Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-01738/USCOURTS-caed-2_05-cv-01738-1/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1331 Fed. Question: Insurance Contract

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

----oo0oo----

STATE FARM LIFE INSURANCE

COMPANY, an Illinois

corporation,

NO. CIV. S-05-01738 WBS PAN

Plaintiff,

v. MEMORANDUM AND ORDER

CARI VIVIAN, individually,

KERIN JOHNSTON, indivdually,

LISA STEED, individually,

LYNNE ANDREW, individually,

and JONNA COBB, individually,

Defendants.

----oo0oo----

Based on a preliminary agreement reached during a

Voluntary Dispute Resolution session in which the parties

indicated they would later draw up a final settlement agreement,

defendants Kerin Johnston, Lisa Steed, Lynne Andrew, and Jonna

Cobb move to enforce settlement and for sanctions against

defendant Cari Vivian.

After participating in the court’s Voluntary Dispute

Resolution Program, on February 22, 2006, all counsel and parties

and all counsel signed a handwritten, tentative agreement. 

Case 2:05-cv-01738-WBS-EFB Document 35 Filed 05/18/06 Page 1 of 3
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Defendant Vivian’s name was initially misspelled as 1

“Carrie,” but the word “Cari” was subsequently printed over the

misspelling.

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(Moving Defs.’ Mot. to Enforce Settlement 3.); see also Vivian

Decl. ¶ 6.) Pursuant to this agreement and under a heading

entitled “Division of life insurance proceeds ($186,000),” the

life insurance proceeds were to be divided as follows: $134,800

of the proceeds were to go to the “children & their attorneys,”

and $51,200 were to go to “Cari & her attorney.” (Moving Defs.’ 1

Mot. to Enforce Settlement Ex. A (Tentative Agreement).) The

agreement also contained the following: (1) a provision to divide

the interest among the parties, (2) the statement “All claims

known & unknown,” (3) a provision for the parties to draw up a

settlement agreement, and (4) the statement “Confidential.” 

(Id.) 

Defendant Vivian admits that she agreed to the division

of funds, the confidentiality provision, and to release all

parties from any claims or liabilities in connection with John

Vivian’s insurance policy. (Vivian Decl. ¶ 8.) However, she

disputes that the agreement contemplated a release of all claims

or liabilities relating to her deceased husband, to their

community property, and to ongoing fraud or criminal acts. (Id.

¶¶ 8, 9.) In particular, she claims that, during her marriage,

her husband sold a home they owned in joint tenancy and deposited

the funds, along with funds from a joint account, into a credit

union account for one of his daughters. (Id. ¶ 3.) 

For this reason, defendant Vivian contends she has a

$34,000 claim against her husband’s estate and that she “did not

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intend to give up the right to pursue this claim in settlement.” 

(Id. ¶ 4.) The moving defendants disagree, and contend that the

settlement was intended to cover all claims arising out of

defendant Vivian’s marriage to the deceased. 

“It is well settled that a district court has the

equitable power to enforce summarily an agreement to settle a

case pending before it.” Callie v. Near, 829 F.2d 888, 890 (9th

Cir. 1987). However, this power is constrained by two

requirements: (1) the agreement must be complete and (2) the

parties must have agreed to the terms or authorized their counsel

to agree for them. Id.; Doi v. Halekulani Corp., 276 F.3d 1131,

1138 (9th Cir. 2002). Because the parties dispute whether the

release in the settlement agreement should include a release of

defendant Vivian’s rights to the proceeds of the community

property dispute, the court cannot enforce this settlement.

IT IS THEREFORE ORDERED that the joint motion by

defendants Kerin Johnston, Lisa Steed, Lynne Andrew, and Jonna

Cobb to approve settlement, and their request for monetary

sanctions be, and the same hereby are, DENIED. 

DATED: May 17, 2006

Case 2:05-cv-01738-WBS-EFB Document 35 Filed 05/18/06 Page 3 of 3