Bay Area Painters and Tapers Pension Trust Fund, and its Joint Board of Trustees et al v. New West Partitions
Filing
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ORDER ENTERING 19 Judgment Pursuant to Stipulation. Signed by Judge Jeffrey S. White on June 1, 2015. (jswlc3, COURT STAFF) (Filed on 6/1/2015)
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Michele R. Stafford, Esq. (SBN 172509)
Adrian L. Canzoneri, Esq. (SBN 265168)
SALTZMAN & JOHNSON LAW CORPORATION
44 Montgomery Street, Suite 2110
San Francisco, CA 94104
(415) 882-7900
(415) 882-9287 – Facsimile
mstafford@sjlawcorp.com
acanzoneri@sjlawcorp.com
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Attorneys for Plaintiffs
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UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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BAY AREA PAINTERS AND TAPERS
PENSION TRUST FUND, et al.,
Plaintiffs,
Case No.: C14-04981 JSW
ORDER ENTERING
JUDGMENT PURSUANT TO
STIPULATION
v.
NEW WEST PARTITIONS, a California
Corporation,
Defendant.
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IT IS HEREBY STIPULATED and AGREED (the “Stipulation”) by and between the
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parties hereto, that Judgment shall be entered in the within action in favor of Plaintiffs Bay Area
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Painters and Tapers Pension Trust Fund, et al. (“Plaintiffs” or “Trust Funds”) and against Defendant
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NEW WEST PARTITIONS, a California Corporation (“Defendant”), and/or alter egos and/or
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successor entities, as follows:
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1.
Defendant is signatory to and bound by the terms of the Northern California Drywall
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Finishers Master Agreement (“Bargaining Agreement”) between District Council No. 16 of the
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International Union of Painters and Allied Trades (“Union”) and the Wall and Ceiling Alliance. The
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Bargaining Agreement is still in full force and effect.
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2.
Kem Patrick Modellas (“Guarantor”), as RMO/CEO/President of Defendant,
confirms that he is authorized to enter into this Stipulation on behalf of Defendant and confirms that
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he is personally guaranteeing the amounts due pursuant to the terms of this Stipulation.
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Defendant/Guarantor specifically consent to the Court’s jurisdiction, as well as the use of a
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Magistrate Judge for all proceedings, including entering judgment herein. Guarantor further
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confirms that all successors in interest, assignees, and affiliated entities (including, but not limited
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to, parent or other controlling companies), and any companies with which Defendant joins or
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merges, if any, shall also be bound by the terms of this Stipulation as Guarantors. This shall include
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any additional entities in which Guarantor is an officer, owner or possess any controlling ownership
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interest. All such entities shall specifically consent to the Court’s jurisdiction, the use of a
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Magistrate Judge for all proceeding herein, and all other terms herein, in writing, at the time of any
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assignment, affiliation or purchase.
3.
Defendant has become indebted to the Trust Funds as follows:
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Work Month
Total
Contributions
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20
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25
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July 2014
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
$86,781.70
$45,794.40
$7,015.64
$4,668.32
$1,358.36
$25,106.08
$15,612.03
$12,249.42
$23,435.35
$23,045.88
Subtotal Due
Interest
(5% Per
Annum,
through
date paid,
or
5/11/15)
$17,356.34 $2,240.10
$19,596.44
$9,158.88 $1,146.48
$10,305.36
$1,403.13
$184.52
$1,587.65
$933.66
$103.60
$1,037.26
$271.67
$24.38
$296.05
$5,021.22
$333.52
$20,955.78
$3,122.40
$153.99
$18,888.42
$2,449.88
$68.80
$14,768.10
$4,687.07
$35.31
$28,157.73
$4,609.18
$00.00
$27,655.06
SUBTOTAL: $143,247.85
Contribution Liquidated
Balance
Damages
(20% of Total
Contributions)
$0.00
$0.00
$0.00
$0.00
$0.00
$15,601.04
$15,612.03
$12,249.42
$23,435.35
$23,045.88
10% Liquidated Damages on Prior Late-Paid Contributions
(11/10-11/12; 2/13; 6/13-8/13; 10/13-6/14)
5% Per Annum Interest on Prior Late-Paid Contributions
(11/10-11/12; 2/13; 6/13-8/13; 10/13-6/14)
Attorneys’ Fees (through 5/27/15)
Costs (through 5/27/15)
GRAND TOTAL DUE:
$30,173.98
$5,624.78
$12,081.00
$560.62
$191,688.23
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4.
Defendant shall conditionally pay the amount of $112,500.82, representing all of the
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above amounts, less liquidated damages in the amount of $79,187.41. This conditional waiver is
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expressly conditioned upon Trustee approval following timely compliance with all of the terms of
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this Stipulation, as follows:
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(a)
Beginning on May 29, 2015, and on or before the last business day of each
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month thereafter for a period of twelve (12) months, through and including April 29, 2016,
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Defendant shall pay to Plaintiffs the amount of $9,631.00 per month;
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(b)
Payments may be made by joint check, to be endorsed by Defendant prior to
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submission. Payments made by joint check may be applied toward Defendant’s monthly stipulated
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payment provided that the issuer of the joint check is not requesting a release in exchange for the
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payment. Joint check payments in which a release is requested may not be applied toward
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Defendant’s monthly stipulated payment is for contributions included in this Stipulation;
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(c)
Defendant shall have the right to increase the monthly payments at any time
and there is no penalty for prepayment;
(d)
Payments shall be applied first to unpaid interest and then to unpaid principal.
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The unpaid principal balance shall bear interest from May 12, 2015, at the rate of 5% per annum in
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accordance with the Bargaining Agreement and Plaintiffs’ Trust Agreements;
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(e)
Checks shall be made payable to the District Council 16 Northern California
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Trust Funds, and delivered on or before each due date to Michele R. Stafford, Esq. at Saltzman &
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Johnson Law corporation, 44 Montgomery Street, Suite 2110, San Francisco, California 94104, or
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to such other address as may be specified by Plaintiffs;
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(f)
Plaintiffs may require that Defendant pay electronically by wire transfer;
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(g)
At the time that Defendant makes the twelfth (12th) stipulated payment,
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Defendant may submit a written request for waiver of the liquidated damages directed to the Board
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of Trustees, but sent to Saltzman and Johnson Law Corporation with the twelfth (12th) payment.
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Such waiver will not be considered until and unless all other amounts are paid in full and
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Defendant’s account is otherwise current;
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(h)
Prior to the last payment pursuant to this Stipulation, Plaintiffs shall advise
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Defendant in writing, by first class mail and email to Defendant’s counsel, Phil Hiroshima, Esq. at
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philhiroshima@hdlaw.net, as to the final amount due, including additional interest and all additional
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attorneys’ fees and costs incurred by Plaintiffs in connection with the collection and allocation of
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the amounts owed to Plaintiffs under this Stipulation. Defendant shall pay all additional interest,
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attorneys’ fees and costs regardless of whether or not Defendant defaults herein. Any additional
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amounts due pursuant to the provisions hereunder shall also be paid in full with the final stipulated
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payment due on April 29, 2016; and
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(i)
Failure to comply with any of the above terms shall constitute a default of the
obligations under this Stipulation and the provisions of ¶ 12 shall apply.
5.
In the event that any check is not timely submitted or fails to clear the bank, or is
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unable to be negotiated for any reason for which Defendant is responsible, Defendant shall be
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considered to be in default of the Judgment entered. If this occurs, Plaintiffs shall make a written
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demand to Defendant, by first class mail and email to Defendant’s counsel, Phil Hiroshima, Esq. at
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philhiroshima@hdlaw.net, to cure said default within seven (7) days of the date of the notice from
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Plaintiffs. If caused by a failed check, default will only be cured by the issuance of either a
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replacement cashier’s check, delivered to Saltzman and Johnson Law Corporation, or by wire
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transfer, to an account specified by Plaintiffs, to be received within the seven (7) day cure period. If
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Defendant elects to cure said default, and Plaintiffs elect to accept future payments, all such future
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payments shall be made by cashier’s check or electronically, by wire transfer, at Plaintiffs’ request.
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In the event default is not cured, all amounts remaining due hereunder shall be due and payable on
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demand by Plaintiffs.
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6.
Beginning with contributions due for hours worked by Defendant’s employees
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during the month of May 2015, and for every month thereafter until this Judgment is satisfied,
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Defendant shall remain current in reporting and payment of contributions due to Plaintiffs
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under the current Collective Bargaining Agreement and under all subsequent Collective Bargaining
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Agreements, if any, and the Declarations of Trust as amended. The Collective Bargaining
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Agreement and Trust Agreements provide that all benefit contributions are due on or before the
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fifteenth (15th) day of the month following the month in which hours were worked and are
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delinquent if not received by the last business day of that month.
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7.
Until this judgment is satisfied, Defendant shall submit all monthly contribution
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reports and payments directly to Saltzman and Johnson Law Corporation. The reports and
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payments shall be delivered to Michele R. Stafford, Esq. at Saltzman & Johnson Law Corporation,
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44 Montgomery Street, Suite 2110, San Francisco, California 94104, or to such other address as
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may be specified by Plaintiffs, by the last business day of each month. Defendant may submit its
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monthly contribution reports by email to compliance@sjlawcorp.com, or to such other email
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address as may be specified by Plaintiffs, by the last business day of each month. All such emails
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must include Defendant’s name in the subject line.
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Defendant shall send copies of its contribution reports and payments to the Trust
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Funds. Plaintiffs may require that Defendant pay contributions electronically by wire transfer.
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Failure by Defendant to timely submit current contribution reports and payments, or a report of “no
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employees” if applicable, shall constitute a default of the obligations under this Stipulation and the
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provisions of ¶ 12 shall apply.
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8.
Beginning with the month of May 2015, and for every month thereafter, Defendant
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shall fully disclose all jobs on which it is working by providing Plaintiffs with fully completed
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job reports on the form attached hereto as Exhibit A. Upon request by Plaintiffs, Defendant
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shall also provide Plaintiffs with copies of Certified Payroll Reports for any and all Public Works
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jobs, or any other job for which Certified Payroll Reports are required. Defendant’s updated
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monthly job reports and Certified Payroll Reports (if requested) shall be delivered to Michele R.
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Stafford, Esq. at Saltzman & Johnson Law Corporation, 44 Montgomery Street, Suite 2110, San
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Francisco, California 94104, or to such other address as may be specified by Plaintiffs, by the last
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business day of each month. Defendant may alternatively submit its monthly job reports by email to
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compliance@sjlawcorp.com, or to such other email address as may be specified by Plaintiffs, by the
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last business day of each month. All such emails must include Defendant’s name in the subject line.
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This requirement remains in full force and effect regardless of whether or not
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Defendant has ongoing work, whether Defendant’s account with the Trust Funds is active, or
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whether Defendant is signatory to a Collective Bargaining Agreement with the Union. If, for any
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reason, Defendant has no work to report during a given month, Defendant shall submit the job
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report form (Exhibit A) indicating that there are no current jobs. Defendant’s first job report
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(regarding May 2015 jobs) is due on or before May 29, 2015.
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Failure by Defendant to timely submit fully completed monthly job reports and
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Certified Payroll Reports (if requested and applicable) as described above shall constitute a default
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of the obligations under this Stipulation and the terms ¶ 12 shall apply.
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9.
Audit: Should the Trust Funds request an audit of Defendant’s payroll records in
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order to confirm proper reporting and payment of contributions pursuant to the Bargaining
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Agreements, any failure by Defendant to comply with said request shall constitute a default of the
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obligations under this Agreement, which Defendant shall have ten (10) days to cure from receipt of
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written notice from Plaintiffs.
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(a)
In the event that amounts are found due on audit, Plaintiffs shall send a
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written demand to Defendant by first class mail and email to Defendant’s counsel, Phil Hiroshima,
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Esq. at philhiroshima@hdlaw.net, for payment in full of the amounts found due in the audit,
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including a full copy of the audit report and any findings, including contributions, liquidated
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damages, interest and audit fees owed.
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(b)
Defendant will be provided with ten (10) days in which to review the audit,
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and provide evidence to contest the finding. In the event that Defendant does not agree with the
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total found due, Plaintiffs shall provide any additional information or clarification requested by
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Defendant in wiring within ten (10) days of the request therefor, or as soon as reasonably possible,
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and Defendant’s time to respond to the audit report or comply with payment requirements shall then
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run from the time that Defendant received Plaintiffs’ response. Once the ten (10) day review period
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expires, in the event that the audit is not contested, payment in full shall be delivered to Michele R.
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Stafford at the address provided above.
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(c)
If the audit is contested, and Defendant provides documentation in support of
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the dispute, Defendant shall be notified as to whether revisions will be made to the audit. If
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revisions are not made, payment will be immediately due.
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(d)
If revisions are made to said audit as a result of the dispute, payment in full of
the revised amount shall be due within ten (10) days of Defendant’s receipt of the revised billing.
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(e)
If Defendant is unable to make payment in full, Defendant may submit a
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written request to revise this Stipulation, modifying the payment plan (by monthly amount and/or
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payment term), to add the amounts found due in the audit to this Stipulation, subject to the terms
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herein. If the Stipulation is so revised, Defendant shall execute the Amended Judgment or
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Amendment to Judgment within ten (10) days of Plaintiffs’ preparation of said Amended Judgment
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or Amendment to Judgment. Failure to execute the revised agreement shall constitute a default of
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the terms herein.
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(f)
Failure by Defendant to submit either payment in full or a request to add the
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amounts due to this Judgment within ten (10) days of the date due per the terms written above shall
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constitute a default of the obligations under this agreement. All amounts found due on audit shall
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immediately become part of this Judgment.
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10.
Failure to comply with any of the above terms shall constitute a default of the
obligations under this Stipulation and the provisions of ¶ 12 shall apply.
11.
Any unpaid or late-paid contributions, together with 20% liquidated damages and
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5% per annum interest accrued on the contributions shall be added to and become a part of this
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Judgment and subject to the terms herein. Plaintiffs reserve all rights available under the applicable
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Bargaining Agreements and Declarations of Trust of the Trust Funds for collection of current and
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future contributions, and for any additional past contributions and related amounts not included
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herein as may be determined by Plaintiffs to be due pursuant to employee timecards or paystubs, by
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audit, or other means, and the provisions of this agreement are in addition thereto. Defendant
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specifically waives the defense of the doctrine res judicata as to any such additional amounts
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determined as due.
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12.
In the event that Defendant fails to make any payment required herein, or otherwise
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defaults on any of the obligations as detailed in this Stipulation, and such default is not timely cured,
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the following will occur:
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(a)
The entire balance of $191,688.23 plus interest, but reduced by principal
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payments received from Defendant/Guarantor, in additional to any unpaid contributions then due
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plus 20% liquidated damages and 5% per annum interest on the unpaid or late-paid contributions,
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shall be immediately due and payable, together with any attorneys’ fees and costs incurred during
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the term of this Stipulation.
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(b)
A Writ of Execution may be obtained against Defendant/Guarantor without
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further notice to Defendant/Guarantor, in the amount of the unpaid balance plus any additional
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amounts due under the terms herein. Such Writ of Execution may be obtained solely upon
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declaration by a duly authorized representative of Plaintiffs setting forth any payment theretofore
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made by or on behalf of Defendant and the balance due and owing as of the date of default;
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(c)
Defendant/Guarantor waive any notice of Entry of Judgment or of any
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Request for a Writ of Execution upon default, and expressly waive all rights to stay of execution
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and appeal. The declaration or affidavit of a duly authorized representative of Plaintiffs as to the
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balance due and owing as of the date of default shall be sufficient to secure the issuance of a Writ of
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Execution, without notice to Defendant/Guarantor; and
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(d)
Defendant/Guarantor shall pay all additional attorneys’ fees and costs
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incurred by Plaintiffs in connection with the collection and allocation of the amounts owed by
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Defendant/Guarantor to Plaintiffs under this Stipulation, whether or not a default occurs herein.
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13.
Any failure on the part of Plaintiffs to take any action against Defendant/Guarantor
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as provided herein in the event of any breach of the provisions of this Stipulation shall not be
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deemed a waiver of any subsequent breach by Defendant/Guarantor of any provisions herein.
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14.
The parties agree that any payments made pursuant to the terms of this Judgment
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shall be deemed to have been made in the ordinary course of business as provided under 11 U.S.C.
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Section 547(c)(2) and shall not be claimed by Defendant/Guarantor as a preference under 11 U.S.C.
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Section 547 or otherwise.
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15.
Should any provisions of this Stipulation be declared or determined by any court of
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competent jurisdiction to be illegal, invalid, or unenforceable, the legality, validity, and
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enforceability of the remaining parts, terms or provisions shall not be affected thereby and said
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illegal, unenforceable or invalid part, term, or provisions shall be deemed not to be part of this
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Stipulation.
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16.
This Stipulation is limited to the agreement between the parties with respect to the
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unpaid and delinquent contributions and related sums enumerated herein, owed by Defendant to
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Plaintiffs. This Stipulation does not in any manner relate to withdrawal liability claims, if any.
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Defendant acknowledges that Plaintiffs expressly reserve their right to pursue withdrawal liability
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claims, if any, against Defendant and all of its control group members, as provided by Plaintiffs’
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Plan documents, Trust Agreements incorporated into their Bargaining Agreements, and applicable
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laws and regulations.
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17.
This Stipulation contains all of the terms agreed to by the parties and no other
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agreements have been made. Any changes to this Stipulation shall be effective only if made in
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writing and signed by all parties hereto.
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18.
This Stipulation may be executed in any number of counterparts and by facsimile,
each of which shall be deemed an original and all of which shall constitute the same instrument.
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19.
Defendant/Guarantor represent and warrant that they have had the opportunity to be
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or have been represented by counsel of their own choosing in connection with entering this
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Stipulation under the terms and conditions set forth herein, that they have read this Stipulation with
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care and are fully aware of and represent that they enter into this Stipulation voluntarily and without
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duress.
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20.
The parties agree that the Court shall retain jurisdiction of this matter until this
Judgment is satisfied.
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Dated: May 29, 2015
NEW WEST PARTITIONS
By:
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Dated: May 29, 2015
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/S/
Kem Patrick Modellas
RMO/CEO/President of Defendant
New West Partitions
KEM PATRICK MODELLAS
By:
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/S/
Individually, as Guarantor
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Dated: June 1, 2015
SALTZMAN AND JOHNSON LAW
CORPORATION
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By:
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/S/
Adrian L. Canzoneri, Esq.
Attorneys for Plaintiffs
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APPROVED AS TO FORM:
Date:
May 29, 2015
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HIROSHIMA, LEWIS & DAGGETT
By: _____________________/S/________________
Phil Hiroshima
Attorney for Defendant
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IT IS SO ORDERED.
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IT IS FURTHER ORDERED that the calendar in this matter is vacated, and that the Court shall
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retain jurisdiction over this matter. until the judgment is satisfied.
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June 1,
Dated: _________________, 2015
_______________________________________
UNITED STATES DISTRICT COURT JUDGE
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EXHIBIT A
JOB REPORT FORM
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Updated Job Reports shall be delivered to Saltzman & Johnson Law Corporation
by the last business day of each month
at 44 Montgomery Street, Suite 2110, San Francisco, California 94104,
or via e-mail to compliance@sjlawcorp.com
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Employer Name: NEW WEST PARTITIONS
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Report for the month of __________________, 20__ Submitted by: _______________________
Project Name:
Public or Private?
(circle one)
Project Address:
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General Contractor:
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General Contractor
Address:
General Contractor
Telephone #:
Project Manager
Telephone #:
Contract #:
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Total Contract Value:
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Work Start Date:
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Project Bond #:
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Project Manager
Name:
Project Manager
address:
Contract Date:
Work Completion
Date:
Surety:
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Project Name:
Public or Private?
(circle one)
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Project Address:
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General Contractor:
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General Contractor
Address:
General Contractor
Telephone #:
Project Manager
Telephone #:
Contract #:
Project Manager
Name:
Project Manager
address:
Contract Date:
Total Contract Value:
Work Start Date:
Project Bond #:
Work Completion
Date:
Surety:
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*** Attach additional sheets as necessary ***
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