Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_00-cv-00583/USCOURTS-caed-2_00-cv-00583-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1001 E.R.I.S.A.: Employee Retirement

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CONSENT JUDGMENT Page 1 of 5

Case No. CIV-S-00-0583 LKK/JFM 

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TIMOTHY D. HAUSER, Associate Solicitor 

THERESA S. GEE, Senior Trial Attorney, CA SBN 136241 

Office of the Solicitor, Plan Benefits Security Division 

United States Department of Labor 

200 Constitution Avenue, N. W., Room N-4611 

Washington, DC 20210 

Telephone: (202) 693-5588 

Facsimile: (202) 693-5610 

E-mail: gee.theresa@dol.gov

Attorneys for Plaintiff ELAINE L. CHAO 

Secretary of Labor, United States Department of Labor 

THE UNITED STATES DISTRICT COURT FOR THE 

EASTERN DISTRICT OF CALIFORNIA 

SACRAMENTO DIVISION 

ELAINE L. CHAO, Secretary of Labor, 

United States Department of Labor, 

Plaintiff, 

v. 

VICTOR L. SHADA, Jr., an individual; RON COSTA, 

an individual; TERRY SMITH, an individual; TOBY 

LOUDEN, an individual; RON REA, an individual; 

PATRICK C. McLAUGHLIN, an individual; 

McLAUGHLIN and ASSOCIATES, INC., a California 

corporation; CLAIMS BENEFIT INSURANCE 

ADMINISTRATORS, INC., a California corporation; 

and PACIFIC STATES HEALTH AND WELFARE 

TRUST, formerly known as TEAMSTERS 

MISCELLANEOUS EMPLOYEES HEALTH AND 

WELFARE TRUST, an employee welfare benefit plan, 

Defendants. 

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Case No. 

CIV-S-00-0583 LKK/JFM 

CONSENT JUDGMENT 

AS TO DEFENDANTS 

VICTOR L. SHADA, Jr., 

RON COSTA, 

TERRY SMITH, 

TOBY LOUDEN AND 

RON REA 

This action was filed by plaintiff ELAINE L. CHAO, Secretary of Labor, UNITED 

STATES DEPARTMENT OF LABOR ("Secretary"), alleging that defendants Victor L. 

Shada, Jr., Ron Costa, Terry Smith, Toby Louden and Ron Rea (collectively “Settling 

Case 2:00-cv-00583-LKK -JFM Document 205 Filed 08/17/05 Page 1 of 5
CONSENT JUDGMENT Page 2 of 5

Case No. CIV-S-00-0583 LKK/JFM 

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Defendants”) breached their fiduciary duties under Title I of the Employee Retirement 

Income Security Act of 1974, as amended ("ERISA"), 29 U.S.C. §§ 1001 et seq., in 

connection with the Pacific States Health and Welfare Trust, formerly known as the 

Teamsters Miscellaneous Employees Health and Welfare Trust ("Trust"), and seeking to 

enjoin further violations of ERISA and to obtain other equitable relief. The Trust was 

named as a defendant pursuant to Rule 19 of the Federal Rules of Civil Procedure so that 

complete relief could be granted. 

The Settling Defendants admit that the Court has jurisdiction of this action 

pursuant to ERISA § 502(e)(1), 29 U.S.C. § 1132(e)(1), and that venue lies in the Eastern 

District of California pursuant to ERISA § 502(e)(2), 29 U.S.C. § 1132(e)(2). 

The parties hereto have agreed that this Consent Judgment shall fully settle all 

claims of the Secretary against the Settling Defendants relating to the administration of the 

Trust, including those asserted in the Amended Complaint against the Settling Defendants. 

The parties hereto having agreed to the entry of this Consent Judgment, and it 

appearing that the Court has jurisdiction over the parties and subject matter of this action 

and that the Court is empowered to provide the following equitable relief, 

IT IS HEREBY ORDERED, ADJUDGED AND DECREED: 

1. Defendant Victor L. Shada, Jr. admits, in retrospect, that he did not at all 

times carefully and prudently manage the Trust, which was in violation of Title I of 

ERISA, 29 U.S.C. §§ 1001, et seq. 

2. Defendant Ron Costa admits, in retrospect, that he did not at all times 

carefully and prudently manage the Trust, which was in violation of Title I of ERISA, 29 

U.S.C. §§ 1001, et seq. 

3. Defendant Toby Louden admits, in retrospect, that she did not at all times 

carefully and prudently manage the Trust, which was in violation of Title I of ERISA, 29 

U.S.C. §§ 1001, et seq. 

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CONSENT JUDGMENT Page 3 of 5

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4. The Settling Defendants shall be permanently enjoined from acting as 

fiduciaries of or service providers to any trust or plan covered by ERISA. 

5. The Settling Defendants shall be permanently enjoined from any violations 

of ERISA §§ 404(a)(1) and 406(a) and (b), 29 U.S.C. §§ 1104(a)(1) and 1106(a) and (b). 

6. Each party hereto agrees to bear its own fees and other expenses incurred 

by such party in connection with any stage of this proceeding, including but not limited to 

attorneys' fees which may be available under the Equal Access to Justice Act, as amended. 

7. The Settling Defendants expressly waive any and all claims of any nature 

which he or she has or may have against the Secretary, the Department of Labor, or any of 

its officers, agents, attorneys, employees or representatives, arising out of or in connection 

with the allegations contained in the Amended Complaint on file in this action, any other 

proceedings or investigation incident thereto or based on the Equal Access to Justice Act, 

as amended. 

8. Nothing in this Consent Judgment is binding on any governmental agency 

other than the United States Department of Labor. 

9. Nothing in this Consent Judgment is binding on the rights of any person 

who may bring suit against the Settling Defendants in connection with the Trust. 

10. This Consent Judgment represents a full, final and complete judicial 

resolution of all claims alleged in the Amended Complaint against the Settling 

Defendants. 

11. This Court shall retain jurisdiction of this matter for purposes of enforcing 

this Consent Judgment. 

12. By signing their names to this Consent Judgment, the parties represent that 

they are informed and understand the effect and purpose of this Consent Judgment. 

13. This Consent Judgment may be executed in counterparts, each of which 

shall be deemed to be an original, but all of which, taken together, shall constitute one and 

the same instrument. 

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CONSENT JUDGMENT Page 4 of 5

Case No. CIV-S-00-0583 LKK/JFM 

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IT IS SO ORDERED. 

Dated: August 16, 2005. /s/Lawrence K. Karlton 

 HON. LAWRENCE K. KARLTON 

 United States District Court Judge 

Entry of this Consent Judgment is hereby consented to: 

Dated: _August_____ _5__, 2005 HOWARD M. RADZELY 

 Solicitor of Labor 

 

 TIMOTHY D. HAUSER 

 Associate Solicitor 

 

 

 By:__________/s/___________________ 

 THERESA S. GEE, 

 Senior Trial Attorney 

 Attorneys for Plaintiff 

 ELAINE L. CHAO, Secretary of Labor, 

 U.S. DEPARTMENT OF LABOR 

Dated: ___March____ _23_, 2005 ____________/s/_____________________ 

 VICTOR L. SHADA, Jr. 

Dated: ___March____ __24, 2005 ___________/s/______________________ 

 RON COSTA 

Dated: ___March____ __23, 2005 __________/s/______________________ 

 TOBY LOUDEN 

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CONSENT JUDGMENT Page 5 of 5

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Dated: ___April ___ __13, 2005 _________/s/_______________________ 

 TERRY SMITH 

Dated: ___March____ __25, 2005 ________/s/_______________________ 

 RON REA 

Approved as to form: 

Dated: ___April ___ __15, 2005 BEESON, TAYER & BODINE 

 By:_______/s/______________________ 

 JOHN PROVOST 

 Attorneys for Defendants 

 VICTOR L. SHADA, Jr., RON COSTA, 

 TOBY LOUDEN, TERRY SMITH and 

 RON REA 

Case 2:00-cv-00583-LKK -JFM Document 205 Filed 08/17/05 Page 5 of 5