Case 3:07-cv-04496-SI Document 82 Filed 07/21/2008 Page 1 of 4
1 David M. Arbogast (SBN 167571)
darbogast@law111.com
2 Jeffrey K. Berns, Esq. (SBN 131351)
jberns@jeffbernslaw.com
3 ARBOGAST & BERNS LLP
19510 Ventura Boulevard, Suite 200
4 Tarzana, California 91356
Phone: (818) 961-2000; Fax: (310) 861-1775
5 Attorneys for Plaintiff
6 Paul S. Rosenlund (SBN 87660)
Irene C. Freidel (Admitted Pro Hac Vice) PSRosenlund@duanemorris.com
7 Irene.Freidel@klgates.com Terrance J. Evans (SBN 227671)
KIRKPATRICK & LOCKHART PRESTON tjevans@duanemorris.com
8 GATES ELLIS LLP DUANE MORRIS LLP
One Lincoln Street One Market, Spear Tower, Suite 2000
9 Boston, MA 02111 San Francisco, CA 94105-1104
Phone: (617) 261-3100; Fax: (617) 261-3175 Phone: (415) 957-3000; Fax: (415) 957-3001
10 Attorneys for Defendants,
PAUL FINANCIAL, LLC; and HSBC BANK Attorneys for Defendants,
11 USA, NATIONAL ASSOCIATION LUMINENT MORTGAGE CAPITAL, INC. and
LUMINENT MORTGAGE TRUST 2006-2
12
13
UNITED STATES DISTRICT COURT
14
NORTHERN DISTRICT OF CALIFORNIA
15
16 GREGORY M. JORDAN, individually and on ) CASE NO. C-07-04496-SI
behalf of all others similarly situated, )
17 ) CLASS ACTION
Plaintiff, )
18 ) [Assigned to the Hon. Susan Illston]
)
19 v. )
) JOINT CASE MANAGEMENT
20 ) CONFERENCE STATEMENT
PAUL FINANCIAL, LLC, LUMINENT )
21 MORTGAGE CAPITAL, INC., LUMINENT )
MORTGAGE TRUST 2006-2, HSBC ) Date: July 25, 2008
22 NATIONAL ASSOCIATION, and DOES 1 ) Time: 2:30 p.m.
through 10 inclusive, )
23 )
Defendants. )
24 )
)
25 ) Complaint Filed: August 29, 2007
) Trial Date: Not set yet.
26 )
27
28
JOINT STATUS CONFERENCE STATEMENT - C-07-04496-SI
Case 3:07-cv-04496-SI Document 82 Filed 07/21/2008 Page 2 of 4
1 Plaintiff, GREGORY M. JORDAN (“Plaintiff”) and Defendants, PAUL FINANCIAL, LLC,
2 HSBC BANK USA, NATIONAL ASSOCIATION, LUMINENT MORTGAGE CAPITAL, INC. and
3 LUMINENT MORTGAGE TRUST 2006-2 (“Defendants”) submit this Joint Case Management
4 Conference Statement.
5 I. STATUS OF THE PLEADINGS
6 On May 14, 2008, Plaintiff filed his Second Amended Complaint adding HSBC BANK USA,
7 NATIONAL ASSOCIATION, LUMINENT MORTGAGE CAPITAL, INC. and LUMINENT
8 MORTGAGE TRUST 2006-2 as additional defendants.
9 On June 30, 2008 Defendant PAUL FINANCIAL LLC filed its answer to Plaintiff’s Second
10 Amended Complaint.
11 On July 9, 2008, Defendant HSBC BANK USA, NATIONAL ASSOCIATION filed its answer
12 to Plaintiff’s Second Amended Complaint.
13 On July 9, 2008, Defendants LUMINENT MORTGAGE CAPITAL, INC. and LUMINENT
14 MORTGAGE TRUST 2006-2 filed their answer to Plaintiff’s Second Amended Complaint.
15
16 II. STATUS OF DISCOVERY
17 On February 25, 2008, Plaintiff served his First Set of Interrogatories and Request for Production
18 of Documents on Defendant PAUL FINANCIAL, LLC. In May, 2008, the parties filed letter briefs
19 regarding several outstanding discovery disputes arising from Plaintiff’s first set of discovery requests.
20 The Court resolved those disputes by Order Re Discovery on June 2, 2008.
21 In response to Plaintiff’s discovery requests, Defendant PAUL FINANCIAL, LLC provided to
22 Plaintiff all of the documents that PAUL FINANCIAL, LLC has agreed to produce consistent with the
23 Court’s June 2 Order, except for a small number of additional documents that PAUL FINANCIAL, LLC
24 will produce to plaintiff during the week of July 21, 2008. The documents produced by PAUL
25 FINANCIAL, LLC include all of the varying form notes, riders, and program disclosures that PAUL
26 FINANCIAL, LLC used for pay option loans during the putative class period, as well as five sample
27 loan files.
28 ///
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JOINT STATUS CONFERENCE STATEMENT - C-07-04496-SI
Case 3:07-cv-04496-SI Document 82 Filed 07/21/2008 Page 3 of 4
1 On May 22, 2008, Plaintiff served a Second Set of Interrogatories and Requests for Production
2 of Documents on PAUL FINANCIAL, LLC. Plaintiff and PAUL FINANCIAL, LLC may have
3 additional disagreements regarding PAUL FINANCIAL, LLC’s responses to Plaintiff’s Second Set of
4 Document Requests. However, Plaintiff is in the process of meeting and conferring with Paul Financial
5 concerning the adequacy of those responses.
6 Plaintiff is in the process of propounded discovery upon Defendants HSBC BANK USA,
7 NATIONAL ASSOCIATION, LUMINENT MORTGAGE CAPITAL, INC. and LUMINENT
8 MORTGAGE TRUST 2006-2 related to the securitization of Plaintiff GREGORY M. JORDAN loan
9 and the loans of other putative class members.
10 Plaintiff has also responded and objected to PAUL FINANCIAL, LLC’s Document Requests
11 and Interrogatories served on Plaintiff. The parties will also shortly be meeting and conferring
12 regarding the adequacy of Plaintiff’s responses.
13
14 III. SETTLEMENT DISCUSSIONS/ADR
15 Plaintiff and Defendant PAUL FINANCIAL LLC engaged in initial settlement discussions, but
16 they were not fruitful. Plaintiff and Defendant PAUL FINANCIAL LLC also held a mediation
17 telephone call with Michael Dickstein. While Plaintiff is amenable to mediation, it is Plaintiff's position
18 that all subsequent purchasers and assignees, or at least, a substantial percentage of them, will need to be
19 named in the suit and be present at any such mediation. Plaintiff therefore does not believe a mediation
20 or settlement conference prior to class certification would be productive. In particular, while the
21 currently named Defendants may be able to discuss resolution of Plaintiff’s and the class members
22 whose loans were sold to, placed in and managed by the currently named Defendants, settlement
23 discussions concerning the putative class members loans who were sold to, securitized and managed by
24 other entities not yet named in this lawsuit will have to await the Court’s determination on Class
25 certification.
26 Defendants, PAUL FINANCIAL, LLC, HSBC BANK USA, NATIONAL ASSOCIATION,
27 LUMINENT MORTGAGE CAPITAL, INC. and LUMINENT MORTGAGE TRUST 2006-2, are
28 willing to mediate plaintiff’s individual claims, but to the extent that plaintiff is unwilling to enter into
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JOINT STATUS CONFERENCE STATEMENT - C-07-04496-SI
Case 3:07-cv-04496-SI Document 82 Filed 07/21/2008 Page 4 of 4
1 an individual settlement, defendants do not believe that a mediation prior to the Court’s ruling on the
2 class certification question would be will be fruitful.
3 DATED: July 21, 2008 ARBOGAST & BERNS LLP
4
5 By: David M. Arbogast
David M. Arbogast
6 19510 Ventura Boulevard, Suite 200
Tarzana, California 91356
7 Phone: (818) 961-2000; Fax: (310) 861-1775
8 KIESEL BOUCHER LARSON LLP
Paul R. Kiesel, Esq. (SBN 119854)
9 kiesel@kbla.com
Patrick DeBlase, Esq. (SBN 167138)
10 deblase@kbla.com
Michael C. Eyerly, Esq. (SBN 178693)
11 eyerly@kbla.com
8648 Wilshire Boulevard
12 Beverly Hills, California 90211
Phone: (310) 854-4444; Fax: (310) 854-0812
13 SEEGER WEISS LLP
14 Jonathan Shub (SBN 237708)
jshub@seegerweiss.com
15 1515 Market Street, Suite 1380
Philadelphia, PA 19107
16 Phone: (215) 564-2300; Fax (215) 851-8029
17 Attorney for Plaintiff GREGORY M.
JORDAN and all others Similarly Situated
18
19 DATED: July 21, 2008 KIRKPATRIC & LOCKHART PRESTON
GATES ELLIS LLP
20 By: Irene C. Freidel
21 Irene C. Freidel (Admitted Pro Hac Vice)
22 Attorneys for Defendants
PAUL FINANCIAL LLC and HSBC BANK of
23 USA, NATIONAL ASSOCIATION
24 DATED: July 21, 2008 DUANE MORRIS LLP
25 By: /s/ Paul S. Rosenlund
Paul S. Rosenlund
26 Attorneys for Defendants
27 LUMINENT MORTGAGE CAPITAL, INC.
and LUMINENT MORTGAGE TRUST
28 2006-2
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JOINT STATUS CONFERENCE STATEMENT - C-07-04496-SI