Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-00919/USCOURTS-cand-5_06-cv-00919-0/pdf.json

Nature of Suit Code: 891
Nature of Suit: Agricultural Acts
Cause of Action: 07:499 Agricultural Commodities Act

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STIPULATION FOR ENTRY OF JUDGMENT – Case No. C 06-00919 RMW – 1 

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LAW OFFICES 

RYNN & JANOWSKY, LLP 

P.O. BOX 20799 

OAKLAND, CALIFORNIA 94620 

(510) 705-8894 

FAX (510) 705-8737

PATRICIA J. RYNN, CA State Bar No. 092048 

MARION I. QUESENBERY, State Bar No. 072308 

RYNN & JANOWSKY, LLP 

P.O. Box 20799 

Oakland, CA 94620 

Telephone: (510) 705-8894 

Facsimile: (510) 705-8737 

Attorneys for Plaintiff 

UESUGI FARMS, INC. 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

UESUGI FARMS, INC., a California 

corporation, 

Plaintiff, 

v. 

RED PONY PRODUCE, INC., a corporation; 

GARON B. HANDLEY, an individual; 

TROY G. BENNETT, an individual, 

Defendants.

CASE NO. C 06-00919 RMW 

STIPULATION FOR ENTRY OF 

JUDGMENT; ORDER AND 

JUDGMENT

Plaintiff Uesugi Farms, Inc. ("Uesugi Farms") and Defendants Red Pony Produce (“Red 

Pony”), Garon B. Handley (“Handley”), and Troy G. Bennett (“Bennett”)(jointly “Defendants”) 

stipulate and agree to the following: 

1. Between on or about November 19, 2004 and January 23, 2006, Uesugi Farms 

sold and shipped perishable agricultural commodities to Red Pony, at its request. Red Pony 

agreed to pay Uesugi Farms a total price of $393,203.29 for this fresh produce, all of which is 

past due and unpaid. The invoices also provided for the payment of 18% interest per annum on 

all past due sums. 

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2. Each of these sales transactions qualify for protection under the Perishable 

Agricultural Commodities Act ("PACA") trust provisions, 7 U.S.C. § 499e(c), and Uesugi has 

taken all steps necessary to preserve its trust rights for the full amount due from Red Pony for the 

fresh produce. 

3. Red Pony is, and was at all relevant times, licensed by the United States 

Department of Agriculture as a commission merchant, dealer, and/or broker of perishable 

agricultural commodities (PACA license # 20040415). 

4. Defendants Handley and Bennett are, and were at all relevant times, officers and 

shareholders of Red Pony and were in a position to and did control the PACA trust assets held by 

Red Pony during all relevant time periods. Consequently, under PACA, they are personally 

liable as trustees for Red Pony’s failure to pay Uesugi Farms. See Sunkist Growers, Inc. v. 

Fisher, 104 F.3d 280, 282-83 (9th Cir. 1977). 

5. Uesugi Farms and Defendants wish to compromise and resolve this matter by 

agreement and stipulation for entry of judgment whereby Defendants, jointly and severally, shall 

pay to Uesugi Farms the sum of $393,203.29, plus interest and attorneys fees (if applicable under 

the terms of this Stipulation), via installment payments in the amounts and at the times stated 

below. 

6. Interest on the $393,203.29 is due to Uesugi Farms at the rate of eighteen percent 

(18%) per annum from November 29, 2004 through February 28, 2006 (from the date each 

invoice became due), for a total of $30,210.65 in interest through February 28, 2006. Interest 

shall continue to accrue at eighteen percent (18%) per annum until paid in full. However, if 

Defendants timely pay Uesugi Farms according to the payment schedule provided in this 

Stipulation, Uesugi Farms will waive all interest due over ten percent (10%) per annum. 

Specifically, if payments are timely made, the total interest owed by Defendants through 

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February 28, 2006, will be $16,783.70, and thereafter interest will accrue at ten percent (10%) 

per annum. However, if any payment is not timely made, the interest owed by Defendants shall 

be eighteen percent (18%) per annum or a total sum of $30,210.65 through February 28, 2006, 

and continuing at 18% per annum until the entire sum owed by Defendants to Uesugi Farms is 

paid in full. 

7. Defendants also agree to pay Uesugi Farms’ estimated attorneys fees and costs of 

$10,000.00 in pursuing this action, of which $5,000.00 has been paid. However, if Defendants 

timely pay Uesugi Farms according to the payment schedule provided in this Stipulation, Uesugi 

Farms will waive the remaining $5,000.00. If, however, any payments are not timely made, the 

additional $5,000.00 in attorneys’ fees and costs shall immediately become due and payable and 

shall be added to the principal sum still outstanding. 

8. Defendant Handley also agrees to provide security to Uesugi Farms for the 

payment of the sums due from Defendants, pursuant to this Stipulation, by granting – within 5 

business days – a deed of trust to Uesugi Farms on his and his wife’s two-third’s (2/3) ownership 

interest in his residence in Greenfield, California. Plaintiff shall not record the Deed of Trust 

unless Defendants are in default of any of their obligations under this Stipulation (after the cure 

period provided in paragraph 12 below) or under the Order and Judgment entered pursuant to 

this Stipulation, in which case, Plaintiff may record the Deed of Trust. Defendant Handley 

agrees that neither he nor his wife will encumber the property in any way until payment in full is 

made to Uesugi Farms. Upon payment in full of all sums due under this Stipulation, Uesugi 

Farms shall immediately reconvey the deed of trust. 

 9. Defendants agree to make the following payments to Uesugi Farms: 

a. $250,000.00 within one day of the signing of this Stipulated Judgment. 

b. A minimum of $10,000.00 on the first Tuesday of each month 

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thereafter, beginning on April 4, 2006, until the entire debt to Uesugi 

Farms is paid in full. 

 10. All payments described in paragraph 9 above shall be made payable to Uesugi 

Farms and delivered to the following office for receipt by 2 p.m. on the date due: Uesugi Farms, 

Inc., Attn.: Diane Zent, 1020 Hwy. 25, Gilroy, California 95020, unless notified in writing by 

Uesugi Farms to deliver the payment to another address, in which case the payments shall be 

delivered to the new address. 

 11. No execution shall issue upon the Judgment entered pursuant to this Stipulation 

nor shall Plaintiff take any action to collect or enforce the Judgment, including but not limited to 

recording, abstracting, or causing the issuance of writs or other process to enforce collection, so 

long as Defendants are not in default of their obligations under this Stipulation (after the cure 

period provided in paragraph 12 below). 

12. In the event Defendants fail to make any payment as provided in this Stipulation 

or default in the performance of any obligation under this Stipulation, Plaintiff Uesugi Farms 

may immediately execute on and take all available actions to enforce the entire Judgment, 

including all interest and attorneys fees due. Prior to executing on the judgment, however, 

Plaintiff shall give notice to Defendants that they are in default, which will be deemed given by 

Plaintiff to Defendants (a) upon faxing the notice to Defendants’ attorney at fax number (408) 

395-3120 or at such fax number as Defendants may notify Plaintiff’s attorney in writing or (b) 

upon delivery (by overnight service, such as FedEx, or otherwise) of the notice to Defendants’ 

attorney’s office, at the address set forth under his signature below, or at such other address as 

Defendants may notify Plaintiff’s attorney in writing. Defendant shall then have five (5) 

business days from such notification within which to cure the default. 

 13. In addition, should Defendants fail to cure any default in the performance of their 

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obligations under this Stipulation (after notice as provided in paragraph 12), Defendants agree 

that – based solely on this Stipulation for Entry of Judgment and the declaration(s) of Plaintiff 

and/or Plaintiff’s attorney confirming that Defendants have defaulted on the payment terms or 

other obligation of this Stipulation or Judgment – (a) enforcement of the Judgment may 

commence and (b) the Court may immediately enter a Temporary Restraining Order, ex parte, 

prohibiting Defendants, their agents, officers, and banking institutions from dissipating, paying 

over, assigning, or otherwise transferring any assets of Defendant Red Pony until further order of 

the Court. 

 14. Defendants further agree that should Defendants fail to cure any default in the 

performance of their obligations under this Stipulation (after notice as provided in paragraph 12), 

Defendants shall immediately execute any and all documents provided by Plaintiff’s attorney as 

are reasonably necessary to assign Defendants’ accounts receivable to Plaintiff Uesugi Farms, 

which shall be collected and applied to the unpaid balances due under this Stipulation. In 

addition, should Defendants fail to cure any default in the performance of their obligations under 

this Stipulation (after notice as provided in paragraph 12), Defendants shall provide immediate 

access to all books and records evidencing the outstanding accounts receivable and other 

financial records of Defendants. 

15. Defendants also agree that should Defendants fail to cure any default in the 

performance of their obligations under this Stipulation (after notice as provided in paragraph 12), 

Plaintiff shall be entitled to actual attorneys’ fees and costs incurred by Plaintiff to enforce the 

Judgment entered pursuant to this Stipulation, to force Defendants to comply with their 

obligations under this Stipulation, and/or to otherwise collect the debt still owing to Plaintiff by 

Defendants. 

16. In addition, the occurrence of any one of the following events prior to payment in 

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full of the sums due under this Stipulation shall be deemed an event of default entitling Plaintiff 

to seek immediate enforcement of judgment without further notice to Defendants: (a) Either 

Defendant Red Pony or Defendant Handley is named in a petition in bankruptcy, filed 

voluntarily or involuntarily, or otherwise seek the protection of the bankruptcy laws of any 

competent jurisdiction or (b) Defendants Red Pony ceases business operations for any reason 

whatsoever. 

17. Nothing in this Stipulation shall be deemed to be a waiver of any rights Plaintiff 

may have under the PACA, including, but not limited to, its PACA trust rights or Plaintiff’s 

ability to enforce its PACA trust rights against Defendants should Defendants fail to cure any 

default in the performance of their obligations under this Stipulation (after notice as provided in 

paragraph 12), or to enforce their PACA trust rights against third party creditors of Defendant 

Red Pony. 

18. In the event Defendants remit payment in an amount less than the full sums 

required by this Stipulation, and Plaintiffs elect to accept the partial payment, the principal 

amount of judgment entered in favor of Plaintiffs shall be reduced by the amount so accepted. 

The Parties agree that acceptance of partial payment shall not waive or in any way prejudice 

Plaintiffs’ rights to enforce this Stipulation or the Judgment entered against Defendants for the 

unpaid balance that would otherwise be due upon default as set forth in this Stipulation, less any 

amounts so accepted. 

19. Upon full payment of all sums due under this Stipulation and the Order and 

Judgment entered pursuant to this Stipulation, Plaintiff’s attorneys shall prepare and file a 

Satisfaction of Judgment with the Court. 

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20. Plaintiff Uesugi Farms and Defendants agree that an Order and Judgment may be 

entered in a form acceptable to this Court similar to, but not necessarily identical to, the 

Proposed Judgment that is attached to this Stipulation as Exhibit “1.” 

21. Nothing in this Stipulation, the Proposed Order and Judgment, or the installment 

nature of the payments being made under this Stipulation and the Order and Judgment, shall be 

deemed, interpreted, or otherwise construed as an extension of credit by Plaintiff to Defendants, 

nor as a waiver of Plaintiff's rights under the PACA trust provisions. 

22. The U.S. District Court for the Northern District of California shall retain 

exclusive jurisdiction over the parties to this action and to enforce and interpret this Stipulation 

and the Order and Judgment entered by the Court pursuant to this Stipulation. 

23. This Stipulation may be executed in counterparts, each of which shall together be 

construed as a single original document. A fully executed copy of this Stipulation, including 

facsimile signatures, may be used in lieu of the original for all purposes. 

24. The Parties, and each of them, acknowledge having had the opportunity to discuss 

this Stipulation with its or their own attorneys, and that they have availed themselves of that 

opportunity to the extent they have desired to do so. 

 25. All persons whose signatures appear below on behalf of a corporate party represent 

and warrant that they have the authority to execute this Stipulation on behalf of the corporate 

party and that by doing so have bound the corporate party to the terms of this Stipulation. Said 

/// 

/// 

/// 

/// 

/// 

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persons also represent that additional steps necessary to so bind the corporation, such as a 

corporate resolution, shall be promptly taken. 

IT IS SO STIPULATED & AGREED: 

Date: March 1, 2006 RED PONY PRODUCE, INC. 

 ________________________________ 

 By: 

 Title: 

Date: March 1, 2006 GARON B. HANDLEY 

 

 ________________________________ 

 Garon B. Handley 

Date: March 1, 2006 TROY G. BENNETT 

 

 ________________________________ 

Troy G. Bennett 

Date: March 1, 2006 UESUGI FARMS, INC. 

 ________________________________ 

 By: Pete Aiello 

 Title: Corporate Secretary 

 

[SIGNATURES CONTINUE ON NEXT PAGE]

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APPROVED AS TO FORM AND CONTENT:

Date: March 1, 2006 RYNN & JANOWSKY, LLP 

 

 /s/ Marion I. Quesenbery____________ 

 Marion I. Quesenbery 

Attorneys for Plaintiff Uesugi Farms, Inc. 

Date: March 1, 2006 MARTIN N. LETTUNICH 

 

 ________________________________ 

 Martin N. Lettunich 

 Attorney at Law 

235 Oak Meadow Dr 

Los Gatos, CA 95032-4401 

Telephone: (408) 395-3100 

Attorney for Defendants Red Pony Produce, Inc., 

Garon B. Handley, and Troy G. Bennett 

 

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EXHIBIT 1 

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ORDER AND JUDGMENT – Case No. C 06-00919 RMW – 1 

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PATRICIA J. RYNN, CA State Bar No. 092048 

MARION I. QUESENBERY, State Bar No. 072308 

RYNN & JANOWSKY, LLP 

P.O. Box 20799 

Oakland, CA 94620 

Telephone: (510) 705-8894 

Facsimile: (510) 705-8737 

Attorneys for Plaintiff 

UESUGI FARMS, INC. 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN JOSE DIVISION 

UESUGI FARMS, INC., a California 

corporation, 

Plaintiff, 

v. 

RED PONY PRODUCE, INC., a corporation; 

GARON B. HANDLEY, an individual; 

TROY G. BENNETT, an individual, 

Defendants.

CASE NO. C 06-00919 RMW 

 ORDER AND JUDGMENT 

Upon consideration of Plaintiff Uesugi Farms, Inc. ("Uesugi Farms") and Defendants 

Red Pony Produce (“Red Pony”), Garon B. Handley (“Handley”), and Troy G. Bennett’s 

(“Bennett”)(jointly “Defendants”) Stipulation for Entry of Judgment, it is: 

ORDERED that, under the Perishable Agricultural Commodities Act (“PACA”), 7 

U.S.C. § 499e(c), trust provisions, Plaintiff Uesugi Farms properly perfected its PACA trust 

rights against Defendants in the sum of $393,203.29, plus interest, all of which is past due and 

owing to Uesugi Farms, for perishable agricultural commodities sold to Defendant Red Pony 

from on or about November 19, 2004 through January 23, 2006. 

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ORDER AND JUDGMENT – Case No. C 06-00919 RMW – 2 

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ORDERED that the interest owed by Defendants on the $393,203.29 is $30,210.65 

through February 28, 2006. Interest shall continue to accrue thereafter at eighteen percent (18%) 

per annum until paid in full. However, if Defendants timely make all payments to Uesugi Farms 

according to the payment schedule below, the total interest payment through February 28, 2006 

shall be $16,783.70, and thereafter interest will accrue at ten percent (10%) per annum. 

ORDERED that Defendants shall also pay Uesugi Farms $5,000.00 in attorneys’ fees. 

However, if Defendants timely make all payments to Uesugi Farms according to the payment 

schedule below, no attorneys shall be due for any attorneys’ fees incurred prior to the date of this 

Order and Judgment. 

ORDERED THAT JUDGMENT BE AND IS HEREBY ENTERED in favor of Plaintiff 

Uesugi Farms and against Defendants Red Pony, Handley, and Bennett, jointly and severally, in 

the sum of $393,203.29, plus interest and attorneys fees, as provided in this Order and Judgment. 

ORDERED that Defendants shall pay this Judgment in the following installment 

payments: $250,000.00 within one day of the signing of this Stipulated Judgment, and a 

minimum of $10,000.00 on the first Tuesday of each month thereafter, beginning on April 4, 

2006, until the entire debt – including attorneys’ fees (if applicable) and interest – to Uesugi 

Farms is paid in full. 

 ORDERED that no execution shall issue upon this Order and Judgment nor shall Plaintiff 

take any action to collect or enforce this Order and Judgment, including but not limited to 

recording, abstracting, or causing the issuance of writs or other process to enforce collection, so 

long as Defendants are not in default of their obligations under this Order and Judgment. In the 

event Defendants fail to make any payment required by this Order and Judgment or default in the 

performance of any obligation under the Stipulation for Entry of Judgment, Plaintiff Uesugi 

Farms may immediately execute on and take all available actions to enforce the entire Judgment, 

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ORDER AND JUDGMENT – Case No. C 06-00919 RMW – 3 

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including all interest and attorneys’ fees due. Prior to executing on the Order and Judgment, 

however, Plaintiff shall give notice to Defendants that they are in default, which will be deemed 

given by Plaintiff to Defendants (a) upon faxing the notice to Defendants’ attorney at fax number 

(408) 395-3120 or at such fax number as Defendants may notify Plaintiff’s attorney in writing or 

(b) upon delivery (by overnight service, such as FedEx, or otherwise) of the notice to 

Defendants’ attorney’s office, at the address set forth under his signature below, or at such other 

address as Defendants may notify Plaintiff’s attorney in writing. Defendant shall then have five 

(5) business days from such notification within which to cure the default. 

 ORDERED that should Defendants fail to cure any default in the performance of their 

obligations under this Order and Judgment or the Stipulation for Entry of Judgment, after notice 

of default and two business days to cure default, Plaintiff may enforce this Order and Judgment 

based solely on the Stipulation for Entry of Judgment and this Order and Judgment, together with 

the declaration(s) of Plaintiff and/or Plaintiff’s attorney confirming that Defendants have 

defaulted on the payment terms or other obligation of the Stipulation for Entry of Judgment or 

this Order and Judgment. In addition, based on the same evidence, the Court may immediately 

enter a Temporary Restraining Order, ex parte, prohibiting Defendants, their agents, officers, and 

banking institutions from dissipating, paying over, assigning, or otherwise transferring any assets 

of Defendant Red Pony. 

 ORDERED that should Defendants fail to cure any default in the performance of their 

obligations under this Order and Judgment, Defendants shall immediately (1) execute any and all 

documents provided by Plaintiff’s attorney as are reasonably necessary to assign Defendants’ 

accounts receivable to Plaintiff Uesugi Farms, which shall be collected and applied to the unpaid 

balances due under this Stipulation, and (2) provide immediate access to all books and records 

evidencing the outstanding accounts receivable and other financial records of Defendants. 

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ORDER AND JUDGMENT – Case No. C 06-00919 RMW – 4 

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ORDERED that Defendant Handley, to secure payment of the sums due from Defendants 

to Uesugi Farms pursuant to this Order and Judgment, shall – within 5 business days – grant a 

deed of trust to Uesugi Farms on his and his wife’s two-third’s (2/3) ownership interest in his 

residence in Greenfield, California. If Defendants are in default of any of their obligations (after 

the five day cure period) in this Order and Judgment, Plaintiff may record the Deed of Trust; 

otherwise, Plaintiff shall not record the Deed of Trust. Defendant Handley shall not encumber 

the property in any way until all sums due under this Order and Judgment have been paid in full 

to Uesugi Farms, at which time Uesugi Farms shall immediately reconvey the deed of trust. 

ORDERED that Plaintiff shall be entitled to actual attorneys’ fees and costs incurred by 

Plaintiff to enforce this Order and Judgment, to force Defendants to perform their obligations 

under the Stipulation for Entry of Judgment, and/or to otherwise collect the debt owing to 

Plaintiff by Defendants. 

ORDERED that the occurrence of any one of the following events prior to payment in 

full of the sums due under this Order and Judgment shall be deemed an event of default entitling 

Plaintiff to seek immediate enforcement of judgment without further notice to Defendants: (a) 

Either Defendant Red Pony or Defendant Handley is named in a petition in bankruptcy, filed 

voluntarily or involuntarily, or otherwise seek the protection of the bankruptcy laws of any 

competent jurisdiction, or (b) Defendants Red Pony ceases business operations for any reason 

whatsoever. 

ORDERED that nothing in this Order and Judgment, the Stipulation for the Entry of 

Judgment, or the installment nature of the payments made under this Order and Judgment shall 

be deemed, interpreted, or otherwise construed as a waiver of (1) any rights Plaintiff may have 

under the PACA, including, but not limited to, its PACA trust rights, (2) Plaintiff’s ability to 

enforce its PACA trust rights against Defendants should Defendants fail to cure any default in 

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ORDER AND JUDGMENT – Case No. C 06-00919 RMW – 5 

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P.O. BOX 20799 

OAKLAND, CALIFORNIA 94620 

(510) 705-8894 

FAX (510) 705-8737

the performance of their obligations under this Order and Judgment or under the Stipulation for 

Entry of Judgment, or (3) Plaintiff’s ability to enforce their PACA trust rights against third party 

creditors of Defendant Red Pony. 

ORDERED that upon full payment of all sums due under this Order and Judgment 

Plaintiff’s attorneys shall prepare and file a Satisfaction of Judgment with the Court. 

ORDERED that the United States District Court for the Northern District of California 

shall retain exclusive jurisdiction over the parties to this action and to enforce and interpret this 

Order and Judgment and the Stipulation for Entry of Judgment. 

DATE:__________________ ______________________________ 

 HON. RONALD M. WHYTE 

 JUDGE, U.S. DISTRICT COURT 

Case 5:06-cv-00919-RMW Document 9 Filed 03/17/06 Page 18 of 18