Free Stipulation - District Court of Colorado - Colorado

Case 1:01-cv-01708-LTB-MJW

Document 310

Filed 03/21/2007

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO
Civil Action No. 01-cv-1708 LTB-MJW DAVID A. SORBO, Plaintiff, v. UNITED PARCEL SERVICE, Defendant.

STIPULATION REGARDING PAYMENT OF COSTS
Plaintiff David Sorbo and Defendant United Parcel Service ("UPS") submit this Stipulation Regarding the Payment of Costs by Mr. Sorbo, to be dated nunc pro tunc to March 19, 2007. BACKGROUND 1. Pursuant to the Court's Order of May 18, 2006 and Judgment of May 22, 2006 ("Judgment"), Mr. Sorbo owes UPS $12,513.17 in costs (the "Debt"), plus post-judgment interest of 4.98% from the date of entry of Judgment (with interest, defined as the "Total Debt"). 2. On January 31, 2007, UPS served a Writ of Garnishment on 1st Bank of Wheat Ridge ("1st Bank") for $12,995.11 (the amount of the "Total Debt" on that date). On February 1, 2007, 1st Bank notified the Clerk of the Court that it was holding a cashier's check for $12,995.11 pending notification of the Court. 3. On February 15, 2007, Mr. Sorbo filed a Claim of Exemption to the Writ of Garnishment and the Court set March 19 as the date for the hearing on Mr. Sorbo's Claim of Exemption. 4. At the hearing on March 19, the parties explained that Mr. Sorbo has stated that he owns free and clear shares of stock in UPS exceeding the value of the Total Debt ("Sorbo UPS Stock"). In reliance on that representation, the parties entered into the following Stipulation, which the Court ordered be submitted in writing by March 23, 2007. STIPULATION 1. Mr. Sorbo shall pay UPS $2000.00 in certified funds, by 5 PM on Wednesday, March 21, 2007, by delivering the check to undersigned counsel for UPS.

Case 1:01-cv-01708-LTB-MJW

Document 310

Filed 03/21/2007

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2. By April 15, 2007, Mr. Sorbo shall execute a promissory note ("Note") for the balance of the Total Debt due as of March 21, 2007 with the following terms: monthly payments of $200.00 (two hundred dollars) shall be paid on the 1st of each month ("Monthly Payment") and shall continue until the Total Debt is paid in full; Monthly Payments shall begin on May 1, 2007, and interest shall accrue at the legal rate of 4.98% from the date of entry of the Judgment. 3. By April 15, 2007, Mr. Sorbo shall authorize 1st Bank to make automatic Monthly Payments starting on May 1, 2007 and continuing with subsequent Monthly Payments until the Total Debt is paid in full. Mr. Sorbo shall notify UPS of any change in financial institutions and make appropriate arrangements for automatic payment of the Monthly Payments if he changes financial institutions. 4. By April 15, 2007, Mr. Sorbo shall execute a Security and Pledge Agreement ("Pledge") to UPS, that provides a sufficient number of shares of his UPS stock to secure the Total Debt as of that date and for the duration of the Note. Mr. Sorbo may designate which shares of his UPS stock shall be subject to the Pledge, so long as a sufficient number of shares are subject to the Pledge to secure the Total Debt during the term of the Note. UPS shall deliver a UCC-1 Financing Statement to the Colorado Secretary of State for filing. 5. Simultaneously with the execution of the Pledge, Mr. Sorbo shall deliver to UPS verification evidencing his ownership of the UPS stock pledged under the Pledge, and a stock power executed in blank by Mr. Sorbo with respect to the pledged shares. Mr. Sorbo agrees to execute any other document necessary to give UPS possession of and authority to transfer the pledged shares according to the terms of the Pledge and this Stipulation. 6. Should Mr. Sorbo or 1st Bank fail to pay UPS $200 on the first of a month, Mr. Sorbo shall have 15 calendar days in which to cure the default. If Mr. Sorbo fails to cure within 15 calendar days, UPS shall have the right to accelerate the balance due, and to transfer sufficient pledged UPS shares to UPS to pay the Note in full, including interest, and any collection-related attorneys fees, costs, or fees. 7. When the Note is paid in full, UPS shall release any remaining interest it has on Mr. Sorbo's UPS Stock. 8. By April 15, 2007, UPS shall issue Mr. Sorbo a letter stating that the Writ of Garnishment was not filed due to any default or delinquency by him on any agreed-upon payment of the costs due in this case. 9. Upon entry of this Stipulation, the Court shall release the Writ of Garnishment and will notify 1st Bank to release the funds back to Mr. Sorbo that it has held pending determination of the Writ of Garnishment.

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Case 1:01-cv-01708-LTB-MJW

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Respectfully submitted on March 21, 2007.

/s/ David A. Sorbo David A. Sorbo 6700 W. 11TH AVENUE, #112 LAKEWOOD, CO 80214 303-903-2864 PLAINTIFF

/s/ Judith A. Biggs Judith A. Biggs, Esq. HOLLAND & HART LLP 1800 Broadway, Suite 300 Boulder, CO 80302 303-473-2700 Vivian Barrios HOLLAND & HART LLP 555 17th Street, Suite 3200 Denver, CO 80202 303-295-8000 ATTORNEYS FOR DEFENDANT UNITED PARCEL SERVICE

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Case 1:01-cv-01708-LTB-MJW

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APPROVED BY THE COURT, NUNC PRO TUNC TO MARCH 19, 2007:

Magistrate Judge Michael J. Watanabe

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