Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_17-cv-05287/USCOURTS-cand-3_17-cv-05287-6/pdf.json

Parties Involved:
Californians for Alternatives to Toxics
Plaintiff
David Schneider
Defendant
Ryan Schneider
Defendant
Schneider Dock & Intermodal Facility, Inc.
Defendant
Schneider Dock Industrial Park, LLC
Defendant

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

CALIFORNIANS FOR ALTERNATIVES 

TO TOXICS,

Plaintiff,

v.

SCHNEIDER DOCK & INTERMODAL 

FACILITY, INC., et al.,

Defendants.

Case No. 17-cv-05287-JST (JCS)

ORDER RE FINAL SETTLEMENT 

AGREEMENT

The parties put a binding settlement on the record. They also agreed to prepare a written 

memorialization of that agreement. Finally, they agreed that, if there were any disagreements 

about the form and content of the written memorialization, the undersigned would resolve those 

disagreements and there would be no appeal from that decision. By letter dated August 13, 2019

the parties submitted disagreements about the written memorialization to the undersigned. The 

Court has now reached a decision on those disagreements. Attached to this Order as Exhibit A is 

the final settlement agreement reflecting those decisions. All parties are directed to sign this final 

agreement within 72 hours of the posting of this Order. Defendant is ordered to provide a draft 

note and deed of trust as contemplated by the settlement to Plaintiff within 24 hours of the posting 

of this Order. The parties are directed to negotiate the final form of the note and of the deed of 

trust so that they can be executed simultaneously with Exhibit A

IT IS SO ORDERED.

Dated: August 13, 2019

______________________________________

JOSEPH C. SPERO

Chief Magistrate Judge

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 1 of 12
Exhibit A

RELEASE AND SETTLEMENT AGREEMENT

This Release and Settlement Agreement (“Agreement”) is entered into by and between 

Plaintiff Californians for Alternatives to Toxics (“Plaintiff” or “CATs”), a nonprofit public 

corporation, on the one hand, and Defendants Schneider Dock and Intermodal Facility, Inc. 

(“SDIF”), a California corporation, Ryan Schneider, David Schneider, and Schneider Dock 

Industrial Park, LLC (“SDIP”), on the other hand. The Defendants are collectively referred to as 

“Defendants” or “the Schneider Parties”). When referring to all parties to the Agreement, the 

reference shall be the “Parties.” The effective date (“Effective Date”) of the Agreement shall be 

the date June 25, 2019, subject to the conditions and contingencies set for in Paragraph 1.a. 

through 1.c. of the Agreement. 

RECITALS

A. There is now a pending litigation styled Californians for Alternatives to Toxics v. 

Schneider Dock & Intermodal Facility, Inc. et al., before the United States District Court, 

Northern District of California, Case No. 3:17-cv-05287-JST (“Action”), pertaining to storm 

water discharges from a log handling facility owned and operated by SDIF and associated with 

industrial activity regulated pursuant to the National Pollutant Discharge Elimination System, 

General Permit No. CAS000001, State Water Resources Control Board Water Quality Order 

No. 14-57-DWQ, issued pursuant to Section 402(p) of the Clean Water Act (33 U.S.C. 

§1342(p)), and, prior to July 1, 2015, regulated by Water Quality Order No. 91-13-DWQ, as 

amended by Water Quality Order 92-12-DWQ and 97-03-DWQ (hereinafter the “California 

General Permit”). 

B. Plaintiff CATs is a nonprofit public corporation that supports the protection of the 

environment from the effects of toxic chemicals, and the preservation and protection of the 

wildlife, waters, and natural resources of California. 

C. Defendant SDIF is the lessee and operator of an approximately 10-acre facility at 

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 2 of 12
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990 West Waterfront Drive in Eureka, California (the “Facility”), primarily engaged in log 

handling. Defendant SDIP currently owns the land on which the Facility is located (as well as an 

additional approximately 12 contiguous acres and the adjacent dock). Defendant Ryan 

Schneider is the president of SDIF and current operator of record at the Facility. Defendant 

David Schneider previously jointly owned and operated the Facility with Ryan Schneider, and 

continues to serve as the sole manager of Defendant SDIP. 

D. Plaintiff has alleged in the complaint filed on September 12, 2017 and its 

subsequent amendments to the complaint (the “Complaint”) in the Action that Defendants

violated the California General Permit and Clean Water Act. The Complaint references and 

includes as exhibits thereto the notices to each of the individual and entity Defendants of their

alleged violations of the Clean Water Act and of Plaintiff’s intention to file suit against 

Defendants.

E. Defendants have answered the Complaint, including all amendments thereto, and 

deny all claims, including that they violated the California General Permit and the Clean Water 

Act as alleged in the Complaint.

F. On March 19, 2019, the Court granted in part, and denied in part, Plaintiff’s 

motion for partial summary judgment (See ECF No. 84). 

G. The Parties participated in a settlement conference supervised by Chief Magistrate 

Judge Joseph C. Spero, United States District Court, Northern District of California. A 

settlement was reached and placed on the record on June 25, 2019. The Parties were directed to 

prepare this further documentation of the Agreement.

Now therefore, in consideration of the promises and covenants contained in this 

Agreement, and subject to each of the terms and conditions set forth immediately below, the 

Parties agree as follows.

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TERMS OF SETTLEMENT

1. Agency Review: 

a. Plaintiff will, within five (5) calendar days of complete execution of the 

Agreement, submit a copy of the fully executed Agreement to the United States Department of 

Justice for the 45-day statutory review period set forth in 33 U.S.C. section 1365(c)(3). Plaintiff 

shall concurrently provide a copy to Defendants of this submission.

b. Within ten (10) calendar days of expiration of the statutory review period, 

or receipt of non-objection from the Department of Justice, whichever is earlier, the Agreement 

becomes final, and the Parties shall file with the Court a Stipulation and Order that shall provide 

that the Complaint and all claims therein shall be dismissed with prejudice pursuant to Federal 

Rule of Civil Procedure 41(a)(2). 

c. If for any reason the Department of Justice should request any changes to 

this Agreement or the Court should decline to order the dismissal, the Parties shall use their best 

efforts to work together in good faith to modify this Agreement within thirty (30) days, so that it 

is acceptable to the Department of Justice and the Court. Any modifications may be subject to 

further review and comments by the Department of Justice. If the Parties are unable to modify 

this Agreement in a mutually acceptable manner, this Agreement, including all representations, 

agreements, and obligations contained therein, shall become null and void. In this event, the 

Note and Deed of Trust shall be released, cancelled, and otherwise deemed null and void, and 

CATs shall lend its cooperation by executing all instruments required to reconvey the security 

interest and release and/or cancel the Note. If the Parties are able to agree to a modification of 

the Agreement, the Agreement becomes final effective and binding on all Parties.

2. Facility Closure & Clean Up

a. Defendants represent and warrant that SDIF has ceased its operations at 

the Facility, except as to those activities necessary to complete all reclamation work, which will 

be completed at the direction by the California State Water Resources Board and North Coast 

Regional Water Quality Control Board (collectively “State Agencies”). SDIF shall complete all 

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such activities by October 1, 2019, and shall notify Plaintiff of the projected completion date 

based on information received from the State Agencies.

b. Prior to October 1, 2019, SDIF shall do the following: (i) remove all 

Facility operating equipment (except the debarker) and logs from its leased premises, including 

adjacent areas owned or leased by SDIP; any SDIF equipment remaining at the site after the 

October 1, 2019 deadline would be exclusively there for agency directed reclamation activity;

(ii) remove all bark and wood waste pile(s); (iii) remove the wood waste material that has been 

spread on the surface of the Facility’s North Yard; (iv) remove all berms located on the Facility’s 

North Yard along West Waterfront Drive, and extending along the northern boundary; (v) clear

all areas of existing concrete surfaces within Facility’s leased premises by removing all materials 

and sweeping the surface; and (vi) remove from the Facility’s South Yard all wood waste and 

bark material sufficient to restore the area to its gravel/dirt surface. 

3. Settlement Payment. Subject to the satisfaction of the condition of settlement set 

forth in Paragraph 1.a. through 1.c of the Agreement, Defendants shall pay to CATs the sum of six 

hundred thousand dollars and no cents ($600,000.00), hereinafter referred to as “the Settlement 

Payment.”

a. Defendants shall be jointly and severally liable for the Settlement 

Payment. 

b. The Settlement Payment shall be made within six (6) months of the date 

that this settlement was placed on the record, as set forth in Section G. of the Agreement, and no 

later than December 22, 2019. To ensure timely funding of the Settlement Payment, David 

Schneider shall, concurrently with the execution of the Agreement, execute and deliver to CATs, 

care of its counsel, a promissory note (“Note”) for the sum of $600,000, in favor of CATs, 

secured by a deed of trust (“Deed of Trust”) against real property with sufficient equity to satisfy 

the Note in a form reasonably satisfactory to CATs. Upon delivery of the Settlement Payment, 

the Note and Deed of Trust shall be released, cancelled, and otherwise deemed null and void. 

CATs shall lend its cooperation, if required, by submitting timely escrow demands and executing 

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all instruments required to reconvey the security interest and release and/or cancel the Note in 

exchange for delivery of the Settlement Payment. CATs shall promptly return the original of 

said Note and Deed of Trust to David Schneider, care of his counsel, within five (5) business 

days following receipt of the Settlement Payment. 

c. Payments shall be made by check payable to “Law Offices of Andrew L. 

Packard Attorney-Client Trust Account.” The check shall be remitted to counsel for CATs (at 

the address for Mr. Packard set forth under the Notice provision herein below) and received on 

or before December 22, 2019. CATs shall be solely responsible for distribution of the funds, and 

CATs confirms as follows: (i) the sum of $10,000 shall be allocated and promptly delivered by 

CATs to Northcoast Environmental Center for partial mitigation to address potential harms from 

the alleged Clean Water Act violations in the Action, and which shall be used for projects to 

improve water quality in Humboldt Bay; and (ii) the sum of $590,000 shall be allocated to CATs

for partial reimbursement of its reasonable investigative, expert, consultant, and attorneys’ fees 

and costs incurred in the Action. 

4. Notice of Settlement and Dismissal of the Entire Action. Within five (5) 

business days of date on which the Agreement is signed by all Parties, Plaintiff shall file a Notice 

of Settlement in the District Court, which shall inform the Court of the expected dismissal date 

consistent with Paragraph 1 of the Agreement. Within ten (10) business days of the expiration of 

the statutory review period, or receipt of non-objection from the Department of Justice, 

whichever is earlier, Plaintiff, through counsel, shall file a stipulation and proposed order 

dismissing the entire action with prejudice under F.R.C.P. 41 (a)(2). However, if the Department 

of Justice should respond in any way other than with a non-objection, the above-stated deadline 

shall not apply. In such case, once the Parties have satisfied the objection(s), as set forth in 

Paragraph 1.c. of the Agreement, Plaintiff, through counsel, shall file a stipulation and proposed 

order dismissing the entire action with prejudice under F.R.C.P. 41 (a)(2) within ten (10) 

business days. In the event that the Parties are unable to satisfy such objection(s) within thirty 

(30) days of receipt of the objection(s), this Agreement shall become null and void. 

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5. Parties to Bear Own Costs and Attorney’s Fees. Except as otherwise 

provided herein, the Parties each acknowledge and agree that each Party is to bear his, her or its 

own costs and attorneys’ fees incurred in connection with the Action up to the date of dismissal. 

6. Release. CATs releases and discharges the Schneider Parties as set forth below:

a. “Released Claims” refers to any and all claims arising from the Complaint 

and/or the Action, including without limitation, all claims for violation of the Clean Water Act, 

the California General Permit, injunctive relief, damages, penalties, fines, sanctions, mitigation, 

fees (including fees of attorneys, experts, and others), costs, expenses or any other sum incurred 

or claimed or which could have been claimed in the Complaint and/or the Action up to the date 

the case is dismissed. “Released Claims” shall also include all claims which arise from or 

pertain to the Action, that were asserted or could have been asserted based on the facts alleged in 

the Action, including all claims for fees (including fees of attorneys, experts, and others), costs, 

expenses or any other sum incurred or claimed or which could have been claimed for matters 

associated with or related to the subject matter of the Complaint and/or Action up to the date the 

case is dismissed. “Released Claims” shall not include any claims that CATs may have against 

the Schneider Parties arising from or related to the enforcement or performance of this 

Agreement.

b. In consideration of this Agreement and the terms and conditions set forth 

in this Agreement, CATs, its affiliates, subsidiaries, shareholders, officers, directors, partners, 

joint venturers, agents, employees, representatives, consultants, heirs, assigns, predecessors-ininterest, successors-in-interest, successor trustees, and insurers, past and present, fully and 

forever release and discharge the Schneider Parties, and each of them, as well as their affiliates, 

subsidiaries, shareholders, officers, directors, partners, joint venturers, agents, employees, 

representatives, consultants, heirs, assigns, predecessors-in-interest, successors-in-interest, 

successor trustees, and insurers, past and present, from any and all Released Claims, as defined 

in Section 6(a) of this Agreement.

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 7 of 12
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7. Acknowledgment of Release and Waiver of Section 1542. Subject to 

the release terms set forth above:

a. Plaintiff understands and agrees that as a material consideration and 

inducement to enter into this Agreement, Plaintiff does hereby fully and finally release 

Defendants, and each of them, from all Released Claims. As a further consideration and 

inducement for this compromise settlement, Plaintiff waives all rights or benefits it may now 

have, or in the future may have, with respect to Released Claims, under the terms of Section 

1542 of the Civil Code of the State of California, to the extent it may be applicable in the context 

of the limits provided in the Released Claims defined herein. Plaintiff, upon advice of counsel, 

does specifically and knowingly waive the application of California Civil Code section 1542 to 

this Agreement to the extent applicable.

b. Plaintiff further certifies that it has read the following provisions of 

California Civil Code section 1542:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR 

AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR 

HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH 

THE DEBTOR.”

8. No Admission of Liability. Neither the transfer of any consideration, the 

doing of any of the acts referred to in this Agreement, nor anything else contained in this 

Agreement shall be taken or construed to be an admission by any Party of any claims, 

demands, controversies, grievances, actions, injuries, charges, complaints, suits, rights, 

losses, debts, judgments, expenses, causes of action, obligations, damages, liabilities and 

costs, fines, penalties including attorneys’ fees, asserted by the remaining Parties, or any 

one of them.

9. Understanding of Agreement. The Parties, as a material consideration and 

inducement to enter into this Agreement, warrant and represent that in executing this Agreement 

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 8 of 12
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they fully understand the terms of this Agreement, having been counseled thereon by their 

attorneys. The Parties, and each of them, further represent and acknowledge that in executing 

this Agreement, they do not rely, and have not relied, upon any inducement, promise, 

representation and/or statement made by the remaining Parties, or any of them, or their 

respective agents, representatives and/or attorneys with regard to the subject matter, basis, 

meaning, effect, and/or fact of this Agreement and/or otherwise.

10. Construction of Agreement. This Agreement is the product of negotiation and 

preparation by and among the Parties and their respective attorneys. The Parties each 

acknowledge and agree that this Agreement shall not be deemed to have been prepared or drafted 

by one Party or another, and shall be construed as a whole according to its fair meaning and not 

for or against any Party hereto.

11. Free and Voluntary Execution. The Parties represent and acknowledge that 

they have each read this Agreement and understand all of its terms and execute this Agreement 

freely, voluntarily and without coercion, with full knowledge of its significance and the legal 

consequences thereof.

12. Authority. Each Party hereto represents and warrants to the other Parties that 

he, she or it has the full power and authority to execute, deliver and perform under this 

Agreement. 

13. Advice of Counsel. Each Party warrants and represents that in executing this 

Agreement, the terms of this Agreement have been read and its consequences (including, but not 

limited to risks, complications, and costs) have been completely explained to him, her or it by an 

attorney of his, her or its own choosing; and that each fully understands the terms of this 

Agreement. Each Party further warrants and represents that it has not relied upon the advice or 

counsel of another Party’s counsel in the negotiation, drafting, or execution of this Agreement.

14. Successors and Assignment. This Agreement shall be binding on, and inure to 

the benefit of, each of the Parties hereto and their respective successors in interest. The Parties 

each understand and expressly agree that this Agreement shall bind and benefit their respective 

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 9 of 12
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present and former officers, directors, employees, predecessors, successors, successor trustees, 

heirs, estates, beneficiaries and their estates and any trust created by any of them, executors, 

administrators, joint ventures, corporations, divisions, insurers, parents, subsidiaries, affiliates, 

partners, stockholders, agents, heirs and assigns. The Parties each warrant that they have not 

transferred or assigned, or purported to transfer or assign, any of the rights released by this 

Agreement.

15. Severability. If any provision or part of any provision of this Agreement shall 

for any reason be held to be invalid, unenforceable, or contrary to public policy or any law, then 

the remainder of this Agreement shall not be affected.

16. Cooperation. Each Party to this Agreement shall cooperate fully in the 

execution of any and all other documents and in the completion of any additional actions that 

may reasonably be necessary or appropriate to give full force and effect to the terms and intent of 

this Agreement.

17. Entire Agreement. This Agreement represents the entire understanding 

between the Parties, and each of them, in connection with the subject matter of this Agreement. 

There are no oral or written representations, warranties, agreements, arrangements, or 

undertakings, between or among the Parties, or any of them, related to the subject matter of this 

Agreement, that are not fully expressed herein. The terms of this Agreement are contractual and 

not mere recitals. This Agreement cannot be altered or varied except by a writing duly signed by 

each of the Parties.

18. Modifications to Agreement. This Agreement may be modified or amended 

only by a writing signed by all the Parties to this Agreement and subject to the 45-day statutory 

review period set forth in 33 U.S.C. section 1365(c)(3). 

19. Notices. Any and all notices or other communications required or permitted by 

this Agreement to be served or given by the Parties, or any of them, to the remaining Parties, or 

any of them, shall be in writing and shall be deemed duly served and given when deposited in the 

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United States mail, first-class postage prepaid, addressed as set forth below, and concurrently 

transmitted via electronic mail to the email addresses listed below:

(a) To Californians for Alternatives to Toxics

Andrew Packard 

Law Offices of Andrew L. Packard

245 Kentucky Street, Suite B3

Petaluma, California 94952

Email: andrew@packardlawoffices.com

wncarlon@packardlawoffices.com

William Verick 

Klamath Environmental Law Center

1125 – 16th Street, Suite 204, 

Arcata, California 95521 

Email: wverick@igc.org

(b) To the Defendants

Therese Y. Cannata

Cannata, O’Toole, Fickes & Olson LLP

100 Pine Street, Suite 350

San Francisco, California 94111

Email: tcannata@cofolaw.com

Each Party shall promptly notify all other Parties of any change in the above listed contact 

information.

20. Governing Law. This Agreement shall be construed pursuant to the laws of the 

United States and the State of California. 

21. Execution in Counterparts and Exchange of Signatures by Facsimile or 

PDF. This Agreement may be signed in counterparts, each of which, when executed shall 

constitute an original, but such counterparts collectively, in their entirety, shall together, be 

considered one and the same Agreement. Facsimile or PDF signatures shall be treated as 

original signatures for purposes of this Agreement.

Dated: ________, 2019 Californians for Alternatives to Toxics

By: ___________________________________

Patricia Clary, Executive Director

Case 3:17-cv-05287-JST Document 96 Filed 08/13/19 Page 11 of 12
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Dated: ________, 2019 Schneider Dock & Intermodal Facility, Inc.

By: ___________________________________

Ryan Schneider, Chief Executive Officer

Dated: ________, 2019

By: ___________________________________

Ryan Schneider

Dated: ________, 2019 Schneider Dock & Industrial Park LLC.

By: ___________________________________

David Schneider, Managing Member

Dated: ________, 2019

By: ___________________________________

David Schneider

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