Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_91-cv-00760/USCOURTS-caed-2_91-cv-00760-3/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 42:9607 Real Property Tort to Land

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[PROPOSED] ORDER REGARDING PETITION FOR APPOINTING REPLACEMENT TRUSTEE

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

LINCOLN PROPERTIES, LTD., a

California Limited Partnership,

Plaintiff,

v.

NORMAN HIGGINS, individually and

doing business as LINCOLN VILLAGE

CLEANERS and MODERN

CLEANERS, et al.,

Defendants.

AND RELATED CROSS-ACTIONS

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CASE NO. 2:91-CV-00760-JAM-GGH

ORDER REGARDING PETITION

FOR APPOINTING

REPLACEMENT TRUSTEE

Date: November 16, 2011

Time: 9:30 a.m.

Dept: Courtroom 2

Judge: Hon. John A. Mendez

This Order follows the filing of a joint petition by Lincoln Properties, Ltd.

("LPL") as a settlor of the Lincoln Center Remediation Trust ("the Trust") and

American International Specialty Lines Insurance Company k/n/a Chartis Specialty

Insurance Company ("AISLIC") requesting this Court to appoint Joe Niland as a

replacement trustee.

BACKGROUND:

LPL is a settlor of the Lincoln Center Remediation Trust. American

International Specialty Lines Insurance Company k/n/a Chartis Specialty Insurance

Company ("AISLIC") is the issuer of the Lincoln Center Environmental

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Remediation Trust Pollution Legal Liability Select Policy # EPP2673166 which is

an asset of the Lincoln Center Environmental Remediation Trust (“LCERT”). The

Declaration of Trust for the Lincoln Center Environmental Remediation Trust

(“Declaration of Trust”) was signed by The Honorable David F. Levi on May 15,

2001. A copy of the Declaration was attached as Exhibit 1 to the Declaration of

Joseph A. Salazar Jr., filed concurrently with the subject Petition. 

Judge Levi executed a second pleading on May 15, 2001. This was an

Amended First Final Consent Decree, Final Order, Final Judgment, and Order

Terminating Permanent Injunction ("Amended First Final Consent Decree"). 

Broadly speaking, this Order addressed the way in which the remediation would

take place. A true and correct copy was attached as Exhibit 2 to the Salazar

Declaration. The Court finds that Exhibits 1 and 2 are the operative documents in

considering the Petition..

Mark Adams of Point Environmental was the initial Trustee of the LCERT

(See Exhibit B to the Declaration of Trust, Exhibit 1). The LCERT funding

consisted of $1,047,000 in cash and $16,770,953.72 which would be used to

purchase the AISLIC policy identified above (See Exhibit A to the Declaration of

Trust, Exhibit 1). Trustee compensation was to be funded by the cash component

placed into the LCERT. 

As the Court is aware from prior hearings, the cash component of the Trust

has been exhausted. On or about August 11, 2011, Mr. Adams offered his

resignation to the Court via letter. The resignation stated that the resignation would

become effective September 10, 2011. 

MECHANISM TO APPOINT REPLACEMENT TRUSTEE

 Section 11.02 in the Declaration of Trust addresses how the vacancy is filled. 

(See Exhibit 1, pg 8.) It provides that: “Any vacancy in the office of Trustee shall

be filled by the Court upon consultation with Lincoln Properties, Ltd. and AISLIC

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using the same methodology relied on to select the initial Trustee as set forth in

Section V.B of the Amended First Final Consent Decree.”

Section V.B of the Amended First Final Consent Decree (Exhibit 2) provides

that LPL and AISLIC will provide a list of mutually agreeable and competent

candidates with appropriate documentation demonstrating competency. The Court

can then make the replacement by Order. Section V.B does not specifically require

the parties to provide a list of multiple candidates. LPL and AISLIC have provided

the name of Joe Niland along with appropriate background material for the court to

make a determination of the candidate’s qualifications.

In addition to providing the name and qualifications of Mr. Niland, LPL and

AISLIC have reached agreement on the following items:

1. Funding for the Replacement Trustee. Representatives from LPL and

AISLIC have had multiple meetings and conference calls, vetting potential

candidates for the Replacement Trustee position. These representatives have also

reviewed proposed budgets from the candidates as part of the review process. The

parties have agreed to using GeoSyntec Consultants, Principal Joseph Niland

located in Sacramento, CA and will fund the reasonable Replacement Trustee salary

and costs outside of the LCERT. 

2. LPL and AISLIC have agreed to fund the reasonable administrative costs

associated with the file transfer from Mark Adams to the new Trustee. These costs

will be borne by the Replacement Trustee rather than Mr. Adams. 

3. LPL and AISLIC, as part of the Petition, have requested that the Court

select GeoSyntec Consultants, Principal Joseph Niland as the Replacement Trustee.

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ORDER

Based upon the jointly filed Petition and supporting papers filed concurrently

therewith, the Court makes the following order:

1. GeoSyntec Consultants, Principal Joseph Niland, located in

Sacramento, CA is appointed as Replacement Trustee. LPL and

AISLIC are ordered to fund the reasonable Replacement Trustee

salary and costs outside of the LCERT. 

2. LPL and AISLIC are ordered to fund the reasonable

administrative costs associated with the file transfer from Mark

Adams, the former trustee, to the new Trustee. These costs are

ordered to be borne by the Replacement Trustee rather than Mr.

Adams.

IT IS SO ORDERED.

Dated: 11/22/2011

/s/ John A. Mendez 

U. S. District Court Judge

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