Randtron

MEMORANDUM OF OPINION AND ORDER

The City of Lodi and the People of the State of California (hereinafter collectively referred to as “Lodi”) brought this environmental action involving groundwater pollution against defendant Randtron and its predecessors and successors in interest. After Lodi entered into a settlement agreement with Randtron and Wausau Insurance Co, one of Randtron’s primary insurers, the court issued a Consent Decree and Final Judgment incorporating the agreement. Lodi subsequently brought suit in state court against Randtron in an effort to reach its other insurance assets, and now brings this action seeking declaratory relief and an injunction barring Randtron from asserting a res judicata defense in state court.

I. .

Randtron is a dissolved California corporation whose principal remaining asset is a portfolio of primary and excess insurance policies. Under California law, it may be sued “to the extent of its undistributed assets, including, without limitation, any insurance assets held by the corporation.” Cal. Corp.Code § 2011(a)(1)(A).

In the original federal action against Randtron, Lodi asserted claims under the Resource Conservation and Recovery Act…