER GRANTING MOTION FOR GOOD FAITH SETTLEMENT DETERMINATION

(JFLC1)

This Order has been served upon the following persons:

Rebecca M. Archer EfilingRMA@cpdb.com, rmg@cpdb.com 

Jonathan R. Bass EfilingJRB@cpdb.com, mjc@cpdb.com 

William Bates , III bill.bates@bingham.com 

Carolyn Chang cchang@fenwick.com, vschmitt@fenwick.com 

A. Marisa Chun EfilingAMC@cpdb.com, pjd@cpdb.com 

Joseph W. Cotchett plee@cpsmlaw.com, 

Joseph N. Demko JND@JMBM.com, eap@jmbm.com 

John W. Easterbrook jwe@hopkinscarley.com, dgraff@hopkinscarley.com 

William Henry Gavin , III gavin@gclitigation.com, 

Philip L. Gregory pgregory@cpsmlaw.com, jacosta@cpsmlaw.com

Alan F. Hunter hunter@gclitigation.com, 

Susan K. Jamison EfilingSKJ@cpdb.com, aaa@cpdb.com 

William S. Klein bklein@hopkinscarley.com, ttellez@hopkinscarley.com 

Martin H. Kresse mkresse1@earthlink.net, 

C. Laine Lucas lainelucas@bindermalter.com, 

Frank M. Pitre fpitre@cpsmlaw.com, mnewman@cpsmlaw.com;

rmanuel@cpsmlaw.com 

Elizabeth C Pritzker ecp@girardgibbs.com, zml@girardgibbs.com 

Dori Lynn Yob dyob@hopkinscarley.com, ash@hopkinscarley.com 

Notice will be delivered by other means to: 

Jennifer Coleman 

Jeffer Mangels Butler & Marmaro LLP

Two Embarcadero Center

Fifth Floor

San Francisco, CA 94111-3824

Tod C. Gurney 

Hopkins & Carley

70 S. First Street

San Jose, CA 95113

tgurney@hopkinscarley.com, ttellez@hopkinscarley.com

Case 5:03-cv-03394-JF Document 394 Filed 01/12/07 Page 4 of 5
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Case No. C 03-3394 JF (PVT)

ORDER GRANTING MOTION FOR GOOD FAITH SETTLEMENT DETERMINATION

(JFLC1)

Nanci E. Nishimura 

Cotchett Pitre Simon & McCarthy

840 Malcolm Road

Suite 200

Burlingame, CA 94010

Case 5:03-cv-03394-JF Document 394 Filed 01/12/07 Page 5 of 5