Free Order on Motion to Substitute Party - District Court of California - California

Case 3:08-cv-03635-SC

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For the Northern District of California

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA ) ) ) ) ) Plaintiff, ) ) ) v. ) ) ) CAL STATE 9 CREDIT UNION, a California Corporation; and DOES 1 ) ) through 20, inclusive, ) ) Defendants. ) ) SADIE MARIE FORD, as personal representative of CLYDEL PERRY, deceased, No. C-08-3635 SC ORDER GRANTING MOTION TO SUBSTITUTE PARTY AND GRANTING MOTION TO STAY CASE

United States District Court

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Plaintiff Sadie Marie Ford brought this suit against the Cal State 9 Credit Union on November 29, 2007, in the Alameda County Superior Court, and served Defendant on December 3, 2007. Notice of Removal, Docket No. 1, Ex. A ("Compl."). See

Defendant Cal

State 9 Credit Union ("CS9") filed its Answer in the Superior Court on January 8, 2008. Id. Ex. C. On June 30, 2008, CS9 was

placed into involuntary liquidation and the National Credit Union Administration Board (the "Board") was appointed as the Liquidating Agent. Id. ¶ 4, Ex. D (Notice of Involuntary The Board then

Liquidation); see also 12 U.S.C. § 1787(a)(3).

removed the action to this Court pursuant to the Court's jurisdiction under 12 U.S.C. § 1789(a)(2). Id. The

Before the Court are two unopposed motions by the Board.

first is a motion to substitute the Board as the defendant in this case. See Docket No. 6. The second is a motion to stay the case The Court GRANTS both motions.

for 90 days.

See Docket No. 8.

Case 3:08-cv-03635-SC

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When the Board assumes the role of Liquidating Agent for a credit union, it shall succeed to "all rights, titles, powers, and privileges of the credit union, and of any member, accountholder, officer, or director of such credit union with respect to the credit union and the assets of the credit union." 1787(b)(2)(A)(i). 12 U.S.C. §

As liquidating agent, the Board may also See id.

conduct all business and operations of the credit union. § 1787(b)(2)(B)(i)-(iv).

In this role, the Board may "sue and be

sued, complain and defend, in any court of law or equity, State or Federal." 12 U.S.C. § 1789(a)(2). As the Board has assumed all

United States District Court

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of the relevant rights and responsibilities of CS9, and is statutorily empowered to litigate on CS9's behalf, the Court finds substitution of the Board as the defendant proper in this matter. As Liquidating Agent, the Board requests that the Court stay this action for 90 days pursuant to 12 U.S.C. § 1787(b)(12)(A)(2). Upon receipt of such a request, the Court is obligated to stay the action. See id. § 1787(b)(12)(B).

For the foregoing reasons, the Court GRANTS the motion to substitute the Board as the defendant in this matter and GRANTS the motion to stay. This action is hereby STAYED for 90 days,

effective as of the filing of this order.

IT IS SO ORDERED.

Dated: September 5, 2008

UNITED STATES DISTRICT JUDGE 2

Case 3:08-cv-03635-SC

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UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

SADIE MARIE FORD, Plaintiff, v. CAL STATE 9 CREDIT UNION et al, Defendant. /

Case Number: CV08-03635 SC CERTIFICATE OF SERVICE

I, the undersigned, hereby certify that I am an employee in the Office of the Clerk, U.S. District Court, Northern District of California. That on September 5, 2008, I SERVED a true and correct copy(ies) of the attached, by placing said copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by depositing said envelope in the U.S. Mail, or by placing said copy(ies) into an inter-office delivery receptacle located in the Clerk's office.

Christine A. Chorney Casalina & Disston 418 Third Street, Suite 101 Oakland, CA 94607 Dated: September 5, 2008 Richard W. Wieking, Clerk By: T. De Martini, Courtroom Deputy Clerk