Preview
1 HANSON BRIDGETT LLP
JOSEPH F. MOORE, SBN 191281
2 jmoore@hansonbridgett.com
LAWRENCE M. CIRELLI, SBN 114710
3 lcirelli@hansonbridgett.com
ANDRÉ K. CAMPBELL, SBN 188585
4 acampbell@hansonbridgett.com
STUART L. EISLER, SBN 256361
5 seisler@hansonbridgett.com
425 Market Street, 26th Floor 1/25/2021
6 San Francisco, California 94105
Telephone: (415) 777-3200
7 Facsimile: (415) 541-9366
8 Attorneys for Defendant and Cross-Complainant
PENINSULA CORRIDOR JOINT POWERS
9 BOARD
10
SUPERIOR COURT OF CALIFORNIA
11
COUNTY OF SAN MATEO
12
PARSONS TRANSPORTATION GROUP, an Case No. 17CIV00786 (Lead)
13 Illinois corporation,
Assigned for All Purposes to Hon. V.
14 Plaintiff, Raymond Swope, Dept. 23
15 v.
Consolidated with Case Nos. 17CIV00888,
16 PENINSULA CORRIDOR JOINT POWERS 17CIV05365 & 18CIV05912
BOARD, a joint powers authority, and DOES
17 1 through 25, inclusive,
18 PENINSULA CORRIDOR JOINT
Defendants. POWERS BOARD'S CASE
19 MANAGEMENT CONFERENCE
PENINSULA CORRIDOR JOINT POWERS STATEMENT
20 BOARD, a joint powers authority,
Judge: Hon. V. Raymond Swope
Cross-Complainant, Date: February 1, 2021
21 Time: 9:00 a.m.
v. Dept.: 23
22
PARSONS TRANSPORTATION GROUP, an Action Filed: February 22, 2017
23
Illinois corporation; ZURICH AMERICAN Trial Date: May 3, 2021
24 INSURANCE COMPANY, a New York
corporation; FEDERAL INSURANCE
25 COMPANY, an Indiana corporation;
FIDELITY AND DEPOSIT COMPANY OF
26 MARYLAND, a Maryland corporation, and
DOE ONE through DOE TWO HUNDRED,
27 inclusive,
28 Cross-Defendants.
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1
PARSONS TRANSPORTATION GROUP, an
2 Illinois corporation,
3 Cross-Complainant,
4 v.
5 ALSTOM SIGNALING OPERATION, LLC,
a French multinational company,
6
Cross-Defendant.
7
ALSTOM SIGNALING OPERATION, LLC,
8 a French multinational company,
9 Cross-Complainant,
10 v.
11 PARSONS TRANSPORTATION GROUP, an
Illinois corporation, and POES 1 through 25
12 inclusive,
13 Cross-Defendant.
14 PARSONS TRANSPORTATION GROUP, an
Illinois corporation,
15
Cross-Complainant,
16
v.
17
GOLDEN STATE UTILITY CO., a Delaware
18 corporation and SOES 1 through 100,
inclusive,,
19
Cross-Defendant.
20
GOLDEN STATE UTILITY CO., a Delaware
21 corporation,
22 Cross-Complainant,
23 v.
24 PARSONS TRANSPORTATION GROUP,
INC., an Illinois corporation, and MOES 1
25 through 25, inclusive,
26 Cross-Defendants.
27 PENINSULA CORRIDOR JOINT POWERS
BOARD, a joint powers authority,
28
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 Plaintiff
v.
2
3 PARSONS TRANSPORTATION GROUP,
INC., an Illinois corporation; ZURICH
4 AMERICAN INSURANCE COMPANY, a
New York corporation; FEDERAL
5 INSURANCE COMPANY, an Indiana
corporation; FIDELITY AND DEPOSIT
6 COMPANY OF MARYLAND, a Maryland
corporation, and ROE ONE through ROE
7 TWO HUNDRED, inclusive,
8
Defendants.
9 PARSONS TRANSPORTATION GROUP, an
Illinois corporation,
10
Cross-Complainant,
11
v.
12
PENINSULA CORRIDOR JOINT POWERS
13 BOARD, a joint powers authority; and DOES
1 through 25, inclusive,
14
Cross-Defendants.
15
GOLDEN STATE UTILITY CO., a Delaware
corporation,
16
Plaintiff,
17
v.
18
PARSONS TRANSPORTATION GROUP, an
19 Illinois corporation, and DOES 1-10 Inclusive,
20 Defendants.
21 AIRINC INCORPORATED, a Delaware
corporation,
22 Plaintiff,
v.
23
24 PARSONS TRANSPORTATION GROUP, an
Illinois corporation, and DOES 1-10 Inclusive,
25
26 Defendants.
27 AND RELATED CONSOLIDATED CASES
28
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 The Peninsula Corridor Joint Powers Board ("the JPB") files this Case Management
2 Conference Statement as follows:
3 Introduction
4 In direct response to a tragic train collision, Congress enacted the Railroad Safety
5 Improvement Act of 2008, which mandated the development and implementation of "positive train
6 control" on all Class I and commuter railroads by December 31, 2015. Generally, positive train
7 control systems allow for the monitoring and controlling of train movements, with a safety backup
8 to automatically stop trains.
9 In October 2011, the JPB awarded a contract ("Contract") to Parsons Transportation Group
10 ("Parsons") for Parsons to design, procure, test, and install Caltrain's Communications Based
11 Overlay Signal System ("CBOSS") positive train control system ("CBOSS Project"). Parsons
12 breached the Contract and the JPB was ultimately forced to terminate the Contract for default.
13 Finally, Zurich American Insurance Company, Federal Insurance Company, and Fidelity
14 and Deposit Company of Maryland (collectively, the "Sureties") executed a performance bond,
15 pursuant to which the Sureties guaranteed Parsons' faithful performance of the Contract, and the
16 Sureties are required to pay the JPB for all costs, damages, and expenses associated with Parsons'
17 default of the Contract. Despite the JPB's repeated demands, the Sureties have refused to perform
18 all obligations of Parsons under the Contract, and have refused to perform their obligations under
19 the Bond to make payments as work by others to complete the Contract is ongoing.
20 A. Status of Pleadings
21 1. Parsons v. JPB and JPB v. Parsons
22 Parsons filed its complaint against the JPB on February 22, 2017 ("Parsons Action").
23 Parsons' complaint alleges causes of action against the JPB for breach of contract, wrongful
24 termination, breach of covenant of good faith and fair dealing, unjust enrichment/quantum meruit,
25 violation of prompt payment statutes, and declaratory relief. This pleading was later amended on
26 or about May 15, 2017. Parsons' complaint was amended a second time on September 18, 2017,
27 after the JPB successfully moved to strike after Parsons included allegations stemming from the
28 parties' confidential settlement negotiations.
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 The JPB filed its complaint against Parsons on March 1, 2017 ("JPB Action"). The JPB's
2 complaint alleges causes of action for breach of contract, professional negligence, and negligent
3 misrepresentation against Parsons, and a cause of action for breach of performance bond against
4 the Sureties. This pleading was later amended on June 2, 2017, when the JPB filed a first
5 amended complaint revising its cause of action for breach of performance bond and adding a cause
6 of action for declaratory relief against the Sureties.
7 On April 24, 2017, the JPB filed a cross-complaint in the Parsons Action. Parsons filed a
8 demurrer as to the professional negligence and negligent misrepresentation causes of action. The
9 demurrer was overruled as to the professional negligence cause of action and sustained with leave
10 to amend as to the negligent misrepresentation cause of action. The JPB filed its amended cross-
11 complaint on September 11, 2017. On October 11, 2017, Parsons filed a demurrer to the JPB's
12 first amended cross-complaint which challenged the negligent misrepresentation cause of action as
13 well as the previously decided professional negligence cause of action. Parsons' demurrer was
14 overruled as to both causes of action.
15 On July 12, 2017, the Court consolidated the Parsons Action and the JPB Action for all
16 purposes. The Court designated the Parsons case as the lead case based solely upon its having the
17 lower case number, and specifically declined to determine the order of proof, noting that decision
18 would be made by the trial court.
19 On August 28, 2017, the JPB filed a motion for summary adjudication against the Sureties.
20 The JPB's motion for summary adjudication was denied on January 30, 2018.
21 On July 13, 2020, the JPB filed its amendment to the First Amended Cross-Complaint to
22 substitute Alstom for fictitious defendant Roe One pursuant to the Court's Order.
23 2. Subcontractor Actions
24 On November 8, 2017, Parsons filed a cross-complaint in the lead action against its
25 subcontractor, Alstom Signaling Operation ("Alstom") for breach of contract, contractual
26 indemnity, negligence, equitable indemnity, contribution, and declaratory relief. On December
27 22, 2017, Alstom filed a cross-complaint against Parsons for breach of contract, account stated,
28 and quantum meruit.
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 On November 21, 2017, another Parsons subcontractor on the CBOSS Project, Golden
2 State Utility ("GSU"), filed a separate complaint against Parsons. GSU's complaint alleged that
3 Parsons breached its subcontract with GSU by failing to pay retainage to GSU for GSU's scope of
4 work on the CBOSS Project. On June 20, 2018, Parsons filed a cross-complaint against GSU in
5 the JPB Action, alleging breach of contract, contractual indemnity, and declaratory relief. GSU's
6 separate action was consolidated into the lead action on or about August 9, 2018.
7 On November 1, 2018, ARINC, another Parsons subcontractor from the CBOSS Project,
8 filed its complaint against Parsons ("ARINC Action"). ARINC filed a First Amended Complaint
9 against Parsons on December 21, 2018, prior to serving its original complaint. ARINC’s First
10 Amended Complaint alleged causes of action for breach of contract, quantum meruit, unjust
11 enrichment, violation of prompt payment statutes, and declaratory relief. ARINC claimed that
12 Parsons failed to pay ARINC in full for ARINC's work under its subcontract, including retainage.
13 The ARINC Action was consolidated into the lead action on November 1, 2018. On February 6,
14 2020, ARINC dismissed its complaint, with prejudice.
15 Parsons filed a cross-complaint against Terralink Communications, Inc., also a Parsons'
16 subcontractor, on October 8, 2020. Terralink first appeared in the action on December 7, 2020.
17 3. Significant lead case activities
18 A motion to have the case deemed complex was filed November 8, 2018 for hearing on
19 December 6, 2018. The case was deemed complex and Case Management Order # 1 and Order
20 for Permissive E-Filing was issued on December 26, 2018. On December 26, 2018, the JPB filed
21 a peremptory challenge under Code of Civil Procedure 170.6 to disqualify the Honorable Marie S.
22 Weiner. On December 28, 2018, the Honorable Judge V. Raymond Swope was assigned to the
23 case for all purposes. The Notice of Complex Case Management Conference and Case
24 Management Order No. 2 was issued on January 9, 2019.
25 The initial Case Management Conference was held on August 2, 2019 at 9:00 a.m. and
26 resulted in Case Management Order No. 4 which, among other things, set this matter for trial on
27 August 5, 2020.
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 B. Any Pro Hac Vice Application
2 The JPB does not anticipate that any pro hac vice applications will be submitted on its
3 behalf.
4 C. Status of Discovery
5 The parties have been conducting discovery throughout the course of the litigation. The
6 following is a high level summary of the parties' discovery efforts to date:
7 1. Initial written discovery and ESI protocol
8 The JPB and Parsons have issued and responded to written discovery (i.e., interrogatories
9 and requests for admissions) to each other. In December 2017, the JPB and Parsons stipulated to
10 an electronically stored information ("ESI") protocol, governing the discovery of ESI between the
11 parties. This ESI protocol was submitted to the Court with a stipulated protective order. The
12 Court signed the ESI Protocol on December 28, 2017. In early 2018, the JPB and Parsons
13 negotiated the terms of their future document productions. In February 2018, the JPB deposed
14 Parsons' persons most qualified on the topics of Parsons' failure to meet the Contract deadlines and
15 its related defenses as well as information related to Parsons' claim that it submitted written claims
16 for additional compensation and time. In March 2018, Parsons deposed the JPB's persons most
17 qualified on the topics of the JPB's termination of the Contract and the JPB's damages. In early
18 2019, the JPB, Parsons, Alstom, and GSU stipulated to an amended protective order which
19 encompassed provisions addressing Sensitive Security Information. The Court issued the
20 Stipulated Protective Order on February 19, 2019.
21 2. Document production
22 On December 13, 2019, the JPB began a rolling production of documents in response to
23 Parsons Request for Production, Set Two. On December 20, 2019, the JPB and Parsons
24 exchanged initial privilege logs. On November 20, 2020, the JPB issued a final privilege log to
25 Parsons. The final privilege log to Alstom was served on November 24, 2020. The current
26 privilege log to GSU was served on January 14, 2021.
27 The JPB has met and conferred with Parsons regarding perceived shortcomings in Parsons
28 production including omitted subcontractor contract and payment records. These efforts remain
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 ongoing.
2 The JPB has met and conferred with GSU regarding additional document productions from
3 a different JPB project. The JPB believes the parties have reached an agreement on the scope of
4 production and has produced many of the responsive documents. The JPB does, however, have a
5 set of email collections to produce and needs to verify the project documents identified have been
6 produced in their entirety.
7 3. Most recent discovery
8 Alstom recently propounded an additional set of special interrogatories and production
9 demands. The JPB is in the process of preparing responses.
10 Ten "Person Most Qualified" and individual depositions have been taken place to date.
11 The last deposition in this matter took place in January 2020. The JPB has circulated a proposed
12 remote deposition protocol to set procedural expectations of the Parties in advance of the next
13 round of depositions. The JPB has begun to notice another round of depositions to take place
14 starting in February 2021. The JPB anticipates that the Parties will soon meet and confer to set the
15 remaining percipient witness depositions, which will go forward over the next several months.
16 D. Status of Settlement or Mediation
17 The JPB and Parsons attended an all-day mediation with Antonio Piazza on September 19,
18 2017. The parties were unable to reach a settlement.
19 In response to the Court's direction in Case Management Order No. 5 that the Parties
20 consider mediation of this dispute in the February to March 2020 timeframe, the JPB, Parsons and
21 Alstom met and conferred regarding mediation. Originally those Parties scheduled a two-day
22 mediation of this case on March 24-25, 2020, with nationally recognized mediator Randall Wulff.
23 However, due to the COVID-19 pandemic, the mediation was rescheduled to October 6-7, 2020,
24 which did not result in a resolution of the matter. The Parties then engaged in a follow-up session
25 with Mr. Wulff, which also did not result in resolution of the claims.
26 E. Any Other Anticipated Motions and Proposed Briefing Schedule
27 The JPB does not currently have a filed motion nor any pending proposed briefing
28 schedule for any other motions. To the extent not addressed by Case Management Order No. 4,
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 the JPB proposes that the cut-off date for filing motions, including dispositive motions, and the
2 briefing schedule for any such motions be in accord with the California Code of Civil Procedure.
3 If the Court proposes a different schedule, the JPB requests that the cut-off date for the filing of
4 such motions, including dispositive motions, be set at a time after sufficient fact discovery has
5 been completed so that the parties have sufficient information to determine whether such motions
6 are appropriate.
7 F. Setting of Next CMC Date
8 The JPB proposes that the next Case Management Conference be set in mid-March or
9 early April.
10 G. Any Other Matters for Which the Parties Seek Court Ruling or Scheduling
11
At the most recent Case Management Conference the Court discussed the May 3, 2021
12
trial date for this matter. The JPB respectfully requests the Court to discuss its calendar and
13
operations in light of the developments and impacts of COVID-19 since October 2020 as well as
14
input as to whether this matter remains likely to go out to jury trial on the designated date.
15
16
DATED: January 25, 2021 HANSON BRIDGETT LLP
17
18
19 By:
JOSEPH F. MOORE
20 LAWRENCE M. CIRELLI
ANDRÉ K. CAMPBELL
21 STUART L. EISLER
22 Attorneys for Defendant and Cross-Complainant
PENINSULA CORRIDOR JOINT POWERS
23 BOARD
24
25
26
27
28
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17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT
1 PROOF OF SERVICE
2 Parsons Transportation Group v. Peninsula Corridor Joint Powers Board
San Mateo Superior Case No. 17CIV00786
3
STATE OF CALIFORNIA, COUNTY OF LOS ANGELES
4
At the time of service, I was over 18 years of age and not a party to this action. I am
5 employed in the County of Los Angeles, State of California. My business address is 777 S.
Figueroa Street, Suite 4200, Los Angeles, CA 90017.
6
On January 25, 2021, I served true copies of the following document(s) described as
7 PENINSULA CORRIDOR JOINT POWERS BOARD'S CASE MANAGEMENT
CONFERENCE STATEMENT on the interested parties in this action as follows:
8
SEE ATTACHED SERVICE LIST
9
BY E-MAIL OR ELECTRONIC TRANSMISSION: I caused a copy of the
10 document(s) to be sent from e-mail address jdanda@hansonbridgett.com to the persons at the e-
mail addresses listed in the Service List. I did not receive, within a reasonable time after the
11 transmission, any electronic message or other indication that the transmission was unsuccessful.
12 I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
13
Executed on January 25, 2021, at Los Angeles, California.
14
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16 Joseph S. D'Anda
17
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17221559.2 PROOF OF SERVICE
1
SERVICE LIST
2 Parsons Transportation Group v. Peninsula Corridor Joint Powers Board
San Mateo Superior Case No. 17CIV00786
3
4
Bennett J. Lee Attorneys for Plaintiff
5 Garrett E. Dillon PARSONS TRANSPORTATION GROUP
Michael M. Suga
6 Berit L. Elam
Danial Sakaguchi
7
Harley Chea
8 Jasper Shan
Lauren Morton
9 VARELA, LEE, METZ & GUARINO, LLP
333 Bush Street, Suite 1500
10 San Francisco, CA 94104
11 Telephone: (415) 623-7000
Facsimile: (415) 623-7001
12 E-mail:blee@vlmglaw.com
gdillon@vlmglaw.com
13 msuga@vlmglaw.com
belam@vlmglaw.com
14 dsakaguchi@vlmglaw.com
hchea@vlmglaw.com
15 jshan@vlmglaw.com
lmorton@vlmglaw.com
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17221559.2 PROOF OF SERVICE
1 Bennett J. Lee Attorneys for Defendants
Garrett E. Dillon FEDERAL INSURANCE COMPANY;
2 Michael M. Suga FIDELITY AND DEPOSIT COMPANY OF
Berit L. Elam MARYLAND and ZURICH AMERICAN
3
Danial Sakaguchi INSURANCE COMPANY
4 Harley Chea
Jasper Shan
5 Lauren Morton
VARELA, LEE, METZ & GUARINO, LLP
6 333 Bush Street, Suite 1500
San Francisco, CA 94104
7
Telephone: (415) 623-7000
8 Facsimile: (415) 623-7001
E-mail:blee@vlmglaw.com
9 gdillon@vlmglaw.com
msuga@vlmglaw.com
10 belam@vlmglaw.com
dsakaguchi@vlmglaw.com
11 hchea@vlmglaw.com
jshan@vlmglaw.com
12 lmorton@vlmglaw.com
13
ROGERS JOSEPH O'DONNELL Attorneys for Cross-Defendant
14 Aaron P. Silberman and Cross-Complainant
Whitney Miner ALSTOM SIGNALING OPERATION, LLC
15 Thomas H. Carlson
Dawn Lorenzen
16 Jon Holland
311 California Street
17
San Francisco, CA 94104
18 Telephone: (415) 956-2828
Facsimile: (415) 956-6457
19 E-mail: asilberman@rjo.com
wminer@rjo.com
20 tcarlson@rjo.com
21 dlorenzen@rjo.com
jholland@rjo.com
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17221559.2 PROOF OF SERVICE
1 Benjamin J. Morris Attorneys for Cross-Defendant
Vicki Goldsmith and Cross-Complainant
2 Foley & Lardner LLP GOLDEN STATE UTILITY CO.
11988 El Camino Real, Suite 400
3
San Diego, CA 92130
4 Telephone: (858) 847-6700
Facsimile: (858) 792-6773
5 Email: bmorris@foley.com
vgoldsmith@foley.com
6
Edmund T. Baxa Jr. Attorneys for Cross-Defendant
7 Foley & Lardner LLP and Cross-Complainant
8 111 North Orange Avenue, Suite 1800 GOLDEN STATE UTILITY CO.
Orlando, FL 32801-2386
9 Telephone: (407) 423-7656
facsimile: (407) 648-1743
10 Email: ebaxa@foley.com
11 RADOSLOVICH SHAPIRO, PC Attorneys for Cross-Defendant,
Frank M. Radoslovich TERRALINK COMMUNICATIONS, INC.
12 Ryan J. Maas
701 University Avenue, Suite I 00
13 Sacramento, CA 95825
Telephone: (916) 565-8161
14 Facsimile: (916) 565-8170
15 Email: frank@radshap.com
ryan@radshap.com
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17221559.2 PROOF OF SERVICE
1 André K. Campbell Attorneys for Defendant and Plaintiff
Joseph F. Moore PENINSULA CORRIDOR JOINT POWERS
2 Lawrence M. Cirelli BOARD
Stuart L. Eisler
3 Bryan M. Gragg
Lauren C. Pon
4 Marc C. Coats
Heather K. Michel ;
5 Carla J. Roy ;
Emily P. Griffing ;
6 Grace M. Mohr ;
Joseph D'Anda
7 Venisa Carter
HANSON BRIDGETT LLP
8 425 Market Street, 26th Floor
San Francisco, California 94105
9 Telephone: (415) 777-3200
Facsimile: (415) 541-9366
10 Email: acampbell@hansonbridgett.com
jmoore@hansonbridgett.com
11 lcirelli@hansonbridgett.com
seisler@hansonbridgett.com
12 bgragg@hansonbridgett.com
lpon@hansonbridgett.com
13 mcoats@hansonbridgett.com
hmichel@hansonbridgett.com
14 croy@hansonbridgett.com
jdanda@hansonbridgett.com
15 vcarter@hansonbridgett.com
gmohr@hansonbridgett.com
16 egriffing@hansonbridgett.com
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17221559.2 PROOF OF SERVICE
Preview
1 HANSON BRIDGETT LLP JOSEPH F. MOORE, SBN 191281 2 jmoore@hansonbridgett.com LAWRENCE M. CIRELLI, SBN 114710 3 lcirelli@hansonbridgett.com ANDRÉ K. CAMPBELL, SBN 188585 4 acampbell@hansonbridgett.com STUART L. EISLER, SBN 256361 5 seisler@hansonbridgett.com 425 Market Street, 26th Floor 1/25/2021 6 San Francisco, California 94105 Telephone: (415) 777-3200 7 Facsimile: (415) 541-9366 8 Attorneys for Defendant and Cross-Complainant PENINSULA CORRIDOR JOINT POWERS 9 BOARD 10 SUPERIOR COURT OF CALIFORNIA 11 COUNTY OF SAN MATEO 12 PARSONS TRANSPORTATION GROUP, an Case No. 17CIV00786 (Lead) 13 Illinois corporation, Assigned for All Purposes to Hon. V. 14 Plaintiff, Raymond Swope, Dept. 23 15 v. Consolidated with Case Nos. 17CIV00888, 16 PENINSULA CORRIDOR JOINT POWERS 17CIV05365 & 18CIV05912 BOARD, a joint powers authority, and DOES 17 1 through 25, inclusive, 18 PENINSULA CORRIDOR JOINT Defendants. POWERS BOARD'S CASE 19 MANAGEMENT CONFERENCE PENINSULA CORRIDOR JOINT POWERS STATEMENT 20 BOARD, a joint powers authority, Judge: Hon. V. Raymond Swope Cross-Complainant, Date: February 1, 2021 21 Time: 9:00 a.m. v. Dept.: 23 22 PARSONS TRANSPORTATION GROUP, an Action Filed: February 22, 2017 23 Illinois corporation; ZURICH AMERICAN Trial Date: May 3, 2021 24 INSURANCE COMPANY, a New York corporation; FEDERAL INSURANCE 25 COMPANY, an Indiana corporation; FIDELITY AND DEPOSIT COMPANY OF 26 MARYLAND, a Maryland corporation, and DOE ONE through DOE TWO HUNDRED, 27 inclusive, 28 Cross-Defendants. -1- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 PARSONS TRANSPORTATION GROUP, an 2 Illinois corporation, 3 Cross-Complainant, 4 v. 5 ALSTOM SIGNALING OPERATION, LLC, a French multinational company, 6 Cross-Defendant. 7 ALSTOM SIGNALING OPERATION, LLC, 8 a French multinational company, 9 Cross-Complainant, 10 v. 11 PARSONS TRANSPORTATION GROUP, an Illinois corporation, and POES 1 through 25 12 inclusive, 13 Cross-Defendant. 14 PARSONS TRANSPORTATION GROUP, an Illinois corporation, 15 Cross-Complainant, 16 v. 17 GOLDEN STATE UTILITY CO., a Delaware 18 corporation and SOES 1 through 100, inclusive,, 19 Cross-Defendant. 20 GOLDEN STATE UTILITY CO., a Delaware 21 corporation, 22 Cross-Complainant, 23 v. 24 PARSONS TRANSPORTATION GROUP, INC., an Illinois corporation, and MOES 1 25 through 25, inclusive, 26 Cross-Defendants. 27 PENINSULA CORRIDOR JOINT POWERS BOARD, a joint powers authority, 28 -2- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 Plaintiff v. 2 3 PARSONS TRANSPORTATION GROUP, INC., an Illinois corporation; ZURICH 4 AMERICAN INSURANCE COMPANY, a New York corporation; FEDERAL 5 INSURANCE COMPANY, an Indiana corporation; FIDELITY AND DEPOSIT 6 COMPANY OF MARYLAND, a Maryland corporation, and ROE ONE through ROE 7 TWO HUNDRED, inclusive, 8 Defendants. 9 PARSONS TRANSPORTATION GROUP, an Illinois corporation, 10 Cross-Complainant, 11 v. 12 PENINSULA CORRIDOR JOINT POWERS 13 BOARD, a joint powers authority; and DOES 1 through 25, inclusive, 14 Cross-Defendants. 15 GOLDEN STATE UTILITY CO., a Delaware corporation, 16 Plaintiff, 17 v. 18 PARSONS TRANSPORTATION GROUP, an 19 Illinois corporation, and DOES 1-10 Inclusive, 20 Defendants. 21 AIRINC INCORPORATED, a Delaware corporation, 22 Plaintiff, v. 23 24 PARSONS TRANSPORTATION GROUP, an Illinois corporation, and DOES 1-10 Inclusive, 25 26 Defendants. 27 AND RELATED CONSOLIDATED CASES 28 -3- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 The Peninsula Corridor Joint Powers Board ("the JPB") files this Case Management 2 Conference Statement as follows: 3 Introduction 4 In direct response to a tragic train collision, Congress enacted the Railroad Safety 5 Improvement Act of 2008, which mandated the development and implementation of "positive train 6 control" on all Class I and commuter railroads by December 31, 2015. Generally, positive train 7 control systems allow for the monitoring and controlling of train movements, with a safety backup 8 to automatically stop trains. 9 In October 2011, the JPB awarded a contract ("Contract") to Parsons Transportation Group 10 ("Parsons") for Parsons to design, procure, test, and install Caltrain's Communications Based 11 Overlay Signal System ("CBOSS") positive train control system ("CBOSS Project"). Parsons 12 breached the Contract and the JPB was ultimately forced to terminate the Contract for default. 13 Finally, Zurich American Insurance Company, Federal Insurance Company, and Fidelity 14 and Deposit Company of Maryland (collectively, the "Sureties") executed a performance bond, 15 pursuant to which the Sureties guaranteed Parsons' faithful performance of the Contract, and the 16 Sureties are required to pay the JPB for all costs, damages, and expenses associated with Parsons' 17 default of the Contract. Despite the JPB's repeated demands, the Sureties have refused to perform 18 all obligations of Parsons under the Contract, and have refused to perform their obligations under 19 the Bond to make payments as work by others to complete the Contract is ongoing. 20 A. Status of Pleadings 21 1. Parsons v. JPB and JPB v. Parsons 22 Parsons filed its complaint against the JPB on February 22, 2017 ("Parsons Action"). 23 Parsons' complaint alleges causes of action against the JPB for breach of contract, wrongful 24 termination, breach of covenant of good faith and fair dealing, unjust enrichment/quantum meruit, 25 violation of prompt payment statutes, and declaratory relief. This pleading was later amended on 26 or about May 15, 2017. Parsons' complaint was amended a second time on September 18, 2017, 27 after the JPB successfully moved to strike after Parsons included allegations stemming from the 28 parties' confidential settlement negotiations. -4- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 The JPB filed its complaint against Parsons on March 1, 2017 ("JPB Action"). The JPB's 2 complaint alleges causes of action for breach of contract, professional negligence, and negligent 3 misrepresentation against Parsons, and a cause of action for breach of performance bond against 4 the Sureties. This pleading was later amended on June 2, 2017, when the JPB filed a first 5 amended complaint revising its cause of action for breach of performance bond and adding a cause 6 of action for declaratory relief against the Sureties. 7 On April 24, 2017, the JPB filed a cross-complaint in the Parsons Action. Parsons filed a 8 demurrer as to the professional negligence and negligent misrepresentation causes of action. The 9 demurrer was overruled as to the professional negligence cause of action and sustained with leave 10 to amend as to the negligent misrepresentation cause of action. The JPB filed its amended cross- 11 complaint on September 11, 2017. On October 11, 2017, Parsons filed a demurrer to the JPB's 12 first amended cross-complaint which challenged the negligent misrepresentation cause of action as 13 well as the previously decided professional negligence cause of action. Parsons' demurrer was 14 overruled as to both causes of action. 15 On July 12, 2017, the Court consolidated the Parsons Action and the JPB Action for all 16 purposes. The Court designated the Parsons case as the lead case based solely upon its having the 17 lower case number, and specifically declined to determine the order of proof, noting that decision 18 would be made by the trial court. 19 On August 28, 2017, the JPB filed a motion for summary adjudication against the Sureties. 20 The JPB's motion for summary adjudication was denied on January 30, 2018. 21 On July 13, 2020, the JPB filed its amendment to the First Amended Cross-Complaint to 22 substitute Alstom for fictitious defendant Roe One pursuant to the Court's Order. 23 2. Subcontractor Actions 24 On November 8, 2017, Parsons filed a cross-complaint in the lead action against its 25 subcontractor, Alstom Signaling Operation ("Alstom") for breach of contract, contractual 26 indemnity, negligence, equitable indemnity, contribution, and declaratory relief. On December 27 22, 2017, Alstom filed a cross-complaint against Parsons for breach of contract, account stated, 28 and quantum meruit. -5- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 On November 21, 2017, another Parsons subcontractor on the CBOSS Project, Golden 2 State Utility ("GSU"), filed a separate complaint against Parsons. GSU's complaint alleged that 3 Parsons breached its subcontract with GSU by failing to pay retainage to GSU for GSU's scope of 4 work on the CBOSS Project. On June 20, 2018, Parsons filed a cross-complaint against GSU in 5 the JPB Action, alleging breach of contract, contractual indemnity, and declaratory relief. GSU's 6 separate action was consolidated into the lead action on or about August 9, 2018. 7 On November 1, 2018, ARINC, another Parsons subcontractor from the CBOSS Project, 8 filed its complaint against Parsons ("ARINC Action"). ARINC filed a First Amended Complaint 9 against Parsons on December 21, 2018, prior to serving its original complaint. ARINC’s First 10 Amended Complaint alleged causes of action for breach of contract, quantum meruit, unjust 11 enrichment, violation of prompt payment statutes, and declaratory relief. ARINC claimed that 12 Parsons failed to pay ARINC in full for ARINC's work under its subcontract, including retainage. 13 The ARINC Action was consolidated into the lead action on November 1, 2018. On February 6, 14 2020, ARINC dismissed its complaint, with prejudice. 15 Parsons filed a cross-complaint against Terralink Communications, Inc., also a Parsons' 16 subcontractor, on October 8, 2020. Terralink first appeared in the action on December 7, 2020. 17 3. Significant lead case activities 18 A motion to have the case deemed complex was filed November 8, 2018 for hearing on 19 December 6, 2018. The case was deemed complex and Case Management Order # 1 and Order 20 for Permissive E-Filing was issued on December 26, 2018. On December 26, 2018, the JPB filed 21 a peremptory challenge under Code of Civil Procedure 170.6 to disqualify the Honorable Marie S. 22 Weiner. On December 28, 2018, the Honorable Judge V. Raymond Swope was assigned to the 23 case for all purposes. The Notice of Complex Case Management Conference and Case 24 Management Order No. 2 was issued on January 9, 2019. 25 The initial Case Management Conference was held on August 2, 2019 at 9:00 a.m. and 26 resulted in Case Management Order No. 4 which, among other things, set this matter for trial on 27 August 5, 2020. 28 -6- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 B. Any Pro Hac Vice Application 2 The JPB does not anticipate that any pro hac vice applications will be submitted on its 3 behalf. 4 C. Status of Discovery 5 The parties have been conducting discovery throughout the course of the litigation. The 6 following is a high level summary of the parties' discovery efforts to date: 7 1. Initial written discovery and ESI protocol 8 The JPB and Parsons have issued and responded to written discovery (i.e., interrogatories 9 and requests for admissions) to each other. In December 2017, the JPB and Parsons stipulated to 10 an electronically stored information ("ESI") protocol, governing the discovery of ESI between the 11 parties. This ESI protocol was submitted to the Court with a stipulated protective order. The 12 Court signed the ESI Protocol on December 28, 2017. In early 2018, the JPB and Parsons 13 negotiated the terms of their future document productions. In February 2018, the JPB deposed 14 Parsons' persons most qualified on the topics of Parsons' failure to meet the Contract deadlines and 15 its related defenses as well as information related to Parsons' claim that it submitted written claims 16 for additional compensation and time. In March 2018, Parsons deposed the JPB's persons most 17 qualified on the topics of the JPB's termination of the Contract and the JPB's damages. In early 18 2019, the JPB, Parsons, Alstom, and GSU stipulated to an amended protective order which 19 encompassed provisions addressing Sensitive Security Information. The Court issued the 20 Stipulated Protective Order on February 19, 2019. 21 2. Document production 22 On December 13, 2019, the JPB began a rolling production of documents in response to 23 Parsons Request for Production, Set Two. On December 20, 2019, the JPB and Parsons 24 exchanged initial privilege logs. On November 20, 2020, the JPB issued a final privilege log to 25 Parsons. The final privilege log to Alstom was served on November 24, 2020. The current 26 privilege log to GSU was served on January 14, 2021. 27 The JPB has met and conferred with Parsons regarding perceived shortcomings in Parsons 28 production including omitted subcontractor contract and payment records. These efforts remain -7- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 ongoing. 2 The JPB has met and conferred with GSU regarding additional document productions from 3 a different JPB project. The JPB believes the parties have reached an agreement on the scope of 4 production and has produced many of the responsive documents. The JPB does, however, have a 5 set of email collections to produce and needs to verify the project documents identified have been 6 produced in their entirety. 7 3. Most recent discovery 8 Alstom recently propounded an additional set of special interrogatories and production 9 demands. The JPB is in the process of preparing responses. 10 Ten "Person Most Qualified" and individual depositions have been taken place to date. 11 The last deposition in this matter took place in January 2020. The JPB has circulated a proposed 12 remote deposition protocol to set procedural expectations of the Parties in advance of the next 13 round of depositions. The JPB has begun to notice another round of depositions to take place 14 starting in February 2021. The JPB anticipates that the Parties will soon meet and confer to set the 15 remaining percipient witness depositions, which will go forward over the next several months. 16 D. Status of Settlement or Mediation 17 The JPB and Parsons attended an all-day mediation with Antonio Piazza on September 19, 18 2017. The parties were unable to reach a settlement. 19 In response to the Court's direction in Case Management Order No. 5 that the Parties 20 consider mediation of this dispute in the February to March 2020 timeframe, the JPB, Parsons and 21 Alstom met and conferred regarding mediation. Originally those Parties scheduled a two-day 22 mediation of this case on March 24-25, 2020, with nationally recognized mediator Randall Wulff. 23 However, due to the COVID-19 pandemic, the mediation was rescheduled to October 6-7, 2020, 24 which did not result in a resolution of the matter. The Parties then engaged in a follow-up session 25 with Mr. Wulff, which also did not result in resolution of the claims. 26 E. Any Other Anticipated Motions and Proposed Briefing Schedule 27 The JPB does not currently have a filed motion nor any pending proposed briefing 28 schedule for any other motions. To the extent not addressed by Case Management Order No. 4, -8- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 the JPB proposes that the cut-off date for filing motions, including dispositive motions, and the 2 briefing schedule for any such motions be in accord with the California Code of Civil Procedure. 3 If the Court proposes a different schedule, the JPB requests that the cut-off date for the filing of 4 such motions, including dispositive motions, be set at a time after sufficient fact discovery has 5 been completed so that the parties have sufficient information to determine whether such motions 6 are appropriate. 7 F. Setting of Next CMC Date 8 The JPB proposes that the next Case Management Conference be set in mid-March or 9 early April. 10 G. Any Other Matters for Which the Parties Seek Court Ruling or Scheduling 11 At the most recent Case Management Conference the Court discussed the May 3, 2021 12 trial date for this matter. The JPB respectfully requests the Court to discuss its calendar and 13 operations in light of the developments and impacts of COVID-19 since October 2020 as well as 14 input as to whether this matter remains likely to go out to jury trial on the designated date. 15 16 DATED: January 25, 2021 HANSON BRIDGETT LLP 17 18 19 By: JOSEPH F. MOORE 20 LAWRENCE M. CIRELLI ANDRÉ K. CAMPBELL 21 STUART L. EISLER 22 Attorneys for Defendant and Cross-Complainant PENINSULA CORRIDOR JOINT POWERS 23 BOARD 24 25 26 27 28 -9- 17221559.2 JPB's CASE MANAGEMENT CONFERENCE STATEMENT 1 PROOF OF SERVICE 2 Parsons Transportation Group v. Peninsula Corridor Joint Powers Board San Mateo Superior Case No. 17CIV00786 3 STATE OF CALIFORNIA, COUNTY OF LOS ANGELES 4 At the time of service, I was over 18 years of age and not a party to this action. I am 5 employed in the County of Los Angeles, State of California. My business address is 777 S. Figueroa Street, Suite 4200, Los Angeles, CA 90017. 6 On January 25, 2021, I served true copies of the following document(s) described as 7 PENINSULA CORRIDOR JOINT POWERS BOARD'S CASE MANAGEMENT CONFERENCE STATEMENT on the interested parties in this action as follows: 8 SEE ATTACHED SERVICE LIST 9 BY E-MAIL OR ELECTRONIC TRANSMISSION: I caused a copy of the 10 document(s) to be sent from e-mail address jdanda@hansonbridgett.com to the persons at the e- mail addresses listed in the Service List. I did not receive, within a reasonable time after the 11 transmission, any electronic message or other indication that the transmission was unsuccessful. 12 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. 13 Executed on January 25, 2021, at Los Angeles, California. 14 15 16 Joseph S. D'Anda 17 18 19 20 21 22 23 24 25 26 27 28 -10- 17221559.2 PROOF OF SERVICE 1 SERVICE LIST 2 Parsons Transportation Group v. Peninsula Corridor Joint Powers Board San Mateo Superior Case No. 17CIV00786 3 4 Bennett J. Lee Attorneys for Plaintiff 5 Garrett E. Dillon PARSONS TRANSPORTATION GROUP Michael M. Suga 6 Berit L. Elam Danial Sakaguchi 7 Harley Chea 8 Jasper Shan Lauren Morton 9 VARELA, LEE, METZ & GUARINO, LLP 333 Bush Street, Suite 1500 10 San Francisco, CA 94104 11 Telephone: (415) 623-7000 Facsimile: (415) 623-7001 12 E-mail:blee@vlmglaw.com gdillon@vlmglaw.com 13 msuga@vlmglaw.com belam@vlmglaw.com 14 dsakaguchi@vlmglaw.com hchea@vlmglaw.com 15 jshan@vlmglaw.com lmorton@vlmglaw.com 16 17 18 19 20 21 22 23 24 25 26 27 28 -11- 17221559.2 PROOF OF SERVICE 1 Bennett J. Lee Attorneys for Defendants Garrett E. Dillon FEDERAL INSURANCE COMPANY; 2 Michael M. Suga FIDELITY AND DEPOSIT COMPANY OF Berit L. Elam MARYLAND and ZURICH AMERICAN 3 Danial Sakaguchi INSURANCE COMPANY 4 Harley Chea Jasper Shan 5 Lauren Morton VARELA, LEE, METZ & GUARINO, LLP 6 333 Bush Street, Suite 1500 San Francisco, CA 94104 7 Telephone: (415) 623-7000 8 Facsimile: (415) 623-7001 E-mail:blee@vlmglaw.com 9 gdillon@vlmglaw.com msuga@vlmglaw.com 10 belam@vlmglaw.com dsakaguchi@vlmglaw.com 11 hchea@vlmglaw.com jshan@vlmglaw.com 12 lmorton@vlmglaw.com 13 ROGERS JOSEPH O'DONNELL Attorneys for Cross-Defendant 14 Aaron P. Silberman and Cross-Complainant Whitney Miner ALSTOM SIGNALING OPERATION, LLC 15 Thomas H. Carlson Dawn Lorenzen 16 Jon Holland 311 California Street 17 San Francisco, CA 94104 18 Telephone: (415) 956-2828 Facsimile: (415) 956-6457 19 E-mail: asilberman@rjo.com wminer@rjo.com 20 tcarlson@rjo.com 21 dlorenzen@rjo.com jholland@rjo.com 22 23 24 25 26 27 28 -12- 17221559.2 PROOF OF SERVICE 1 Benjamin J. Morris Attorneys for Cross-Defendant Vicki Goldsmith and Cross-Complainant 2 Foley & Lardner LLP GOLDEN STATE UTILITY CO. 11988 El Camino Real, Suite 400 3 San Diego, CA 92130 4 Telephone: (858) 847-6700 Facsimile: (858) 792-6773 5 Email: bmorris@foley.com vgoldsmith@foley.com 6 Edmund T. Baxa Jr. Attorneys for Cross-Defendant 7 Foley & Lardner LLP and Cross-Complainant 8 111 North Orange Avenue, Suite 1800 GOLDEN STATE UTILITY CO. Orlando, FL 32801-2386 9 Telephone: (407) 423-7656 facsimile: (407) 648-1743 10 Email: ebaxa@foley.com 11 RADOSLOVICH SHAPIRO, PC Attorneys for Cross-Defendant, Frank M. Radoslovich TERRALINK COMMUNICATIONS, INC. 12 Ryan J. Maas 701 University Avenue, Suite I 00 13 Sacramento, CA 95825 Telephone: (916) 565-8161 14 Facsimile: (916) 565-8170 15 Email: frank@radshap.com ryan@radshap.com 16 17 18 19 20 21 22 23 24 25 26 27 28 -13- 17221559.2 PROOF OF SERVICE 1 André K. Campbell Attorneys for Defendant and Plaintiff Joseph F. Moore PENINSULA CORRIDOR JOINT POWERS 2 Lawrence M. Cirelli BOARD Stuart L. Eisler 3 Bryan M. Gragg Lauren C. Pon 4 Marc C. Coats Heather K. Michel ; 5 Carla J. Roy ; Emily P. Griffing ; 6 Grace M. Mohr ; Joseph D'Anda 7 Venisa Carter HANSON BRIDGETT LLP 8 425 Market Street, 26th Floor San Francisco, California 94105 9 Telephone: (415) 777-3200 Facsimile: (415) 541-9366 10 Email: acampbell@hansonbridgett.com jmoore@hansonbridgett.com 11 lcirelli@hansonbridgett.com seisler@hansonbridgett.com 12 bgragg@hansonbridgett.com lpon@hansonbridgett.com 13 mcoats@hansonbridgett.com hmichel@hansonbridgett.com 14 croy@hansonbridgett.com jdanda@hansonbridgett.com 15 vcarter@hansonbridgett.com gmohr@hansonbridgett.com 16 egriffing@hansonbridgett.com 17 18 19 20 21 22 23 24 25 26 27 28 -14- 17221559.2 PROOF OF SERVICE