Aguila

FACTS AND PROCEEDINGS BELOW

In 2019, Aguila and TAI filed suit in federal court against Penn-Star Insurance Company alleging breach of a commercial insurance policy. The docket in the case indicates that defendants represented Aguila and TAI in the litigation, but it does not list Rosales, who is Aguila’s wife, as a plaintiff, nor as a client of defendants. In July 2021, Aguila and TAI submitted an offer under Federal Rules of Civil Procedure, rule 68 (28 U.S.C.) and Code of Civil Procedure section 9982 to settle the case for $1,995,000. Penn-Star accepted the offer on August 5, 2021, and the federal district court entered final judgment on the basis of the settlement on August 17, 2021. Plaintiffs allege they instructed their attorneys to withdraw the settlement offer after Penn-Star accepted it because Penn-Star’s acceptance attempted (in ways plaintiffs do not explain) to alter the terms of the offer, but the attorneys instead permitted judgment to be entered. On June 22, 2021, about one month before Aguila and TAI submitted their settlement offer, a judgment creditor of Aguila filed a notice of lien in the case, and in September 2021, after the district court had entered…