Free Joint Status Report - District Court of Federal Claims - federal

Case 1:03-cv-01418-GWM

Document 70

Filed 09/19/2007

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS

L. TIM WAGNER, LIQUIDATOR OF AMWEST SURETY INSURANCE COMPANY, IN LIQUIDATION, Plaintiff, v. THE UNITED STATES OF AMERICA, Defendant.

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Case No. 03-1418C Judge Miller

JOINT STATUS REPORT Pursuant to this Court's Order of July 31, 2007, the Plaintiff, L. Tim Wagner, Liquidator of Amwest Surety Insurance Company in Liquidation ("Liquidator") and the Defendant, the United States of America ("Government"), hereby submit the following status report. The status of this matter has not substantively changed since the parties' Joint Status Report which was filed on August 29, 2007. The parties do report, however, that they have scheduled a meeting in Washington, D.C. on October 10 at 10:30 a.m. with the United States Small Business Administration ("SBA") for the purpose of discussing and hopefully resolving the SBA issue. The principal matter under discussion between the Government and the Liquidator involves the Liquidator's claims against the SBA. The Liquidator and the SBA have not resolved the effect, if any, of Amwest's insolvency on the SBA's obligations, if any, to reimburse the Liquidator for claims approved by, but as yet unpaid by the Liquidator. The SBA did not include the Liquidator's reserve for unpaid claims as part of its reimbursement obligations. The Liquidator has informed the Government that this amount is material to Amwest's insolvent

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Case 1:03-cv-01418-GWM

Document 70

Filed 09/19/2007

Page 2 of 2

estate. The subject claims will be included in the Liquidator's distributions to its claimants. The matter involves both legal and factual issues. The Liquidator has provided the claim information to the SBA. Counsel for both the U.S. Department of Justice and the Liquidator are reviewing the legal issues, which involve the interpretation of state and federal law and which law applies. Given the complexities of the SBA matter, the Liquidator and the Government are first focusing their efforts on its resolution, and will then turn their attention to the resolution of the preference action pending in this Court. Dated: September 19, 2007. Respectfully submitted,

BLACKWELL SANDERS, LLP

PETER D. KEISLER Assistant Attorney General J. CHRISTOPHER KOHN Director

/s/ Douglas J. Schmidt by /s/ Michael D. Fielding Douglas J. Schmidt Michael D. Fielding 4801 Main Street, Suite 1000 Kansas City, Missouri 64112 Ph. (816) 983-8000 Fx. (816) 983-8080 Attorneys for Plaintiff

/s/ Robert E. Krischman (by permission) ROBERT E. KRISCHMAN Deputy Director

/s/ E. Kathleen Shahan (by permission) E. Kathleen Shahan Commercial Litigation Branch Civil Division Department of Justice Attn: Classification Unit 1100 L Street, N.W. (8th Floor) Washington, D.C. 20530 Ph. (202) 307-0249 Fx. (202) 307-0494 Attorneys for Defendant

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