Free Joint Case Management Statement - District Court of California - California

Case 3:08-cv-00782-JCS

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Filed 08/29/2008

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[Identification of All Parties and 1 All Counsel Appear on Signature Page] 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 vs. CARBONE PROPERTIES MANAGER, LLC, ET AL., Defendants. CHEVRON TCI, INC., Plaintiffs, UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Civil Action No. 3:08-CV-00782

UPDATED JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case Management Conference Date: September 5, 2008 Time: 1:30 p.m. Before: Hon. Joseph C. Spero

This Updated Joint Case Management Conference Statement is submitted jointly by Plaintiff

20 CHEVRON TCI, INC. ("CHEVRON") and Defendants CARBONE PROPERTIES MANAGER, 21 LLC ("CPM"), ROSS P. CARBONE ("ROSS CARBONE"), and R.P. CARBONE COMPANY 22 ("RPCC") (collectively, "CARBONE") pursuant to the Court's Standing Order Regarding the 23 "Contents of Joint Case Management Conference Statements" and the Stipulation and Order for 24 Continued Mediation Date that was entered in this case on July 15, 2008 ("Stipulation and Order"). 25 On August 19, 2008, and pursuant to this Court's May 9, 2008 order referring the case to the

26 ADR Unit and the July 15, 2008 Stipulation and Order, the parties participated in a Mediation 27 session. The Mediation session did not result in a resolution of this case. 28 //

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1. Facts The facts and the nature of the case have been outlined in the parties previous Joint Case

3 Management Statement and papers to the court. 4 5 CHEVRON states: On April 30, 2007, CHEVRON, CPM and the Company entered into the Agreement and

6 Instrument of Transfer (the "Agreement"). Pursuant to the Agreement, CPM agreed to pay 7 CHEVRON $2,367,710 plus compound interest at twelve percent until June 26, 2007 and, if not 8 paid by that date, fifteen percent thereafter (the "Obligation"). The Obligation also was evidenced 9 by a Promissory Note, with CPM as the payor and CHEVRON as the payee. RPC and ROSS 10 CARBONE guaranteed CPM's obligations under the Agreement and the Promissory Note, 11 including the Obligation. In exchange for those promises to pay, CHEVRON transferred its rights 12 and interest in the Company to CPM. 13 The Carbone Group has not challenged the validity of the Obligation and they have

14 expressed an interest in settling this matter. However, despite efforts at reaching a settlement, 15 CHEVRON has not received any assurances from the CARBONE GROUP that payment is 16 forthcoming. Further, the CARBONE GROUP has only recently informed CHEVRON that it is 17 experiencing financial difficulties -- a fact that was never mentioned during the parties' settlement 18 discussions. 19 The Court-ordered mediation that took place between the parties on August 19, 2008 failed

20 to produce a resolution to this dispute. 21 22 23 2. Motion Practice CHEVRON states: As the settlement negotiations and mediation have not been productive, CHEVRON will

24 move for summary judgment since the facts and legal issues are not in dispute. 25 26 27 28 // 3. Amendment of the Pleadings CHEVRON states: CHEVRON does not anticipate filing any amendments to the pleadings at this time.

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4. Discovery CHEVRON states: No discovery has been taken to date. As CHEVRON prepares to move for summary

4 judgment, CHEVRON is conducting informal discovery into the Defendants' net worth. 5 6 CARBONE states: CHEVRON has requested, and CARBONE has agreed, to conduct informal discovery

7 regarding the financial status of CARBONE in light of the issues discussed during the August 19, 8 2008 Mediation. Specifically, CHEVRON has requested certain financial information regarding 9 CARBONE and several of its related entities as such relates to CARBONE's ability to resolve the 10 issues in this case. ROSS CARBONE states that he is presently compiling documents and records 11 responsive to CHEVRON's request and expects to provide said documents and records directly to 12 CHEVRON officer Richard Sheehy on or before September 1, 2008. CARBONE has not requested 13 any discovery, formal or informal of CHEVRON to date and does not anticipate doing so at this 14 time. 15 16 17 18 19 5. Related Cases The parties are not aware of any related cases pending in any venue or jurisdiction. 6. Relief CHEVRON states: As of the August 19, 2008 mediation date, the total amount owed as principal and interest

20 on the Promissory Note (excluding late payment fees and costs) is $2,613,143, with interest 21 continuing to accrue at the rate of $1,023 per day through April 20, 2009, at which point the daily 22 rate will increase. In addition, CHEVRON has exercised its option to charge a late fee under the 23 Promissory Note of 5% of the overdue payment, which late fee would be $130,657 if all amounts 24 due were paid on August 19, 2008. Further, CHEVRON has accrued approximately $29,000 in 25 costs and attorneys' fees, such costs and fees continue to accrue as this matter remains unresolved 26 and will necessarily increase if CHEVRON is required to bring a motion for summary judgment. 27 CHEVRON seeks a recovery of the unsatisfied amount owed from CPM plus payment of attorneys' 28 fees and other costs incurred by CHEVRON in collection on the note, or in otherwise protecting its

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1 interests in regard thereto. 2 3 4 7. Settlement and ADR CHEVRON states: CHEVRON remains open to any reasonable proposal that will result in payment of the debt

5 and would consider a stipulated judgment in order to avoid the time and effort of a motion for 6 summary judgment. 7 8 CARBONE states: The parties remain engaged in settlement discussions in furtherance of a potential resolution

9 of the claims asserted in this case. 10 11 12 Dated: August 29, 2008 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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Respectfully submitted, __/s/ Elizabeth R. Burkhard_______________ MATTHEW VAFIDIS [SB# 103578] ANDREW T. CAULFIELD [SB# 238300] JOSHUA KRUMHOLZ (pro hac vice) ELIZABETH BURKHARD (pro hac vice) HOLLAND & KNIGHT LLP 50 California Street, 28th Floor San Francisco, California 94111 Telephone: (415) 743-6900 Facsimile: (415) 743-6910 Attorneys for Plaintiffs Dated: August 29, 2008 __/s/Marvin Richards______________________ MARVIN RICHARDS [SB# 199834] ROETZEL & ANDRESS, LPA 222 S. Main Street Akron, OH 44308 Telephone: (330) 376-2700 Facsimile: (330) 376-4577 JOHN S. GILMORE (SB# 32491) RANDOLPH CREGGER AND CHALFANT, LLP 1030 G Street Sacramento, CA 95814 Telephone: (916) 443-4443 Facsimile: (916) 443-2124 Attorneys for Defendants

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