Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_17-cv-01347/USCOURTS-caed-2_17-cv-01347-9/pdf.json

Parties Involved:
Kevin Hamm
Defendant
ISR Holdings, Inc.
Counter Claimant
Intercare Specialty Risk Insurance Services, Inc.
Cross Claimant
Patriot National, Inc.
Defendant
Phoenix Risk Management, Inc.
Defendant
Karen Rigsby
Counter Defendant
Donald P. Steinmeyer
Counter Defendant

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KATZOFF & 

RIGGS LLP

1500 PARK AVENUE, SUITE 300

EMERYVILLE, CA 94608

(510)597-1990

_______________________________________________________________________

 

STIPULATION AND ORDER TO SEVER DEFENDANT PATRIOT NATIONAL, INC. 

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ROBERT R. RIGGS (SBN 107684)

STEPHEN G. PREONAS (SBN 245334)

Katzoff & Riggs LLP

1500 Park Avenue, Suite 300

Emeryville, CA 94608

Tel. (510) 597-1990

email: rriggs@katzoffriggs.com

Attorneys for Plaintiffs KAREN RIGSBY,

Trustee, and DONALD P. STEINMEYER

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA – SACRAMENTO DIVISION

KAREN RIGSBY, Trustee of the

MARSH REVOCABLE TRUST OF

2003, and DONALD P. STEINMEYER,

an individual,

Plaintiffs,

vs.

INTERCARE SPECIALTY RISK 

INSURANCE SERVICES, INC., et al.

Defendants.

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and RELATED CROSS ACTION

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Case No. 2:17-cv-01347-MCE-EFB

STIPULATION AND ORDER TO 

SEVER DEFENDANT PATRIOT 

NATIONAL, INC.

On June 30, 2017, Plaintiffs Karen Rigsby, as Trustee of the Marsh Revocable 

Trust of 2003 and Donald P. Steinmeyer (“Plaintiffs”) filed this action for Breach of 

Contract against Defendant Intercare Specialty Risk Insurance Services, Inc., and its 

Case 2:17-cv-01347-MCE-EFB Document 100 Filed 03/15/18 Page 1 of 4
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KATZOFF & 

RIGGS LLP

1500 PARK AVENUE, SUITE 300

EMERYVILLE, CA 94608

(510)597-1990

_______________________________________________________________________

 

STIPULATION AND ORDER TO SEVER DEFENDANT PATRIOT NATIONAL, INC. 

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successor-in-interest ISR Holdings, Inc. (“ISR”); Alter Ego Liability against Defendants 

ISR and Kevin Hamm (“Hamm”); Intentional Interference of Contract against Defendant 

Patriot National, Inc. (“Patriot”); and Fraudulent Conveyance against Defendants Patriot 

and Phoenix Risk Management, Inc. (“Phoenix”).

On September 21, 2017, ISR filed a Cross-Complaint against Plaintiffs. Patriot is 

not named as a Cross-Defendant in the Cross-Complaint.

On January 30, 2018, Patriot filed for Chapter 11 Bankruptcy in the United States 

Bankruptcy Court for the District of Delaware (“the Bankruptcy Petition”). The 

bankruptcy matter is entitled In re Patriot National, Inc., Case No. 18-10189.

On February 5, 2018, Patriot filed a Suggestion of Bankruptcy of Defendant 

Patriot National, Inc. noticing a stay on prosecution of the action against Patriot pursuant 

to Bankruptcy Code § 362(a).

The parties in this action agree and stipulate as follows:

1. Good cause exists to sever the action as to Patriot pursuant to Fed. R. Civ. 

Proc. 21. 

2. A stay of the action due to Patriot’s Bankruptcy Petition will cause 

indefinite delay of the action and prejudice Plaintiffs if Plaintiffs are not permitted to 

proceed with their claims against the three solvent defendants, ISR, Hamm, and Phoenix. 

3. Severing Patriot from the action will promote the expeditious resolution of 

this litigation.

4. Patriot is not an indispensable party to this litigation because: 

a. This action primarily arises out of a contract between Plaintiffs and ISR. 

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KATZOFF & 

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1500 PARK AVENUE, SUITE 300

EMERYVILLE, CA 94608

(510)597-1990

_______________________________________________________________________

 

STIPULATION AND ORDER TO SEVER DEFENDANT PATRIOT NATIONAL, INC. 

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Patriot is a third party to that contract. 

b. Plaintiffs’ claim of Intentional Interference of Contract is stated solely 

against Patriot and involves different issues of fact and law from Plaintiffs’ other claims. 

c. Plaintiffs allege that Patriot and Phoenix are joint tortfeasors with respect to 

Plaintiffs’ claim of fraudulent conveyance. Joint tortfeasors are not indispensable parties

under federal law. (In re Related Asbestos Cases, 23 B.R. 523, 530 (N.D. Cal. 1982); 

Symantec Corp. v. Logical Plus, Inc., 2009 U.S. Dist. LEXIS 86340, at * 4 (N.D. Cal. 

2009).)

Therefore, the parties agree and stipulate that the action shall be severed as 

follows:

Plaintiffs’ claims for Intentional Interference of Contract and Fraudulent 

Conveyance against Patriot shall be severed from the action and shall proceed as a 

discrete, independent action. The severed action against Patriot shall be stayed pursuant 

to Bankruptcy Code § 362(a).

Plaintiffs’ claims for Breach of Contract against ISR, Alter Ego Liability against 

ISR and Hamm, and Fraudulent Conveyance against Phoenix and ISR’s cross-claims 

shall proceed and shall not be stayed by Patriot’s Bankruptcy Petition.

Dated: March 5, 2018

KATZOFF & RIGGS LLP

/s/ Robert R. Riggs

By: ______________________________

Robert R. Riggs

Attorneys for Plaintiffs and CrossDefendants KAREN RIGSBY, Trustee 

of the MARSH REVOCABLE TRUST 

OF 2003, and DONALD P. 

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KATZOFF & 

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1500 PARK AVENUE, SUITE 300

EMERYVILLE, CA 94608

(510)597-1990

_______________________________________________________________________

 

STIPULATION AND ORDER TO SEVER DEFENDANT PATRIOT NATIONAL, INC. 

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STEINMEYER

Dated: February 28, 2018

LAW OFFICES OF PETER DUNN 

LEMMON

/s/ Peter D. Lemmon

By: ______________________________

Peter Dunn Lemmon

Attorneys for Defendant and CrossComplainant ISR HOLDINGS, INC.

Dated: February 28, 2018

LAW OFFICE OF DEWEY V. 

HARPAINTER

/s/ Dewey V. Harpainter

By: ______________________________

Dewey V. Harpainter

Attorneys for Defendant KEVIN HAMM

By the Court:

Good cause appearing, IT IS SO ORDERED.

Dated: March 14, 2018

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