United States v. Gonzales & Gonzales Bonds & Insurance Agency, Inc.

MEMORANDUM & ORDER

Re: Plaintiffs Motion to Dismiss Counterclaim; Defendants’ Motion for a Judicial Determination Regarding the Nature of the Case

Defendant Gonzales & Gonzales Bonds and Insurance Agency, Inc. (“G & G”) is engaged in posting immigration bonds with the Department of Homeland Security (“DHS”) for, inter alia, the release of aliens from detention pending a determination of the alien’s immigration status. 8 C.F.R. § 236.1 (c). Defendant American Surety (“ACS”) is a federally-approved surety company for whom G & G posted immigration bonds. The United States (or “government”) sued defendants to collect on certain breached immigration bonds. Now before the court is defendants’ motion regarding the standard of review and discovery matters, and plaintiffs motion to dismiss the counterclaim. Having considered the parties’ arguments fully and for the reasons set forth below, the court enters the following memorandum and order.

BACKGROUND

I. Litigation history

In 1993, G & G, Farwest Insurance Company (“Farwest”), Amwest Surety Insurance Co. (“Amwest”), and the DHS’ predecessor in interest, Immigration and Naturalization Services, became embroiled in litigation regarding…