STIPULATION AND ORDER FOR DISMISSAL WITHOUT PREJUDICE AND TO AMEND THE COMPLAINT

MIRANDA M. DU, District Judge.

Pursuant to Fed. R. Civ. P. 41(a)(1)(ii), Local Rule 7-1(b), NRS 78.585 and NRS 86.505, plaintiff Zurich American Insurance Company ("Zurich"), by and through its counsel of record, and defendants Adaven Management, Inc., Lawrence D. Canarelli, as trustee of The Canarelli Family Trust Dated September 14, 1990, Lawrence D. Canarelli, as trustee of The Lawrence and Heidi Canarelli 1993 Irrevocable Trust, Lawrence D. Canarelli, as trustee of The Alysa Lawren Graves Canarelli Irrevocable Trust (incorrectly identified as "The Allysa Lauren Graves Canarelli Irrevocable Trust" in the caption), Lawrence D. Canarelli, as trustee of The Stacia Leigh Lemke Irrevocable Trust, Lawrence D. Canarelli, as trustee of The Jeffrey Lawrence Graves Canarelli Irrevocable Trust, Heidi Canarelli, as trustee of The Lawrence and Heidi Canarelli 1993 Irrevocable Trust, Heidi Canarelli, as trustee of The Alysa Lawren Graves Canarelli Irrevocable Trust (incorrectly identified as "The Allysa Lauren Graves Canarelli Irrevocable Trust" in the caption), Heidi Canarelli, as trustee of The Stacia Leigh Lemke Irrevocable Trust, Heidi Canarelli, as trustee of The Jeffrey Lawrence Graves Canarelli Irrevocable Trust, Edward C. Lubbers (identified as Ed Lubbers in the Amended Complaint), as trustee of The Scott Lyle Graves Canarelli Irrevocable Trust, Heidi Canarelli, individually, and Lawrence D. Canarelli, individually (collectively the "Answering Defendants"), by and through their counsel of record, hereby stipulate and agree:

1. To dismiss the following named defendants without prejudice, with each party to bear its own costs and attorneys' fees:

2. Lawrence D. Canarelli's Motion to Deem Service of Process Insufficient (Doc. 36) is now moot as a result of this Stipulation and Order.

3. The Amended Complaint (Doc. 23) identifies "Federal Land Management, LLC" as a defendant, and Zurich served "Federal Land Management Limited Liability Company" ("FLM") with process (Doc. 30). The Certificate of Dissolution and Nevada's Secretary of State website show FLM dissolved and ceased operations on December 30, 1998, and is likewise hereby dismissed without prejudice.

4. Zurich's Policy No. GLO 3503901-00 (the "Policy") identifies a "Federal Land Management, LLC" in its Named Insured Schedule. It has been represented to Zurich that the expectation was that Federal Lands Management LLC ("FLsM") was the named insured, not FLM. Therefore, Zurich and Answering Defendants stipulate to amend the Amended Complaint (Doc. 23) to add FLsM as a defendant, to remove the allegations pertaining to FLM and to add allegations regarding FLsM. Pursuant to Local Rule 15-1, attached is the proposed Second Amended Complaint.

ORDER

IT IS SO ORDERED.

SECOND AMENDED COMPLAINT

Zurich American Insurance Company ("Zurich") complains and alleges as follows:

NATURE OF THE ACTION

1. Defendants owe Plaintiff approximately $200,000, based on a breach of contract.

PARTIES, JURISDICTION AND VENUE

2. Plaintiff Zurich American Insurance Company is a New York corporation with a statutory home office in New York, New York and its principal place of business is in Schaumburg, Illinois. It is authorized to transact business in Nevada.

3. Upon information and belief, defendant American West Homes, Inc. ("American West") is a Nevada corporation, conducting business in the State of Nevada.

4. Upon information and belief, defendant Whitney Ranch, Inc. ("Whitney Ranch") is a Nevada corporation, conducting business in the State of Nevada.

5. Upon information and belief, defendant Federal Lands Management LLC ("FLM") is a Nevada limited liability company, conducting business in the State of Nevada.

6. Upon information and belief, the manager of FLM is Investment Manager, Inc. ("Investment Manager"). Upon information and belief, Investment Manager is a Nevada corporation.

7. Upon information and belief, defendant Cactus Sand & Gravel, Inc. ("CSG") is a Nevada corporation, conducting business in the State of Nevada.

8. Upon information and belief, defendant West Mesa, LLC ("West Mesa") is a Nevada limited liability company, conducting business in the State of Nevada.

9. Upon information and belief, the managing member of West Mesa is Collins Family Limited Liability Company No. 1 ("Collins Family LLC"). Upon information and belief, the manager of West Mesa is Canarelli Family Trust. Upon information and belief, Pauline Collins ("Collins") is the manager of the Collins Family LLC. Upon information and belief, the trustee of the Canarelli Family Trust is Lawrence Canarelli ("Canarelli"). Upon information and belief, both Collins and Canarelli are Nevada residents.

10. Upon information and belief, defendant Coronado Hills, LLC ("Coronado Hills") is a Nevada limited liability company, conducting business in the State of Nevada. Upon information and belief, Canarelli Family Trust and Collins Family LLC are the managers of Coronado Hills.

11. Upon information and belief, defendant Adaven Management, Inc. ("Adaven") is a Nevada corporation, conducting business in the State of Nevada.

12. Upon information and belief, defendant The Canarelli Family Trust dated September 14, 1990 ("Canarelli Family Trust") is a Nevada trust. Upon information and belief, Canarelli is the sole trustee of Canarelli Family Trust.

13. Upon information and belief, defendant The Lawrence and Heidi Canarelli 1993 Irrevocable Trust (the "Lawrence and Heidi Trust") is a Nevada trust. Upon information and belief, Canarelli and Heidi Canarelli ("Heidi") are the trustees of the Lawrence and Heidi Trust. Upon information and belief, Canarelli and Heidi are Nevada residents.

14. Upon information and belief, defendant The Stacia Leigh Lemke Irrevocable Trust ("Lemke Trust") is a Nevada trust. Upon information and belief, Canarelli and Heidi are the trustees of the Lemke Trust.

15. Upon information and belief, defendant The Jeffrey Lawrence Graves Canarelli Irrevocable Trust ("JLGC Trust") is a Nevada trust. Upon information and belief, Canarelli and Heidi are the trustees of the JLGC trust.

16. Upon information and belief, defendant The Scott Lyle Graves Canarelli Irrevocable Trust ("SLGC Trust") is a Nevada trust. Upon information and belief, Ed Lubbers is the trustee of the SLGC trust. Upon information and belief, Ed. Lubbers is a Nevada resident.

17. Upon information and belief, defendant The Allysa Lauren Graves Canarelli Irrevocable Trust ("ALGC Trust") is a Nevada trust. Upon information and belief, Canarelli and Heidi are the trustees of the ALGC trust.

18. Upon information and belief, defendant Lawrence D. Canarelli is a Nevada resident.

19. Upon information and belief, defendant Heidi Canarelli is a Nevada resident.

20. The defendants referenced in paragraphs 2 through 19 will be collectively referred to herein as "Defendants" or "Named Insureds."

21. The acts and events giving rise to Zurich's claims are based upon Defendants' conduct that occurred in Clark County, Nevada.

22. This Court has subject matter jurisdiction over this matter and personal jurisdiction over Defendants pursuant to 28 U.S.C. §§ 1332 and 1348 because there is complete diversity of citizenship and the amount in controversy exceeds $75,000.

23. Zurich is a citizen of New York and has a principal place of business in Illinois. None of the Defendants are New York or Illinois citizens. Therefore, there is complete diversity of citizenship.

24. The amount in controversy exceeds $75,000 because, as shown below, the value of the object of this litigation—recovery under the breached contract— exceeds $75,000.

25. This Court is the appropriate venue for this action pursuant to 28 U.S.C. § 1391.

GENERAL ALLEGATIONS

26. Zurich issued a Large Construction Policy to American West effective January 1, 2001 to January 1, 2002, Policy No. GLO 3503901-00 (the "Policy").

27. The Policy has a Named Insured Schedule which includes, among other entities, all of Defendants as a Named Insured.

28. The words "you" and "your" in the Policy refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under the Policy.

29. The Policy also provides that "Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies . . . [a]s if each Named Insured were the only Named Insured."

30. The Policy contains a Broad Form Named Insured Endorsement modifying the Named Insured to include:

31. The Policy also contains an Automatic Additional Insured Endorsement which amends an Insured to include as an Additional Insured a "person or organization with whom you have agreed, through written contract, agreement or permit, to provide insurance as is afforded under this Policy but only with respect to liability arising out of "your work" done for that insured by or for you."

32. The Omnibus Named Insured Endorsement amends the Named Insured to include "any newly formed entity with 50% or more common ownership of the Named Insured(s)" and "any homeowners association that is controlled or managed by the Named Insured prior to the homeowners association purchasing their own insurance."

33. The Self Insured Retention deductible is $50,000 per occurrence.

34. The Self Insured Retention "means the amount you or any Insured must pay for all amounts which you shall become legally obligated to pay as damages because of `bodily injury', `property damage' `advertising injury' or `personal injury' sustained by one or more persons or organizations, due to an `occurrence.'" (Emphasis added.)

35. The Policy provides:

36. Zurich has settled or defended four claims tendered to it under the Policy, each claim exceeded the $50,000 Self Insured Retention Deductible and Zurich paid all amounts, including the $50,000 amount owed as a result of the Self Insured Retention.

37. Specifically, Claim No. 926-0069492 related to Stacy Spring was paid in the amount of $72,881.81. Thus, a payment of $50,000 was due to Zurich on December 20, 2010.

38. Additionally, Claim No. 926-0073586 related to Gary & Bailey Medina was paid in the amount of $70,000. Thus, a payment of $50,000 was due to Zurich on June 2, 2011.

39. Also, Claim No. 926-0106117 related to Darryl and Barbara Backman was paid in the amount of $79,992. Thus, a payment of $50,000 was due to Zurich on February 5, 2012.

40. In addition, Claim No. 926-0101438 related to Classic Development was paid in the amount of $64,306.80. Thus, a payment of $50,000 was due to Zurich on February 5, 2012.

41. Zurich sent invoices to American West for each claim in which payment was made requesting that American West pay the $50,000 deductible.

42. American West did not respond or pay the $50,000 deductible on each claim.

43. Accordingly, on June 26, 2012, Zurich sent a Demand Letter to the Named Insureds requesting payment of the $200,000 due and owing.

44. To date, Zurich has not received payment from any of Defendants.

45. Zurich is entitled to recover its attorneys' fees, costs, and interest.

FIRST CLAIM FOR RELIEF (Breach of Contract)

46. Plaintiff repeats and realleges the allegations in paragraphs 1 through 45.

47. The Policy is a valid and enforceable contract between Zurich and Defendants.

48. Zurich has fully performed its obligations under the Policy.

49. Defendants have breached the terms of the Policy by, among other things, failing to pay Zurich, upon demand, the Self Insured Retention deductible of $50,000 for each claim paid on behalf of Defendants by Zurich.

50. Notwithstanding Zurich's demand, Defendants have refused to comply with the terms of the Policy.

51. As a result of Defendants' breaches, Zurich has been damaged and is entitled to a damage award in excess of $75,000.

52. As a result of Defendants' breaches under the Policy, Zurich has retained legal counsel to enforce its rights and remedies.

53. Zurich is entitled to recover its attorneys' fees and costs incurred herein.

PRAYER FOR RELIEF

WHEREFORE, Zurich prays for the following relief: