Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-03546/USCOURTS-caed-2_09-cv-03546-2/pdf.json

Parties Involved:
Kobra Associates, Inc. d/b/a Jack in the Box
Defendant
U.S. Equal Employment Opportunity Commission
Plaintiff

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William R. Tamayo, SBN 084965 

David Offen-Brown, SBN 063321 

Dana C. Johnson, SBN 187341 

U.S. EQUAL EMPLOYMENT 

OPPORTUNITY COMMISSION 

350 The Embarcadero, Suite 500 

San Francisco, CA 94105-1260 

Telephone: (415) 625-5697 

Facsimile: (415) 625-5657 

E-mail: dana.johnson@eeoc.gov

Attorneys for Plaintiff EEOC 

Jeffrey S. Bosley, SBN 167629 

E-mail: jbosley@winston.com Richard A. Lapping, SBN 107496 

E-mail: rlapping@winston.com WINSTON & STRAWN LLP 

101 California Street 

San Francisco, CA 94111-5802 

Telephone: (415) 591-1000 

Facsimile: (415) 591-1400 

Attorneys for the Duly Appointed 

Chapter 11 Trustee of Defendant and 

Debtor Kobra Associates, Inc., 

Beverly N. McFarland 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

U.S. EQUAL EMPLOYMENT 

OPPORTUNITY COMMISSION, 

 Plaintiff, 

 vs. 

KOBRA ASSOCIATES, INC. d/b/a 

JACK IN THE BOX, 

 Defendant. 

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Case No. 2:09-CV-03546-MCE-JFM 

STIPULATION AND ORDER TO 

REOPEN CASE AND STAY 

ACTION FOR SIXTY DAYS 

Case 2:09-cv-03546-MCE -JFM Document 20 Filed 06/07/10 Page 1 of 4
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INTRODUCTION

 On December 22, 2009, Plaintiff U.S. Equal Employment Opportunity 

Commission (“EEOC”), filed suit against Defendant Kobra Associates, Inc. 

(“Defendant”), alleging that Defendant permitted a sexually harassing environment 

to develop in its Paradise, California store, in violation of Title VII of the Civil 

Rights Act of 1964, as amended. 43 U.S.C. § 2000e et seq. The EEOC’s 

complaint contained a request for a jury trial, and a prayer for both monetary 

damages and non-monetary injunctive relief. 

After filing its complaint in the District Court, the EEOC filed a proof of 

claim in an estimated amount of $930,000.00 with the bankruptcy court in which 

Defendant had filed for bankruptcy protection.1

 The EEOC’s monetary claim is 

contingent and unliquidated. The EEOC believes that, absent a stipulation of the 

parties on liability, the appropriate mechanism to remove the contingency and 

liquidate the claim is through a jury finding of liability for the sexually hostile 

environment and an award of damages in a specific amount; the duly appointed 

Chapter 11 Trustee for Defendant debtor disagrees such relief is required before 

the EEOC’s monetary claims can be liquidated. 

On May 13, 2010, the EEOC filed a consent decree with the Court in which 

the purchaser of Defendant’s Paradise, California store, TBS Foods, agreed to 

perform certain acts over the next two years satisfying the EEOC’s prayer for nonmonetary injunctive relief. (Docket No. 15) This Court signed the Consent Decree 

on May 18, 2010. (Docket No. 17) It concurrently ordered the entire action to be 

dismissed with prejudice, notwithstanding that the consent decree expressly 

resolved only the non-monetary injunctive claim and did not address the issue of 

 

1 In re Kobra Associates, Inc., Case No. 09-40068, filed in the Bankruptcy Court for the Eastern District of California, Sacramento Division, subsequently consolidated with three related cases to be jointly administered in the same venue 

as In re Food Services Management, et al., Case No. 09-40066.

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Defendant’s liability or the EEOC’s monetary claim against it. (See Docket No. 

17, 2:18-24). 

The EEOC and Defendant, through its duly appointed Chapter 11 Trustee, 

(collectively, the “Parties”) hereby stipulate as follows: 

WHEREAS, this Court’s dismissal of the above-captioned lawsuit with 

prejudice in its entirety deprives the EEOC of the mechanism it seeks by which 

liability and monetary damages on its claim may be determined; 

WHEREAS, the Parties believe that events expected to take place in the 

bankruptcy court proceeding within the next sixty days may further a mutually 

agreeable resolution of the above-captioned action; 

THEREFORE, the Parties stipulate and respectfully request that this Court, 

pursuant to Federal Rules of Civil Procedure 60(a), (b)(1) or (b)(6), issue an Order 

reversing its dismissal of the above-captioned action with prejudice as to the issues 

of liability and monetary damages, and Order that the action be reinstated; and 

 FURTHERMORE, the parties stipulate and respectfully request that this 

Court stay all proceedings in this matter for sixty (60) days from entry of this 

Order, including Defendant’s motion to dismiss (Docket No. 6). 

 Respectfully submitted, 

Dated: June 2, 2010 U.S. EQUAL EMPLOYMENT 

 OPPORTUNITY COMMISSION 

 By: /s/ 

 Dana C. Johnson 

 Attorney for Plaintiff EEOC 

 

Dated: June 1, 2010 WINSTON & STRAWN LLP 

Case 2:09-cv-03546-MCE -JFM Document 20 Filed 06/07/10 Page 3 of 4
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By: /s/ as authorized by Jeffrey Bosley 

on 6/1/10)

 Jeffrey S. Bosley 

Attorney for the Duly Appointed Chapter 11 

Trustee of Defendant Kobra Associates, 

Inc., Beverly N. McFarland 

IT IS SO ORDERED. 

Dated: 06/04/2010

__________________________________ 

MORRISON C. ENGLAND, JR 

UNITED STATES DISTRICT JUDGE

 _____________ ___________________________ 

Case 2:09-cv-03546-MCE -JFM Document 20 Filed 06/07/10 Page 4 of 4