Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-05927/USCOURTS-cand-3_06-cv-05927-5/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:1132 E.R.I.S.A.: Employee Benefits

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Conditional Stipulation for Judgment; [Proposed] Judgment (Case No. C 06-05927 MHP)

WEINBERG, ROGER & 

ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway 

Suite 200 

Alameda, CA 94501-1091 

510.337.1001

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LINDA BALDWIN JONES, Bar No. 178922 

ANDREA LAIACONA, Bar No. 208742 

KRISTINA M. ZINNEN, Bar No. 245346 

WEINBERG, ROGER & ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway, Suite 200 

Alameda, California 94501-1091 

Telephone 510.337.1001; Fax 510.337.1023 

Attorneys for Plaintiffs 

M. BRETT BURNS (pro hac vice) 

AKIN, GUMP, STRAUSS, HAUER & FELD, LLP 

2029 Century Park East, Suite 2400 

Los Angeles, CA 90067 

Telephone 310.229.1000; Fax 310.229.1001 

Attorneys for Defendants William A. Shirley 

 and California Spray Dry Co. 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

PAUL BENSI, BART FLORENCE, JERRY 

KALMAR, and LYLE SETTER, in 

their capacities as Trustees of the WELFARE FUND 

OF STATIONARY ENGINEERS LOCAL 39; 

PENSION FUND OF STATIONARY ENGINEERS 

LOCAL 39; and ANNUITY TRUST FUND OF 

STATIONARY ENGINEERS LOCAL 39, 

 

 Plaintiffs, 

 v. 

JOHN J. PODESTO, Individually and doing business 

as CALIFORNIA SPRAY DRY CO; JEFFREY D. 

PODESTO, Individually and doing business as 

CALIFORNIA SPRAY DRY CO; WILLIAM A. 

SHIRLEY, Individually and doing business as 

CALIFORNIA SPRAY DRY CO; JERROLD L. 

BALL, Individually and doing business as 

CALIFORNIA SPRAY DRY CO; CALIFORNIA 

SPRAY DRY CO, 

 Defendants. 

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No. C 06-05927 MHP 

CONDITIONAL STIPULATION 

FOR JUDGMENT; [PROPOSED] 

JUDGMENT

IT IS HEREBY STIPULATED and agreed by and between Plaintiffs Paul Bensi, Bart 

Florence, Jerry Kalmar and Lyle Setter, in their capacities as Trustees of the Welfare Fund of 

Stationary Engineers Local 39, Pension Fund of Stationary Engineers Local 39 and Annuity Trust 

Case 3:06-cv-05927-MHP Document 53 Filed 12/12/07 Page 1 of 11
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Conditional Stipulation for Judgment; [Proposed] Judgment (Case No. C 06-05927 MHP)

WEINBERG, ROGER & 

ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway 

Suite 200 

Alameda, CA 94501-1091 

510.337.1001

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Fund of Stationary Engineers Local 39 (hereinafter “Plaintiffs”) and Defendants California Spray 

Dry and William A. Shirley (hereinafter “Defendants”) as follows: 

1. Plaintiffs have brought the above-captioned action against Defendants seeking the 

payment of any unpaid fringe benefit contributions for hours worked between February 2006 and 

May 2007, interest and liquidated damages on said unpaid contributions. Plaintiffs sought 

liquidated damages and interest on contributions which were paid late for hours worked September 

2005, November 2005, December 2005, January 2006 and March 2006 as well as all attorneys’ 

fees and costs incurred in connection with this action. Together, these amounts total $115,640.10. 

Plaintiffs also sought an audit of Defendants’ books and records for a subsequent time period not 

covered in the previous audit performed in 2003. 

2. The Parties are desirous to settle this action and hereby stipulate and agree to settle 

this action under the terms set forth below. This Conditional Stipulation for Judgment 

memorializes the terms agreed to by the Parties; to the extent that it differs from or varies from any 

previous writing between the Parties relating to the matters resolved herein, this Conditional 

Stipulation for Judgment shall supersede and replace such other communications and/or 

agreements. 

3. Defendant California Spray Dry agrees to have a Conditional Stipulation of 

Judgment entered against it as follows: Defendant California Spray Dry agrees to pay the total 

sum of $115,640.10, consisting of unpaid fringe benefit contributions, interest and liquidated 

damages in the amount of $100,640.10, and attorneys’ fees and costs incurred herein in the amount 

of $15,000.00. Plaintiffs agree to refrain from requesting that the Court enter an irrevocable 

Judgment as stipulated herein adverse to Defendant California Spray Dry so long as Defendants 

fully comply with all the conditions set forth herein. Plaintiffs and Defendants agree to refrain 

from requesting that the Court decide the issue of whether or not Defendant William A. Shirley is 

an employer within the meaning of ERISA and whether or not Defendant William A. Shirley is 

liable for any of the amounts Plaintiffs sought in this action so long as Defendants fully comply 

with all the conditions set forth herein. It is further stipulated and agreed by the Parties that the 

Court (United States District Court, Northern District of California) shall retain jurisdiction over 

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Conditional Stipulation for Judgment; [Proposed] Judgment (Case No. C 06-05927 MHP)

WEINBERG, ROGER & 

ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway 

Suite 200 

Alameda, CA 94501-1091 

510.337.1001

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Defendant William A. Shirley until the latter of : (1) the events described in Paragraph 8 are 

resolved; or (2) the conditions in Paragraph 9 are met. 

4. Defendant California Spray Dry shall pay Plaintiffs the total amount of $105,000.00 

as set forth in this paragraph as part of this stipulated settlement in five installments. Each 

installment shall be made by check, payable to the “Stationary Engineers Local 39 Trust Funds”, 

and sent to Plaintiffs’ counsel, Weinberg, Roger & Rosenfeld, 1001 Marina Village Parkway, Suite 

200, Alameda, California 94501, attention Linda Baldwin Jones. Defendant California Spray Dry 

shall pay the amounts due as follows: 

Due Date of Payment Amount of Payment

July 15, 2007 $15,000.00 

August 15, 2007 $10,000.00 

September 15, 2007 $10,000.00 

September 30, 2007 $35,000.00 

December 31, 2007 $35,000.00 

Plaintiffs and Defendants each understand and agree that any modification of payments must be 

made in writing and agreed to by both the Plaintiffs and the Defendants. 

 5. Defendant California Spray Dry agrees to remain bound to the applicable collective 

bargaining agreement and comply with its obligations to submit all fringe benefit contributions to 

the Trust Funds in a timely manner pursuant to the terms of the applicable collective bargaining 

agreements and Trust Agreements. 

6. It is further stipulated and agreed by the parties hereto that if Defendant California 

Spray Dry fails to stay current as described in Paragraph 5 or fails to make any of the scheduled 

payments listed above in Paragraph 4, the Conditional Stipulation for Judgment shall become an 

irrevocable Judgment as to Defendant California Spray Dry, and Plaintiffs may then execute upon 

the entire Judgment in the full amount of $115,640.10 as described in Paragraphs 1 and 3, minus 

the amount of any payments actually received, together with interest that shall have accrued 

thereon. In such an event, there shall be added to Defendant California Spray Dry’s obligation 

under a modification to this Conditional Stipulation for Judgment (which shall become an 

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Conditional Stipulation for Judgment; [Proposed] Judgment (Case No. C 06-05927 MHP)

WEINBERG, ROGER & 

ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway 

Suite 200 

Alameda, CA 94501-1091 

510.337.1001

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irrevocable Judgment) reasonable attorneys’ fees, court costs, and other reasonable expenses 

incurred by Plaintiffs in connection with such suit or claim, including any and all appellate 

proceedings therein. Plaintiffs will take this action only after ten (10) days written notice to the 

Defendant California Spray Dry and its counsel that Plaintiffs or Plaintiffs’ counsel declares a 

default and intends to file a Declaration stating that a default has occurred on the part of Defendant 

California Spray Dry and that the Conditional Stipulation for Judgment shall become an 

irrevocable Judgment. Notice to Defendant California Spray Dry and its counsel shall be provided 

via facsimile, electronic mail or regular mail to: 

 California Spray Dry (Modesto Tallow Co. dba California Spray Dry) 

Attention: Kathy Kirby, Controller 

2621 State St. 

Dallas, TX 75204 

Phone: (214) 871-0600 

Fax: (214) 871-8707 

 Counsel for California Spray Dry 

Akin Gump Strauss Hauer & Feld LLP 

Attention: M. Brett Burns 

1700 Pacific Avenue, Suite 4100 

Dallas, TX 75201 

Phone: (214) 969-4284 

Fax: (214) 969-4343 

Plaintiffs will provide Defendant William A. Shirley via facsimile, electronic mail or regular mail 

with a copy of the Notice sent to Defendant California Spray Dry and its counsel at Bill Shirley, 

President, Modesto Tallow Co. dba California Spray Dry, 2621 State St., Dallas, TX 75204, 

Phone: (214) 871-0600, Fax: (214) 871-8707. 

7. Notwithstanding Paragraph 6, any payments actually received on or before 

November 2, 2007, provided said payments have been deposited and cleared the bank upon which 

they were drawn, shall be deemed timely and accordingly shall not trigger Plaintiffs' right to 

execute upon the entire Judgment and other amounts described in Paragraph 6. 

8. It is further stipulated and agreed by the parties hereto that if Defendant California 

Spray Dry fails to stay current as described in Paragraph 5 or fails to make any of the scheduled 

payments listed above in Paragraph 4, the United States District Court, Northern District of 

California, shall retain jurisdiction to decide whether or not Defendant William A. Shirley is an 

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Conditional Stipulation for Judgment; [Proposed] Judgment (Case No. C 06-05927 MHP)

WEINBERG, ROGER & 

ROSENFELD 

A Professional Corporation 

1001 Marina Village Parkway 

Suite 200 

Alameda, CA 94501-1091 

510.337.1001

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employer within the meaning of ERISA and whether or not Defendant William A. Shirley is 

liable for any of the amounts Plaintiffs sought in the Conditional Stipulation for Judgment (which 

shall become an irrevocable Judgment). If the Court decides in Plaintiffs’ favor as to Defendant 

William A. Shirley, the Court shall amend the Stipulation for Judgment so that it is also entered 

against Defendant William A. Shirley. 

9. It is further stipulated and agreed by the parties hereto that upon Defendant 

California Spray Dry making of all payments required by this Agreement as described in Paragraph 

4 above on the dates specified above, or sooner, and upon the funds having been deposited and 

cleared the bank upon which they were drawn, and if Defendants do not default on any other 

material condition contained herein, the Conditional Stipulation for Judgment shall be deemed paid 

in full. Plaintiffs shall immediately thereafter cause their counsel to execute and file a Dismissal 

with Prejudice, which shall be entered by the Court and vacate the Conditional Stipulation for 

Judgment against Defendants. 

10. It is further stipulated and agreed that if California Spray Dry is sold or closed, this 

Conditional Stipulation for Judgment shall be binding on its successors, heirs, and assigns 

regardless0 of whether it changes the name or style or address of the business. 

11. The provisions set forth in this Conditional Stipulation for Judgment are not in 

violation of any state or federal law. However, if any portion of this Conditional Stipulation for 

Judgment is found to be in violation of any state or federal law, Defendant California Spray Dry 

agrees to continue to pay the indebtedness outlined herein in Paragraph 4. 

12. The Parties acknowledge they have each had the opportunity to be represented by 

independent legal counsel of their own choice throughout all of the negotiations that preceded the 

execution of this Conditional Stipulation for Judgment. Plaintiffs and Defendants further 

acknowledge that they have had adequate opportunity to perform whatever investigation or inquiry 

each deemed necessary in connection with the subject matter of this Conditional Stipulation for 

Judgment prior to its execution, and agree with the delivery and acceptance of the considerations 

specified in this Conditional Stipulation for Judgment. 

13. The Parties hereto stipulate and agree that nothing herein prevents the Plaintiffs 

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November 6, 2007

U

NITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IT IS SO ORDERED

Judge Marilyn H. Patel

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