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Enron Mail |
I wanted to give you an update as to the status of the NSM Cases:
1) Farallon: There is a signed settlement agreement in place. (I have th= e plaintiffs' signature pages and am gathering the other defendants' and will forward you a fully-executed copy when I've got it.) However, the case has not been dismissed yet because of two small issues, neither of which involv= es Enron/ECT Securities directly. First, plaintiffs had wanted two signatures= from each defendant on the Settlement Agreement. (The California corporations code provides that a corporation cannot claim lack of authority by signers of a document if both the president or a vice president and the secretary, CFO or treasurer sign.= ) I've convinced them to accept one signature from ECT Securities because i= t is a limited partnership, so the code provision does not apply. However, the plaintiffs are insisting that Natwest, several of whose entities are corporations, provide two signatures instead of only one. I suspect the is= sue will be worked out this week - there is a hearing scheduled for Friday (7/2= 0) at which the case is expected to be dismissed. Second, several of the defendants (but not ECT Securities) have cross-claim= s against John Schultes that were not released in the settlement with plaintiffs. In negotiating to settle those claims, Schultes indicated that= he wanted to be released from liability by all defendants, including ECT Securities. However, we have made clear to the other parties that ECT Securities (and its affiliates) will not release any claims it may have against Schultes (e.g., for indemnification and/or contribution with respec= t to our settlement amount and attorneys fees) without being released from al= l liability to Schultes relating to NSM - including the action he filed in Oh= io state court, in which he sued Enron. The other defendants may settle with Schultes and simply leave ECT out of it, in which case the entire Farallon case could be dismissed, leaving Enron/ECT to deal with Schultes on our own= . (ECT has the right to bring any indemnification or contribution claims in= a separate action, so dismissal of the case would not affect its rights.) I'= ll keep you updated on this - we should know more by the hearing on Friday morning. 2) Legg Mason. We have a fully-executed settlement agreement. (I'll send you a copy later today.) Plaintiffs expect to dismiss the case later this week - perhaps at the hearing on Friday in Farallon. I'll keep you updated= . 3) Agreement among defendants. All defendants have signed the agreement a= nd releases. I will have all signature pages today and send you a copy. If you have any questions, please feel free to call me at (310) 551-9180 or return this e-mail. Thanks. - Jonathan - = = = = = = = = = = = = = = = = = = = = = ................................................ ALSCHULER GROSSMAN STEIN & KAHAN LLP ATTORNEYS AT LAW www.agsk.com 2049 Century Park East Thirty-Ninth Floor Los Angeles, CA 90067-3213 Tel 310-277-1226 Fax 310-552-6077 This transmission is intended only for the use of the addressee and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately via e-mail at postmaster@agsk.com or by telephone at 310-277-1226. Thank you. ...............................................
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