Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_06-cv-01143/USCOURTS-caed-1_06-cv-01143-4/pdf.json

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

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STIPULATION FOR BENCH TRIAL No. 06-CV-01143-OWW-SMS

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA 

LINCOLN GENERAL INSURANCE 

COMPANY,

Plaintiff, 

v. 

GATEWAY SECURITY SERVICES, INC. 

DBA HUGHES TOWING AND AUTO 

WRECKING; DEBRAH HUGHES, as an 

individual; DONALD HUGHES, as an 

individual; RAMON DEVINE, as an 

individual; LUCINDA DEVINE, as an 

individual; and ROES 1-10,

Defendants. 

No. 06-CV-01143-OWW-SMS 

STIPULATION FOR BENCH TRIAL 

Complaint Filed: August 28, 2006 

Trial Date: February 5, 2008 

The parties to the above-captioned litigation hereby stipulate, by and through their 

undersigned counsel of record, to the following: 

WHEREAS, Lincoln General Insurance Company (“Lincoln General”) issued Business 

Auto Coverage Policy No. LTP101263-02 effective May 11, 2005 to May 11, 2006 to named 

insured Gateway Security Services, Inc. DBA: Hughes Towing & Auto Wrecking (“Gateway”). 

This policy is referred to as the “Lincoln General Policy”. 

WHEREAS, on January 26, 2006, Ramon Devine and Lucinda Devine (“Devines”) filed 

suit against Deborah Hughes, Donald Hughes, Gateway Security Services, Inc., d.b.a. Hughes 

Towing & Auto Wrecking, Corcoran Auto Dismantling, and Hughes Auto Wrecking and 

Towing, Inc., in the action entitled Devine, et al. v. Hughes, et al., Kings County Superior Court, 

Case no. 06C0015 (“Underlying Action”). 

WHEREAS, the Underlying Action was resolved by a stipulated judgment wherein the 

Devines and Gateway agreed to a judgment of $1.1 million, and the Devines agreed not to 

execute on the judgment until all of the claims and issues raised in this action have been finally 

adjudicated, through all available appeals. The Stipulated Judgment is attached hereto as Exhibit 

A. 

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STIPULATION FOR BENCH TRIAL No. 06-CV-01143-OWW-SMS

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WHEREAS, on August 28, 2006, Lincoln General filed the instant lawsuit alleging that 

it has no duty to defend or indemnify Gateway for the claims asserted in the Underlying Action 

and to rescind the Lincoln General Policy for misrepresentations in the insurance application. 

WHEREAS, on September 27, 2006, Lincoln General filed a Motion for Summary 

Judgment asserting that it does not have a duty to defend or indemnify Gateway for the claims 

asserted in the Underlying Action and that it was entitled to rescind the Lincoln General Policy. 

WHEREAS, on January 29, 2007, the Court heard Lincoln General’s Motion for 

Summary Judgment. The Court requested the parties engage in discovery and prepare 

supplemental briefs as to the following issues: (1) the history, intent, and meaning of the specific 

policy language at issue, the “business and personal affairs” of the insured; and (2) supplement 

the briefs regarding the “going and coming rule” and its exceptions as related to policy coverage 

of an employee’s commute to and from work where a personal vehicle is used on occasion for 

business purposes. 

WHEREAS, on August 17, 2007, Lincoln General filed its Supplemental Brief for its 

Motion for Summary Judgment. 

WHEREAS, on August 31, 2007, Gateway filed its Opposition to Lincoln General’s 

Supplemental Brief to the Motion for Summary Judgment. 

WHEREAS, on September 10, 2007, the Court heard oral argument on Lincoln 

General’s Supplemental Motion for Summary Judgment. 

WHEREAS, on October 29, 2007, the Court denied Lincoln General’s Motion for 

Summary Judgment. 

The parties to the above-captioned litigation further agree and hereby stipulate, by and 

through their undersigned counsel of record, to the following: 

1. Lincoln General dismisses with prejudice its Rescission claim with each party 

bearing its own costs; 

2. The parties agree not to seek any Rule 11 sanctions with regard to Lincoln 

General’s dismissal of its Rescission claim; 

/ / / 

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STIPULATION FOR BENCH TRIAL No. 06-CV-01143-OWW-SMS

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3. The parties preserve all rights to litigate through trial and all available appeals the 

Declaratory Judgment cause of action; 

4. Lincoln General withdraws its claim that it had no duty to defend Gateway for the 

claims asserted in the Underlying Action; however, Lincoln General fully preserves its claim 

that it has no duty to indemnify Gateway for the claims asserted in the Underlying Action; 

5. The parties agree to vacate the trial date of February 5, 2008; 

6. The parties agree to proceed to a bench trial on Lincoln General’s Declaratory 

Judgment claim that it has no duty to indemnify Gateway for the claims asserted in the 

Underlying Action; 

7. The parties agree to conduct the bench trial based on trial briefing alone with 

exhibits and stipulated facts submitted by the parties; 

8. The parties agree not to make opening or closing statements; 

9. The parties agree not to file motions in limine; 

10. The parties agree not to call any witnesses at the bench trial; 

11. The parties agree to submit as part of the record for the bench trial the evidence 

and all facts, whether disputed or undisputed, that were before the Court on Lincoln General’s 

Motion for Summary Judgment and Supplemental Motion for Summary Judgment; 

12. The parties agree to submit as part of the record for the bench trial the Undisputed 

and Disputed Facts in Pre-Trial Conference Order, identified in Section III , beginning on page 

2, line 14 and ending on page 21, line 14. 

13. The parties agree that any party can supplement the record for the bench trial with 

the following deposition excerpts: Deposition of Donald Hughes, pages 105-107, exhibit F; 

Deposition of Debrah Hughes pages 72-75, exhibit F; Deposition of Bryan Burnes, pages 20, 64-

65. 

14. The parties agree that the facts and evidence for the bench trial is limited to said 

facts and evidence identified under paragraphs 11, 12, and 13 and that only the said facts and 

evidence identified under paragraphs 11, 12, and 13 can be marked for identified, offered or 

submitted at the bench trial; 

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STIPULATION FOR BENCH TRIAL No. 06-CV-01143-OWW-SMS

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15. Any party may appeal the Court’s ruling/judgment at the bench trial as in the case of 

an ordinary trial and judgment conducted and determined in the usual manner; 

16. The parties agree to the following briefing schedule for the trial brief: 

• February 4, 2008: Moving papers shall be filed; 

• February 18, 2008: Oppositions shall be filed; 

• February 25, 2008: Replies shall be filed; 

• March 4, 2008: Bench trial. 

IT IS SO AGREED TO AND STIPULATED. 

DATED: January___, 2008 BURNHAM BROWN 

By___/s/________________________ 

ANDREW R. SHALAUTA 

MICHELLE M. MEYERS 

Attorneys for Plaintiff 

LINCOLN GENERAL INSURANCE 

COMPANY 

DATED: January___, 2008 WILKINS, DROLSHAGEN & CZESHINSKI LLP 

By___/s/________________________ 

James H. Wilkins 

Alyson A. Berg 

Attorneys for Defendants GATEWAY 

SECURITIES SERVICES, INC. dba HUGHES 

TOWING AND AUTO WRECKING; DEBRAH 

HUGHES and DONALD HUGHES 

DATED: January___, 2008 THE DUNNION LAW FIRM 

By___/s/________________________ 

Todd D. Reeves 

Gerard Rose 

Attorneys for Defendants RAMON DEVINE and 

LUCINDA DEVINE 

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STIPULATION FOR BENCH TRIAL No. 06-CV-01143-OWW-SMS

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ORDER 

Pursuant to the stipulation of the parties, IT IS SO ORDERED. 

DATED: January 17, 2008 

 /s/ Oliver W. Wanger_ 

 JUDGE OF THE DISTRICT COURT 

842515 

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