Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02511/USCOURTS-cand-3_05-cv-02511-12/pdf.json

Nature of Suit Code: 350
Nature of Suit: Motor Vehicle Personal Injury
Cause of Action: 28:1346 Tort Claim

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-2511 TEH -1-

KEVIN V. RYAN (SBN 118321)

United States Attorney

JOANN M. SWANSON (SBN 88143)

Chief, Civil Division

JONATHAN U. LEE (SBN 148792)

Assistant United States Attorney

450 Golden Gate Avenue, Tenth Floor

San Francisco, California 94102

Telephone: (415) 436-6909

Facsimile: (415) 436-6748

Email: jonathan.lee@usdoj.gov

Attorneys for Defendant UNITED STATES

DAVID A. NOLD, pro hac vice (WSBA #19009)

NOLD & ASSOCIATES, PLLC

10500 NE 8 STREET, SUITE 930 th

BELLEVUE, WA 98004

dnold@washlaw.biz

Telephone: (425)289-5555 

Facsimile: (425) 289-6666

MARK C. LAMB (SB #198090)

22833 BOTHELL EVERETT HWY, SUITE 218

BOTHELL, WA 98021

Telephone: (425)368-4238

Attorneys for Plaintiff CURTIS STEELE and B.I.S.

ABBEY, WEITZENBERG, WARREN & EMERY, P.C.

W. BARTON WEITZENBERG, ESQ. (SBN 051788)

MICHAEL D. GREEN, ESQ. (SBN 214142)

100 Stony Point Road, Suite 200

Santa Rosa, California 95401

Tel: (707) 542-5050

Fax: (707) 542-2589

Attorneys for JOHN DEMARTINI, 

as Guardian Ad Litem for R.A.D., and C.M.S.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

CURTIS LYNN STEELE, an individual, 

Plaintiff,

 vs.

UNITED STATES OF AMERICA,

 Defendant.

 

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No. C 05-2511 TEH 

(Lead Case; Consolidated with John

DeMartini, as Guardian Ad Litem for

R.A.D. and C.M.S.; and Irene Steele and

Darryl Steele as Co-guardians Ad Litem for

B.I.S. 05-4399 TEH)

STIPULATION AND PROPOSED

ORDER APPROVING SETTLEMENT

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-2511 TEH -2-

THE PARTIES, BY AND THROUGH THEIR ATTORNEYS OF RECORD, HEREBY

SUBMIT THE FOLLOWING STIPULATION:

WHEREAS, on September 21, 2004, Curtis Steele and Tracy DeMartini were involved in

a motor vehicle accident with a federal employee;

WHEREAS, Tracy DeMartini died on or about September 23, 2004;

WHEREAS, following the events of September 21, 2004, Curtis Steele made an

administrative claim for tort damages on December 21, 2004;

WHEREAS, on June 21, 2005, Curtis Steele filed this lawsuit against the United States of

America, alleging damages under the Federal Tort Claims Act;

WHEREAS, on or about May 16, 2005, John DeMartini filed administrative claims on

behalf of Minors R.A.D. and C.M.S and on or about June 14, 2005 Irene and Darryl Steele filed

an administrative claim on behalf of Minor B.I.S;

WHEREAS, on or about October 20, 2005, John DeMartini named the United States of

America as defendant in his state court, alleging damages under the Federal Tort Claims Act,

said action was removed to federal court on October 28, 2005, and Irene Steele and Darryl Steele

filed a lawsuit on or about October 24, 2005;

WHEREAS, all lawsuits were consolidated into the lead case no. C 05-2511 TEH;

WHEREAS, the Court dismissed defendants Lake County Tribal Health Consortium and

Thomas Rangel by order dated March 13, 2006;

WHEREAS, the parties attended a settlement conference before the Honorable Elizabeth

Laporte on June 9, 2006;

WHEREAS, the parties reached agreement on the terms of settlement recorded herein on

or about June 16, 2006;

IT IS HEREBY STIPULATED as follows:

1. The parties to this litigation are Curtis Steele in his personal capacity as plaintiff, 

John DeMartini as Guardian ad Litem for C.M.S and R.A.D and Irene Steele and

Darryl Steele as Co-Guardians ad Litem for B.I.S (hereinafter, “Plaintiffs”), on

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -3-

the one hand, and defendant United States of America, on the other hand; 

2. The parties do hereby agree to settle and compromise the above-entitled action

under the terms and conditions set forth herein. 

3. Plaintiffs and their heirs, executors, administrators or assigns hereby agree to 

accept the sum of $1,700,000.00 (One Million Seven Hundred Thousand Dollars

exactly), under the terms and conditions set forth herein, 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 bodily and personal injuries, 

damage to property and the consequences thereof, resulting, and to result, from 

the same subject matter that gave rise to the above-captioned lawsuit, for which 

plaintiffs, their heirs, executors, administrators, or assigns, and each of them, now

have or may hereafter acquire against the United States of America or its agents,

servants, insurers and employees. 

4. Plaintiffs and their heirs, executors, administrators or assigns further agree to

reimburse, indemnify and hold harmless the United States of America and its

agents, servants or employees from any and all such causes of action, claims,

liens, rights, or subrogated or contribution interests incident to or resulting from

further litigation or the prosecution of claims by plaintiffs or their heirs,

executors, administrators or assigns against any third party or against the United

States of America, except that the provisions of this paragraph do not include any

action between Nonprofits’ Insurance Alliance of California (“NIAC”) and the

United States and plaintiffs are in no way impacted by the eventual outcome of

any litigation between NIAC and the United States.

5. In consideration of the payment of $1,700,000.00 (One Million Seven Hundred

Thousand Dollars exactly) and the other terms of this Stipulation and Agreement,

as set forth above, the plaintiffs agree to immediately upon execution of this

agreement, execute the accompanying Stipulation and [Proposed] Order for

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -4-

Dismissal with Prejudice, which stipulation shall dismiss, with prejudice, all

claims asserted in this Action or any claims that could have been asserted in this

Action, which is captioned Curtis Steele, et al. v. United States of America, Case

No. 05-02511 TEH. The fully executed Stipulation of Dismissal will be held by

counsel for the defendant and will be filed with the Court upon written notice

from plaintiffs’ counsel of their receipt of the settlement amount and the

completion of the settlement terms described herein.

6. This stipulation for compromise settlement is entered into by all parties for the

purpose of compromising disputed claims and avoiding the expenses and risks of

litigation. This settlement does not constitute an admission of liability or fault on

the part of any party.

7. It is also agreed by and among the parties that neither the plaintiffs nor plaintiffs’

attorneys may make any claim for attorney’s fees or other costs or expenses of

litigation against the Defendant United States, their agents, servants, or

employees in connection with plaintiffs’ claims as set forth herein.

8. This agreement may be pled as a full and complete defense to any subsequent

action or other proceeding which arises out of the claims released and discharged

by the agreement.

9. It is also agreed, by and among the parties, that the settlement amount of 

$1,700,000.00 (One Million Seven Hundred Thousand Dollars exactly) paid by

the United States of America and Nonprofits’ Insurance Alliance of California, as

described below, to plaintiffs represents the entire amount of the compromise

settlement and that the respective parties will each bear their own costs, fees, and

expenses and that any attorneys' fees owed by the plaintiffs will be paid out of the

settlement amount and not in addition thereto.

10. The parties agree that this settlement will be funded as follows. The United

States will contribute $700,000.00 exactly (Seven Hundred Thousand Dollars) to

the settlement. Nonprofits’ Insurance Alliance of California (NIAC) will

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -5-

contribute $1,000,000.00 exactly (One Million Dollars) to the settlement. NIAC

is a signatory to this agreement and may enforce its provisions. NIAC’s

contribution to the settlement described herein is conditioned upon the Court

granting NIAC’s motion to intervene filed June 15, 2006. If the Court does not

permit NIAC to intervene to assert its coverage position and seek reimbursement

from the United States of NIAC’s contribution to the settlement, there is no

settlement. 

11. As noted above, the United States will contribute $700,000.00 exactly (Seven

Hundred Thousand Dollars) to the settlement. The United States’ settlement

contribution will be the form of a lump sum payment to plaintiffs’ and their

attorneys of record. The United States will not purchase any annuity products. 

As noted above, Nonprofits’ Insurance Alliance of California (NIAC) will

contribute $1,000,000.00 exactly (One Million Dollars) to the settlement. 

NIAC’s settlement contribution will be in the form of a combination of lump sum

payment to plaintiffs’ and their attorneys of record and purchase of annuity

contracts for the benefit of the plaintiffs. The exact details of the disbursements

will be described in a subsequent stipulation and proposed order, to be submitted

by the parties within a few days, following further efforts by the parties to make

arrangements for the purchase of annuity products. The 45 day period for

defendants to fund the settlement will run from the Court’s approval of the

subsequent stipulation and proposed order described in this paragraph. 

12. The settlement amount for Curtis Steele in the amount of $300,000.00 will be

made payable by two checks, one check in an amount to be determined for the

purchase of an annuity and a separate check made payable to Curtis Steele and his

attorney of record David A. Nold. Plaintiffs’ counsel shall be responsible for

distributing the funds to plaintiff. 

13. The settlement amount for Plaintiff Irene and Darryl Steele on behalf of B.I.S. in

the amount of $400,000.00 will be made payable by three checks, one check in an

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -6-

amount to be determined for the purchase of an annuity, one check to be payable

to the B.I.S. Trust and one check made payable to their attorney of record David

A. Nold for attorney’s fees and litigation costs by way of further stipulation and

court approval. 

14. The settlement amount for Plaintiff John DeMartini on behalf of C.M.S. in the

amount of $400,000.00 will be made payable by two checks, one check in an

amount to be determined for the purchase of an annuity and a separate check

made payable to their attorneys of record Abbey Weitzenberg Warren & Emery

and Tibor Major for attorney’s fees and litigation costs by way of further

stipulation and court approval. 

15. The settlement amount for Plaintiff John DeMartini on behalf of R.A.D. in the

amount of $600,000.00 will be made payable by two checks, one in an amount to

be determined for the purchase of an annuity and a separate check made payable

to their attorneys of record Abbey Weitzenberg Warren & Emery and Tibor

Major for attorney’s fees and litigation costs by way of further stipulation and

court approval. 

17. Settlement proceeds are due within 45 days after approval of the settlement by the

court, as specified within paragraph 11. Counsel for the United States of America

will notify plaintiffs’ counsel within 48 hours after receiving the settlement

checks in the U.S. Attorney’s Office. 

18. Plaintiffs hereby release and forever discharge the United States of America and

any and all of its past and present officials, employees, agents, attorneys, insurers,

their successors and assigns, from any and all obligations, damages, liabilities,

actions, causes of actions, 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 plaintiffs’ pleadings in this

action.

19. Plaintiff John DeMartini specifically represents and warrants that he is the

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -7-

Guardian ad Litem for R.A.D and C.M.S. under California law, and as such, he

has the capacity and standing to enter into this settlement agreement on behalf of

R.A.D. and C.M.S. 

20. Plaintiff John DeMartini specifically represents and warrants that he is the

Personal Representative of the Estate of Tracy DeMartini and/or the Successor In

Interest to Tracy DeMartini under California law, and as such, he has the capacity

and standing to enter into this settlement agreement on behalf of the Estate of

Tracy DeMartini. Consistent with Plaintiff John DeMartini’s warranty and

representation, any claim or potential claim that was or could be brought on

behalf of the Estate of Tracy DeMartini and any claim or potential claim that was

or could be brought by the successor in interest to Tracy DeMartini are included

within this settlement agreement and the plaintiffs’ release of defendant United

States.

21. Plaintiffs Irene Steele and Darryl Steele specifically represent and warrant that

they are Co-Guardians ad Litem for B.I.S. under California law, and as such, they

have the capacity and standing to enter into this settlement agreement on behalf of

B.I.S.

22. 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 favor at the time of

executing the release, which if known by him must have materially

affected his settlement with the debtor."

Plaintiffs, having been apprised of the statutory language of Civil Code Section

1542 by their attorney of record, and fully understanding the same, nevertheless

elect to waive the benefits of any and all rights they may have pursuant to the

provision of that statute and any similar provision of federal law. Plaintiffs

understand that, if the facts concerning injuries or liability for damages pertaining

thereto are found hereinafter to be other than or different from the facts now

believed by them to be true, this settlement agreement shall be and remain

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -8-

effective notwithstanding such material difference. 

23. The parties agree that this stipulation is intended to be a full and final settlement

of all claims or potential claims of the plaintiffs arising out of the allegations set

forth in plaintiffs’ pleadings in this action. Plaintiffs agree to indemnify and hold

harmless defendant United States of America from any and all claims, demands,

obligations, liens, and lawsuits brought against the United States of America, its

agencies or employees, arising out of the allegations set forth in plaintiffs’

complaints in this action.

24. 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. 

25. If any withholding or income tax liability is imposed upon plaintiffs based on

payment of the settlement sum as set forth herein, plaintiffs shall be solely

responsible for paying any such liability. 

26. Plaintiffs and plaintiffs’ attorneys have been informed that payment of the

settlement amount may take 45 days or more to process. Defendant will submit a

request for payment to the Department of Treasury Judgment Fund within 2 days

after the Court approval of the stipulation and proposed order described in

paragraph 11. 

27. The parties agree that the district court shall retain jurisdiction over this matter for

the purposes of resolving any dispute alleging a breach of this Stipulation and

Agreement. 

28. Each party acknowledges that they have been represented by and have relied upon

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -9-

independent counsel in negotiating, preparing and entering into this Stipulation

and Agreement and that they have had the contents of this Stipulation and

Agreement fully explained by counsel and that they are fully aware of and

understand all of the terms of the agreement and the legal consequences thereof. 

It is further acknowledged that the parties have mutually participated in the

drafting of this Stipulation and Agreement and it is agreed that no provision

herein shall be construed against any party hereto by virtue of the drafting of this

Stipulation and Agreement. 

29. If any provision of this Stipulation and Agreement shall be held invalid, illegal, or

unenforceable, the validity, legality, and enforceability of the remaining

provisions shall not in any way be affected or impaired thereby. This instrument

shall constitute the entire agreement between the parties, and it is expressly

understood and agreed that this 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. 

30. The parties agree that, should any dispute arise with respect to the implementation

of the terms of this Agreement, Plaintiffs shall not seek to rescind the Agreement

and pursue any of the original causes of action. Plaintiffs’ sole remedy in such a

dispute is an action to enforce the Agreement in district court. This settlement

agreement may be signed in counterparts. 

31. The parties further agree that the filing of this executed Stipulation and

Agreement shall notify the Court of the parties’ agreement to vacate all pending

discovery, motion hearing dates, settlement or pretrial deadlines or trial date

associated with this litigation. 

SO STIPULATED.

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STIPULATION OF SETTLEMENT; ORDER

Case No. C 05-02511 TEH -10-

DATED: June 28, 2006 /s/ 

Curtis Steele, Plaintiff 

DATED: June 27, 2006 /s/ 

Irene Steele, Plaintiff Guardian Ad Litem 

on behalf of B.I.S.

DATED: June 27, 2006 /s/ 

Darryl Steele, Plaintiff Guardian Ad Litem 

on behalf of B.I.S.

DATED: June 28, 2006 NOLD & ASSOCIATES, PLLC

 /s/ 

David A. Nold, pro hac vice, WSBA #19009

Attorney for Plaintiffs Curtis Steele and Irene and

Darryl Steele as Co-Guardians ad Litem for B.I.S.

DATED: June 28, 2006 LAW OFFICES OF MARK C. LAMB

 /s/ 

Mark C. Lamb, Esq.

Attorney for Plaintiffs Curtis Steele and Irene and

Darryl Steele as Co-Guardians ad Litem for B.I.S.

DATED: June 28, 2006 /s/ 

John DeMartini, Plaintiff Guardian Ad Litem for 

R.A.D. and C.M.S.

DATED: June 28, 2006 /s/ 

Plaintiff John DeMartini, As Personal

Representative of the Estate of Tracy DeMartini

and/or Successor-In-Interest to Tracy DeMartini

DATED: June 28, 2006 ABBEY WEITZENBERG WARREN & EMERY

 /s/ 

Michael D. Green, Esq.

Attorney for Plaintiff John DeMartini as Guardian

ad Litem for R.A.D. and C.M.S

DATED: June 28, 2006 LAW OFFICES OF TIBOR E. MAJOR

 /s/ 

Tibor E. Major, Esq.

Attorney for Plaintiff John DeMartini as Guardian

ad Litem for R.A.D. and C.M.S

DATED: June 28, 2006 CLAPP, MORONEY, BELLAGAMBA &

VUCINICH

 /s/ 

Christopher J. Beeman, Esq.

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Stipulation and Agreement for Compromise and Settlement

C05-02511 TEH -11-

Erica Berterello, Esq.

Attorneys for Defendant UNITED STATES

DATED: June 27, 2006 HAIGHT BROWN & BONESTEEL LLP

 /s/ 

Robert N. Schiff 

Attorneys for NONPROFITS’ INSURANCE

ALLIANCE OF CALIFORNIA

DATED: June 28, 2006 KEVIN V. RYAN

United States Attorney

 /s/ 

Jonathan U. Lee

Assistant United States Attorney

Attorneys for Defendant UNITED STATES

PURSUANT TO STIPULATION, IT IS SO ORDERED:

DATED: __________________ _____________________________________

The Honorable Thelton E. Henderson

UNITED STATES DISTRICT JUDGE 

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6/28/06

s/Thelton Henderson

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