Free Status Report - District Court of Federal Claims - federal

Case 1:03-cv-01418-GWM

Document 69

Filed 08/29/2007

Page 1 of 2

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 principal matter under discussion between the Government and the Liquidator involves the Liquidator's claims against the United States Small Business Administration ("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 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

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Case 1:03-cv-01418-GWM

Document 69

Filed 08/29/2007

Page 2 of 2

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. The Liquidator and the Government have tentatively scheduled a face to face meeting in Washington for the second week in October to attempt to finally resolve their disputes. It is anticipated that the meeting will include representatives of the Liquidator and the Government (specifically the SBA) and their respective legal counsel. Dated: August 29, 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
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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