Original civil complaint filed. December 21, 2018 (2024)

Original civil complaint filed. December 21, 2018 (1)

Original civil complaint filed. December 21, 2018 (2)

  • Original civil complaint filed. December 21, 2018 (3)
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  • Original civil complaint filed. December 21, 2018 (6)
  • Original civil complaint filed. December 21, 2018 (7)
  • Original civil complaint filed. December 21, 2018 (8)
  • Original civil complaint filed. December 21, 2018 (9)
  • Original civil complaint filed. December 21, 2018 (10)
 

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COMMONWEALTH OF MASSACHUSETTS ESSEX, SS SUPERIOR COURT DEPARTMENTOF THE TRIAL COURTINTERNATIONAL BROTHERHOOD OF -ELECTRICAL WORKERS LOCAL 103, P74CV 0 | 4371 D ~ omPlaintiff, C.A. No. S92afv. o 2aNoneTRAVELERS CASUALTY AND SURETY anCOMPANY OF AMERICA and ARCO/MURRAY USNATIONAL DALLAS, INC., WwDefendants. ow 5woCOMPLAINTINTRODUCTION1. This is an action by the International Brotherhood of Electrical Workers Local103 (“IBEW Local 103” of “Union”, as authorized representative of electrical workersemployed by Pagliaro Electric, Inc. (“Pagliaro”), to enforce a mechanic’s lien bond pursuant tothe Massachusetts Mechanic’s Lien statute, G.L. c. 254, to recover $23,329.17 in wages owed tosaid electrical workers for work performed on the land or buildings located at 137 Summit Streetin Peabody, Massachusetts.URISDICTION2. The Superior Court has jurisdiction of this action pursuant to G.L. c. 254 § 5without respect to the amount in controversy.PARTIES3. Plaintiff IBEW Local 103 is a Jabor union located at 256 Freeport Street inDorchester, Massachusetts. IBEW Local 103 represents electrical workers in the greater Bostonarea in terms of wages, hours, and working conditions. IBEW Local 103 is the authorizedrepresentative for bargaining unit members employed by Pagliaro Electric, Inc.4. Defendant Travelers Casualty and Surety Company of America (“Travelers”) isan insurance company duly organized to transact business as a surety in Massachusetts and has aprincipal place of business at One Tower Square, Hartford, CT.5. Defendant ARCO/Murray National Dallas, Inc. (ARCO/Murray”) is a Delawarecorporation with a principal place of business at 4849 Greenville Ave., Suite 1460, Dallas, TX.ARCO/Murray is registered to do business in Massachusetts and lists its registered agent forservice of process as Registered Agent Solutions, Inc., 44 School Street, Suite 325, Boston, MA,02108.FACTS6. ARCO/Murray was the general contractor on a construction project located at 137Summit Street in Peabody, Massachusetts (the “Project”). ARCO/Murray hired PagliaroElectric, Inc. (“Pagliaro”) to perform electrical work on the Project.7. Peabody SS, LLC (“Peabody SS”) is the owner of the property at 137 SummitStreet in Peabody, Massachusetts.8. On or about September 15, 2017, Pagliaro signed a Letter of Assent authorizingthe Boston Chapter of the National Electrical Contractors Association (“NECA”) as its collectivebargaining representative for all matters relating to the collective bargaining agreement betweenNECA and IBEW Local 103. By signing the Letter of Assent, Pagliaro agreed to comply with,and be bound by, all provisions contained in the current and any subsequent collectivebargaining agreement between NECA and IBEW Local 103, A copy of Pagliaro’s Letter ofAssent is attached as Exhibit A. A copy of relevant pages from the current collective bargainingagreement (“CBA”) between NECA and IBEW Local 103, effective from September 1, 2016 toAugust 31, 2019, is attached as Exhibit B.9. The CBA requires signatory employers such as Pagliaro to pay wages tobargaining unit members at rates set forth in Appendix A to the CBA. CBA Art. 6.38, p. 30. Acopy of the Appendix A wage rates effective September 1, 2018 is attached as Exhibit B-1.10. In September 2018, Pagliaro employed bargaining unit members to performelectrical work or other improvements to real property, for or with the consent of ARCO/Murrayand/or Peabody SS, on the land or buildings located at 137 Summit Street in Peabody,Massachusetts.lt. — Pagliaro failed to pay wages to its employees for work they performed betweenSeptember 16 and September 29, 2018. For the work weeks ending September 22, 2018 andSeptember 29, 2018, Pagliaro failed to pay wages totaling $23,329.17 for work bargaining unitmembers performed on the land or buildings located at 137 Summit Street in Peabody,Massachusetts.12. IBEW Local 103, as authorized representative of the electrical workers employedby Pagliaro, took all necessary steps under G.L. c. 254 §§ 1 and 8 to record and perfect aMechanic’s Lien as to the land located at 137 Summit Street in Peabody, Massachusetts. On orabout November 2, 2018, IBEW Local 103 caused to be recorded in the Southern Essex CountyRegistry of Deeds a Sworn Statement of Amount Due giving the name of the owner of recordand setting forth the amount owed by Pagliaro to its electrical worker employees as wages forlabor they performed on the land or buildings located at 137 Summit Street in Peabody,Massachusetts. A copy of the Swom Statement of Amount Due is attached hereto as Exhibit C.13, On or about November 2, 2018, IBEW Local 103 sent notice of its Mechanic’sLien to ARCO/Murray and Peabody SS by Certified Mail.14. On or about November 9, 2018, ARCO/Murray dissolved the Mechanic’s Lienunder G.L. c, 254 § 14, by recording a mechanic’s lien bond (“lien bond”) of Travelers in a penalsum equal to the amount of $23,329.17. A copy of the lien bond is attached hereto as Exhibit D.15. Pagliaro continues to owe $23,329.17 in wages to bargaining unit members forwork they performed on the land or buildings located at 137 Summit Street in Peabody,Massachusetts.COUNT ONE16. Plaintiff incorporates herein paragraphs 1 through 15 above.17. This is an action to enforce a lien bond pursuant to G.L. c. 254 §§ 11 and 14, torecover the wages owed to electrical worker employees of Pagliaro for work they performed at137 Summit Street in Peabody, Massachusetts.RELIEF REQUESTEDWHEREFORE, the Plaintiff, IBEW Local 103, as authorized representative of theelectrical workers employed by Pagliaro, respectfully requests that its Mechanic’s Lien beenforced against and satisfied by the lien bond of Travelers under G.L. c. 254 §§ 11, 14 and theterms of the bond, and that judgment be entered in the amount of $23,329.17 together with suchother and further relief as the Court may deem proper and just.Dated: December 19, 2018Respectfully submitted,IBEW LOCAL 103,By its attorneys,Tra Sills, BBO No. 462220Sasha N. Gillin, BBO No. 690769Segal Roitman, LLP33 Harrison Avenue, 7" FloorBoston, MA 02111(617) 603-1428sgillin @segalroitman.comcoed 12 320 Otans x38S4ie]vans 2LETTER OF ASSENT - ATn signing this letter of assent, the undersigned firm does hereby authorize’ Boston Chapter, NECA as its collective bargaining representative for all matters contained in or pertaining to the current and any subsequentapproved? Inside labor agreement between the* Boston Chapter, NECA and Local Union? 193 » IBEW.In doing so, the undersigned firm agrees to comply with, and be bound by, all of the provisions contained in said current and subsequent approved iabor agreements. This authorization, in compliance with the current approved labor agreement, shall become effective onthe _15 day of September , 2017It shall remain in effect until terminated by the undersigned employer giving written notice to the1 Boston Chapter, NECA and to the Local Union at least one hundred fifty (150) days prior to the then current anniversary date of the applicable appraved labor agreement.The Employer agrees that if a majority of its employees authorize the Local Union to represent them in collectivebargaining, the Employer will recognize the Local Union as the NLRA Section 9(a) collective bargaining agent for allemployees performing electrical construction work within the jurisdiction of the Local Union on all present and future jobsites.In accordance with Orders issued by the United States District Court for the District of Maryland on October 10, 1980,in Civil Action HM-77-1302, if the undersigned employer is not a member of the National Electrical Contractors Association, this letter ofassent shall not bind the parties to any provision in the above-mentioned agreement requiring payment into the National Electrical IndustryFund, unless the above Orders of Court shall be stayed, reversed on appeal, or otherwise nullified.SUBJECT TO THE APPROVAL OF THE INTERNATIONAL PRESIDENT, IBEW APPROVEINTERNATIONAL OFFICE-B.EW.Pagliaro Electric, Inc. *Name of Firm September 18, 2017180 Commercial Street, Unit 13 Office: 781-284-9286 . .Street Address/P.O. Box Number this ae etearna residentLynn, MA _ 01905 Fax: 781-284-9285 Internationala partyto th's agreement.City, State (Abbr.) Zip Code6 Federal Employer Identification No. _45-4693175SIGNED FOR THE EMPLOYERBY? On? 103 IBEW {original signature) - (orighyalLeonard Pagliaro NA NAl ‘AntonellisTITLE/DATE President - 9/15/2017 TITLE/DATE Business Manager - 9/15/2017INSTRUCTIONS {All items must be completed in order for assent to be processed)"NAME OF CHAPTER OR ASSOCIATION 5 EMPLOYER'S NAME & ADDRESSInsert full name of NECA Chapter or Contractors Association involved. Print or type Company name & address.> TYPE OF AGREEMENTInsert type of agreement. Example: Inside, Outside Utility, Outside 6 FEDERAL EMPLOYER IDENTIFICATION NO.Commercial, Outside Telephone, Residential, Motor Shop, Sign, Tree Insert the identification number which must appear on all forms filedTrimming, etc, The Local Union must obtain a separate assent to each by the employer with the Internal Revenue Service.agreement the employer is assenting to.3 LOCAL UNION 7SIGNATURESInsert Local Union Number. * SIGNER'S NAME+ EFFECTIVE DATE Print or type the name of the person signing the Letter of Assent.Insert date that the assent for this employer becomes effective. Do not International Office copy must contain actual signatures-not repro-use agreement date unless that is to be the effective date of this Assent, duced-of a Company representative as well as a Local Union officer.A MINIMUM OF FIVE COPIES OF THE JOINT SIGNED ASSENTS MUST BE SENT TO THE INTERNATIONAL OFFICE FOR PROCESSING.AFTER APPROVAL, THE INTERNATIONAL OFFICE WILL RETAIN ONE COPY FOR OUR FILES, FORWARD ONE COPY TO THE IBEWDISTRICT VICE PRESIDENT AND RETURN THREE COPIES TO THE LOCAL UNION OFFICE. THE LOCALUNION SHALL RETAIN ONECOPY FOR THEIR FILES AND PROVIDE ONE COPY TO THE SIGNATORY EMPLOYER AND ONE COPY TO THE LOCAL NECA CHAPTER.IBEW.FORM 302 REV. 9/01EXHIBIT BNEC AGREEMENTANDWORKING RULESGoverning theELECTRICAL INDUSTRY OFGREATER BOSTONBetweenELECTRICAL WORKERS UNIONLOCAL 103, IBEWOF GREATER BOSTONandELECTRICAL CONTRACTORS ASSOCIATIONOF GREATER BOSTON, INC.BOSTON CHAPTER,NATIONAL ELECTRICAL CONTRACTORS ASSOCIATIONSEPTEMBER 1, 2016 — AUGUST 31, 2019INSIDE CONSTRUCTION AGREEMENTAgreement by and between the Electrical Contractors Association of Greater Boston, Inc.,Boston Chapter, NECA, and Local Union No. 103 of the International Brotherhood of Electrical Workers,AFL-CIO-CLC.It shall apply to all firms who sign a Letter of Assent to be bound by this Agreement.As used hereinafter in this Agreement, the term "Chapter" shall mean the Electrical ContractorsAssociation of Greater Boston, inc., Boston Chapter of NECA, and the term "Union" shall mean LocalUnion No. 103, IBEW.The term “Employer" shal! mean an individual firm who has been recognized by an Assent to thisAgreement.FUNDAMENTAL PRINCIPLESThis Agreement is based upon the following set of fundamental principles affirmed by theParties hereto.1. The vital interests of the Public and Employer in the electrical industry are inseparably boundtogether. All will benefit by a continuous peaceful operation of the industrial process.2. The facilities of the electrical industry for service to the Public will be developed andenhanced by the recognition that the overlapping of the function of the various groups in the industry iswasteful and should be eliminated.3. Close contact and a mutually sympathetic interest between Employee and Employer willdevelop a better working system which will tend constantly to stimulate production while improving therelationship between Employee, Employer and the Community.4. Strikes and lockouts are detrimental to the interests alike of Employee, Employer and thePublic and should be avoided.5. Agreements or understandings which are designed to obstruct, directly or indirectly, the freedevelopment of trade, or to secure to special groups, special privileges and advantages, are subversiveof the public interest and cancel the doctrine of equality of rights and opportunity and should becondemned.6. The public interest is conserved, hazard to life and property is reduced and standards of workare improved by fixing an adequate minimum of qualifications in knowledge and experience as arequirement precedent to the right of an individual to engage in the electrical construction industry, andby the rigid inspection of electrical work, old and new..7. Public welfare, as well as the interests of the trade, demands that electrical work be done bythe electrical industry.8. Cooperation between Employee and Employer acquires constructive power as bothEmployees and Employers become more completely organized.9. The right of Employees and Employers in local groups to establish local wage scales and localworking rules is recognized.6.36 The Union recognizes its responsibility to police its jurisdiction so that those Employerssignatory to this Agreement are able to compete in a fair competitive market. The Employer recognizesits responsibility to assist the Union in this endeavor. Therefore, the Employers agree to notify theChapter Manager of all construction projects awarded to them. The Chapter Manager shall furnish suchinformation to the Business Manager.6.37 Any violation of the terms and conditions of this Agreement and Working Rules by anyindividual Employer shall be sufficient cause to declare the individual Employer not fair to the Union.WAGES AND FRINGE BENEFITS6.38 (a) The hourly wages for Journeyman, Foreman, General Foreman, and Apprentices,within the bargaining unit set forth in this Agreement, for the period from September 1, 2016, throughAugust 31, 2019, is as set forth in Appendix "A," which is made part of this Agreement by reference.Increments may vary depending on any allocation to fringe benefits, see 6.37(e).(b) The Foreman's rate of pay shall be ten percent (10%) above the Journeyman's rate of pay.(c) The General Foreman's rate of pay shall be twenty percent (20%) above the Journeyman'srate of pay.(d) Apprentice rates shail be set at a percentage of the Journeyman’s rate as follows:UNIFORM PERCENTAGE FOR APPRENTICESA 1* Period 40% of the Journeyman Wireman RateB. 2"4 Period 40% of the Journeyman Wireman Ratec 3" Period 45% of the Journeyman Wireman RateD. 4" Period 45% of the Journeyman Wireman RateE 5" Period 50% of the Journeyman Wireman RateF 6" Period 55% of the Journeyman Wireman RateG. 7™ Period 60% of the Journeyman Wireman RateH. 8" Period 65% of the Journeyman Wireman RateI. 9" Period 70% of the Journeyman Wireman Rate1 10" Period 75% of the Journeyman Wireman RateCONTRIBUTIONS6.38 (e) Contributions will be established thirty (30) days prior to each increment for all fundslisted below. The applicable amount of contribution for each fund is as listed on Appendix "A" of thisAgreement.Health & Welfare FundLocal Pension FundDeferred IncomeApprentice & Training FundElectrical Industry Labor Management Cooperation TrustNational Labor-Management Cooperation CommitteeAdministrative Maintenance FundNational Electrical Benefit Fund (NEBF) 3%National Electrical Industry Fund (NEIF) 0.6%30ARTICLE VIIICODE OF EXCELLENCE8.1. The parties to this Agreement recognize that to meet the needs of our customers, bothemployer and employee must meet the highest levels of performance, professionalism, andproductivity. The Code of Excellence has proven to be a vital element in meeting the customers’expectations. Therefore, each IBEW local union and NECA chapter shall implement a Code of ExcellenceProgram. The program shail include minimum standards as designed by the IBEW and NECA.ARTICLE IXSEPARABILITY CLAUSE9.1 Should any provision of this Agreement be declared illegal by any court of competentjurisdiction, such provision shall immediately become null and void, leaving the remainder of theAgreement in full force and effect and the parties shall, thereupon, seek to negotiate substituteprovisions which are in conformity with the applicable laws.Approval of this Agreement has been given with the understanding that any section that doesnot conform to existing State and/or Federal Laws will be corrected by the parties signatory thereto.Such changes, if any, must be reduced in writing in the form of an amendment and forwarded in theusual manner for approval.IN WITNESS THEREOF, the parties have executed this Agreement this 1st day of September,2016.ELECTRICAL CONTRACTORS ASSOCIATION OF GREATER BOSTON, INC.FcGlenn W. Kingébury: Krister? GowinGary W. WalkerSean M. Callaghan33EXHIBIT B-1 WAGE RATE MEMORANDUM JOINT CONFERENCE COMMITTEEELECTRICAL CONSTRUCTION INDUSTRYGREATER BOSTON106 River Street « West Newton, MA.02465 » 617-969-2521 # 877-NECAIBEW TO: All Signatories: Principal Inside Agreement INSIDEFROM: Local Union 103, IBEW and Boston Chapter, NECASUBJECT: Electrical Workers - Wage Rates, Fringe Benefits and Report ProceduresDATE: September 1, 2018 ,EFFECTIVE: SEPTEMBER 1, 2018 - FEBRUARY 28, 2019TOTAL" WAGE Contriputions NEIFPACKAGE RATE HBP PEN DI JATF EILMCT NLMCC AMF NEBF isc?GEN. FOREMAN: $97.53 $60.74 13.00 10.38 647 0.76 4.25 0.01 0.10 1.82 0.36FOREMAN: 92.32 55.68 13.00 10.38 647 0.76 4.25 0.01 0.10 1.67 0.33JOURNEYMAN: 87.11 50.62 13.00 10.38 6.47 O76 4.25 0.01 0.10 1.52 0.30APPRENTICES: (for Apprentices starting 2071 and thereafter)1st Period(A) 40% $38.98 20.25 13.00 - - 0.76 425 0.01 0.10 061 0.122nd Period(B) 40% 38.98 20.25 13.00 - - 0.76 4.25 0.01 0.10 0.61 0123rd Period(C) 45% 54.87 22.78 13.00 1038 291 076 4.25 0.01 0.10 0.68 0.144th Period(D) 45% 54.87 22.78 13.00 10.38 2.91 0.76 4.25 0.01 0.10 0.68 0.145th Period(E) 50% 57.81 25.31 13.00 10.38 3.24 O76 4.25 0.01 0.10 0.76 0.156th Period(F) 55% 60.74 27.84 13.00 10.38 3.56 076 4.25 0.01 0.40 0.84 0.177th Period(G) 60% 63.65 30.37 13.00 1038 388 076 4.25 0.01 0.10 0.91 0.188th Period(H) 65% 66.60 32.90 13.00 1038 421 O76 4.25 0.01 0.10 0.99 0.209th Period(i) 70% 69.52 35.43 13.00 10.38 4.53 0.76 4.25 0.01 0.10 1.06 0.2110th Period(J) 75% 72.46 37.97 13.00 10.38 485 0.76 4.25 0.01 0.10 1.14 0.23APPRENTICES: (for Apprentices starting before 2011)9th Period(l) 70% 71.45 35.43 13.00 10.38 647 O76 4.25 0.01 0.10 1.06 0.2110th Period(J) 75% 74.08 37.97 13.00 1038 647 O76 4.25 0.01 0.10 1.14 0.23EFFECTIVE: MARCH 14, 2019 - AUGUST 31, 2019TOTAL™ WAGE Contributions NEIFPACKAGE RATE HBP PEN DI JATF EILMCT NLMCC AMF. NEBF_\sc“?GEN. FOREMAN: $98.87 $61.30 13.00 1063 672 077 4.50 0.01 0.10 1.84 0.37FOREMAN: 93.63 56.21 13.00 10.63 6.72 0.77 4.50 0.01 0.10 1.69 0.34JOURNEYMAN: 88.36 51.10 13.00 1063 672 077 4.50 0.01 0.10 1.53 0.31APPRENTICES: (for Apprentices starting 2017 and thereafter)1st Period(A) 40% $39.43 20.44 13.00 - - 0.77 4.50 0.01 0.10 0.61 0.122nd Period(B) 40% 39.43 20.44 13.00 - - 0.77 4.50 0.01 0.10 0.61 0.123rd Period(C) 45% 55.72 23.00 13.00 1063 302 0.77 4.50 0.01 0.10 0.69 0.144th Period(D) 45% 55,72 23.00 13.00 1063 3.02 0.77 4.50 0.01 0.10 0.69 0.145th Period(E) 50% 58.69 28.55 13.00 1063 336 077 4.50 0.01 0.10 0.77 0.156th Period(F) 55% 61.66 28.11 13.00 1063 3.70 0.77 4.50 0.01 0.10 0.84 0.177th Period(G) 60% 64.62 30.66 13.00 1063 403. 0.77 4.50 0.01 0.10 0.92 0.188th Period(H) 65% 67.60 33.22 13.00 1063 4.37 0.77 4.50 0.01 0.10 1.00 0.20Sth Pericd(l) 70% 70.55 35.77 13.00 1063 4.70 0.77 4.50 0.01 0.10 1.07 0.2110th Period(J) 75% 73.53 38.33 13.00 1063 504 0.77 4.50 0.01 0.10 1.15 0.23APPRENTICES: (for Apprentices starting before 2071)Sth Period(!) 70% 72.57 35.77 13.00 1063 6.72 0.77 4.50 0.01 0.10 1.07 0.2140th Period(J) 75% 75.21 38.33 13.00 10.63 672 077 4.50 0.01 0.10 1.15 0.231) NEIF\SC excluded from total package. 2) See Page 2 for report procedures.Page 1PRINCIPAL INSIDE AGREEMENT -- LOCAL UNION 103, IBEW AND BOSTON CHAPTER, NECA CONTRIBUTIONS LEGEND: Report on MPR Box: 91/18 3/19HBP Health Benefit Pian Vi. $13.00 13.00 per hourPEN Local 103 Pension Fund MI $10.38 10.63 perhourDI Deferred Income Fund Vv. See breakdown for applicable rateJATF Joint Apprenticeship and Training Fund Vi $ 076 0.77 per hourEILMCT Electrical Industry Labor-Mgmt. Cooperation Trust Mi $ 4.25 4.50 per hourNLMCC National Labor-Management Cooperation Committee Ml. $ 0.01 0.01 per hourAMF Administrative Maintenance Fund N. $ 0.10 0.10 per hourNEBF National Electrical Benefit Fund I 3% of gross payrollNEIF\SC National Electrical Industry Fund\Service Charge I. 0.6% of gross payrollDEDUCTION: WORKING ASSESSMENT: x. $ 1.03 $ 1.03 per hourMONTHLY PAYROLL REPORT(MPR): PROCEDURESNote: The procedures listed below are applicable for "paper" filers. Employers are encouraged to utilize theonline "iRemit" reporting system. To enroll, contact the Trust Fund Office at 617-288-5999,1 National Electrical Benefit Fund: 3% of gross payrollIh National Electrical Industry Fund\Service Charge: 0.6% of gross payroll*(Note: NEIF\SC is applicable to NECA members only and not included in Tota! Package)ML. National Labor-Management Cooperation Committee: $0.01 per hour (up to 150,000 hours per year)IV. Administrative Maintenance Fund: $0.10 per hour (up to 150,000 hours per year)ve Deferred Income Contribution must be reported for each employee and should equal the individual's actualhours worked (total clock hours) times his\her applicable rate.Vi. Grand Tota! of Actual Hours Worked multiplied by the DESIGNATED SUM. Sums represent the totalof the applicable Health Benefit Plan, Pension, JATF, and EILMCT contributions. 9NiN8 3/19DESIGNATED SUM All workers except A&B Rate Apprentices $28.39 $28.90 per hr.DESIGNATED SUM A&B Rate Apprentices $18.01 $18.27 per hr.VIL. Total of all contributions.Vill. EILMCT Relief if applicable.xX. Total Remitted. Mail report, and a check payable to “Local 103 HBP" to the: Electricai ConstructionTrust Funds, Local 103, IBEW, 256 Freeport St.(2nd Floor), Boston, MA 02122x. Working Assessment: Send a copy of this report, and a check payable to "Local Union 103, IBEW" toFinancial Secretary, Local 103, IBEW, 256 Freeport St, Dorchester, MA 02122.Reports should be mailed to their respective offices not later than 15 calendar days following the end of eachcalendar month. Call 617-969-2521 for Monthly Report Forms. Louis J. Antonellis, Business Manager Glenn W. Kingsbury, Executive ManagerLocal Union 103, IBEW Boston Chapter, NECAPage 2EXHIBIT Cbay” | CASs $0. ESSEX #58 Bk:37126 Py:S1344/02/2016 08:47 STATE Pg 1/2SWORN STATEMENT OF AMOUNT DUEM.G.L. c. 254 §§1, 8The International Brotherhood of Electrical Workers, Local 103 (“IBEW Local 103”),authorized representative of electrical workers employed by signatory contractor PagliaroElectric, Inc. (“Pagliaro”), files this mechanic’s lien under G.L. c. 254 § 1, on behalf of electricalworkers employed by Pagliaro for wages and working assessments due and owing for laborfurnished or work performed for ARCO/Murray National Dallas, Inc., general contractor and/orPeabody SS, LLC, owner, at 137 Summit Street in Peabody, Massachusetts betweenSeptember 16, 2018 and September 29, 2018. The owner of the property is Peabody SS, LLC.The following is a just and true account of the amount due from Pagliaro for labor furnishedin the erection, operation, repair or removal of the building, structure, or other improvement to theproperty on the lot of land described as follows:137 Summit Street, Peabody, MABook 35954, Page 400IBEW Local 103 states herein that its members are owed $23,329.17 in unpaid wages forlabor furnished or work performed on this property between September 16 and September 29,137 Summit Street, Peabody, Massachusetts2018.SIGNED AND SWORN TO THIS 3.0_ DAY OF OCTOBER 2018.IBEW LOCAL 103, uis J. nellis, Business Manager,1.B.E.W. Local 103; RACHELLE LOW PIERCE= Notary Publica,& }eommonwealth of Massachusettsp uy em my Commission Expires~ September 27, 2024 Retum address:Sasha N. Gillin, Esq.Segal Roitman, LLP33 Harrison Ave., 7" Fi.Boston, MA 02111COMMO! ALTH OF MASSACHUSETTSSUFFOLK, SS. October __, 2018Then personally appeared the within named Louis J. Antonellis, Business Manager ofIBEW Local 103, before me, and acknowledged to me that he executed the foregoing instrumentis free act and deed, and that of the represented IBEW Local 103 members, and that theents in it areMy Commission expires: 0 iar wayThe regular mailing address of the party recording or filing this notice is as follows: ©Notary PublicSasha N. Gillin, Esq.Segal Roitman, LLP33 Harrison Avenue, 7" Floor MICHELLE LEE PIERCEBoston, MA 02111 x Notary PublicWth of Massachuset~Commie Commission Expire:September 27, 2024EXHIBIT D tl LAESSEX #488 Bk: 37144SESE @2:44 BOND Pg MPaLIEN BONDBond No. 107000062Know All Men By These Presents: That we, ARCO/Murray National Dallas, Inc. , as principal,and Travelers Casualty and Surety Company of America , duly organized to transactbusiness as a surety within the Commonwealth of Massachusetts as surety, are holden and standfirmly bound and obliged unto ional Brothe: ical Workers, Local 103__ (“obligee”)in the penal sum of tus Dollars ($23,328.17), to the payment of which we bind: ourselves, ¢ our ur heirs, successors and assigns, jointly and severally bythese presents, Whereas, under date of November 2, 2018 , the said obligee recorded a noticeof contract in the registry of deeds, as Instrument #58 in Book _37126at Page _513 upon premises more fully described in said notice, andWhereas, the principal desires to dissolve said lien in accordance with the provisions ofsection fourteen of chapter two hundred and fifty-four of the General Laws.Now, therefore, the condition of this obligation is such that if the said principal shall payto the said obligee all sums which shall be adjudged in favor of the said obligee in an actionbrought under the provisions of said section fourteen, this obligation shall be void, otherwise toremain in full force and effect.In witness whereof, the aforesaid principal and surety have executed this instrumentunder seal this__6th__ day of ____November 2018ARCO/Murray National Dallas, Inc.svataan Travelers Casualty and Surety Company of America feAnna M. Maurer Attomey-in-fact#3173595_vi§-6741-0905WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BOROERThis Power of Attomey is granted under and by the authority ofthe following resolutions adopted by the Boards of Directors of Farmington Casualty Company, Fidelityand Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian InsuranceCompany, St, Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of Ametica, and United StatesFidelity and Guaranty Company, which resolutions are now in full force and effect, reading as follows:RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second VicePresident, the Treasurer, any Assistant Treasurer, the Corporate Secrelary or any Assistant ‘Secretary may appoint Adomeys-in-Fact and Agents to act for and on behalfof the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company’s name and seal with theCompany's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and anyOf said officers or the Board of Directors at any tine may remove any such appointee and revoke the power given him or her; and it isFURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President of any Vice President maydelegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copythereof is filed in the office of the Secretary; and it isFURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recogaizance, or conditional undertekingshall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any VicePresident, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with theCompany's seal by a Secretary or Assistant Secretary; or (b) duly exeouted (under seal, if required) by one or more Attomeys-in-Fact and Agents pursuant to the powerprescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it isFURTHER RESOLVED, that the signature of each of the following officers: President, any Execotive Vice President, any Senior Vice President, any Vice President,any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Altomey ot to anycentificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attormeys-in-Fact for purposes only of executing, aad attesting bondsand undertakings and other writings obligatory in the nature thereof, and any such Power of Attomey or certificate bearing such facsimile signature or facsimile sealshall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding onthe Company in the future with respect to any bond or understanding to which it is attached.1, Kevin E, Hughes, the uadersigned, Assistant Secretary, of Farmington Casualty Company, Fidelity and Guaranty Insurance Company, Fidelity and Guaranty InsuranceUnderwriters, Ine., St, Paul Fire and Marine Insurance Company, St, Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty andSurety Company, Travelers Casualty and Surety Company of America, and United States Fidelity and Guaranty Company do hereby certify that the above and foregoingis a true and correct copy of the Power of Attomey executed by said Companies, which is in full force and effect and has not been revoked.IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the séals of said Companies this a fo vday ot_ AMivember 20 L& ‘To verify the authenticity of this Power of Attorney, call 1-800-421-3880 or contact us at www.travelersbond.com. Please refer to the Attomey-In-Fact number, theabove-named individuals and the details of the bond to which the power is attached. WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER,a‘WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDERPOWER OF ATTORNEYTRAVELERS) pursing comty ConpuySt. Pan] Mercury Insuranee CompanyFidelity and Guaranty Insurance Company ‘Travelers Casualty and Surety CompanyFidelity and Guaranty Insurance Underwriters, Inc. ~ Travelers Casualty and Surety Company of AmericaSt. Paul Fire and Marine Insurance Company United States Fidelity and Guaranty CompanySt. Paul Guardian Insurance CompanyAttorney-In Fact No. 232099 Certiicateno. QQ 7307 741KNOW ALL MEN BY THESE PRESENTS: That Farmington Casualty Company, St. Paul Fire and Marine Insurance Company, St. Paul Guardian InsuranceCompany, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Comapany, Travelers Casualty and Surety Company of America, and United StatesFidelity and Guaranty Company are corporations duly organized under the laws of the State of Connecticut, that Fidelity and Guaranty Insurance Company is acorporation duly organized under the Iaws of the State of Towa, and that Fidelity and Guaranty Insurance Underwriters, Inc., is a corporation duly organized under thelaws of the State of Wisconsin (herein collectively called the “Companies”), and that the Companies do hereby make, constitute and appointLisa A. McAleenan, Kelly M. Sunderman, Anne M. Gliedt, Kevin E. McDaniel, Stephanie L. Klearman, DeAnna M. Maurer, and Kayla A. Woodwardof the City of St. Louis , State of. Missouri their true and lawful Attomey(s)-in-Fact,each in their separate capacity if more than one is named above, to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings andother writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, gnaranteeing the performance ofcontracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allawed by law.IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereto affixed, this 27thday of __Iuly 2017 .Farmington Casualty Company St. Paul Mercury Insurance CompanyFidelity and Guaranty Insurance Company ‘Travelers Casualty and Surety CompanyFidelity and Guaranty Insurance Underwriters, Inc. ‘Travelers Casualty and Surety Company of AmericaSt. Paul Fire and Marine Insurance Company United States Fidelity and Guaranty CompanySt. Pav! Guardian Insurance Company State of Connecticut By:City of Hartford ss. Robert L. Raney, Senior Vie PresidentOnthisthe 27th dayor__ July, 2017 efore me personally appeared Robert L. Raney, who acknowledged himself tobe the Senior Vice President of Farmington Casualty Company, Fidelity and Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. PaulFire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, TravelersCasualty and Surety Company of America, and United States Fidelity and Guaranty Company, and that he, as such, being authorized so to do, executed the foregoinginstrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer.: Waris _¢. Aatioutt‘Marie C. Tewresult, Notary PublicIn Witness Whereot, I hereunto set my hand and official seal.My Commission expizes the 30th day of June, 2021. §8440-5-16 Printed in U.S.A.__ WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER:DOCKET NUMBER ii sCIVIL ACTION COVER SHEET IRA Tvial Court of MassachusettsCVO | G47 D The Superior CourtPLAINTIFF(S): International Brotherhood of Electrical Workers Local 103 COUNTYADDRESS: 256 Freeport Street, Dorchester MA 02122 Essex DEFENDANTIS}: Travelers Casualty and Surely Company of America and ARCOfMurray National of Dallas, Inc. ATTORNEY: {ra Sills, Sasha N. GillinADDRESS: ‘Segal Roitman, LLP, 33 Harrison Ave., 7th Fl., Boston, MA 02111 ADDRESS: Che Tower Square, Hartford, GT 061834849 Greenville Avo., Suite 1460, Dallas, TX 75208B80: 462220, 690769TYPE OF ACTION AND TRACK DESIGNATION (see reverse side)CODE NO. TYPE OF ACTION (specify) TRACK HAS A JURY CLAIM BEEN MADE?A01 Enforcement of a mechanic's lien bond F : Cres NO “if “Other” please describe: STATEMENT OF DAMAGES PURSUANT TO G.L. c. 212, § 3AThe following is a full, itemized and detailed statement of the facts on which the undersigned plaintiff or plaintiff counsel reties to determine money damages. Forthis form, disregard double or treble damage claims; indicate single damages only.TORT CLAIMS(attach additional sheets as necessary)X3ssa|A. Documented medical expenses to date1, Total hospital expenses2. Total doctor expenses ..3. Total chiropractic expenses4, Total physical therapy expenses.5. Total other expenses (describe below) |B. Documented lost wages and compensation to dateIC. Documented property damages to dated ...ID. Reasonably anticipated future medical and hospital expensesIE. Reasonably anticipated lost wages .....IF, Other documented items of damages (describe below) ..woone addadlsln }G. Briefly describe plaintiffs injury, including the nature and extent of injury: TOTAL (A-F):$CONTRACT CLAIMS(attach additional sheets as necessary)Provide a detailed description of claims(s):This is an action to enforce a mechanic's lien bond to recover wages owed to electrical workers for work they performed TOTAL: $ = 23,020.17on the land or buildings located at 137 Summit Street ig Peabody, MassachusettsSignature of Attorney/Pro Se Plaintiff: X lw Date: 12/17/2018 RELATED ACTIONS: Please provide the case number, case name, and county of any related actions pending in the Superior Court. CERTIFICATION PURSUANT TO SJC RULE 1:18| hereby certify that | have complied with requirements of Rule 5 of the Supreme Judicial Court Uniform Rules on Dispute Resolution (SJCRule 1:18) requiring that I provide my clients with information about court-connected dispute resolution services and discuss with them theadvantages and disadvantages of the various methods of dispute resolution.Signature of Attorney of Record: X hr. Date: raj ]is

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Case Number: 21STCV22508 Hearing Date: August 20, 2024 Dept: 72 SUPERIOR COURT OF CALIFORNIA COUNTY OF LOS ANGELES DEPARTMENT 72 TENTATIVE RULING JAY HOOPER, et al., Plaintiffs, v. JOHN ALEXANDER GIANOUTSOS RIGAS, et al., Defendants. Case No: 21STCV22508 Hearing Date: August 20, 2024 Calendar Number: 6 (Add-On) Defendant Xenofon Ted Stavropoulos (Stavropoulos) moves for summary judgment or, in the alternative, summary adjudication, on the causes of action in the First Amended Complaint (FAC) filed by Plaintiffs Jay Hooper (Hooper), UW International Corp. (UW), and Crown Estate Holding LLC (CEH) (collectively, Plaintiffs) The Court GRANTS the motion for summary judgment. The release signed by Hooper bars the Plaintiffs claims. Background This case relates to a business venture whereby Stavropoulos, John Alexander Rigas (Rigas), and Hooper, (collectively, the Principals) formed Mission n95 Holdings, LLC (Defendant Mission) in the spring of 2020 to procure and provide personal protective equipment during the Covid-19 pandemic. Plaintiffs subsequently filed this lawsuit against Defendants Rigas and Mission (collectively, the Rigas Defendants), and Stavropoulos (collectively with Rigas and Mission, Defendants). On May 6, 2020, the Principals executed Missions Operating Agreement. (Undisputed Fact (UF) 6; Rigas Decl., Ex. 1 (Operating Agreement).) The Operating Agreement provided that each of the Principals (Stavropoulos, Rigas and Hooper) would be members of Mission. (UF 7.) Rigas also served as Missions Chief Executive Officer (UF 8.) Mission was formed as a manager-managed LLC with more than one manager. (Rigas Decl., Ex. 1 at p. 11.) Missions largest deal in 2020 was a purchase order from the State of California. On June 11, 2020, the Principals executed an agreement (the General Agreement) which set forth the terms by which UW and Mission would cooperate regarding the California order. (UF 9; Rigas Decl., Ex. 2 (General Agreement).) At the time of the California order, Mission had not yet been fully established as a business entity. Because an entity was required to do business with the State of California, the Principals utilized the bank account of UW, Hoopers company, for Missions transactions with the State of California. (Plaintiffs Additional Fact (AF) 9.) The $93 million in revenue was deposited into UWs bank account. (AF 26.) The parties also used Hoopers warehouse, owned by CEH, to store certain goods, which storage Plaintiffs allege Defendants did not pay for. According to Defendants, Hooper failed to contribute to the business by failing to source suppliers for the necessary product or secure financing that he had committed to provide. Defendants also contend that Hooper had misappropriated funds that were to be used in connection with fulfilling the California order. Hooper asserts that the other two principals were improperly withholding Mission profits that were owed to him. Near the end of December 2020, the Principals executed several agreements (collectively, the December Agreements): 1. The Mutual General Release Agreement (Mutual General Release), dated December 29, 2020, signed by Hooper, his wife Rebecca Hooper (consenting to her husbands execution of the agreement), Stavropoulos, and Rigas individually and on Missions behalf; 2. The Rescission Agreement, dated December 29, 2020, signed by the same four people in their same capacities as the Mutual General Release; 3. The First Amendment to General Agreement (Amended General Agreement), dated December 29, 2020, signed by Hooper on behalf of UW and Rigas on behalf of Mission; and 4. The Employment Agreement, which was dated as of May 6, 2020, signed by Rigas on behalf of Mission and Hooper as an Employee of Mission. (UMF 10.) The December Agreements rescinded Missions Operating Agreement (thereby eliminating Hooper and Stavropouloss interests in Mission and share in the companys profits), wound down the General Agreement between Mission and UW to confirm that they no longer had any obligations to each other, memorialized Hooper and Stavropouloss roles as employees of Mission and provided for their compensation (including a payment to Hooper of more than $5.5 million), and had the parties release each other from any past, existing, or future claims connected in any way with their business. (UMF 10.) The Mutual General Release contained a provision whereby each of the parties released the others from any and all past, present, or future claims, lawsuits, or other liabilities, whether known or unknown and whether suspected or unsuspected, based on any actions or omissions taken prior to its effective date. (Rigas Decl., Ex. 3 (Mutual General Release) at pp. 1-2.) The Mutual General Release contained a clause waiving Civil Code, section 1542, under which parties cannot ordinarily waive unsuspected claims that would have materially affected the settlement. (Rigas Decl., Ex. 3 at p. 2.) Each of the Mutual General Release, Rescission Agreement, and Employment Agreement contained a provision whereby the parties acknowledged that they had the opportunity to be represented by independent legal counsel in the negotiation and execution of the agreement and were entering into the agreement voluntarily, freely, and with full consent. (UMF 11.) Plaintiffs filed this action on June 16, 2021. The operative complaint is now the FAC, which raises claims for (1) breach of partnership agreement; (2) breach of contract; (3) fraud intentional misrepresentation; (4) fraud concealment; (5) conversion; (6) theft under Penal Code sections 496, 484(a), and 532; (7) breach of fiduciary duties; (8) breach of fiduciary duty by attorney; (9) breach of contract; (10) fraud intentional misrepresentation; (11) conversion; (12) theft under Penal Code sections 496, 484(a), and 532; (13) breach of fiduciary duties; (14) breach of fiduciary duty by attorney; (15) breach of contract; (16) fraud intentional misrepresentation; (17) conversion; (18) heft under Penal Code sections 496, 484(a), and 532; (19) breach of fiduciary duties; and (20) declaratory relief. Claims 1-8 are alleged by Hooper against Defendants. Claims 9-14 are alleged by UW against Defendants. Claims 15-19 are alleged by CEH against Defendants. Claim 20 is alleged by all Plaintiffs against Defendants. The Rigas Defendants moved for summary judgment on February 15, 2024 (the Prior Motion). On June 21, 2024, the Court issued an order (the Prior Order) granted the Rigas Defendants motion for summary judgment on the grounds that the General Release in the December Agreements fully covered Plaintiffs claims. The Court rejected Plaintiffs arguments that the December Agreements were procured through undue influence and economic duress. Stavropoulos filed this motion on June 3, 2024. Plaintiffs filed an opposition on July 30, 2024. Stavropoulos filed a reply on August 8, 2024. Request for Judicial Notice The Court grants Stavropouloss request for judicial notice and takes notice of the requested materials as public records. Evidentiary Objections The Court sustains the following of Stavropouloss evidentiary objections: 1 (lack of foundation); 3 (contradicts prior sworn deposition testimony); 6 (lack of foundation); 7 (contradicts prior sworn deposition testimony); 8 (contradicts prior sworn deposition testimony); 9 (contradicts prior sworn deposition testimony); 10 (contradicts prior sworn deposition testimony); 11 (contradicts prior sworn deposition testimony); 12 (contradicts prior sworn deposition testimony); 13 (contradicts prior sworn deposition testimony); 14 (contradicts prior sworn deposition testimony); 15 (lack of foundation; speculation; hearsay); 16 (hearsay). When the Court sustains the objection on the grounds that a statement contradicts prior sworn deposition testimony it means that the Court is applying the established rule that where a declaration submitted in opposition to a motion for summary judgment clearly contradicts the declarants earlier deposition testimony or discovery responses, the trial court may fairly disregard the declaration and conclude there is no substantial evidence of the existence of a triable issue of fact. (Whitmire v. Intersoll-Rand Co. (2010) 184 Cal.App.4th 1078, 1087.) The Court overrules the remaining objections for purposes of summary judgment. Legal Standard The purpose of a motion for summary judgment or summary adjudication is to provide courts with a mechanism to cut through the parties pleadings in order to determine whether, despite their allegations, trial is in fact necessary to resolve their dispute. (Aguilar v. Atlantic Richfield Co., supra, 25 Cal.4th at p. 843.) Code of Civil Procedure section 437c, subdivision (c), requires the trial judge to grant summary judgment if all the evidence submitted, and all inferences reasonably deducible from the evidence and uncontradicted by other inferences or evidence, show that there is no triable issue as to any material fact and that the moving party is entitled to judgment as a matter of law. (Adler v. Manor Healthcare Corp. (1992) 7 Cal.App.4th 1110, 1119.) In ruling on the motion, the court must consider all of the evidence and all of the inferences reasonably drawn therefrom [citation] and must view such evidence [citations] and such inferences [citations] in the light most favorable to the opposing party. (Aguilar, supra, at pp. 844-845 [quotation marks omitted].) On a motion for summary judgment, the initial burden is always on the moving party to make a prima facie showing that there are no triable issues of material fact. (Scalf v. D. B. Log Homes, Inc. (2005) 128 Cal.App.4th 1510, 1519.) A defendant moving for summary judgment or summary adjudication has met his or her burden of showing that a cause of action has no merit if the party has shown that one or more elements of the cause of action . . . cannot be established, or that there is a complete defense to the cause of action. (Code Civ. Proc., § 437c, subd. (p)(2).) Once the defendant . . . has met that burden, the burden shifts to the plaintiff . . . to show that a triable issue of one or more material facts exists as to the cause of action or a defense thereto. (Ibid.) To establish a triable issue of material fact, the party opposing the motion must produce substantial responsive evidence. (Sangster v. Paetkau (1998) 68 Cal.App.4th 151, 166.) If the plaintiff cannot do so, summary judgment should be granted. (Avivi v. Centro Medico Urgente Medical Center (2008) 159 Cal.App.4th 463, 467.) Discussion General Release A valid release of claims bars an action on a claim that is the subject of the release. (San Diego Hospice v. County of San Diego (1995) 31 Cal.App.4th 1048, 1053.) Further, a general release that explicitly covers known and unknown claims and specifically waives Civil Code, section 1542 is enforceable and acts as a complete bar to all claims. (Ibid.) A general release will support summary judgment of claims falling within its scope. (Villacres v. ABM Industries Inc. (2010) 189 Cal.App.4th 562, 588.) Plaintiffs do not dispute that their claims fall within the scope of release in the December Agreements. The release by its explicit terms bars Plaintiffs claims against Stavropoulos, entitling Stavropoulos to summary judgment. Stavropoulos therefore has met his initial burden on summary judgment, shifting the burden to Plaintiffs. In attempting to avoid summary judgment, Plaintiffs argue that they should be able to reach a jury notwithstanding the release because there are triable issues of fact on the validity of the release under three doctrines: undue influence, economic coercion, and constructive fraud. The Court examined, and rejected, Plaintiffs undue influence and economic coercion theories in the Prior Order granting summary judgment to the Rigas Defendants. Plaintiff asserts even fewer facts specific to Stavropoulos himself. Nevertheless, the Court considers the specific arguments raised by Plaintiffs in this later briefing and provides its analysis, where applicable, even when the reasoning also appears in the Prior Order. Undue Influence Plaintiffs argue that Defendants (including the Rigas Defendants, who have already obtained summary judgment, and Stavropoulos, who is the moving party on this motion) obtained Hoopers signatures on the December Agreements which contained the release through undue influence. Plaintiffs argue that the December Agreements are therefore voidable. Undue influence consists: 1. In the use, by one in whom a confidence is reposed by another, or who holds a real or apparent authority over him, of such confidence or authority for the purpose of obtaining an unfair advantage over him; 2. In taking an unfair advantage of another's weakness of mind; or, 3. In taking a grossly oppressive and unfair advantage of another's necessities or distress. (Civil Code, § 1575.) [T]here are no fixed definitions or inflexible formulas. Rather, [courts] are concerned with whether from the entire context it appears that one's will was overborne and he was induced to do or forbear to do an act which he would not do, or would do, if left to act freely. (Keithley v. Civil Service Bd. (1970) 11 Cal.App.3d 443, 451.) Undue influence, is a shorthand legal phrase used to describe persuasion which tends to be coercive in nature, persuasion which overcomes the will without convincing the judgment. The hallmark of such persuasion is high pressure, a pressure which works on mental, moral, or emotional weakness to such an extent that it approaches the boundaries of coercion. (Odorizzi v. Bloomfield School Dist. (1966) 246 Cal.App.2d 123, 130 [citations omitted].) However, [u]ndue influence cannot be used as a pretext to avoid bad bargains or escape from bargains[.] (Id. at p. 132.) The party asserting undue influence must show undue susceptibility in the servient person, which need not be long-lasting nor wholly incapacitating, but may be merely a lack of full vigor due to age, physical condition, emotional anguish, or a combination of such factors. The reported cases have usually involved elderly, sick, senile persons alleged to have executed wills or deeds under pressure. (Id. at p. 131 [citations omitted].) Here, Plaintiffs discovery admissions show that his execution of the December Agreements was not the result of undue influence by the Defendants. Judicial admissions are conclusive concessions of the truth of a matter and have the effect of removing it from the issues. (Uram v. Abex Corp. (1990) 217 Cal.App.3d 1425, 1433.) A party can therefore rely on judicial admissions when moving for summary judgment. (Ibid.) A judicial admission is a party's unequivocal concession of the truth of a matter, and removes the matter as an issue in the case. (Gelfo v. Lockheed Martin Corp. (2006) 140 Cal.App.4th 34, 48.) This principle has particular force when the admission hurts the conceder's case. An express concession against one's interest is regarded as highly competent, credible evidence. (Ibid.) [W]hen discovery has produced an admission or concession on the part of the party opposing summary judgment which demonstrates that there is no factual issue to be tried, certain of those stern requirements applicable in a normal case are relaxed or altered in their operation. (D'Amico v. Board of Medical Examiners (1974) 11 Cal.3d 1, 21.) Where & there is a clear and unequivocal admission by the plaintiff, himself, in his deposition ... we are forced to conclude there is no substantial evidence of the existence of a triable issue of fact. (Ibid [internal citation and quotation marks omitted].) Where a declaration submitted in opposition to a motion for summary judgment motion clearly contradicts the declarant's earlier deposition testimony or discovery responses, the trial court may fairly disregard the declaration and conclude there is no substantial evidence of the existence of a triable issue of fact. (Whitmire v. Ingersoll-Rand Co. (2010) 184 Cal.App.4th 1078, 1087 [internal citation and quotation marks omitted].) However, this rule does not apply where there is a reasonable explanation for the discrepancy[,] [nor does it] countenance ignoring other credible evidence that contradicts or explains that party's answers or otherwise demonstrates there are genuine issues of factual dispute. (Mackey v. Board of Trustees of California State University (2019) 31 Cal.App.5th 640, 658 [citation omitted].) Hooper testified in his deposition that he did not want to sign the December Agreements and was planning to sue Rigas at the time when he signed the agreements. (Ardebili Decl., Ex. 11 at p. 473:19-474:4.) Hooper testified that [he] was forced by [his] wife to sign the agreement. Thats the reason why [he] sign[ed]. (Ardebili Decl., Ex. 11 at p. 474:10-22.) Hooper testified that it did not matter to him what was in the agreements, because he did not agree. (Ardebili Decl., Ex. 11 at p. 474: 19-22.) Hooper testified that, although he understood that when one signs an agreement, one commits to fulfill any duties they have under the agreement, he nevertheless signed the December Agreements with no intention to be bound by them. (Ardebili Decl., Ex. 11 at p. 475:1-14.) When asked if he wanted to get the money and then sue afterwards for more money, Hooper testified: Yes. (Ardebili Decl., Ex. 11 at p. 47:15-17.) Hooper testified that at the time when he signed the December Agreements, he did not care whether they were enforceable. (Ardebili Decl., Ex. 11 at p. 488:16-19.) In response to the question [y]ou testified earlier that you were forced to sign these four December 29, 2020 agreements. Who forced you to sign them?, Hooper answered Rebecca Hooper, my wife. (Ardebili Decl., Ex. 11 at p. 476:18-21.) Hooper testified that his wife forced him to sign the agreements by saying that they needed the money. (Brown Decl., Ex. 11 at p. 477:7-9.) Although Hooper initially testified that Rigas forced him to sign the agreements as well (Ardebili Decl., Ex. 11 at p. 476:22-24), Plaintiff later admitted that Rigas did not say anything to Hooper to coerce him to sign the agreements. (Brown., Ex. 11 at p. 477:21-24.) Hoopers testimony reads as follows: Q. So Mr. Rigas did not say anything to you to coerce you to sign these four agreements; is that correct? A. Yes. (Id.) Hooper testified that, other than his wife pressuring him to sign the documents as quickly as possible, there was no time pressure on him in terms of reviewing or signing the December Agreements. (Brown Decl., Ex. 11 at p. 478-7-11.) Plaintiffs contend that Hooper testified as such because he believed that the time period being discussed was only the morning of December 29, 2020, when Hooper signed the agreements. Plaintiffs cite to page 470 of the Hooper deposition (Brown Decl., Ex. 11 at p. 470) to indicate that the time period being discussed was the morning of December 29, 2020 only. Nothing on page 470 supports this interpretation. Hooper is asked whether he signed the December Agreements on December 29, 2020, and is then asked follow-up questions relating to the events leading up to his execution of the agreements. At no point does the questioning attorney indicate that Hooper is to constrain his responses to the questions about pressure and influence to the morning of December 29, 2020 only. Hoopers deposition testimony by its terms relates to the full time leading up to his execution of the December Agreements. The Court is therefore unpersuaded by Plaintiffs attempts to introduce new evidence in Hoopers declaration that Rigas attempted to bully and coerce him into signing the December Agreements or that anyone other than his wife forced him to sign them. Plaintiffs argue that Hooper had limited time to consult an attorney because the December Agreements were presented to him at the beginning of a holiday weekend, and he was asked to sign the following Monday. However, when asked why Hooper did not consult with an attorney prior to December 29, 2020, Hooper testified that he did not have time, and that the only reason he was under time pressure was because his wife was pressuring him to sign the agreements due to how much money they would receive. (Brown Decl., Ex. 11 at p. 499:1-10.) Plaintiffs contend that Hooper offered all of this testimony at the end of four days of depositions, leaving unclear the implication of that assertion. In any event, the fourth session of his deposition, when he offered the foregoing testimony, was on December 11, 2023 long after the third day on May 5, 2023. (Compare Lee Decl. ¶¶ 5-7 with Brown Decl., Ex. 11 and Brown Decl., Ex. 13.) It appears that Hooper had ample time to recover from any stresses of the first three days before going into the fourth. Hoopers deposition thus demonstrates clear, unequivocal, and repeated admissions that Rigas did not coerce him into signing the December Agreements, and that the pressure on Hooper came from his wife. Plaintiffs have not shown that Rigas or any of the other Defendants engaged in any persuasion which overcomes the will. (Odorizzi v. Bloomfield School Dist. (1966) 246 Cal.App.2d 123, 130 [citation omitted].) Much less have Plaintiffs shown that Rigas exerted any pressure which works on mental, moral, or emotional weakness to such an extent that it approaches the boundaries of coercion. (Id.) Plaintiffs argue undue influence based on a message sent by Rigas to Hoopers wife prior to the execution of the December Agreements. Exhibit 22 to Rebecca Hoopers declaration, the text message in question, reads as follows: 2020-12-28 21:46:33 to Rebecca Hooper As a courtesy to you, I want you to know that I am fed up with all of your [husbands] words. I have tried very hard to make him understand. I have a 12pm appointment with my lawyers to do what now must be done without concern for the consequences to Jay. Nothing short of receiving, in my hand, the executed agreements that I left with him, will reverse what will become irreversible. (Rebecca Hooper Decl., Ex. 22.) Such a pre-litigation demand by Rigasespecially coupled with Hoopers repeated concessions in his depositiondoes not create a triable issue of fact concerning undue influence. The text by its terms is a last-ditch effort to seek an agreement and prevent legal action, not evidence of undue influence. The Court similarly rejects Plaintiffs argument that his new declarations provide reasonable explanations for his deposition testimony in the form of statements that when Hooper testified that his wife pressured him to sign the agreements, what he actually meant was that she was conveying the contents of Rigass text message. Plaintiffs proposed explanation is not reasonable. Plaintiff repeatedly testified that his wife forced him to sign the agreements, that the only time pressure was from his wife, and that Rigas did not say anything to coerce Hooper into signing. No reasonable reading of Hoopers deposition transcript could lead a jury to conclude that Hooper actually meant that his wife was acting as a vehicle for Rigass pressure, rather than of her own volition, and that Hooper simply forgot to mention that fact at any point during his deposition. Furthermore, even if Rigas had sent the text message directly to Hooper, it would not constitute undue influence. Plaintiffs argue that there is a presumption of undue influence here. [A] presumption of undue influence arises when there is a concurrence of the following elements: (1) the existence of a confidential or fiduciary relationship between the testator and the person alleged to have exerted undue influence; (2) active participation by such person in preparation or execution of the [instrument]; and (3) an undue benefit to such person or another person under the [instrument] thus procured. (Estate of Gelonese (1974) 36 Cal.App.3d 854, 861862 [citations and quotation marks omitted].) The presumption of undue influence, when established, is a rebuttable presumption. (Id. at p. 862.) The effect of a presumption affecting the burden of proof is to impose upon the party against whom it operates the burden of proof as to the nonexistence of the presumed fact. (Id. at p. 863 [citation and quotation marks omitted].) Even assuming for the sake of argument that a presumption of undue influence exists, Defendants have rebutted it. Plaintiffs discovery admissions show that any strong influence on him to sign the December Agreements came not from Rigasand certainly not from Stavropoulosbut from Hoopers wife. Constructive Fraud Plaintiffs argue that the releases they provided are void under the doctrine of constructive fraud. Constructive fraud consists: 1. In any breach of duty which, without an actually fraudulent intent, gains an advantage to the person in fault, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him; or, 2. In any such act or omission as the law specially declares to be fraudulent, without respect to actual fraud. (Civ. Code, § 1573.) [D]uring the existence of such fiduciary relationship any transaction by which one of the co-adventurers secures an advantage over the other or others is presumptively fraudulent and casts a burden on such party gaining the advantage to show fairness and good faith in all respects. (Boyd v. Bevilacqua (1966) 247 Cal.App.2d 272, 290.) As an initial matter, Plaintiffs have not introduced evidence that Stavropoulos was a manager of Mission. They cite paragraphs 9-10 and Ex. 4 page 7 of the Hooper Declaration, but nothing in that evidence states he was a manager. If Stavropolous was only a member and not a manager, he did not owe Hooper any fiduciary duties aside from the general duty of good faith and fair dealing. (Corp. Code, § 17704.09, subds. (d), (f).) Moreover, Plaintiffs have not introduced evidence that either Stavropoulos or Rigas acted to deceive Hooper. Plaintiffs contend that Stavropoulos admitted in his deposition that he conspired with Rigas to deprive Hooper of Hoopers share of Missions profits. Plaintiffs do not provide a specific citation for this claim, instead pointing generally at a large collection of excerpts from Stavropouloss deposition, which comprise Exhibit 26 to the declaration of Edward Lee. Exhibit 26 consists of more than fifty pages of deposition excerpts. Riffling through them does not reveal any facts that assist Plaintiffs on this motion. Nor is it appropriate to ask the Court to root through the record to find what Plaintiffs claim are disputed facts. Pointing to a large number of pages without sufficient explanation does not meet Plaintiffs burden. Plaintiffs also cite to an assertion in their separate statement (AF 77) that Rigas admitted that he never intended to follow the operating agreement, which in turn cites Declaration of Edward Lee, Ex. 39 at pp. 120:11 122:2.) There is no Exhibit 39 to the Lee declaration. Rather, the record shows that the parties had a dispute that they eventually resolved. As discussed above, the December Agreements functioned as an omnibus settlement agreement to resolve, among other things, the parties potential claims against each other along with their remaining obligations to each other relating to Mission. The December Agreements were not a simple resolution of the profit share owed to Hooper they were a bargained for exchange of multiple material benefits. Plaintiffs have not introduced evidence to show that the resulting settlement was unfair to Hooper. Plaintiffs contend that Rigas transferred $93 million from UWs bank account to Missions bank account. (AF 42, 78.) This is not evidence of wrongdoing the General Agreement between Mission and UW provided that UW would act as an intermediary and use its bank account to receive from the State of California the revenue owed to Mission which was $93 million. (UF 9; AF 9, 26.) Plaintiff therefore has not established a presumption of constructive fraud. Economic Duress Economic duress may come into play upon the doing of a wrongful act which is sufficiently coercive to cause a reasonably prudent person faced with no reasonable alternative to succumb to the perpetrators pressure. (Perez v. Uline, Inc. (2007) 157 Cal.App.4th 953, 959 [citation omitted].) But courts are reluctant to set aside settlements and will apply economic duress only in limited circ*mstances and as a last resort. (Id. [citations and internal quotation marks omitted].) Plaintiffs argue that Rigas exerted economic duress on Hooper in the formation of the December Agreements. Plaintiffs argue that Hoopers family was short on money to meet their financial obligations, that Rigas knew this, and that Rigas used that fact to pressure Hooper into accepting the December Agreements. As discussed above, Hooper has admitted that the immediate pressure on him to sign the agreements came from his wife, and not from Rigas. Moreover, Hooper had reasonable alternative to accepting the December 2020 Agreements he could negotiate further, contact a lawyer as he planned to do, or bring a legal action, as he also planned to do. Hooper did not take any of those options. Instead, Hooper testified that he decided on a plan to take the money, and then to ignore the settlement agreements and sue for more money. (Ardebili Decl., Ex. 11 at p. 47:15-17.) This case is not like Rich & Whillock, Inc. v. Ashton Development, Inc. (1984) 157 Cal.App.3d 1154 (Rich & Whillock), on which Plaintiffs rely. In Rich & Whillock, the defendant, after encouraging the plaintiff to complete its work on a project, refused to pay the balance of plaintiffs bill at a time plaintiff faced financial collapse. This led the plaintiffs vice-president to protest at the time he signed the release that he considered the proposal blackmail and that he was signing it only to survive. (Id. at p. 1157.) In finding economic coercion, Rich & Whillock considered defendants own creation of plaintiffs financial problems by encouraging plaintiffs expenditures, and plaintiffs strenuous protest at the time of signing. (Id. at pp. 1156, 1160-1161.) Neither of these factors is present here. (See Chan v. Lund (2010) 188 Cal.App.4th 1159, 1175 [distinguishing Rich & Whillock because defendant did not cause plaintiffs financial problems and because defendants were not aware of any claim at the time that plaintiff felt coerced].) Moreover, Rich & Whillock involved imminent bankruptcy for plaintiff if it did not sign the release. (Rich & Whillock, 157 Cal.App.3d at p. 1160.) Here, Plaintiffs claim that Hooper had several substantial debts which were coming due but do not provide evidence of imminent bankruptcy or financial ruin. In addition, in Rich & Whillock the defendants refusal was sudden and inconsistent with its earlier lack of complaints about the invoices. (Rich & Whillock, 157 Cal.App.3d at pp. 1156-1157.) Here, Plaintiffs asserted in oral argument that Defendants had stopped paying a month or two before the parties signed the release. Rich & Whillock is a far differentand strongercase than the current one for a showing of economic coercion. Moreover, the Court is unaware of other California cases decided in the forty years since Rich & Whillock that concluded that a release of claims may be set aside for economic coercion on grounds similar to those at issue here. Plaintiffs economic coercion claim attempts to stretch Rich & Whillock beyond the breaking point. If accepted, Plaintiffs argument would allow a party who has settled and released a claim to nevertheless go to a jury on the released claim by attempting to prove that plaintiff was in a difficult financial situation and defendant was unwilling to pay him money unless he would compromise his claim. Such a rule would undo the efficacy of many settlement agreements. The Court notes that it has sustained the objections to a number of statements in Hoopers declaration on the ground that they are inconsistent with the admissions he made in his deposition. But even if the Court considered the statements in the declaration to be admissible, they do not defeat summary judgment. These statements are (1) Defendant Stavropolous [sic] also said that if I didnt sign I would not get a penny and could sue (Hooper Decl. ¶ 34); (2) [a]lthough Rigas and Stavropolous [sic] pressured me to sign [&] (Hooper Decl. ¶ 35); (3) [&] Rigas attempted to force me into receiving less money in late December, 2020 (Hooper Decl. ¶ 42); (4) I would not have signed the December documents if Rigas did not withhold my rightful payment and threaten to give me nothing if I didnt sign them (Hooper Decl. ¶ 43); (5) [o]n or about December 24, 2020, Rigas and Stavropolous [sic] told me for the first time that he did not intend to abide by the Operating Agreement and pay me 33% of the profits from the California Deal. Rigas received approximately 78% of the profits from the California Deal (Hooper Decl. ¶ 45); (6) Rigas failed to disclose to me his contention that I did not have a right to 33 1/3% of the proceeds as stated in Mission N95s Operating Agreement until he attempted to force me to take less. (Hooper Decl. ¶ 49.) To the extent these paragraphs are meant to imply that Rigas made specific threats directly to Hooper, they conflict with his testimony that Rigas made no such statements to Hooper. (Ardebili Decl., Ex. 11 at p. 477:21-24.) If they are simply a restatement of Hoopers deposition testimony that he signed because he did not think Rigas or Stavropolous would otherwise give him any money, that is not sufficient to create a triable issue of fact on economic coercion for the reasons discussed above. For example, just before admitting at deposition that Rigas made no statements to him that coerced him to sign, Hooper testified: Q. You also testified a moment ago that Mr. Rigas somehow forced you to sign these four agreements. How so? A. Its not from his mouth, but I felt that if I didnt take those money, any money from them in the future would be very remotely possible. (Ardebili Decl., Ex. 11 at p. 477:15-20, emphasis added.) Hoopers concern that he would not get money from Rigas in the future, and Hoopers decision to take the $5.5 million and sue afterward (Ardebili Decl., Ex. 11 at p. 500:3-5) do not bring this case within Rich & Hillock or other principles of economic coercion. CEHs Claims Stavropoulos argues that CEH is bound by the releases in the December Agreements because it is an alter ego of Hooper and UW. The Mutual General Release binds the parties agents, assignees, and anyone else claiming by or through them, and applies broadly to the subject matter surrounding Mission. In addressing CEHs claim for unpaid storage fees and to explain why he changed invoices such that they would be issued by CEH rather than UW, Hooper testified that UW and CEH were both his companies. (UMF 35; Ardebili Decl., Ex. 13 at p. 331:3-7.) Hooper is the sole member, manager, and registered agent for service of process for CEH. (UMF 1.) Both CEH and UW use the exact same address. (UMF 2, 7.) Plaintiffs make no attempt in their opposition to address the argument that UW and CEH are bound by Hoopers releases. The Court therefore concludes that UW and CEH are bound by the general release in the December Agreements. Plaintiffs argue that CEHs claims survive because Stavropoulos personally leased a portion of CEHs warehouse space. That is not the basis of CEHs claims in this action, which involves storage of Missions merchandise, and therefore cannot not save CEHs claims. Because all of the claims in this case are covered by the general release in the December Agreements, the Court grants the Stavropouloss motion for summary judgment.

Ruling

SWEET ADELINE INC vs. TASTYWINGS INC

Aug 16, 2024 |C23-01054

C23-01054CASE NAME: SWEET ADELINE INC VS. TASTYWINGS INC*HEARING ON MOTION FOR DISCOVERY MOTION TO COMPEL DEFENDANT AND CROSS-COMPLAINANT TASTYWINGS INC.S RESPONSES TO INTERROGATORIES AND REQUESTS FORPRODUCTIONFILED BY:*TENTATIVE RULING:*Plaintiff/Cross-Defendants’ motion to compel responses to interrogatories and requests forproduction of documents is deemed moot; responses to the requested discovery have been served.Deficiencies in the newly served responses are not within the purview of the current motion and willnot be considered. While the court under circ*mstances such as these (where responses were servedafter the motion was filed) may award sanctions to the moving party, the court declines to do so inlight of counsel’s lack of candor in its 8/9/24 Reply to the court that responses were served bydefendant on August 5, 2024, four days prior to the date the Reply was submitted.

Ruling

WEICHOU HUANG VS XIANGJIE ZHOU, ET AL.

Aug 20, 2024 |18STCV05750

Case Number: 18STCV05750 Hearing Date: August 20, 2024 Dept: 54 Superior Court of California County of Los Angeles WEICHOU HUANG, derivatively on behalf of KANSAN INTERNATIONAL, INC., Plaintiff, Case No.: 18STCV05750 v. Tentative Ruling XIANGJIE ZHOU aka JOHNNY ZHOU, et al., Defendants. Hearing Date: August 20, 2024 Department 54, Judge Maurice Leiter Motion for New Trial Moving Party: Defendant Xiangjie Zhou Responding Party: Plaintiff Weichou Huang T/R: The Motion for New Trial is Denied. DEFENDANT TO NOTICE. If the parties wish to submit on the tentative, please email the courtroom at¿SMCdept54@lacourt.org¿with notice to opposing counsel (or self-represented party) before 8:00 am on the day of the hearing. The Court considers the moving papers, opposition, and reply. Plaintiff Weichou Huang, suing derivatively on behalf of Kansan International, Inc., first sued Defendants on November 20, 2018. The operative second amended complaint was filed on November 9, 2021; it contains causes of action for breach of fiduciary duty, abuse of control, conversion, accounting, and aiding and abetting breach of fiduciary duty. The operative first amended cross complaint was filed by Xiangjie Zhou on March 4, 2019, and contains causes of action for breach of contract, negligent misrepresentation, intentional misrepresentation, and breach of fiduciary duty. The case proceeded to a bench trial on March 18, 2024, concluding on March 20, 2024. The parties opted not to have the trial recorded by a court reporter, and instead filed a joint settled witness statement. After receiving closing argument briefs, the Court issued its proposed statement of decision on May 9, 2024. It set forth the Courts determination as to the ultimate facts and material issues in dispute. Antelope Valley Groundwater Cases (2020) 59 Cal. App. 5th 241, 265-66. No party submitted objections under CRC 3.1590(g). The Court adopted its proposed statement of decision as its final statement of decision on May 30, 2024. Defendant Xiangjie Zhou moves for a new trial. A motion for new trial may be granted on any of the grounds in Code of Civil Procedure § 657. The Court in reviewing a motion for a new trial must be guided by a presumption in favor of the correctness of the verdict and proceedings supporting it. Ryan v. Crown Castle NG Networks Inc. (2016) 6 Cal. App. 5th 775, 785. Defendant first argues that the damages awarded were excessive, speculative, and unsupported by the evidence. As Defendant states, to justify reversal a damages award must be so disproportionate to the injuries suffered that the result reached may be said to shock the conscience. (Daggett v. Atchison, Topeka & Santa Fe Railway Co. (1957) 48 Cal.2d 655, 666.) As set forth in the statement of decision, the evidence showed that Defendant breached his fiduciary duty to Kansan by diverting Kansans business customers to his own companies. The damages awarded are based on the amount of profit lost to Kansan from the diverted sales, and the $30,000 payment from Kansan to Z. Zhou. Plaintiff established that Defendants company Chinese International, Inc. (CII) sold $4,290,246.08 in seafood orders to Kansans business customers. The evidence showed a customary 20% profit margin in the wholesale seafood market, making the lost profits $858,049.20. The damages awarded were reasonable and based on the evidence in the case. Defendant next argues that the Court erred in not vacating the trial date, and that the Court failed to adjudicate Defendants cross complaint in Case No. 21STCV24309. These arguments are without merit. Prior to trial, after an inquiry from the Court, Defendant stated that they would proceed only on the cross complaint in Case No. 18STCV05750. Defendant is bound by that decision and may not make a different decision after the trial did not go his way. Nor did the Court err in declining to continue the trial until after Zhous criminal matter in China was concluded and Zhou could return to the United States. A party does not have an absolute right to attend a civil trial. (Province v. Center for Women's Health & Family Birth (1993) 20 Cal.App.4th 1673, 1686. A partys due process rights may be sufficiently protected where, as here, the party is represented by counsel. (Id., citing Helminski v. Ayerst Lab., A Div. of A.H.P.C. (6th Cir. 1985) 766 F.2d 208, 213.) Defendants other arguments are similarly unpersuasive, and largely reargue points raised earlier. As discussed in the statement of decision, the Court has subject matter jurisdiction. The agreements at issue were entered into in California; Kansan is a California corporation. CII conducted its business operations from Z. Zhous home in Fontana, California. The evidence showed that Z. Zhou is liable as an aider and abettor. And the evidence supports the derivative nature of the lawsuit. The motion is DENIED.

Ruling

DONGSOO CHANG VS ERIC FULLILOVE, ET AL.

Aug 21, 2024 |Echo Dawn Ryan |21STCV18508

Case Number: 21STCV18508 Hearing Date: August 21, 2024 Dept: 26 08/21/24 Dept. 26 Rolf Treu, Judge presiding DONGSOO CHANG v. ERIC FULLILOVE, et al. (21STCV18508) Counsel for Plaintiff/opposing party: Chad Biggins (Biggins Law Group) Counsel for Defendant/moving party: Lee T. Dicker (Leonard, Dicker & Schreiber LLP) MOTION FOR ATTORNEYS FEES (filed 07/03/24) TENTATIVE RULING The Court DENIES the Motion for Attorneys Fees filed by Defendant Eric Fullilove. I. BACKGROUND This action arises from the alleged the alleged breach of an agreement for the purchase and sale of a laundromat. On May 17, 2021, Plaintiff Dongsoo Chang (Plaintiff) filed a Complaint against Defendants Eric Fullilove, Yumi Ryoo, Rick Juarez, PWS, Inc., and Does 1 to 100, alleging causes of action for: (1) breach of contract; (2) breach of fiduciary duty; (3) negligence; and (4) fraud. On September 29, 2021, Plaintiff filed the operative First Amended Complaint (FAC) against Defendants alleging causes of action for: (1) breach of written contract; (2) breach of fiduciary duty; and (3) negligence. Only the first and fourth causes of action in the FAC were asserted against Defendant Eric Fullilove. The bench trial commenced on October 9, 2023. All parties rested on October 17, 2023. After the parties rested, Plaintiff moved to dismiss Defendant Yumi Ryoo from the fourth cause of action for fraud. All parties submitted closing briefs in lieu of closing arguments. The last brief, Plaintiffs reply brief, was filed and served on December 18, 2023. On February 26, 2024, after non-jury trial and taking the matter under submission, the Court issued a tentative statement of decision indicating that Plaintiff failed to carry his burden of proof on all claims and that judgment shall be entered in favor of Defendants and against Plaintiff. (02/26/24 Minute Order.) On May 21, 2024, the Court issued a final statement of decision and found that Plaintiff failed to carry his burden of proof on all claims and that judgment was to be entered in favor of Defendants. On June 24, 2024, judgment was entered in favor of Defendants and against Plaintiff. (06/24/24 Judgment.) Defendants were deemed the prevailing parties and the Court indicated that each is entitled to recover its costs, including possible attorneys fees, in an amount to be determined upon the filing of a memorandum of costs and/or post-trial motions. (06/24/24 Judgment.) On July 3, 2024, Defendant Eric Fullilove (Defendant) filed the instant Motion for Attorneys Fees, arguing that: · He is a prevailing party and is entitled to recover reasonable attorneys fees pursuant to the term of the contract and Civ. Code § 1717. · He was willing to, and did, participate in a mediation after litigation commenced. · Defendants attorneys fees are reasonable in amount and were necessary to the conduct defense of this litigation. · The number of hours extended by Defendants counsel is reasonable and were incurred due to Plaintiffs actions. · The hourly rates charged by Defendants counsel are reasonable and well within the range of prevailing rates. · Reasonable attorneys fees incurred in preparing the motion for attorneys fees are recoverable. In opposition, Plaintiff argues that: · Defendant does not have a right to recover attorneys fees because he failed to engage in pre-litigation mediation as he neither timely participated nor acted in good faith in selecting a mediator or the mediation process. · The claimed time spent is too vague to be adequately opposed. · There is no apportionment for the different claims. · Discovery and supplemental briefing is appropriate if the Court is inclined to grant the motion. On reply, Defendant argues that: · Defendant did not reject or fail to participate in a validly requested mediation. · Attorneys time spent is accurate and compensable. · There is no need to apportion between the contract and tort claims. · If additional time is needed and the billing statements are desired, Defendant is willing to provide them and to delay the decision on the instant motion. II. ANALYSIS A. Legal Standard for Motion for Attorneys Fees In any action on a contract, where the contract specifically provides that attorneys fees and costs, which are incurred to enforce that contract, shall be awarded to either one of the parties or to the prevailing party, then the party who is determined to be the prevailing party on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorneys fees in addition to other costs. (Civ. Code, § 1717, subd. (a).) The court, upon notice and motion by a party, shall determine who is the party prevailing on the contract . . . whether or not the suit proceeds to final judgment. (Civ. Code, § 1717, subd. (b)(1).) [T]he party prevailing on the contract shall be the party who received a greater relief in the action on the contract. (Civ. Code, § 1717, subd. (b)(1).) A prevailing party is defined as a defendant as against those plaintiffs who do not recover any relief against that defendant. (Code Civ. Proc., § 1032, subd. (a)(4).) An award of attorneys fees should compensate for all time spent, including time spent on fee-related issues. (Downey Cares v. Downey Community Development Com. (1987) 196 Cal.App.3d 983, 997.) It is well established that the determination of what constitutes reasonable attorney fees is committed to the discretion of the trial court, whose decision cannot be reversed in the absence of an abuse of discretion. (Melnyk v. Robledo (1976) 64 Cal.App.3d 618, 623.) The fee setting inquiry in California ordinarily begins with the lodestar [method], i.e., the number of hours reasonably expended multiplied by the reasonable hourly rate. (Graciano v. Robinson Ford Sales, Inc. (2006) 144 Cal.App.4th 140, 154.) The reasonable hourly rate is that prevailing in the community for similar work. (Margolin v. Regional Planning Com. (1982) 134 Cal.App.3d 999, 1004.) [A] computation of time spent on a case and the reasonable value of that time is fundamental to a determination of an appropriate attorneys fee award. (Margolin v. Regional Planning Com. (1982) 134 Cal.App.3d 999, 1004.) The lodestar figure may then be adjusted, based on consideration of factors specific to the case, in order to fix the fee at the fair market value for the legal services provided. (See Serrano v. Priest (1977) 20 Cal.3d 25, 49 [discussing factors relevant to proper attorneys fees award].) Such an approach anchors the trial courts analysis to an objective determination of the value of the attorneys services, ensuring that the amount awarded is not arbitrary. (Id. at p. 48, fn. 23.) The factors considered in determining the modification of the lodestar include (1) the novelty and difficulty of the questions involved, (2) the skill displayed in presenting them, (3) the extent to which the nature of the litigation precluded other employment by the attorneys, [and] (4) the contingent nature of the fee award. (Mountjoy v. Bank of Am. (2016) 245 Cal.App.4th 266, 271.) [T]he burden is on the party seeking attorney fees to prove that the fees it seeks are reasonable. (Gorman v. Tassajara Development Corp. (2009) 178 Cal.App.4th 44, 98.) [A]n award of attorney fees may be based on counsels declarations, without production of detailed time records. (Raining Data Corp. v. Barrenechea (2009) 175 Cal.App.4th 1363, 1365.) Where a party is challenging the reasonableness of attorneys fees as excessive that party must attack itemized billing with evidence that the fees claimed were not appropriate or obtain the declaration of an attorney with expertise in the procedural and substantive law to demonstrate that the fees claimed were unreasonable. (Premier Medical Management Systems, Inc. v. California Ins. Guarantee Assn. (2008) 163 Cal.App.4th 550, 563-564.) [I]t is the burden of the challenging party to point to the specific items challenged, with a sufficient argument and citations to the evidence and arguments that fees claimed are excessive, duplicative, or unrelated do not suffice. (Id. at p. 564.) It is well established that the determination of what constitutes reasonable attorney fees is committed to the discretion of the trial court. (PLCM Group v. Drexler (2000) 22 Cal.4th 1084, 1096.) A court should defer to the winning lawyers professional judgment as to the tasks completed in an action because he won, and might not have, had he been more of a slacker. (Moreno v. City of Sacramento (9th Cir. 2008) 534 F.3d 1106, 1111.) A losing party cannot litigate tenaciously then be heard to complain about the time spent or tasks performed by the prevailing party in response. (City of Riverside v. Rivera (1986) 477 U.S. 561, 580, fn.11.) Where a defendant does not produce evidence contradicting the reasonableness of counsels hourly rates, the Court will deem an attorneys hourly rate as reasonable. (Goglin v. BMW of North America, LLC (2016) 4 Cal.App.5th 462, 473.) B. Evidentiary Objections The Court SUSTAINS Plaintiffs evidentiary objection number 1 (hearsay and mediation privilege) to the declaration of Lee Dicker in support of the motion and OVERRULES Plaintiffs evidentiary objections numbers 2, 3, and 4 thereto. C. The Right to Recover Attorneys Fees Initially, the Court notes that Plaintiff does not dispute that Defendant is a prevailing party. Plaintiff contends that Defendant is prohibited from recovering attorneys fees because he did not comply with Paragraph 24 of the Asset Purchase Agreement (the Contract) between the parties, which governs mediation between the parties. A party must satisfy a contractual condition precedent concerning mediation for the recovery of attorneys fees. (Leamon v. Krajkiewcz (2003) 107 Cal.App.4th 424, 431.) To refuse is to decline the acceptance of something offered, or to fail to comply with some requirement. (Frei v. Davey (2004) 124 Cal.App.4th 1506, 1513.) The words of a contract are to be understood in their ordinary and popular sense. (Id. at p. 1518.) The Mediation Clause in the Contract Paragraph 24 of the Contract, which is attached as Exhibit A to the declaration of Defendants counsel, Lee T. Dicker (Dicker), in support of the motion states as follows: Except as reasonably necessary for a party to seek equitable relief from a Court . . . Buyer and Seller shall mediate any dispute or claim between them arising out of this Agreement or any resulting relationship or transaction between such parties. Either party may demand mediation by notice to the other party, which notice shall state the nature of the dispute to resolved. The parties shall agree upon a mediator not later than the twentieth day after such notice is given. If a mediator cannot be agreed upon, the matter shall be submitted to the American Arbitration Association . . . for the appointment of a mediator . . . [and] [s]hould either party fail to participate timely and in good faith in the selection process for the mediator, or in the mediation process, such party will be deemed to have refused mediation, and that party shall not be entitled to attorney fees that might be otherwise available to it in any subsequent court action or arbitration. (Dicker Decl., ¶ 3; Ex. A at ¶ 24.) The Contract was entered into between Plaintiff and Defendant. (Dicker Decl., ¶ 3; Ex. A.) Plaintiff relies on Exhibit B, which is attached to Mr. Dickers declaration, for the proposition that Defendant refused to engage in mediation. Plaintiffs counsel, Chad Biggins (Biggins), declares that the defense failed to act in good faith. (Biggins Decl., ¶ 3.) Mr. Biggins states that the contract contemplates pre-lawsuit mediation so the participation in mediation two years after the case was filed is irrelevant, and Defendant did not demand mediation at any time. (Biggins Decl., ¶ 3.) On April 26, 2021, Mr. Biggins e-mailed Defendant with a request for mediation concerning Plaintiffs claims that Defendant overstated his income which caused Plaintiff to pay more than the value of the laundromat. (Dicker Decl., Ex. B.) Mr. Biggins informed Defendant that he had been retained by Plaintiff regarding the sale of the laundromat. (Id.) Defendant responded via e-mail on such date stating that it was difficult to respond based on the information in counsels e-mail and that he needed more time to research and talk to Defendant PWS, Inc. before responding, and asked for a May 5th date to respond to which Mr. Biggins agreed. (Id.) Mr. Biggins then e-mailed Defendant asking for evidence supporting the claimed revenues on April 26, 2021. (Id.) On May 6, 2021, Mr. Biggins sent an e-mail to Defendant asking Defendant to advise Mr. Biggins of his position. (Id.) On May 6, 2021, Defendant responded to such e-mail indicating that neither the agent for sale has heard from Plaintiff about the issue and that he had doubts as to whether Mr. Biggins actually represented Plaintiff. (Id.) Defendant then stated that because nothing Mr. Biggins indicated appear[ed] to be true[,] [Defendant] [felt] no need to respond other than what [he] [had] just indicated. (Id.) On May 17, 2021, Mr. Biggins sent an e-mail to Defendant stating that I take it from your response that you are unwilling to mediate so I will proceed accordingly. (Id.) Defendant did not respond to such e-mail. (Biggins Decl., ¶ 2.) Analysis as to the Issue of Defendants Refusal to Engage in Mediation The Court finds that Plaintiffs argument that Defendant failed to engage in mediation efforts is persuasive. Based on the series of e-mails before the Court, it appears that Defendant had doubts as to whether Mr. Biggins represented Plaintiffs interests and therefore had some security concerns as to providing his financial information to an unknown representative. However, here, the e-mails set forth the name, address, and phone number of Mr. Bigginss law firm. Thus, by signing the Contract, Defendant was bound to decide on a mediator with Plaintiff within 20 days notice of a mediation request. Defendant, however, refused to provide an affirmative answer as to Mr. Biggins request to mediate. The Court notes that the request for mediation was clear and unequivocal and set forth a firm deadline for Defendant to provide a response. Thus, Defendant did not timely and in good faith participate in the mediation selection process pursuant to Paragraph 24 of the Contract. Plaintiffs counsel demanded mediation on April 26, 2021, to which Defendant never provided an unequivocal response within 20 days as required by the Contract and, in fact, Defendant indicated that he did not feel the need to respond to such a request. (Dickens, ¶ 3; Ex. B.) The Court reminds Defendant that there is a public policy of promoting mediation as a preferable alternative to judicial proceedings . . . . (Leamon, supra, 107 Cal.App.4th 424, 433.) Given that Defendant failed to comply with a contractual condition precedent, Defendant dispensed with his right to recover contractual attorneys fees. D. Apportionment of Claims While the issue of Defendants failure to comply with a condition precedent is dispositive of the motion, the Court will address Plaintiffs argument as to apportionment of claims. [P]arties may validly agree that the prevailing party will be awarded attorney fees incurred in any litigation between themselves, whether such litigation sounds in tort or in contract. (Santisas v. Goodin (1998) 17 Cal.4th 599, 608.) Had Defendant satisfied the condition precedent concerning mediation, the Court would have rejected Plaintiffs argument as to apportionment of claims and would have found that fees do not need to be apportioned based on the contract and tort claims. Here, the attorneys fee provision in the Contract is broad and indicates that the prevailing party shall be entitled to reasonable attorneys fees and costs [i]n any action, proceeding, or arbitration between [Plaintiff] and [Defendant] arising out of [the [Contract] . . . except as provided in [Paragraph 24]. (Dicker Decl. ¶ 3, Ex. A at ¶ 27.) E. Reasonableness of Fees While it is not necessary to address due to Defendants failure to satisfy the condition precedent necessary to recover fees, the Court will address the reasonableness of Defendants claimed fees. Defendant requests $240,000.00 in fees. (Dickens Decl., ¶ 10.) Counsels hourly rate is $600.00 per hour. (Dickens Decl., ¶ 2.) The parties agree that no invoices are attached to the motion and that the invoices were provided separately to Plaintiffs counsel upon request for proof of payment for depositions and other costs. (Biggins Decl., ¶ 5; Ex. 1.) Such invoices are fully redacted. (Id.) Had Defendant met the condition precedent concerning mediation, the Court would have been unable to grant the motion at the present time due to the lack of unredacted billing records. While billing records are not required, given the substantial amount of attorneys fees requested, the Court would have continued the motion to allow for the presentation of unredacted billing records and supplemental briefing. However, as indicated above, Defendants failure to engage in a timely and good faith initiation of the mediation process precludes his recovery of attorneys fees. Accordingly, the Court DENIES Defendants Motion for Attorneys Fees. III. DISPOSITION Based on the foregoing, the Court DENIES Defendants Motion for Attorneys Fees.

Document

Ferragamo Custom Builders, LLC vs. Ferraro, Joseph J. et al

Aug 19, 2024 |Contract / Business Cases |Services, Labor and Materials |2477CV00854

Document

Metega, Leon vs. Louis, Jean D. Pierre

Aug 21, 2024 |Equitable Remedies |Dissolution of a Partnership |2477CV00876

Document

Page, Robert A. vs. Jared Derrico Doing Business as The Pipe Surgeon

Aug 15, 2024 |Contract / Business Cases |Services, Labor and Materials |2477CV00850

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Youngblood Company, Inc. vs. Zurn Industries, LLC

Aug 19, 2024 |Contract / Business Cases |Construction Dispute |2477CV00858

Document

Lillian Montalto Signature Properties, LLC vs. DeLeon, Eladio et al

Feb 20, 2024 |Contract / Business Cases |Other Contract Action |2477CV00173

Document

Ferragamo Custom Builders, LLC vs. Ferraro, Joseph J. et al

Aug 19, 2024 |Contract / Business Cases |Services, Labor and Materials |2477CV00854

Document

The Standard Fire Insurance Company vs. Rodriguez, Adrialyz et al

Aug 15, 2024 |Contract / Business Cases |Interpleader |2477CV00849

Document

TD Bank, N.A. vs. Pagnoni, Laurence A.

Aug 23, 2024 |Contract / Business Cases |Commercial Paper |2477CV00877

Document

Ferragamo Custom Builders, LLC vs. Ferraro, Joseph J. et al

Aug 19, 2024 |Contract / Business Cases |Services, Labor and Materials |2477CV00854

Original civil complaint filed. December 21, 2018 (2024)

FAQs

What is the UPS settlement for religious discrimination lawsuit against United Parcel Service? ›

EEOC and United Parcel Service, Inc. (UPS) have settled a class religious discrimination lawsuit by consent decree. UPS will pay $4.9 million and provide other relief to a class of current and former applicants and employees identified by the EEOC.

What is lack of standing in a motion to dismiss? ›

Lack of standing: The plaintiff may lack standing to bring their claim, meaning they cannot demonstrate any harm or injury to themselves arising from your client's alleged conduct. Failure to state a claim: The plaintiff may fail to state a claim for which relief can be granted.

What does it mean if a court does not have jurisdiction over a particular case? ›

It is also possible that the court does not have jurisdiction over the particular type of crime for which you've been accused. If it can be shown the court trying your case doesn't have jurisdiction, the case (and conviction) are legally invalid.

What are the two types of jurisdiction that a court must have to hear a case and render a binding decision over the parties ›

The court must have both subject matter jurisdiction (the power to hear the type of case) and personal jurisdiction (the power over the parties to the case).

How much money can you get from a UPS claim? ›

For UPS shipments, if you do not declare the value of the item at the time of the transaction and purchase Declared Value for that amount, your maximum reimbursem*nt for the item's value is $100. *Available at participating locations.

How to calculate discrimination settlement amount? ›

There is no magic formula to figure out what your case is worth. And while every case is different, some factors come up in most cases. The amount of the employee's economic loss is always important to consider. The seriousness and severity of the employer's or harasser's conduct is always important as well.

How to defeat a motion to dismiss? ›

To successfully defeat the motion to dismiss, a pro se litigant must address the following potential responses.
  1. The plaintiff's allegations don't fit the facts of the case.
  2. There is a missing element of the claim.
  3. There are no factual allegations in the complaint, only conclusions.
Dec 10, 2021

Which of the following are proper grounds for a motion to dismiss? ›

These include dismissals for: (b)(1) a lack of subject-matter jurisdiction. (b)(2) a lack of personal jurisdiction. (b)(3) improper venue.

What is an insufficient evidence motion to dismiss? ›

Effect of Ruling and Right to Appeal. If the judge grants a motion to dismiss for insufficiency of the evidence, it has the same force and effect as a “not guilty” verdict, so double jeopardy will typically bar the state from trying the defendant again for the same offense.

What is insufficient evidence? ›

Insufficient evidence is the evidence which fails to meet the burden of proof and is inadequate to prove a fact.

What does writ of certiorari mean? ›

Writs of Certiorari

This is a request that the Supreme Court order a lower court to send up the record of the case for review.

What does stare decisis mean in simple terms? ›

Stare decisis, meaning in Latin “to stand by things decided,” is a legal principle that directs courts to adhere to previous judgments (or judgments of higher tribunals) while resolving a case with allegedly comparable facts. There are horizontal and vertical components to the stare decisis concept.

What two requirements must be satisfied in order for a civil court to exert personal jurisdiction over a defendant? ›

Intro: In order for a court to have personal jurisdiction over a defendant it must have a statutory basis for its power, and the exercise of its power must comply with due process (14th Amendment for states, 5th Amendment for federal government).

What are the three threshold requirements? ›

Threshold Requirements: Standing, Case or Controversy & Ripeness.

What are the two elements needed to prove a court has personal jurisdiction over a defendant? ›

Typically for a court to have personal jurisdiction over a defendant, the plaintiff needs to serve the defendant in the state in which the court sits, and the defendant needs to voluntarily appear in court.

What was the UPS settlement? ›

Under the settlement, UPS will pay nearly $100,000 in back pay, front pay and associated benefits to the affected worker. It will also pay a civil penalty to the United States, train its staff on the INA's anti-discrimination provision, revise its policies and procedures and be subject to monitoring by the department.

How long does it take to settle a claim with UPS? ›

Unless additional investigation is required, you can typically expect a resolution to your claim in 8 to 10 business days.

How do I get compensation from UPS? ›

How Does the Claim Process Work?
  1. Log into Your UPS.com Profile to File Your Claim.
  2. Provide Some Details About the Package.
  3. Support Your Claim with Additional Documentation.
  4. Submit Your Claim.

What is the maximum EEOC settlement? ›

When it comes to California discrimination lawsuits, the potential payout varies greatly depending on the company's size. Take small businesses with fewer than 100 employees - they're looking at a maximum payout of $50,000. But scale up to 101-200 employees, and that number jumps to $100,000.

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