GREGORY JOHNSON, ET AL. V. CLAIR R. COUTURIER, JR., ET AL. ERISA/ESOP LITIGATION

CASE #:2:05-CV-02046-RRB-KJM

Plaintiffs Gregory Johnson, William Rodwell and Edward Rangel (collectively, "Plaintiffs") bring this action as participants in and beneficiaries of the Employee Stock Ownership Holding Company Employee Stock Ownership Plan, successor to the Noll Manufacturing Employee Stock Ownership Plan and Trust ("ESOP").  Although Messrs. Johnson, Rodwell and Rangel are no longer employed by Noll, they maintain this special action (similar to a class action) under the federal ERISA statute, to recover all ill-gotten profits wrongfully obtained by Defendants from dealings with and involving the ESOP.  On May 31, 2006, Plaintiffs filed a motion requesting permission of the Court to file an Amended Complaint adding current employee Kelly Morrell as a named plaintiff and substantially detailing the allegations against the Defendants.  Because many of the details included in the proposed Amended Complaint came from confidential documents  produced by Defendants, the Amended Complaint was submitted "under seal" pursuant to the terms of the stipulated protective order filed on 2/22/06.

On September 26, 2008, Judge Beistline granted Plaintiffs' Motion for a Preliminary Injunction enjoining Defendant The Employee Ownership Holding Company, Inc. (“TEOHC”) “from advancing, prior to the final disposition of this proceeding, any litigation or other expenses of Defendants Clair R. Couturier Jr., David Johanson, and Robert Eddy incurred in defending this action or any action instituted against them by the United States Department of Labor (the “DOL”) alleging the same or similar conduct. A copy of the Preliminary Injunction Order is linked below.

Further, on October 16, 2008, Judge Beistline issued a Temporary Restraining Order ("TRO"), enjoining Defendant Clair R. Couturier, Jr., his agents, servants, employees, attorneys, and anyone in active concert or participation with them, from transferring, secreting, assigning, pledging, mortgaging, or hypothecating any interest in the Constructive Trust assets, wherever they are now located and in whatever form they now exist. A copy of the TRO is linked below.  On October 24, 2008, Judge Beistline converted the TRO into a Preliminary Injunction but stated that it "[i]t therefore limits the injunction such that Mr. Couturier is permitted `to cover normal living expenses and legal fees.'" A copy of the Preliminary Injunction is linked below.

The following information consists only of matters of public record filed in the U.S. District Court for the Eastern District of California in a case styled "Gregory Johnson, et al. v. Clair R. Couturier, Jr., et al." These filings are meant to inform all of the ESOP participants of the status of the litigation filed against Mr. Couturier and the other defendants. As additional filings are made with the Federal District Court, they will be posted on this site. Nothing contained herein is intended to, or does, constitute a waiver of the attorney-client privilege.

• Complaint For Violation of ERISA filed on 10/11/05
• Answer of Defendants Couturier, Johanson, and Eddy filed on 11/28/05
• Answer of Defendant Noll filed on 12/19/05
• Minute Order of Judge Beistline filed on 6/12/06
• Order Granting Motion for Preliminary Injunction (9/26/2008)
• Second Order to Show Cause and Temporary Restraining Order (10/16/2008)
• Order of Judge Beistline Converting TRO into Preliminary Injunction (10/24/2008)

For a small fee, you may also obtain copies of documents directly from the Court using the following link:  https://ecf.caed.uscourts.gov

If any employee/ESOP participant of Noll or Norwesco has any questions or would like to discuss this case please contact Stan Shayne at 614-221-2220 or at sshayne@cmhlegal.com.

Updated 10/31/2008