LAW OFFICES OF STEVE M. KALEBIC

A Professional Corporation

Counselors at Law

Telephone (zor) 853-r5oo

Telecopier (zor) 646-13or

smk@kmlawgroup.com

October 22,2012

Via Electronic Filins

The Honorable Susan D. Wigenton, U.S.D.J.

United States Courthouse

50 Walnut Street. Room 4015

Newark. New Jersev 07101

safeco rnsurance company of America v. TAK construction, rnc., et. als.

Docket No.: CV-l1-2522 (SDW)

Dear Judge Wigenton:

Our firm represents Defendants in the above-referenced matter. I respectfully submit this

letter in conjunction with Plaintiff s recent filing of a Motion for the Entry of Default Judgment

against Defendants.

The within claim is brought by Plaintiff Safeco, pursuant to a written Indemnity

Agreement with Defendants, to recover losses incumed in connection with a surety bond issued

by Safeco on behalf of Defendant TAK Construction, Inc. as principal, in favor of the City of

Perth Amboy, as obligee. The losses suffered by Plaintiff Safeco arise out of a certain bond claim

made by the City of Perth Amboy in conjunction with the completion of a municipal

construction project.

The respective parties in the within matter are also joint claimants in a pending action in

the Superior Couft of New Jersey (Middlesex County) brought against, inter alia, the City of

Pefih Amboy based on an improper termination by the City of Perth Amboy of a construction

contract with Defendant TAK Construction and corresponding improper demand upon the

Safeco surety. The anticipated recovery in this pending New Jersey Superior Court matter will

have a substantial impact upon the quantum of damages to be claimed by Plaintiff Safeco in this

Federal Court matter before Your Honor. The respective parties in the within matter have been

working together in the corresponding New Jersey Superior Court action case in order to

maximize the anticipated recovery against the Defendants therein. The State Court action is

currently scheduled for trial in February ,2013.

In light of these factual circumstances, the parties in the within matter have recently met

and agreed that the most prudent manner of proceeding would be to either dismiss and/or hold

16z Main Street

Hackensack, New Jersey o76or

RE

Case 2:11-cv-02522-SDW-MCA Document 20 Filed 10/22/12 Page 1 of 2 PageID: 161
The Honorable Susan D. Wigenton, U.S.D.J,

October 22,2012

Pase2

the within matter in abeyance pending the outcome of their joint efforts in the underlying State

Court proceeding. Accordingly, I am in the process of circulating a proposed

Stipulation/Consent Order which would afford Defendants an opportunity to vacate the prior

Entry of Default and submit an Answer in this case. I anticipate that the parties will be in a

position to submit said Stipulation/Consent Order to Your Honor within the next seven (7) days.

In conjunction with such intended procedure, I would respectfully ask Your Honor to

consider scheduling a brief telephone conference with counsel so that we may explain our

intentions in greater detail and effectuate same with Your Honor's guidance.

With the consent of Plaintiff s counsel, I would ask that Your Honor kindly defer any

action on the pending Motion for Entry of Default Judgment for a period of seven (7) days so

that the parties can submit the above-referenced Stipulation/Consent Order.

Your Honor's kind consideration of the

appreciated. Thank you.

S:V(AIEBIC\TAK Constructioil\Taklntcrotioml-Saf@Uudgc Wigeilotr lr docx

request set forth herein is most greatly

Very truly yours,

Steve M, Kalebic

SMK/ml

cc: Lawrence Novak, Esq.- Via Email [lnovak@tiggr.com]

Case 2:11-cv-02522-SDW-MCA Document 20 Filed 10/22/12 Page 2 of 2 PageID: 162