{"url_path":"/sec/wbqnl/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1785494/0001140361-26-021291-index.html","accession_number":"0001140361-26-021291","cik":"0001785494","ticker":"WBQNL","issuer_name":"Woodbridge Liquidation Trust","edgar_url":"https://www.sec.gov/Archives/edgar/data/1785494/0001140361-26-021291-index.html","primary_entity_key":"0001785494","primary_entity_name":"Woodbridge Liquidation Trust"},"word_count":444,"has_tables":true,"body_markdown":"**Item 1.  Legal\nProceedings (Continued)**\n\n \n\n●\n\nOn May 28, 2024, the Development Entity filed a lawsuit in Los Angeles Superior Court against 13 different parties, including the prior owner, contractors and other parties involved in the development of the site and the construction of the home. The lawsuit seeks, among other relief, contribution from these parties for the costs that the Development Entity has incurred, and may incur, in connection with the investigation and repair of the construction defect claim. Based on further investigation after filing of the complaint, the Development Entity dismissed three defendants without prejudice. A mediation was held on February 20, 2025. The parties agreed to allow each other time to gather and exchange information, as needed. A subsequent mediation date has not been scheduled.\n\n \n\n●\n\nOn August 9, 2024, the Development Entity filed suit in Los Angeles Superior Court against its insurers from whom it had purchased primary and excess layer liability insurance to protect against the risks associated with the development of the single-family home. The lawsuit seeks, among other relief, damages from the primary and two excess layer insurers for amounts the Development Entity has incurred, and may incur, in connection with the investigation and repair of the construction defect claim, as well as declaratory relief against the primary and excess layer insurers. On August 20, 2024, the lawsuit against the insurers was stayed until October 21, 2024. On October 15, 2024, the Development Entity agreed to extend the stay by an additional three months, until January 29, 2025, during which time the parties agreed to seek informal resolution of the dispute. On October 24, 2024, the Development Entity dismissed its claim against the second excess layer insurance carrier without prejudice and subject to a tolling agreement. On January 27, 2025, the primary and first excess layer insurer approved coverage for the initial repair phase. The case against the primary and first excess layer insurer was stayed until the initial case management conference, which was scheduled to occur on October 30, 2025. On October 30, 2025, the Development Entity agreed to extend the stay by an additional three months, until January 26, 2026. On January 26, 2026, the Development Entity agreed to extend the stay in the case against the primary and first excess layer insurer by an additional month, and the Court continued the conference (and the stay) until March 6, 2026. On April 6, 2026, the Development Entity filed a request for dismissal of the lawsuit against the primary and first excess layer insurers without prejudice as such insurer has satisfied its obligations\nunder the relevant policies.\n\n \n\n33\n\n*Table of Contents*\n\n**PART II.  OTHER\nINFORMATION (CONTINUED)**"}