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Parties Involved:
American Contractors Indemnity Company
Defendant
Apprentice and Journeyman Affirmative Action Training Fund
Plaintiff
John Bonilla
Plaintiff
Business Development Trust Fund
Plaintiff
Contract Administration Fund
Plaintiff
Gil Crosthwaite
Plaintiff
Heavy and Highway Committee
Plaintiff
Operating Engineers And Participating Employers Pre-apprenticeship
Plaintiff
Operating Engineers Annuity Trust Fund
Plaintiff
Operating Engineers Industry Stabilization Trust Fund
Plaintiff
Operating Engineers Market Preservation Fund
Plaintiff
Operating Engineers Vacation And Holiday Plan
Plaintiff
Pension Trust Fund For Operating Engineers
Plaintiff
Pensioned Operating Engineers Health And Welfare Fund
Plaintiff
Tracy Glen Phillips
Defendant
Travelers Casualty and Surety Company of America
Defendant
Tretheway, Inc.
Defendant

Document Text:

_____________________________________________________________________________________________ 

STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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Tracy L. Mainguy, Bar No. 176928 

Operating Engineers Local Union No. 3 Trust Funds - Multi-Services 

1620 South Loop Road 

Alameda, CA 94502 

(510) 748-7474 

Attorney for Plaintiffs 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

(SAN FRANCISCO HEADQUARTERS) 

GIL CROSTHWAITE and JOHN BONILLA, 

in their respective capacities as Trustees of the 

OPERATING ENGINEERS HEALTH AND 

WELFARE TRUST FUND FOR 

NORTHERN CALIFORNIA; PENSION 

TRUST FUND FOR OPERATING 

ENGINEERS; PENSIONED OPERATING 

ENGINEERS HEALTH AND WELFARE 

FUND; OPERATING ENGINEERS 

ANNUITY TRUST FUND; OPERATING 

ENGINEERS AND PARTICIPATING 

EMPLOYERS PRE-APPRENTICESHIP; 

APPRENTICE AND JOURNEYMAN 

AFFIRMATIVE ACTION TRAINING 

FUND; OPERATING ENGINEERS 

VACATION AND HOLIDAY PLAN; 

CONTRACT ADMINISTRATION FUND; 

OPERATING ENGINEERS MARKET 

PRESERVATION FUND; OPERATING 

ENGINEERS INDUSTRY STABILIZATION 

TRUST FUND; BUSINESS 

DEVELOPMENT TRUST FUND; and 

HEAVY AND HIGHWAY COMMITTEE, 

 Plaintiffs, 

 vs. 

TRETHEWAY, INC.; TRACY GLEN 

PHILLIPS; AMERICAN CONTRACTORS 

INDEMNITY COMPANY; TRAVELERS 

CASUALTY AND SURETY COMPANY OF 

AMERICA, 

 Defendants. 

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Case No.: C 06-05286 MMC 

STIPULATION FOR ENTRY OF 

JUDGMENT AGAINST DEFENDANTS 

TRETHEWAY, INC. AND TRACY 

GLENN PHILLIPS; ORDER THEREON 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 1 of 10
_____________________________________________________________________________________________ 

STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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Plaintiffs GIL CROSTHWAITE and JOHN BONILLA, in their respective capacities as 

Trustees of the OPERATING ENGINEERS HEALTH AND WELFARE TRUST FUND FOR 

NORTHERN CALIFORNIA, PENSION TRUST FUND FOR OPERATING ENGINEERS, 

PENSIONED OPERATING ENGINEERS HEALTH AND WELFARE TRUST FUND, 

OPERATING ENGINEERS AND PARTICIPATING EMPLOYERS PRE-APPRENTICESHIP, 

APPRENTICE AND JOURNEYMAN AFFIRMATIVE ACTION TRAINING FUND, 

OPERATING ENGINEERS VACATION AND HOLIDAY PLAN, OPERATING ENGINEERS 

CONTRACT ADMINISTRATION TRUST, OPERATING ENGINEERS MARKET 

PRESERVATION FUND, OPERATING ENGINEERS INDUSTRY STABILIZATION TRUST 

FUND, BUSINESS DEVELOPMENT FUND and HEAVY AND HIGHWAY COMMITTEE 

(“Plaintiffs”) and Defendants TRETHEWAY, INC. and TRACY GLENN PHILLIPS 

(collectively referred to as “Defendants”) do hereby stipulate and agree as follows: 

RECITALS OF FACT 

1. At all times relevant hereto, TRETHEWAY, INC., was, and is, bound to a written 

collective bargaining agreement with Operating Engineers Local Union No. 3 of the 

International Union of Operating Engineers entitled “INDEPENDENT Northern California 

Construction Agreement for Northern California”. The collective bargaining agreement 

incorporates by reference the Master Agreement For Northern California between the Operating 

Engineers Local Union No. 3 of the International Operating Engineers, AFL-CIO and 

Associated General Contractors of California, Inc., Association of Construction employers, 

Association of Engineering Construction Employers, Engineering and Utility Contractors 

Association and Industrial Contractors UMIC, Inc. (“Master Agreement”), and the Trust 

Agreements referenced in the Master Agreement. 

2. Pursuant to the Master Agreement, THRETHEWAY, INC. is required to make 

contributions to each of the above-captioned Operating Engineers Trust Funds for each hour of 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 2 of 10
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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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work performed by its employees, who are covered by the Master Agreement. The Operating 

Engineers Trust Funds utilize a self-reporting system to collect contributions. The signatory 

employers must submit monthly reports by the 15th day of the month after which the work 

covered by the Master Agreement was completed indicating the number of hours worked by their 

covered employees that month and the contributions owed as a result of such work being 

performed. Failure to remit the contributions results in damages of fifteen percent of the 

contributions being assessed against the employer. The principal of TRETHEWAY, INC., 

TRACY GLENN PHILLIPS, personally guaranteed the amounts payable by the Operating 

Engineers Trust Funds to TRETHEWAY, INC. pursuant to TRETHEWAY, INC.’s collective 

bargaining agreement with the Union and the Master Agreement and Trust Agreements 

incorporated therein. 

3. During the period beginning July of 2004 to date, the employees of 

TRETHEWAY, INC. performed covered work based upon which TRETHEWAY, INC. reported 

that TRETHEWAY, INC. owes the Operating Engineers Trust Funds the sum of $121,102.61. 

The calculation of the aforementioned liability is based solely on the Employer Reports of 

Contributions remitted by THRETHEWAY, INC. indicating the number of hours in the relevant 

month and contributions owed as a result of such work being performed. TRETHEWAY, INC. 

failed to remit the payments owed for the corresponding Employer Reports of Contribution by 

the fifteenth day of the month after which the work was performed. Therefore, the Defendants, 

and each of them, owe liquidated damages and interest in the amount totaling $106,442.42 to the 

Operating Engineers Trust Funds. 

4. In light of TRETHEWAY, INC.’s failure to pay contributions and liquidated 

damages owed to the Operating Engineers Trust Funds, questions arose concerning the lack of 

compliance by TRETHEWAY, INC. with the provisions requiring the prompt and correct 

payment of all Trust Fund contributions. Good cause appearing, as a consequence, two audits 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 3 of 10
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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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were conducted of TRETHEWAY, INC.’s books and records in accordance with the provisions 

of the Trust Agreements. The first audit revealed that TRETHEWAY, INC. owes unpaid fringe 

benefit contributions to the Trust Funds in the amount of $17,187.40, and liquidated damages 

and interest in the amount of $7,658.06, to the Plaintiffs based upon hours of work that were 

under-reported to the Trust Funds. The first audit also revealed that TRETHEWAY, INC. owes 

the Pensioned Operating Engineers Trust Funds the sum of $53,780.93 based upon its violations 

of the provision of the Master Agreement that prohibits TRETHEWAY, INC. from hiring nonunion subcontractors to perform covered work. The second audit revealed that TRETHEWAY, 

INC. owes unpaid fringe benefit contributions to the Trust Funds in the amount of $12,620.76 

and unpaid liquidated damages and interest in the amount of $4,972.68 to the Plaintiffs. TRACY 

GLENN PHILLIPS is liable for the audit shortages pursuant to the personal guarantee described 

above. Demand was made for payment of the amounts determined to be due and owing pursuant 

to the audits, Defendants, and each of them, refused to pay such amounts. 

5. The Trust Funds have incurred attorney’s fees and costs in amount of $7,823.00 

relating to the above-captioned matter. Section 22.02.00 of the Master Agreement provides for 

the recovery of reasonable attorneys’ fees and costs in an action to recover a delinquent balance 

due.

6. The parties hereto, with the intent to avoid the costs and time of litigation, agree 

as follows: 

TERMS OF STIPULATION 

7. Both TRETHEWAY, INC. and TRACY GLENN PHILLIPS agree that they owe 

the Operating Engineers Trust Funds the following amounts: (1) reported, delinquent principal 

contributions in the amount of $121,102.61; (2) liquidated damages and interest in the amount of 

$106,442.42 relating to reported, delinquent contributions; (3) unpaid principal contributions, 

liquidated damages and interest that the first audit revealed are owed by the Defendants in the 

total amount of $24,845.46; (4) unpaid principal contributions, liquidated damages and interest 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 4 of 10
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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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that the second audit revealed are owed by the Defendants in the total amount of $17,593.44; (5) 

the sum of $53,780.93 revealed as owed by TRETHEWAY, INC. by the first audit that is 

payable to the Pensioned Operating Engineers Health And Welfare Fund based upon its 

violations of the provision of the Master Agreement that prohibits hiring non-union 

subcontractors to perform work covered by the collective bargaining agreementand; and (6) 

attorney’s fees and costs in the amount of $7,823.00. The Defendants, and each of them, 

agree that judgment will be entered against both TRETHEWAY, INC. and its principal, 

TRACY GLENN PHILLIPS, in this action in the amount of $331,587.86. Immediately after 

entry of the judgment, the Plaintiffs will establish lien rights in the their personal property by 

recording the judgment with the Secretary of State and in their real property by recording the 

judgment with the County Recorder of any and all counties where the Defendants, and each of 

them, may have, or obtain in the future real property. 

8. The Plaintiffs agree not to levy against the personal or real property of the 

Defendants, if and only if, the Defendants timely make all payments required by paragraphs 9, 

10, 11 and 13 of this Stipulation.

9. Moneys from the Maxine Hong job totaling $81,000.00 shall be paid by 

TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS to the Operating Engineers as follows: 

(1) the sum of $31,369.26 will be paid in September of 2006; (2) the sum of $4,315.37 will be 

paid no later than October 10, 2006; (3) the sum of $4,315.37 will be paid by October 22, 2006; 

and (4) the sum of $41,000.00 will be paid no later than January 1, 2007. All Payments under 

this paragraph will be by check made payable to “Operating Engineers Trust Funds” and 

directed to the attention of Tracy L. Mainguy at 1620 South Loop Road, Alameda, 

California.

/ / / / / 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 5 of 10
_____________________________________________________________________________________________ 

STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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10. TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS will pay moneys paid 

to TRETHEWAY, INC. relating to the Elkgrove Job in the amount of $58,000.00 to the 

Operating Engineers Trust Funds on or before January 1, 2007. All Payments made under this 

paragraph will be by check made payable to “Operating Engineers Trust Funds” and 

directed to the attention of Tracy L. Mainguy at 1620 South Loop Road, Alameda, 

California.

11. TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS will pay the sum of 

$139,366.651 to the Operating Engineers Trust Funds as follows. TRETHEWAY, INC. and/or 

TRACY GLENN PHILLIPS will pay the Operating Engineers Trust Funds the sum of $7,500.00 

upon the execution of this agreement. TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS 

will make an additional payment of $7,500.00 to the Operating Engineers Trust Funds on or 

before November 30, 2006. Thereafter, Defendants will make monthly installment payments in 

the amount of $6,600.00 per payment. The $6,600.00 installment payments commence on 

December 15, 2006, and thereafter are due on the 15th day of each consecutive month thereafter, 

until the total amount paid under the Stipulation, which equals $278,366.652, is paid in full. All

Payments made under this paragraph will be by check made payable to “Operating 

Engineers Trust Funds” and directed to the attention of Tracy L. Mainguy at 1620 South 

Loop Road, Alameda, California.

12. Failure to make any of the payments required under paragraphs 9, 10, and /or 11 

of this Stipulation in a timely manner constitutes a default of the Defendants’, and each of their, 

obligations under this agreement. In the event that the Defendants are in default, then the 

1

 This figure was calculated as follows: delinquent, reported principal balance on the account ($121,102.61), plus 

the total liability for the two payroll audits ($96,219.83), less the amounts payable under paragraphs 9 and 10 of the 

Stipulation from the Maxine Hong and Elksgrove Job, respectively ($81,000 + $58,000), plus one half of the 

outstanding liquidated damages and interest ($53,221.21), plus Plaintiffs’ attorney’s fees and costs relating to the 

above-referenced lawsuit ($7,823.00) [$121,102.61 + $96,219.83 - $81,000.00 - $58,000.00 + $53,221.21 + 

$7,823.00].

2 This figure includes the amounts payable from the Maxine Hong Job and the Elksgrove Job.

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 6 of 10
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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

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Plaintiffs, without notice to the Defendants, will immediately have the right to take any all legal 

steps, by levy or otherwise, to execute and collect the judgment in the amount remaining 

unsatisfied against TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS. 

13. From the date of the execution of this Stipulation forward, the Defendants, and 

each of them, agree to comply with the requirements contained in applicable Trust Agreements 

by submitting on or before the 15th day of the day after the end of the month, both an Employer 

Report of Contributions detailing the individuals who performed work covered by the 

THRETHEWAY, INC.’S collective bargaining agreement with Operating Engineers Local 

Union No. 3, the number of covered hours worked during that work month and the amount owed 

to the Operating Engineers Trust Funds as a result, along with a check made payable to the 

“Operating Engineers Trust Funds” for the corresponding amount due. In the event that 

TRETHEWAY INC.’S employees do not perform any covered work during a particular work 

month, then, and in that event, the Defendants, on or before the 15th day of the day after the end 

of that work month, shall submit an Employer report of contributions indicating that no covered 

work was performed. Failure to make any payment due under this paragraph, and the collective 

bargaining agreement and trust agreements referenced in the collective bargaining agreement, by 

the twenty-fifth (25th) day of the month in which it was originally due will constitute a default of 

the terms of this Stipulation. In the event that the Defendants are in default, then the Plaintiffs, 

without notice to the Defendants, will immediately have the right take any all legal steps, by levy 

or otherwise, to execute and collect the judgment in the amount remaining unsatisfied against 

TRETHEWAY, INC. and/or TRACY GLENN PHILLIPS. 

14. If and only if the Defendants, and each of them, make each of the payments 

described in paragraph 9, 10, 11 and 13 of this Stipulation in a timely manner, and do not default 

under their obligations stated in paragraph thirteen (13) of this Stipulation for a year, then the 

Plaintiffs will waive liquidated damages and interest in the amount of $53,221.21, which is oneCase 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 7 of 10
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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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half of the $106,442.42 of liquidated damages and interest owed to Plaintiffs by Defendants, and 

each of them. 

15. Defendant, and each of them, will bear its own legal costs, if any, associated with 

the above-captioned matter. In the event that the Defendants default on any of the obligations set 

forth in paragraphs 9, 10, 11 and/or 13 in of this Stipulation, then Plaintiffs are entitled to amend 

the judgment entered to include the amount of their reasonable attorney’s fees relating to this 

matter and their reasonable attorney’s fees incurred as a result of the Defendants’ breach(s). 

16. Both parties had the opportunity to review the terms of this Stipulation with legal 

counsel of their choice before executing it, and entered the Stipulation voluntarily after reading 

the entire Stipulation. 

17. Fax signature of the parties to this Stipulation and their counsel, if any, shall be 

valid and enforceable. This document may be executed in counterparts. 

18. This Agreement shall be binding upon the parties, and their related affiliates and 

respective successors and assigns, and shall inure to the benefit of each of the persons and 

entities named herein, each of their heirs, administrators, representatives, executors, successors 

and assigns. 

/ / / / / / / 

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STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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19. This Agreement embodies the entire Agreement between the parties hereto. All 

prior understandings and agreements by and between the parties hereto are merged into and 

superseded by this Agreement and no party released herein shall be bound by or liable for any 

statement, representation, promise, inducement or understanding of any kind or nature not set 

forth herein. This Agreement is the product of negotiation and preparation by and amount the 

parties hereto and their attorneys, if any. Therefore, the parties acknowledge and agree that this 

Agreement shall not be deemed to have been prepared or drafted by one party or another, and 

that it shall be construed accordingly. In the event that one or more of the provisions, or portions 

of this Agreement is determine to by illegal or unenforceable, the remainder of this Agreement 

shall not be affected hereby and each remaining provision or portion thereof shall continue to be 

valid and effective and shall be enforceable to the fullest extent permitted by law. 

RESPECTFULLY SUBMITTED. 

Dated this 16th day of November of 2006 

By:________________/s___________

WAYNE E. MCBRIDE 

COLLECTION MANAGER 

OPERATING ENGINEERS TRUST FUNDS 

Approved by: 

Dated this 17th day of November of 2006 

OPERATING ENGINEERS LOCAL UNION NO. 

3 TRUST FUNDS – MULTI-SERVICES 

By:_______________/s____________

TRACY L. MAINGUY 

ATTORNEY FOR PLAINTIFFS 

OPERATING ENGINEERS TRUST FUNDS 

Dated this 17th day of November of 2006 

By:_________________/s__________

 TRACY GLENN PHILLIPS, PRESIDENT 

 THRETHEWAY, INC. 

/ / / / / / 

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_____________________________________________________________________________________________ 

STIPULATION FOR ENTRY OF JUDGMENT; ORDER THEREON; 

Case No. C 06-05286 MMC 

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Dated this 17th day of November of 2006 

By:_______________/s____________

TRACY GLENN PHILLIPS, individually 

and personally 

ORDER

Based upon the above-stated Stipulation, which is incorporated herein and made an order 

of this Court, judgment in the amount of $331,578.86 will be entered forthwith by the Court 

against Defendant TRETHEWAY, INC. and Defendant TRACY GLENN PHILLIPS.

Additionally, the Court will retain jurisdiction to enforce the terms of the Stipulation. 

DATED: November 22, 2006 

 _____________________________________ 

 MAXINE M. CHESNEY 

 UNITED STATES DISTRICT JUDGE 

Case 3:06-cv-05286-MMC Document 13 Filed 11/22/06 Page 10 of 10