Case No. 02-B-48191 (Jointly Administered)United States Bankruptcy Court, N.D. Illinois.
March 19, 2004
KIRKLAND ELLIS LLP, James H.M. Sprayregen, P.C., Marc Kieselstein, David R. Seligman, Chicago, Illinois, Counsel for the Debtors and Debtors in Possession
CRAKE, HEYMAN, SIMON, WELCH CLAR, Jeffrey C, Dan, Chicago, Illinois, Counsel for Diana Brown-Dodson
STIPULATION AND AGREED ORDER BY AND BETWEEN WORKERS COMPENSATION CLAIMANT DIANA BROWN-DODSON AND THE DEBTORS
EUGENE WEDOFF, Bankruptcy Judge
This Stipulation and Agreed Order (the “Stipulation”) is made by and between Diana Brown-Dodson (“Ms. Brown-Dodson”) and UAL Corporation ct al. (the “Debtors”) (each a “Party,” and collectively the “Parties”).
RECITALS
WHEREAS, on December 9, 2002 (the “Petition Date”), UAL and (certain of its affiliates) filed voluntary petitions for relief under Chapter 11 of the United States Code in the United States Bankruptcy Court for the Northern District of Illinois (the “Court”), In re UAL Corporation, ctal., consolidated in Case No. 02-B-48191 (the “Chapter 11 Cases”);
WHEREAS, on February 1 8, 2004, UAL filed its Ninth Omnibus Objection to Claims (Single Debtor Duplicate; Superseded; No Supporting Documentation; Insufficient Documentation; Equity; Reduce; No Liability; Wrong Debtor; Non-Debtor Entity; Redundant; Reclassify; Retroactive Pay; Jeffrey Talon) (the “Ninth Omnibus Objection”), which included an objection to the Proof of Claim No. 41728, as amended (the “Claim”) filed by Ms, Brown-Dodson and asserting certain asserted workers compensation rights and remedies;
Page 2
WHEREAS, in the Ninth Omnibus Objection the Debtors objected to the Claim which was set forth on Exhibit F entitled “Reduce” on the basis that such Claim was overstated, upon review of UAL’s books and records;
WHEREAS, Ms. Brown-Dodson opposes the Debtors’ objection to her Claim;
WHEREAS, the Debtors have now requested that Ms. Brown-Dodson provide 4 reasonable estimate of the present cash value of her Claim, solely for the purposes of reducing the aggregate liabilities against the Debtors reflected on the Claims Register and as a means to compromise and settle the Debtors’ objection to the Claim in the Ninth Omnibus Objection to Claims; and
WHEREAS, the parties have agreed to settle and compromise the Claim on the terms and conditions set forth herein solely for purposes of reducing liability on the Claims Register.
NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, IT IS HEREBY STIPULATED AND AGREED BY AND BETWEEN THE PARTIES TO THE STIPULATION, THROUGH THEIR UNDERSIGNED COUNSEL, AND IT IS HEREBY ORDERED THAT:
1. The reasonable estimate of the present cash value of Ms. Brown-Dodson’s Claim (the “Estimated Present Value Amount”) is $5,000,000.00.
2. Ms, Brown-Dodson will not oppose entry of an order in the Chapter 11 Cases reducing her Claim from the amount originally set forth in her Proof of Claim as amended ($500,000,000,00) to $5,000,000.00 for purposes of reducing liability on the Claims Register,
3. The Debtors do not concede the merits of Ms. Brown-Dodson’s Claim, or that the Estimated Present Value Amount or any other Claim amount asserted by Ms. Brown-Dodson is
Page 3
the correct and proper valuation thereof. Similarly, Ms. Brown-Dodson does not concede that the true amount of her claim is limited by the Estimated Present. Value Amount, or by any other amount. In this respect, nothing contained herein shall be deemed a waiver by either party on the merits of Ms. Brown-Dodson’s Claim nor an admission by the Debtors that the Estimated Present Value Amount or any other Claim amount asserted by Ms. Brown-Dodson Is the correct or proper valuation of the Claim. The Debtors hereby expressly reserve all of their rights to challenge the merits of the Claim, the Estimated Present Value Amount thereof or any other Claim amount asserted by Ms. Brown-Dodson in connection with any workers compensation proceeding brought before the Illinois Industrial Commission or the California Worker’s Compensation Appeals Board, or in the Chapter 11 Cases.
4. Neither of the Debtors on the one hand, nor Ms. Brown-Dodson on the other, will introduce the Estimated Present Value Amount of the Claim as evidence for any purpose in any proceeding before the Illinois Industrial Commission or the California Worker’s Compensation Appeals Board.
5. Ms. Brown-Dodson will not be bound by the Estimated Present Value Amount of her Claim, in the event the Illinois Industrial Commission or the California Worker’s Compensation Appeals Board issues a decision or approves a settlement that is contrary to, greater than, or inconsistent with, that amount.
6. This Court shall retain jurisdiction to resolve any disputes or controversies arising from or related to the Stipulation.
7. Each of the undersigned counsel represents that he or she is authorized to execute the Stipulation on behalf of his/her respective client
Page 4
8. The Stipulation may be executed in multiple counterparts, any of which may be transmitted by facsimile., and each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IT IS SO ORDERED.