Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-01136/USCOURTS-cand-3_06-cv-01136-2/pdf.json

Parties Involved:
Alberto Gonzales
Defendant
Mary Lerch
Defendant
The Traders
Plaintiff
Trader Sports, Inc.
Plaintiff
Carl J. Truscott
Defendant

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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

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

TRADER SPORTS, INC. dba THE

TRADERS, 

Plaintiff,

v.

ALBERTO GONZALES, Attorney General,

United States Department of Justice, CARL

J. TRUSCOTT, Director, Bureau of

Alcohol, Tobacco, Firearms and Explosives,

United States Department of Justice, MARY

LERCH, Director of Industry Operations,

San Francisco Field Division, Bureau of

Alcohol, Tobacco, Firearms and Explosives,

United States Department of Justice,

Defendants.

 

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No. C 06-001136 VRW

STIPULATION AND PROPOSED

ORDER REGARDING DISMISSAL

WITH PREJUDICE

SUBJECT TO THE APPROVAL OF THE COURT, THE PARTIES HEREBY AGREE

TO THE FOLLOWING STIPULATION AND PROPOSED ORDER REGARDING

DISMISSAL WITH PREJUDICE:

WHEREAS, plaintiff TRADER SPORTS, INC. dba THE TRADERS (“Trader Sports”)

filed this action (“the Action”) on February 16, 2006, against Defendants ALBERTO

GONZALES, Attorney General, United States Department of Justice, CARL J. TRUSCOTT,

Director, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Department of

Justice, MARY LERCH, Director of Industry Operations, San Francisco Field Division, Bureau

Case 3:06-cv-01136-VRW Document 94 Filed 09/25/2006 Page 1 of 7
 Case 3:06-cv-01136-VRW Document 95 Filed 09/29/06 Page 1 of 7
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STIPULATION AND PROPOSED ORDER

C 06-1136 VRW 2

of Alcohol, Tobacco, Firearms and Explosives, United States Department of Justice (“Federal

Defendants”), alleging that Federal Defendants improperly issued a notice to plaintiff in

December 2005 revoking plaintiff’s federal firearms license, effective June 1, 2006;

WHEREAS, the Federal Defendants issued the Notice of Revocation following a two day

administrative hearing in November 2004, which was preceded by inspections of Trader Sports

in 2000, 2002, and 2003 that revealed violations of federal record-keeping regulations, which the

Federal Defendants documented in Reports of Violations provided to Trader Sports following

each inspection, that Trader Sports later contended did not demonstrate willful violations of

federal firearms regulations;

WHEREAS, on April 3, 2006, plaintiff filed a Motion for Preliminary Injunction and For

Stay Of License Revocation Pending De Novo Judicial Review, Or In The Alternative, For

Temporary Restraining Order And For Issuance Of Order To Show Cause Re Preliminary

Injunction, requesting that the Court order a stay of the effective date of its license revocation

(“plaintiff’s Motion”);

WHEREAS, on April 24, 2006, the Federal Defendants filed their answer to the

complaint, denying its material allegations and asserting affirmative defenses;

WHEREAS, after briefing by the Federal Defendants and plaintiff, the Court heard oral

argument on May 25, 2006 regarding plaintiff’s Motion and denied the Motion in a ruling from

the bench; 

WHEREAS, the parties each have pending motions for summary judgment before this

Court with oral argument scheduled on October 5, 2006;

NOW, THEREFORE, IT IS HEREBY STIPULATED as follows:

1. The parties to this litigation do hereby agree to settle and compromise the

above-entitled action under the terms and conditions set forth herein;

2. In consideration for the Federal Defendants’ waiver of any claim for costs

or expenses of any kind arising from the subject matter of this litigation,

including any claim for attorney fees or costs incurred by the Federal

Defendants, plaintiff agrees to an immediate voluntary dismissal of this

Case 3:06-cv-01136-VRW Document 94 Filed 09/25/2006 Page 2 of 7
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STIPULATION AND PROPOSED ORDER

C 06-1136 VRW 3

litigation with prejudice, including full settlement and satisfaction of any

and all claims, demands, rights, and causes of action of whatsoever kind

and nature that were or could have been asserted in this litigation, arising

from, and by reason of any and all known and unknown, foreseen and

unforeseen injury of any kind that were or could have been alleged in this

litigation, including but not limited to damage to plaintiff’s business

operations and the consequences thereof, resulting, and to result, from the

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

including but not limited to the revocation of plaintiff’s license, for which

plaintiff, 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, and employees;

3. This stipulation recites all terms of the parties’ agreement. The Federal

Defendants have not made any representation, for example, to plaintiff

regarding any future application for a federal firearms license;

 4. 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;

5. The only consideration provided by the Federal Defendants is the waiver

of any claim for costs or expenses associated with this litigation described

herein;

6. Plaintiff does not join but will not oppose the Federal Defendants’ request

that the Court issue an written, signed order confirming its ruling on the

plaintiff’s motion for preliminary injunction, to be published on Westlaw

or similar service, in light of the important public policy issues involved in

this litigation.

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

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STIPULATION AND PROPOSED ORDER

C 06-1136 VRW 4

subsequent action or other proceeding which arises out of the claims

released and discharged by the agreement;

8. Plaintiffs hereby release and forever discharge the United States of

America and any and all of its past and present officials, employees,

agents, attorneys, 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 plaintiff’s pleadings in this action;

9. 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 effective notwithstanding such

material difference;

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

settlement of all claims arising out of the allegations set forth in plaintiffs’

pleadings in this action. Plaintiff agrees 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

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STIPULATION AND PROPOSED ORDER

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in plaintiff’s complaint in this action;

11. The parties agree that the District Court for the Northern District of

California shall retain jurisdiction over this matter for the purposes of

resolving any dispute alleging a breach of this Stipulation and Agreement;

12. Each party acknowledges that they have been represented by and have

relied upon 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;

13. 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;

14. 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;

15. This stipulation is binding on the plaintiff and its officers, directors,

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STIPULATION AND PROPOSED ORDER

C 06-1136 VRW 6

employees, independent contractors, consultants, representatives, agents,

accountants, attorneys, heirs, executors, administrators or assigns;

16. Plaintiff waives any claim for costs or expenses of any kind arising from

the subject matter of this litigation, including any claim for attorney fees or

costs incurred by plaintiff in connection with the subject matter of this

litigation, including but not limited to the underlying administrative

hearing and inspections of plaintiff in 2000, 2002, and 2003;

17. Mr. Cucchiara, by signing below, promises, assures and warrants to the

Court that he has the authority to enter into this stipulation and thereby

bind plaintiff and its officers, directors, employees, independent

contractors, consultants, representatives, agents, accountants, and

attorneys, as well as its heirs, executors, administrators or assigns.

IT IS SO STIPULATED.

DATED: September 25, 2006 /Anthony Cucchiara/ 

Anthony Cucchiara, Owner

TRADER SPORTS, INC. dba THE TRADERS

Plaintiff 

DATED: September 25, 2006 SEGAL & KIRBY

/Malcolm Segal/ 

MALCOLM SEGAL

Attorney for Plaintiff

DATED: September 25, 2006 KEVIN V. RYAN

United States Attorney

/Jonathan U. Lee/ 

JONATHAN U. LEE

Assistant United States Attorney

Attorneys for Defendants

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STIPULATION AND PROPOSED ORDER

C 06-1136 VRW 7

PURSUANT TO STIPULATION, IT IS SO ORDERED:

DATED: __________________ _____________________________________

The Honorable VAUGHN R. WALKER

UNITED STATES DISTRICT JUDGE

Case 3:06-cv-01136-VRW Document 94 Filed 09/25/2006 Page 7 of 7

September 29, 2006

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