Carto Bankruptcy — Stipulation for Entry of Judgment and Order Thereon (August 1999)

SAMPSON & ASSOCIATES
San Diego, California 92101
Attorneys for Judgment Creditor/Plaintiff
LEGION FOR THE SURVIVAL OF FREEDOM, INC.

UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF CALIFORNIA
In re: WILLIS A. CARTO and ELISABETH CARTO Debtors LEGION FOR THE SURVIVAL OF FREEDOM, INC., a Texas Corporation, Plaintiff, v. WILLIS CARTO and ELISABETH CARTO Defendants.		CASE NO. : 98-08050 H7 Chapter 7 ADV. PROCEEDING NO: 98-90374-H7 STIPULATION FOR ENTRY OF JUDGMENT AND ORDER THEREON DATE: N/A TIME: N/A CTRM: 3 JUDGE: Honorable John J. Hargrove

JUDGMENT

IT IS HEREBY STIPULATED by and between Creditor/Plaintiff LEGION FOR THE SURVIVAL OF FREEDOM, INC. (hereinafter LSF) and Debtors/Defendants WILLIS and ELISABETH CARTO, LEWIS FURR and LAVONNE FURR, and LIBERTY LOBBY (hereinafter DEBTORS), and through their respective counsel, that judgment in the above-entitled cause in the form of the order submitted herewith be entered forthwith in favor of Creditor LSF and against Debtors CARTO in the total sum of $11,725,472.22, in favor of Creditor LSF and against Debtors FURR in the total sum of $12,143,341.41, and in favor of Creditor LSF and against Debtor LIBERTY LOBBY in the total sum of $4,198,639.04, which includes all applicable principal, interest, court costs and attorney fees, that this judgment is nondischargeable pursuant to 11 U.S.C. §523(a)(6) and post judgment interest shall accrue at 8% per annum.

FORBEARANCE FROM ENFORCEMENT

IT IS FURTHER STIPULATED that upon entry of this judgment Creditor LSF may secure the judgment against DEBTORS with an Abstract of Judgment and Secretary of State lien, as well as a statutory lien pursuant to B.R. 7069, F.R.C.P. 69 and C.C.P. §708.110(d), and that Creditor may conduct post-judgment discovery to verify Debtors asset disclosures up to one year from entry of this Order, but that enforcement of the judgment is stayed pending completion of payments as discussed below.

PAYMENT TERMS

IT IS FURTHER STIPULATED that DEBTORS shall make payments to Creditor LSF pursuant to the Forbearance and Settlement Agreement and Mutual General Release (Forbearance) attached hereto and incorporated herein by reference, and as follows:

All payments shall be endorsed to Sampson & Associates, Attorney Client Trust and delivered to Sampson & Associates, San Diego, California 92101;
An initial $200,000 in a lump sum payment immediately upon execution of this agreement;
An additional $5,000 per month starting October 1, 1999 and continuing until the outstanding balance of $1,200,000 plus 8% interest per annum is paid in full; and
An additional $100,000 (above the $1,200,000) on July 1 & January 1 of each year, starting July 1, 2000, until the full amount of the forbearance agreement is paid in full, i.e. $1,200,000, additional $100,000 increments & 8% stipulated interest.

DEFAULT ON PAYMENTS

IT IS FURTHER STIPULATED that if DEBTORS shall fail to make any of the payments or conditions described above, the judgment shall be immediately enforceable in the sum shown above plus interest, costs and fees, minus set offs, according to proof.

DISMISSAL OF ALL ACTIONS

IT IS FURTHER STIPULATED that DEBTORS will dismiss, with prejudice, all pending lawsuits against Creditor LSF, with the single exception of the pending appeal entitled Carto, et al. v. Legion for the Survival of Freedom, Appeal Case Number D027959, within 30 days from entry of this order.

WAIVERS

IT IS FURTHER STIPULATED that all parties hereto hereby waive any and all findings of fact, conclusions of law, the right to appeal, the right to move for a new trial and any and all notices of hearing.

DISMISSAL UPON COMPLETION

IT IS FURTHER STIPULATED that if DEBTORS make all of the payments and meet all of the conditions described above and otherwise performs the obligations under this agreement, the Bankruptcy court shall vacate this judgment upon joint ex parte application of counsel for both parties.

RESERVATION OF JURISDICTION

IT IS FURTHER STIPULATED that the Bankruptcy court hereby reserves jurisdiction to enforce the terms of this agreement and to further vacate the judgment in this court upon DEBTORS’ completion of the terms set forth herein.

IT IS SO STIPULATED.

LEGION FOR THE SURVIVAL OF FREEDOM, INC.
Dated:
By: Greg Raven, President

Dated:
Willis Carto

Dated:
Elisabeth Carto

APPROVED AS TO FORM.

SAMPSON & ASSOCIATES
Dated:
By: Bryan D. Sampson, Esq.
Attorneys for Creditor LEGION FOR THE SURVIVAL OF FREEDOM, INC.

J. BRIAN URTNOWSKI & ASSOCIATES
Dated:
By: J. Brian Urtnowski, Esq.
Attorney for Debtors WILLIS AND ELISABETH CARTO

IT IS SO ORDERED.

Dated:

JUDGE, UNITED STATES BANKRUPTCY COURT

NOTICE:

Signature by the attorney constitutes a certification under Federal Rule of Bankruptcy Procedure 9011 that the relief provided by the Order is the relief granted by the court.

Submitted by:__________________________

Bryan D. Sampson