Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_06-cv-00392/USCOURTS-caed-1_06-cv-00392-6/pdf.json

Parties Involved:
Great American Insurance Company
Cross Defendant
M.J. Menefee Construction, Inc.
Cross Claimant
Deborah Menefee
Cross Claimant
Michael J. Menefee
Cross Claimant

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1.

ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

James D. Curran, Esq. SBN 126586

Jaime E. Godin, Esq. SBN 233187

Wolkin A Curran, LLP

555 Montgomery Street, Suite 1100

San Francisco, California 94111

Telephone: (415) 982-9390

Facsimile: (415) 982-4328

Attorneys for Plaintiff

GREAT AMERICAN INSURANCE COMPANY

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

FRESNO DIVISION

GREAT AMERICAN INSURANCE COMPANY,

 Plaintiff,

 v.

M.J. MENEFEE CONSTRUCTION, INC., a

California corporation; MICHAEL J. MENEFEE,

an individual; and DEBORAH MENEFEE, an

individual,

 Defendants.

Case No. 1:06-CV-00392-AWI-DLB

ORDER TO SHOW 

CAUSE RE CONTEMPT

Time: 1:30 p.m.

Date: September 5, 2006

Judge: Hon. Anthony W. Ishi

TO DEFENDANTS MICHAEL J. MENEFEE and DEBORAH MENEFEE 

(collectively "the Menefees") AND TO EACH OF THEIR OFFICERS, AGENTS, 

SERVANTS, EMPLOYEES, ATTORNEYS, OR ANY OTHER PERSONS IN ACTIVE

CONCERT OR PARTICIPATION WITH THEM:

WHEREAS:

Plaintiff GREAT AMERICAN INSURANCE COMPANY ("Great American") having

presented to this Court sufficient grounds to initiate an ex parte contempt proceeding.

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Case 1:06-cv-00392-LJO-DLB Document 73 Filed 08/21/06 Page 1 of 6
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2.

ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

IT IS HEREBY ORDERED THAT:

The Menefees appear at 1:30 p.m., on September 5, 2006, in the courtroom of the 

Honorable Anthony W. Ishii, located at 2500 Tulare Street, Fresno, California 93721, to show 

cause why they should not be held in contempt of this Court's order granting Great American's

preliminary injunction issued on June 27, 2006 ("the Order"), mandating that the Menefees:

(1) Specifically perform the Collateral provisions of the Indemnity Agreement,

requiring the Menefees to convey to Great American funds or property to serve as collateral in 

the total amount of $1,196,998.11; 

(2) Specifically perform the Books and Records provisions of the Indemnity 

Agreement, requiring the Menefees to convey to Great American for examination and 

review:

• A current balance sheet detailing the Menefees' personal and assets and 

liabilities;

• Each of the Menefees' 2002, 2003, 2004, and 2005 Federal Income Tax 

Returns;

• Any and all personal information found within the Menefees' computers, 

computer disks, and hard drives. This also includes computers, computer 

disks, and hard drives which are no longer in use; and

(3) Be restrained and enjoined from dissipating, spending, or otherwise disposing 

of or encumbering any of their personal assets or property.

IT IS HEREBY FURTHER ORDERED THAT:

The Menefees show cause why Great American should not be granted the following 

relief:

(1) That the Menefees be found in contempt for failure to comply with the Order 

stating in pertinent part:

(1) Defendants M.J. MENEFEE CONSTRUCTION, INC., 

MICHAEL J. MENEFEE and DEBORAH MENEFEE, and each of them, 

and each of their officers, agents, servants, employees and attorneys and 

those in active concert or participation with Defendants or such persons, or 

any of them, are restrained and enjoined from dissipating, spending, or

Case 1:06-cv-00392-LJO-DLB Document 73 Filed 08/21/06 Page 2 of 6
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3.

ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

otherwise disposing of or encumbering any of their personal or corporate 

assets or property.

(2) Defendants M.J. MENEFEE CONSTRUCTION, INC., 

MICHAEL J. MENEFEE and DEBORAH MENEFEE, and each of them, 

specifically perform the Collateral provisions of the Indemnity 

Agreement, requiring Defendants to convey to Great American funds or 

property to serve as collateral in the total amount of $1,196,998.11.

(3) Defendants M.J. MENEFEE CONSTRUCTION, INC., 

MICHAEL J. MENEFEE and DEBORAH MENEFEE, and each of them, 

specifically perform the Books and Records provisions of the Indemnity 

Agreement, requiring Defendants to convey to Great American for 

examination and review:

• Complete copies of the Contracts relating to projects bonded 

by Great American ("the Projects"), including their plans and 

specifications, along with any modifications including but not limited to 

all change orders (approved and pending);

• Copies of all pay requests relating to the Projects and any 

checks issued by the obligees for work performed under the Contracts;

• Copies of all pay requests, invoices, purchase orders and the 

like from subcontractors and suppliers on the Projects, as well as all 

payments made to subcontractors and suppliers; and a current accounting 

of any unpaid balances owed by M.J. Menefee Construction, Inc. 

("Menefee Construction") to them, including retainage;

• Copies of all correspondence between Defendants, the 

Obligees, and /or others relating to the performance of the Projects;

• Copies of all reports, meeting minutes, schedules, 

claim/daily logs, change order logs, requests for information and/or other 

information relevant to the projects;

• A comprehensive listing of all the uncompleted work 

remaining to be performed on the Projects as well as any assessments of 

deficiencies in the Projects' plans and specifications;

• A comprehensive listing of all the suppliers and 

subcontractors used for completing any of the Projects. The information 

should contain the company name, address, telephone number, fax 

number, contact person, scope of work, time for completion, value of the

subcontract/purchase order and any presently known areas of contention;

• A comprehensive listing of all unasserted and/or unapproved 

modifications, claims and/or change orders that Menefee Construction has 

asserted or may assert against the Obligees in relation to the projects, 

including Menefee Construction's claims against any related bonds;

• Documentation including, but not limited to, correspondence 

between Defendants and subcontractors and obligees, memorandums, 

written agreements, project reports, invoices, pay requests, offsets, or 

backcharges;

• Documentation including, but not limited to, correspondence 

between Defendants and subcontractors and obligees, memorandums, 

written agreements, project reports, invoices, and pay requests that 

support any and all defenses Great American may have to the claims

made on the Bonds.

A current balance sheet detailing Defendants' personal and 

corporate assets and liabilities;

• Each of Defendants' 2002, 2003, 2004, and 2005 Federal 

Income Tax Returns;

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4.

ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

• Menefee Construction Insurance information; 

• A current work-in-progress report detailing your current 

accounts receivable;

• Payroll reports detailing all Menefee employees working on 

the Projects; and

• Any and all corporate or personal information found within 

Defendants' computers, computer disks, hard drives. This also includes 

computers, computer disks and hard drives which are no longer in use by 

Defendants.

(4) Defendants M.J. MENEFEE CONSTRUCTION, INC., 

MICHAEL J. MENEFEE and DEBORAH MENEFEE, and each of them, 

to specifically perform the Trust Funds provisions of the Indemnity 

Agreement, requiring Defendants to deposit all funds received from 

payments on each of the foregoing projects to designated trust accounts set 

up by Great American at City National Bank, 150 California Street, San 

Francisco, California 94111.

(5) Great American is authorized to use the funds deposited in 

the trust accounts set up by Great American at City National Bank, 150 

California Street, San Francisco, California 94111 to pay valid claims

made against the Bonds. Great American will provide an accounting of all 

payments made from the trust accounts in satisfaction with the claims

made against the Bonds; and

(2) That this Court issue the following sanctions against the Menefees:

• That the Menefees be required to immediately produce to Great American all

personal financial records as required under the Order, including, but not 

limited to: a current and detailed balance sheet detailing the Menefees' 

personal assets and liabilities; bank account information (both checking and 

savings accounts); consumer credit account information; personal and family 

trust information; the Menefees' 2002, 2003, 2004 and 2005 Federal Income 

Tax Returns; and any and all personal information found within the 

Menefees' computers, computer disks, and hard drives (this also includes 

computers, computer disks, and hard drives which are no longer in use);

• That the Menefees also be required to immediately produce to Great 

American any and all information pertaining to or illustrating the Menefees' 

relationship with L G R including, but not limited to: the Menefees' contact 

person at L G R, any current or past relationship between the Menefees and 

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5.

ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

L G R, any current or past relationship between the Menefees and L G R's 

agent for service of process, Michael Tobiason, the names of any known 

officers or employees of L G R, and the names of any known shareholders of 

L G R; and

• That the Menefees be required to immediately produce to Great American 

any and all information pertaining or relating to the transfer of real property 

from Michael Menefee to L G R Corporation, including, but not limited to, 

the following parcels of real property: 

(1) 9768 South Leonard Avenue, Selma, California 93662, 

Assessor's Parcel Number 348-074-07; 

(2) 9754 and/or 9714 South Leonard Avenue, Selma, California 

93662, Assessor's Parcel Number 348-074-06; and

(3) 2 acres vacant residential land, Assessor's Parcel Number 

348-250-01;

• That the information pertaining or relating to the transfer of real property 

from Michael Menefee from L G R should include, but is not limited to: all 

documents, information, correspondence, memorandums, notes, and e-mail 

messages relating to the Menefees' real property in any way, including, 

without limitation, copies of all escrow documents, closing statements, deeds, 

mortgages, notes, deeds of trust, releases and/or reconveyances, including 

documentation evidencing the source(s) of any funds involved in the release

and/or reconveyance, good faith estimates, mortgage applications, including 

any supporting documentation provided to lender(s) or prospective lender(s), 

affidavits, title insurance reports and/or policies, purchase contracts, 

including all offer(s) and all counteroffer(s), all bank records and other

records and information regarding the source of the funds involved in the 

purchase of this property, all federal, state or local tax returns, including all 

supporting schedules, documentation regarding any improvements and/or 

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ORDER TO SHOW CAUSE RE CONTEMPT CASE NO. 1:06-CV-00392-AWI-DLB

alterations which have been made to the properties, the contact information 

of any brokers or agents involved in the real property transactions, any 

advertisements relating to the real property transactions, and any and all 

information concerning the properties found within the Menefees' computers, 

computer disks, and hard drives (this also includes computers, computer 

disks, and hard drives which are no longer in use);

• That all of the above-requested information be produced to Great American 

by 9:00 a.m., on September 8, 2006, at the Law Offices of Wolkin Curran, LLP, 

located at 555 Montgomery Street, Suite 1100, San Francisco, California

94111; and

• If the Menefees fail to produce all of the above-requested information to 

Great American by September 8, 2006, that this Court authorizes a United 

States Federal Marshall to collect all of the above information from 

the Menefees' residence, located at 9754 South Leonard, Selma, California, 

93662, and from the Menefees' place of business, located at 9768 South 

Leonard, Selma, California, 93662.

IT IS FURTHER ORDERED THAT:

This Order to Show Cause shall be served on the Menefees via mail, facsimile and

electronically to ensure formal notification of the contempt charge and the time and place of 

the hearing no later than August 23, 2006. Proof of such service shall be filed with the Court

that same day.

Any opposition papers to the Order to Show Cause shall be filed and served on Great

American via mail, facsimile and electronically no later than August 28, 2006. Any reply 

papers to the opposition shall be filed and served on the Menefees via mail, facsimile and

electronically no later than August 30, 2006.

IT IS SO ORDERED.

Dated: August 18, 2006 /s/ Anthony W. Ishii 

0m8i78 UNITED STATES DISTRICT JUDGE

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