Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_17-cv-01347/USCOURTS-caed-2_17-cv-01347-17/pdf.json

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

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 1

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA – SACRAMENTO DIVISION

KAREN RIGSBY, Trustee of the 

MARSH REVOCABLE TRUST OF 

2003, et al.,

Plaintiffs,

vs.

INTERCARE SPECIALITY RISK 

INSURANCE SERVICES, INC, et al.,

Defendants.

________________________________

)

)

)

)

)

)

)

)

)

)

)

)

)

Case No. 2:17-cv-01347-MCE-EFB

ORDER FOR ENTRY OF 

DEFAULT JUDGMENTS

This matter came before the Court on December 3, 2018, at 11:00 a.m. for hearing 

on Plaintiffs’ Application for Default Judgment against defendants ISR Holdings, Inc. 

and Phoenix Risk Management, Inc., the Hon. Troy L. Nunley, presiding. Defendants, 

although served with timely notice of Plaintiffs’ Application [Docket No. 139, filed Nov. 

20, 2018] did not appear and the matter was accordingly submitted on the papers which

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 1 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 2

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

included, in addition to Plaintiffs’ Application, Exhibits 1 through 15 in support thereof.1

Having examined and reviewed the papers so submitted, and proof having been made to 

the Court’s satisfaction, the Court hereby FINDS as follows:

1. Based on Plaintiffs’ Request [Docket No. 141] the Court takes judicial 

notice that Defendant ISR Holdings, Inc. is a California corporation that is presently 

suspended by the California Secretary of State. (Exh. 3.) Defendant ISR Holdings, Inc. 

is the same corporation previously named Intercare Specialty Risk Insurance Services, 

Inc. (Exh. 14).

2. Plaintiffs allege in the First Claim for Relief of their Second Amended 

Complaint filed herein Nov. 2, 2017 [Docket No. 72] that they entered into an Asset 

Purchase Agreement, or “APA” (Exh. 1) with Intercare Specialty Risk Insurance 

Services, Inc., later renamed ISR Holdings, Inc. Plaintiffs allege that Defendant ISR 

Holdings, Inc. breached this APA by failing to make the payments to Plaintiffs as 

specified in paragraph 6 of the agreement. The Court entered the default of Defendant 

ISR Holdings, Inc. with respect to this claim on Nov. 5, 2018 as Docket No. 136.

3. Based on Plaintiffs’ Request [Docket No. 141], the Court takes judicial 

notice that Defendant Phoenix Risk Management Services, Inc. is a California corporation 

that is presently suspended by the California Secretary of State. 

4. Plaintiffs allege in the Second Claim for Relief in their Second Amended 

Complaint that defendant Phoenix Risk Management Services, Inc. is the alter ego of 

Defendant ISR Holdings, Inc. The Court entered the default of Defendant Phoenix Risk 

 1 All references in this Order to “Exhibits” are to said Exhibits 1 through 15.

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 2 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 3

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

Management, Inc. with respect to this claim on Nov. 5, 2018 as Docket No. 136.

5. Paragraph 6 of the APA required Defendant ISR Holdings, Inc. to pay Gene 

Marsh $12,250 per month for a term of ten years. The APA further provided that the 

monthly payment amount due Mr. Marsh was subject to an adjustment for inflation that 

would be calculated every 30 months after January 1, 2011. The APA paragraph 6 further 

provided that the payments to Gene Marsh are fully assignable by Marsh and shall be paid 

to his successors or assigns for the full ten-year term in the event of his death prior to 

January 1, 2021. The Second Amended Complaint [¶ 1(b)] alleges that Marsh died in 

February 2016 and that Plaintiff Karen Rigsby is the sole successor trustee of the Marsh 

Revocable Trust of 2003, which is the successor in interest to Gene Marsh.

6. Paragraph 6 of the APA required Defendant ISR Holdings, Inc. to pay 

Donald Steinmeyer $5,500 per month for a term of ten years. The APA further provided 

that the monthly payment amount due Mr. Steinmeyer was subject to an adjustment for 

inflation that would be calculated every 30 months after January 1, 2011.

7. Based on Plaintiffs’ Request [Docket No. 141], the Court takes judicial 

notice that the Consumer Price Index as reported by the Wall Street Journal for January 

1, 2011 and every 30 months thereafter (Exh. 2) reflects the following adjustments that 

were required to the monthly payment amounts due Mr. Marsh and Mr. Steinmeyer under 

the APA:

a. Jan. 1, 2011 – Jul. 1, 2013: 220.223 to 233.596 = 6.07 % 

increase [change is greater than 5%, so under APA ¶ 6, 5% increase is used 

to adjust].

b. Jul. 1, 2013 – Jan. 1, 2016: 233.596 to 236.016 = 1.42 % 

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 3 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 4

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

increase.

c. Jan. 1, 2016 – Jul. 1, 2018: 236.016 to 252.006 = 6.37% 

increase [change is greater than 5%, so under APA ¶ 6, 5% increase is used 

to adjust].

8. Based on the foregoing adjustments required under ¶ 6 of the APA, the 

monthly payments due Mr. Marsh and Mr. Steinmeyer increased as follows:

a. Payments due Gene Marsh:

i. As of Jan. 1, 2011: $12,250.00 per month.

ii. After Adjustment of July 1, 2013: $12,862.50 per month.

iii. After Adjustment of Jan. 1, 2016: $13,045.15 per month.

iv. After Adjustment of July 1, 2018: $13,697.41 per month.

b. Payments due Donald Steinmeyer:

i. As of Jan. 1, 2011: $5,500.00 per month.

ii. After Adjustment of July 1, 2013: $5,775.00 per month.

iii. After Adjustment of Jan. 1, 2016: $5,857.01 per month.

iv. After Adjustment of July 1, 2018: $6,149.86 per month.

9. Based on evidence submitted (Exhs. 9, 10), the Court finds that during the 

period of time from July 1, 2013, i.e., four years prior to the commencement of this action, 

until December 3, 2018, the following payments, and no more, were made to Gene Marsh 

and his successor Karen Rigsby pursuant to the APA:

Payment Date: July 1, 2013 Amount: $12,250.00

Payment Date: Aug. 3, 2013 Amount: $12,250.00

Payment Date: Sept. 3, 2013 Amount: $6,125.00

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 4 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 5

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

Payment Date: Oct. 3, 2013 Amount: $6,125.00

Payment Date: Nov. 3, 2013 Amount: $12,250.00

Payment Date: Dec. 3, 2013 Amount: $12,250.00

Payment Date: Jan. 2, 2014 Amount: $16,334.00

Payment Date: Feb. 3, 2014 Amount: $16,333.33

Payment Date: Mar. 3, 2014 Amount: $16,333.33

Payment Date: Apr. 3, 2014 Amount: $12,250.00

Payment Date: May 3, 2014 Amount: $12,250.00

Payment Date: June 3, 2014 Amount: $12,250.00

Payment Date: Jul. 3, 2014 Amount: $12,250.00

Payment Date: Aug. 3, 2014 Amount: $12,250.00

Payment Date: Sept. 3, 2014 Amount: $12,250.00

Payment Date: Feb. 6, 2015 Amount: $12,250.00

Payment Date: Mar. 17, 2015 Amount: $9,250.00

Payment Date: May 8, 2015 Amount: $9,250.00

Payment Date: Jul. 2, 2015 Amount: $9,250.00

Payment Date: Aug. 3, 2015 Amount: $10,000.00

Payment Date: Sept. 3, 2015 Amount: $10,000.00

Payment Date: Oct. 3, 2015 Amount: $10,000.00

Payment Date: Nov. 3, 2015 Amount: $10,000.00

Payment Date: Dec. 3, 2015 Amount: $10,000.00

Payment Date: Jan. 3, 2016 Amount: $10,000.00

Payment Date: Feb. 3, 2016 Amount: $10,000.00

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 5 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 6

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

Payment Date: Mar. 1, 2016 Amount: $7,500.00

Payment Date: Apr. 8, 2016 Amount: $7,500.00

Payment Date: May 4, 2016 Amount: $7,500.00

Payment Date: June 3, 2016 Amount: $7,500.00

Payment Date: Aug. 12, 2016 Amount: $7,500.00

Payment Date: Sept. 8, 2016 Amount: $7,500.00

10. Based on evidence submitted (Exhs. 7, 8), the Court finds that during the 

period of time from July 1, 2013, i.e., four years prior to the commencement of this action, 

until December 3, 2018, the following payments, and no more, were made to Donald 

Steinmeyer pursuant to the APA:

Payment Date: July 1, 2013 Amount: $2,750.00

Payment Date: Aug. 3, 2013 Amount: $2,750.00

Payment Date: Sept. 3, 2013 Amount: $2,750.00

Payment Date: Oct. 3, 2013 Amount: $2,750.00

Payment Date: Nov. 3, 2013 Amount: $5,500.00

Payment Date: Dec. 3, 2013 Amount: $5,500.00

Payment Date: Jan. 2, 2014 Amount: $5,500.00

Payment Date: Feb. 3, 2014 Amount: $5,500.00

Payment Date: Mar. 3, 2014 Amount: $5,500.00

Payment Date: Apr. 3, 2014 Amount: $5,500.00

Payment Date: May 3, 2014 Amount: $5,500.00

Payment Date: June 3, 2014 Amount: $5,500.00

Payment Date: Jul. 3, 2014 Amount: $5,500.00

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 6 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 7

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

Payment Date: Aug. 3, 2014 Amount: $5,500.00

Payment Date: Sept. 3, 2014 Amount: $5,500.00

Payment Date: Feb. 6, 2015 Amount: $5,500.00

Payment Date: Mar. 17, 2015 Amount: $5,500.00

Payment Date: May 8, 2015 Amount: $5,500.00

Payment Date: Jul. 2, 2015 Amount: $5,500.00

Payment Date: Aug. 3, 2015 Amount: $5,000.00

Payment Date: Sept. 3, 2015 Amount: $5,000.00

Payment Date: Oct. 3, 2015 Amount: $5,000.00

Payment Date: Nov. 3, 2015 Amount: $5,000.00

Payment Date: Dec. 3, 2015 Amount: $5,000.00

Payment Date: Jan. 3, 2016 Amount: $5,000.00

Payment Date: Feb. 3, 2016 Amount: $5,000.00

Payment Date: Mar. 4, 2016 Amount: $7,500.00

Payment Date: Apr. 6, 2016 Amount: $7,500.00

Payment Date: May 6, 2016 Amount: $7,500.00

Payment Date: June 6, 2016 Amount: $7,500.00

Payment Date: Aug. 12, 2016 Amount: $7,500.00

Payment Date: Sept. 8, 2016 Amount: $7,500.00

11. Plaintiff Karen Rigsby has proved that the principal amount unpaid, due 

and owing to her under the APA as of December 3, 2018 is $520,668.10 (Exh. 15). Under 

Cal. Civil Code § 3289(b), Plaintiff Karen Rigsby is also due prejudgment interest on the 

unpaid sums in the total amount of $69,496.15 through Dec. 3, 2018 (Exh. 15).

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 7 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 8

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

12. Plaintiff Donald Steinmeyer has proved that the principal amount unpaid, 

due and owing to him under the APA as of December 3, 2018 is $212,359.46 (Exh. 15). 

Under Cal. Civil Code § 3289(b), Plaintiff Donald Steinmeyer is also due prejudgment 

interest on the unpaid sums in the total amount of $28,632.69 through Dec. 3, 2018 (Exh. 

15).

13. The APA provided [¶ 23] that in the event of an action between the parties 

to enforce any of its provisions, “the unsuccessful party shall pay to the successful party 

all costs and expenses, including reasonable attorneys’ fees, incurred therein by such 

successful party.” Under this provision, it is proper for the Court to add the amount of 

reasonable attorneys’ fees and expenses incurred by each plaintiff to such plaintiff’s 

judgment against Defendants ISR Holdings, Inc. and Phoenix Risk Management, Inc. 

14. Plaintiffs established through the Declaration of Robert R. Riggs, filed 

herein Dec. 3, 2018 that they incurred reasonable attorneys’ fees and other expenses 

herein (Exhs. 12, 13). Plaintiff Karen Rigsby incurred reasonable attorneys’ fees of 

$88,556.88 and expenses of $3,198.43 for a total of $91,755.30 in total costs and 

expenses. Plaintiff Donald Steinmeyer incurred reasonable attorneys’ fees of $72,455.63 

and expenses of $2,616.89 for a total of $75,072.52 in total costs and expenses. These 

total costs and expenses will be added to the judgments entered in favor of each Plaintiff 

and against Defendants ISR Holdings, Inc. and Phoenix Risk Management, Inc.

Accordingly, IT IS HEREBY ORDERED, ADJUDGED and DECREED as 

follows:

1. Plaintiff Karen Rigsby shall have joint and several judgment against 

defendant ISR Holdings, Inc. and defendant Phoenix Risk Management, Inc. in the sum 

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 8 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

____________________________________________________________________ 9

ORDER FOR ENTRY OF DEFAULT JUDGMENTS

of $681,919.55. 

2. Plaintiff Donald Steinmeyer shall have joint and several judgment against 

defendant ISR Holdings, Inc. and defendant Phoenix Risk Management, Inc. in the sum 

of $316,064.67. 

IT IS SO ORDERED.

Dated: January 22, 2019

Case 2:17-cv-01347-MCE-EFB Document 151 Filed 01/23/19 Page 9 of 9