PHYLLIS HAMILTON, District Judge
IT IS HEREBY STIPULATED by and between the parties to this action, through their designated counsel, that the above-captioned action be, and hereby is, dismissed with prejudice, with respect to all claims for Defense Costs, and for conduct of Defendants Federal Insurance Company ("Federal") and Royal Indemnity Company, as successor in interest to Royal Insurance Company of America ("Royal"), up to and including September 6, 2005, pursuant to FRCP 41(a)(1);
"Defense Costs" refer to all attorneys fees and costs (including but not limited to expert witness fees, court costs, deposition expenses, copying expenses and other costs reasonably necessary to the defense of Daily in the underlying litigation) with respect to Daily's defense of the underlying litigation that have been or will be incurred through and including resolution of the appeal by Auerbach of the judgment in favor of U.S. Bancorp entered on July 22, 2005.
IT IS HEREBY STIPULATED that with respect to all other claims, including the Counterclaim filed by Federal against Gregory S. Daily ("Daily"), the above-captioned action be, and hereby is, dismissed without prejudice;
IT IS HEREBY STIPULATED that each party will bear its own costs with respect to this action.
PURSUANT TO STIPULATION, IT IS SO ORDERED.