Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_13-cv-01653/USCOURTS-caed-2_13-cv-01653-2/pdf.json

Nature of Suit Code: 380
Nature of Suit: Other Personal Property Damage
Cause of Action: 28:2671 Federal Tort Claims Act

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Stipulation for Compromise Settlement and Dismissal; Order 1

Thereon

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BENJAMIN B. WAGNER

United States Attorney

BOBBIE J. MONTOYA

Assistant United States Attorney

501 I Street, Suite 10-100

Sacramento, California 95814

Telephone: (916) 554-2775

Attorneys for Defendant

United States of America

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

STATE FARM MUTUAL AUTOMOBILE 

INSURANCE COMPANY,

Plaintiff,

v.

UNITED STATES OF AMERICA,

Defendant.

Case No. 2:13-CV-01653-TLN-CKD

STIPULATION FOR COMPROMISE

SETTLEMENT AND DISMISSAL; 

ORDER THEREON

IT IS HEREBY STIPULATED by and between plaintiff State Farm Mutual Automobile 

Insurance Company (“State Farm”) and defendant United States of America (“United States”), by and 

through their respective undersigned counsel, as follows: 

1. State Farm does hereby agree to settle and compromise each and every claim of any kind,

whether known or unknown, arising directly or indirectly from the acts or omissions that gave rise to the 

above-captioned action under the terms and conditions set forth in this Stipulation for Compromise 

Settlement (“Stipulation” or “Agreement”).

2. The United States agrees to pay State Farm the sum of One Thousand, Seven Hundred 

Forty-Four Dollars and Twenty-Eight Cents ($1,744.28), which sum shall be in full settlement and 

satisfaction of any and all claims, demands, rights, and causes of action of whatsoever kind and nature, 

arising from, and by reason of any and all known and unknown, foreseen and unforeseen damage to 

property and consequences thereof, resulting, and to result, from the subject matter that gave rise to the 

above-captioned action, including any future claims for which State Farm and any parent, subsidiary, 

Case 2:13-cv-01653-TLN-CKD Document 30 Filed 02/05/16 Page 1 of 6
Stipulation for Compromise Settlement and Dismissal; Order 2

Thereon

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division, member, affiliated entities, or assigns, and each of them, now have or may hereafter acquire 

against the United States, its agencies, agents, servants, and employees.

3. State Farm and any parent, subsidiary, division, member affiliated entities, or assigns, 

and any person or entity acting on behalf of any of the foregoing, agrees to accept the One Thousand, 

Seven Hundred Forty-Four Dollars and Twenty-Eight Cents ($1,744.28) in full settlement and 

satisfaction of any and all claims, demands, rights, and causes of action of whatsoever kind and nature, 

including claims for any and all known and unknown, foreseen and unforeseen damage to property and 

the consequences thereof, which they may have or hereafter acquire against the United States, its 

agencies, agents, servants, and employees on account of the same subject matter that gave rise to the 

above-captioned action, including any future claim or lawsuit of any kind or type whatsoever, whether 

known or unknown, and whether for compensatory or exemplary damages. State Farm and any parent, 

subsidiary, division, member, affiliated entities, or assigns, and any person or entity acting on behalf of 

any of the foregoing, further agree to reimburse, indemnify and hold harmless the United States and its 

agencies, agents, servants and employees from and against any and all causes of action, claims, liens, 

rights, or subrogated or contribution interest incident to or resulting from further litigation or the 

prosecution of claims arising from the subject matter of this action against any third party or against the 

United States.

4. This Stipulation is not, is in no way intended to be, and should not be construed as, an

admission of liability or fault on the part of the United States, its agencies, agents, servants, or 

employees, and it is specifically denied that they are liable to State Farm or its insured. This settlement 

is entered into by State Farm and the United States for the purpose of compromising disputed claims 

under the Federal Tort Claims Act and avoiding the expenses and risks of further litigation. 

5. This Agreement may be pled as a full and complete defense to any subsequent action or

other proceeding involving any person or party that arises out of the claims released and discharged by 

this Agreement.

6. It is also agreed, by and among the parties, that the settlement amount of One Thousand, 

Seven Hundred Forty-Four Dollars and Twenty-Eight Cents ($1,744.28) to State Farm represents the 

entire amount of the compromise settlement and that the respective parties will each bear their own 

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Stipulation for Compromise Settlement and Dismissal; Order 3

Thereon

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costs, fees, and expenses and that any attorneys’ fees owed by State Farm will be paid out of the 

settlement amount and not in addition thereto.

7. It is also understood by and among the parties that, pursuant to Title 28, United States

Code, Section 2678, attorneys’ fees for services rendered in connection with this action shall not exceed 

25 percent of the amount of the compromise settlement.

8. Payment of the settlement amount from the United States will be made by check drawn 

on the U.S. Postal Service for One Thousand, Seven Hundred Forty-Four Dollars and Twenty-Eight 

Cents ($1,744.28) and made payable to “Clerkin, Sinclair & Mahfouz, LLP, in Trust for State Farm 

Mutual Automobile Insurance Company.” The check will be mailed to State Farm’s attorney at the 

following address: Richard L. Mahfouz, II, Esq., Clerkin, Sinclair & Mahfouz, LLP, 701 B Street, Suite 

1160, San Diego, CA 92101. The law firm’s taxpayer ID number is 20-3335151. State Farm and its 

attorneys are responsible for payment for any taxes that may be due on the settlement proceeds, and the 

United States makes no representation as to any tax consequences or liabilities State Farm and its

attorneys may incur as a result of this settlement.

9. State Farm has been informed that payment may take sixty days or more to process, but

the United States agrees to make good faith efforts to expeditiously process said payment.

10. The parties agree to execute and deliver such other and further documents as may be

required to carry out the terms of this Agreement.

11. The parties agree that should any dispute arise with respect to the implementation of the

terms of this Agreement, State Farm shall not seek to rescind the Agreement and pursue its original

causes of action. State Farm’s sole remedy in such a dispute is an action to enforce the Agreement in

district court. 

12. State Farm hereby releases and forever discharges the United States and any and all of its

past and present officials, employees, agencies, agents, attorneys, their successors and assigns, from any 

and all obligations, damages, liabilities, actions, causes of action, claims and demands of any kind and 

nature whatsoever, whether suspected or unsuspected, at law or in equity, known or unknown, arising 

out of the allegations set forth in State Farm’s pleadings in this action. 

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Stipulation for Compromise Settlement and Dismissal; Order 4

Thereon

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13. The provisions of California Civil Code Section 1542 are set forth below:

A general release does not extend to claims which the creditor does not 

know or suspect to exist in his or her favor at the time of executing the 

release, which if known by him or her must have materially affected his or 

her settlement with the debtor.

State Farm having been apprised of the statutory language of California Civil Code Section 1542 by its

attorneys, and fully understanding the same, nevertheless elects to waive the benefits of any and all 

rights it may have pursuant to the provision of that statute and any similar provision of federal law. 

State Farm understands that, if the facts concerning the liability of the government for damages 

pertaining thereto are found hereinafter to be other than or different from the facts now believed by it to 

be true, the Agreement shall be and remain effective notwithstanding such material difference.

14. The parties agree that this Stipulation for Compromise Settlement, including all the terms

and conditions of this compromise settlement and any additional agreements relating thereto, may be 

made public in their entirety, and State Farm expressly consents to such release and disclosure pursuant 

to 5 U.S.C. § 552a(b).

15. This instrument shall constitute the entire Agreement between the parties, and it is

expressly understood and agreed that the Agreement has been freely and voluntarily entered into by the 

parties hereto with the advice of counsel, who have explained the legal effect of this Agreement. The 

parties further acknowledge that no warranties or representations have been made on any subject other 

than as set forth in this Agreement. This Agreement may not be altered, modified or otherwise changed 

in any respect except by writing, duly executed by all of the parties or their authorized representatives.

16. Each person signing this Agreement warrants and represents that he or she possesses full

authority to bind the party on whose behalf he or she is signing to the terms of the Agreement.

17. Each person signing this Agreement warrants and represents that no promises,

inducements, or other agreements not expressly contained herein have been made; that this Agreement

contains the entire agreement between the parties; and that the terms of this Agreement are contractual 

and not mere recitals. 

18. Each person executing this Agreement represents that he or she has read and understands

its contents; that he or she executes this Agreement voluntarily; that he or she has not been influenced by 

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Stipulation for Compromise Settlement and Dismissal; Order 5

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any person acting on behalf of any party.

19. This Agreement may be executed in counterparts. All such counterparts and signature

pages, together, shall be deemed to be one document.

20. Upon approval by the Court as provided below, State Farm’s action against the United

States is hereby DISMISSED WITH PREJUDICE in its entirety, and the Clerk of the Court is requested 

to enter this dismissal and release in the official docket and to close the case.

IT IS SO STIPULATED.

Respectfully submitted,

DATED:_2/01/16______________ CLERKIN, SINCLAIR & MAHFOUZ, LLP

By: ____/s/_____________________________

RICHARD L. MAHFOUZ, II

Attorneys for Plaintiff

State Farm Mutual Automobile Insurance Co.

DATED:_2/3/16_____________ BENJAMIN B. WAGNER

United States Attorney

 /s/

BOBBIE J. MONTOYA

Assistant United States Attorney

Attorneys for Defendant

United States of America

DATED:__2/01/16_____________ STATE FARM MUTUAL AUTOMOBILE 

INSURANCE COMPANY

 /s/

By: 

Its: State Farm Mutual Automobile

Insurance Company Claims

Representative

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Stipulation for Compromise Settlement and Dismissal; Order 6

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ORDER 

IN LIGHT OF THE PARTIES’ SETTLEMENT OF THIS ACTION, THIS ACTION IS 

DISMISSED. 

Dated: February 4, 2016

Case 2:13-cv-01653-TLN-CKD Document 30 Filed 02/05/16 Page 6 of 6