Free Status Report - District Court of California - California

Case 5:07-cv-04909-JF

Document 33

Filed 06/24/2008

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James J. Ciapciak (pro hac vice)` Ciapciak & Associates, P.C. 99 Access Road Norwood, MA 02062 Telephone: (781) 255-7401 Facsimile: (781) 255-7402 E-mail: [email protected] David Rude (SBN 67367) CLARK & RUDE Ten Almaden Blvd., Suite 550 San Jose, CA 95113-2238 Telephone: (408) 971-1099 Facsimile: (408) 971-1133 E-mail: [email protected] Attorneys for Plaintiff METROPOLITAN LIFE INSURANCE COMPANY UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA (San Jose Division) METROPOLITAN LIFE INSURANCE Case No. C 07 4909 JF COMPANY, PLAINTIFF'S STATUS CONFERENCE Plaintiff, STATEMENT v. LUIS MEDRANO and LISA MEDRANO, INDIVIDUALLY and AS THE ADMINISTRATORS OF THE ESTATE OF VM, Defendants. AND RELATED CROSS-CLAIM Status Conference Date: June 27, 2008 Time: 10:30 a.m. Judge: Honorable Jeremy Fogel Trial Date: None

CASE SETTLED IN MEDIATION On March 24, 2008, this case was mediated at JAMS, San Jose by Judge David Garcia (ret.). At the conclusion of the Mediation, a complete settlement of all issues was reached and reduced to a signed settlement memorandum.
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PLAINTIFF'S STATUS CONFERENCE STATEMENT CASE NO. C 074909 JF
Status Conf Stmt 062408.doc

Case 5:07-cv-04909-JF

Document 33

Filed 06/24/2008

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The terms of the settlement before Judge Garcia at JAMS in March were that the Defendant Luis Medrano would pay MetLife the total amount of the settlement. The settlement agreement also provides that a down payment w be made by Luis Medrano ill from his 50% interest in a Washington Mutual bank account held in the name of both Defendants, and that the balance will be paid by a promissory note secured by a first deed of trust on residential property owned by the Defendants in Carmel, California, which note would also be secured by a second deed of trust on a condominium in San Diego owned by the Defendants. Following the mediation a formal "Stipulation for Settlement" and "Confidential Settlement Agreement and Release" incorporating the terms of the settlement were prepared by counsel for MetLife and submitted to counsel for Defendants Medrano for their approval. PROBLEMS IMPLEMENTING SETTLEMENT Although counsel for the Defendants have not voiced any objections to the proposed settlement and release agreements, a problem of implementation has arisen because, allegedly without the knowledge or consent of the Medranos, the bank invested their funds in corporate bonds that the bank claims cannot now be liquidated at the present time to fund the payment which is past due on the settlement from Mr. Medrano's 50% in the account. An escrow has also been opened at First American Title in Carmel to obtain the note and insured deed of trust securing the balance due on the settlement, but the Defendants cannot proceed with that escrow until resolving the lack of present funding, and the Defendants have yet to execute the settlement documents as Mr. Medrano's 50% interest in the Washington Mutual investment account cannot be liquidated to fund the down payment (apparently, Mrs. Medrano withdrew her half of the funds). Meanwhile, Mr. Brad Brereton, representing Mrs. Medrano, recently left for vacation for the last two weeks of June, which has decelerated the process of solving the liquidity problem on the Washington Mutual investment account.
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PLAINTIFF'S STATUS CONFERENCE STATEMENT CASE NO. C 074909 JF
Status Conf Stmt 062408.doc

Case 5:07-cv-04909-JF

Document 33

Filed 06/24/2008

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MetLife proposed the possibility of adding the amount due from the investment account to the note and insured deed of trust, with the understanding that the balance due on the note will be reduced as soon as the Washington Mutual account is eventually liquidated and the money owed by Mr. Medrano paid to MetLife. However, Defendants have yet to agree to this proposed solution. The possibility of an assignment of

Mr. Medrano's interest in the account also is being explored. REQUEST FOR CONTINUANCE Based on the above -described circumstances, the parties respectfully request that the Court continue this Status Conference for 21 days to allow the parties to resolve the only remaining obstacle to implementation of the settlement. Respectfully submitted DATED: June 24, 2008 CLARK & RUDE

By:

/s/ David Rude David Rude Attorneys for Plaintiff METROPOLITAN LIFE INSURANCE COMP ANY

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PLAINTIFF'S STATUS CONFERENCE STATEMENT CASE NO. C 074909 JF

Status Conf Stmt 062408.doc