Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-00343/USCOURTS-caed-2_05-cv-00343-1/pdf.json

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

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Charlston, Revich &

Chamberlin LLP

ADMIRAL-DEBBER

Stipulation and Proposed

Order.wpd

STIPULATION AND ORDER RE FILING FIRST AMENDED COMPLAINT

Robert D. Hoffman, SBN 123458

CHARLSTON, REVICH & CHAMBERLIN LLP

1925 Century Park East, Suite 1250

Los Angeles, California 90067-2746

(310) 551-7000

(310) 203-9321 (facsimile)

Attorneys for Plaintiff and Counterdefendant

Admiral Insurance Company

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

ADMIRAL INSURANCE COMPANY,

a Delaware corporation,

Plaintiff,

v.

J. DALE DEBBER; LORNA MARTIN;

DATA CONTROL CORPORATION;

ARISTOS ACADEMY; COMPLINE,

LLC; PROVIDENCE PUBLICATIONS,

LLC; REAL CONSULTING &

SOFTWARE DEVELOPMENT, LLC;

DEBBER FAMILY FOUNDATION;

VICKIE ALTMAN; and SCOTT

ALTMAN,

Defendants.

_________________________________

AND RELATED CROSS-ACTION

Case No. 2:05-CV-00343-FCD-PAN

STIPULATION AND ORDER RE

FILING OF FIRST AMENDED

COMPLAINT

The Honorable Frank C. Damrell,

Jr.

WHEREAS, on February 22, 2005, plaintiff Admiral Insurance Company

("Admiral") filed a Complaint in the instant action (“Admiral Action”) to rescind

two (2) Employment Practices Liability Insurance policies issued to Data Control

Corporation (“DCC”) for the policy periods December 13, 2002 to December 13,

2003 and December 13, 2003 to December 13, 2004 bearing, respectively, Policy

Case 2:05-cv-00343-FCD-EFB Document 15 Filed 11/15/05 Page 1 of 4
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ADMIRAL-DEBBER

Stipulation and Proposed

Order.wpd

STIPULATION AND ORDER RE FILING FIRST AMENDED COMPLAINT

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Nos. 4343312/1 and 4343312/2 (collectively “Admiral Policies”); 

WHEREAS, in its Complaint in the Admiral Action, Admiral contends that

it is entitled to rescind the Admiral Policies on the grounds that the applications

submitted by DCC for the Admiral Policies failed to disclose two (2) prior

lawsuits for sexual harassment against DCC and its Chief Executive Officer;

WHEREAS, in its Complaint in the Admiral Action Admiral asserted a

claim for reimbursement for fees and costs incurred by Admiral for the defense of

claims asserted by Vickie Altman, a former DCC employee, and her husband

(collectively “Altmans”) against DCC and certain other parties (“DCC Parties”)

for, among other things, sexual harassment in the action Vickie Altman, et al. v. J.

Dale Debber, et al., Nevada County Superior Court Case No. 69850 (“Altman

Action”) filed on May 11, 2004;

WHEREAS, on May 28, 2004, Admiral agreed to defend the Altman Action

subject to a full and complete reservation of rights;

WHEREAS, on August 23, 2004, the Altman Action was compelled to

arbitration (“Arbitration”) by the DCC Parties;

WHEREAS, on June 29, 2005, the DCC Parties filed in the Admiral Action

an Answer to the Complaint and a Counterclaim for breach of contract, breach of

the implied covenant of good faith and fair dealing, promissory fraud and

declaratory relief;

WHEREAS, the DCC Parties deny that Admiral is entitled to rescind the

Admiral Policies or obtain any reimbursement from the DCC Parties regarding the

claims in the Altman Action and the Arbitration;

WHEREAS, on July 20, 2005, Admiral filed a reply to the counterclaim

denying that Admiral has any liability to the DCC Parties;

WHEREAS, on September 29, 2005, Admiral funded, subject to a

reservation of rights, the full amount of an arbitration award issued in favor of the

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STIPULATION AND ORDER RE FILING FIRST AMENDED COMPLAINT

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Altmans (“Arbitration Award”) against the DCC Parties in connection with the

Altmans’ acceptance of an Offer for Judgment pursuant to FRCP Rule 68 that had

been served by counsel for the DCC Parties with Admiral’s consent;

WHEREAS, Admiral seeks to amend its Complaint to state a claim against

the DCC Parties for reimbursement of the amount Admiral paid to fund the

Arbitration Award;

WHEREAS, on October 18, 2005, counsel for Admiral circulated to counsel

for the DCC Parties a draft Proposed First Amended Complaint in the form

attached hereto as Exhibit “A”;

WHEREAS, on October 28, 2005, counsel for defendants advised counsel

for Admiral that the DCC Parties will enter into a stipulation for the filing of the

Proposed First Amended Complaint.

IT IS HEREBY STIPULATED by and between plaintiff and

counterdefendant Admiral and defendants and counterclaimants the DCC Parties,

through their respective counsel of record, as follows:

1. The [Proposed] First Amended Complaint attached hereto as Exhibit

“A” shall be deemed to be filed and served on the date the Order on this Stipulation

is entered by the Court.

2. The DCC Parties shall have twenty (20) days from the date the Order

on this Stipulation is entered to file and serve their response to the First Amended

Complaint.

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3. All dates set forth in the Scheduling Order issued on August 17, 2005

shall remain in effect.

Dated: November __, 2005 CHARLSTON, REVICH & CHAMBERLIN, LLP

ROBERT D. HOFFMAN

 By: ________________________________________

Robert D. Hoffman

Attorneys for Plaintiff and Counterdefendant

Admiral Insurance Company

Dated: November __, 2005 DEMPSEY & JOHNSON, P.C.

 By: ________________________________________

Stephen C. Johnson

Attorneys for Defendants and counsel for

J Dale Debber, Lorna Martin, Data Control 

Corporation , Aristos Academy, Compline LLC,

Providence Publications, LLC, Real Consulting &

Software Development LLC and Debber Family 

Foundation

O R D E R

Based upon the Stipulation of the parties, as set forth above, and good cause

appearing therefor,

IT IS HEREBY ORDERED that plaintiff Admiral Insurance Company’s

First Amended Complaint attached as Exhibit “A” to the Stipulation shall be

deemed filed and served as of this date pursuant to the terms and conditions set

forth in said Stipulation.

Dated: November 14, 2005

/s/ Frank C. Damrell Jr. 

UNITED STATES DISTRICT COURT JUDGE

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