The two cases do involve different defendants, different causes of action and different primary rights. Owners of more than 200 units filed individual actions and a putative class action was filed on behalf of the remaining unit owners. The declaration of John M. Pierce in support of the motion states defendants counsel will promptly provide this application to the State Bar of California. Declaration of John M. Pierce, 3. Moreover, the Isens were aware of the harm to the Spahis that would result from the false statements and intended to cause such harm, the appellate court ruling stated about Spahis lawsuit. Calvillo immediately took control of the Ocean Tower settlement proceeds and placed them in a "Receivership Account" at Inter National Bank. . Century City-Westwood News We are looking for contributing authors with expertise in media law, intellectual property, First Amendment, and other related fields to join us as guest bloggers. Spahi argues new allegations in the 5AC mandate this case be stayed under the rule of exclusive concurrent jurisdiction. This is all false, none of this has been alleged in any formal document in the case pending. GRANTED. 2020-12-03, Los Angeles County Superior Courts | Other | In 2015 Ocean Towers Housing Corporation (HOA) shareholder Michael Reach filed a derivative complaint, case no. 0000004747 00000 n 0000314725 00000 n Finally, one place to get all the court documents we need. trailer <<62DD41D1A9AC4D93B41AD3F841D72D45>]/Prev 870850>> startxref 0 %%EOF 124 0 obj <>stream Falk v. Childrens Hospital Los Angeles (2015) 237 Cal.App.4th 1454, 1469 fn. Nonetheless, they arise out of the same subject matter purchase agreements entered by Spahis alleged alter egos and seek the same damages the costs incurred by the HOA in defending against the US Bank litigation. However, different primary rights are at stake here versus the other action. The remaining causes of action are not based on the alleged scheme but on defendants failure to indemnify plaintiff as required under the purchase agreements. SMart (Santa Monica Architects for a Responsible Tomorrow) Last weeks column was Part 1. Both surviving causes of action are based on an alleged breach of written purchase agreements subject to a four-year statute of limitations. Finally, Spahi argues the second cause of action fails because he was not a party to the relevant contracts. 8. P, Ocean Towers Housing Corporation v. John Spahi et al., Case No. Ocean Tower condominium was expected to be the highest structure of luxury living in the Rio Grande but instead dubbed the leaning tower of South Padre because parts of it have sunk almost 16 inches, cracking beams and columns. Pursuant to the settlement, all claims against TJPA were dismissed with prejudice. In 2008 construction was halted when large cracks were observed in parking garage walls and in beams in the hi-rise. But those same statements also potentially disparaged the quality of the Spahis title to the Ocean Towers units and the nature of their leasing services, indicating the units were facing foreclosure or subject to assessments for unpaid homeowners association fees and suggesting tenants and prospective buyers would not be dealt with fairly by their landlord or would likely confront additional legal and financial issues when renting or purchasing the Spahis units, the ruling continued. When a party properly requests affirmative relief by demurrer or answer or by motion to dismiss, stay or transfer on the grounds of exclusive concurrent jurisdiction, the second court loses jurisdiction over the subject matter and cannot issue rulings on the merits. endstream endobj 37 0 obj <>stream ", "Ocean Towers are twin, 5-star highrise Co-op towers near the beach in beautiful Santa Monica, CA. Tree of Life Memorial In Palisades Park Celebrates Life of Marissa Rubin, Wife of Jerry Rubin. 0000210630 00000 n Based on the investigation findings, the tower was imploded before construction completion. *******0918. On October 7, 2020, the court entered an order finding all conditions to be met and the global settlement to be final and effective. GRANTED. The podium of the building was a large parking garage with the homes beginning at 55 feet (17m) above sea level. Cause Of Action: 28 U.S.C. ` Cancellation and Refund Policy, Privacy Policy, and The DMLP was a project of the Berkman Klein Center for Internet & Society from 2007 to 2014. "We believe that he used the money to acquire more units for himself because he appointed himself CEO of the co-op corporation and could do whatever he wanted or felt he could. Ocean Towers apartments is at the North end of Palisades Park, one of the world's finest urban locations for an apartment building. [W]hen two superior courts have concurrent jurisdiction over the subject matter and all parties involved in litigation, the first to assume jurisdiction has exclusive and continuing jurisdiction until such time as all necessarily related matters have been resolved. Plant Insulation Co. v. Fibreboard Corp. (1990) 224 Cal.App.3d 781. VS KB VISION FOUNDATION, ET AL. The current action alleges Spahi is responsible for paying any judgment that may be awarded against the HOA arising from his alter egos purchase of the units, due to the purchase agreements indemnification provisions. Ocean Towers has taken on 3 loan since that time and has passed all due diligence from all the lenders. 0000010694 00000 n I don't know whose 2 signatures were on the Raba report, but i would never hire these guys to be geotechs on my projects. Transbay Joint Powers Authority (TJPA), et al. Declaration - DECLARATION OF HERBERT NACION RE: PAYMENT AND SUBMISSION OF PRO HAC VICE APPLICATION TO STATE BAR OF CA, Minute Order - MINUTE ORDER (CASE MANAGEMENT CONFERENCE; DEFENDANT JOHN SPAHI'S DEMURRER -), Reply - JOHN SPAHIS REPLY MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEMURRER TO PLAINTIFFS FIRST AMENDED COMPLAINT, Reply - DEFENDANT JOHN SPAHIS REPLY IN SUPPORT OF HIS REQUEST FOR JUDICAL NOTICE, Request for Judicial Notice - DEFENDANT JOHN SPAHIS SECOND REQUEST FOR JUDICAL NOTICE IN SUPPORT OF DEFENDANTS JOHN SPAHIS DEMURRER TO THE FIRST AMENDED COMPLAINT, Reply - JOHN SPAHIS REPLY MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF MOTION TO STRIKE THE PUNITIVE DAMAGES CLAIM FROM THE FIRST AMENDED COMPLAINT, Objection - OBJECTION TO DEFENDANT JOHN SPAHI'S REQUEST FOR JUDICIAL NOTICE FILED IN SUPPORT OF DEMURRER TO FIRST AMENDED COMPLAINT, Opposition - OPPOSITION OF PLAINTIFF OCEAN TOWERS HOUSING TO SPAHI'S DEMURRER TO THE FIRST AMENDED COMPLAINT, Opposition - OPPOSITION OF PLAINTIFF OCEAN TOWERS HOUSING TO SPAHI'S MOTION TO STRIKE PUNITIVE CLAIM FROM FIRST AMENDED COMPLAINT, Response - RESPONSE TO PLAINTIFF OCEAN TOWERS HOUSING CORPORATION'S EX PARTE APPLICATION FOR AN ORDER CONTINUING HEARING DATE), Ex Parte Application - EX PARTE APPLICATION OF PLAINTIFF OCEAN TOWERS HOUSING CORPORATION'S FOR AN ORDER CONTINUING HEARING DATE ON JOHN SPAHI'S DEMURRER AND MOTION TO STRIKE REGARDING THE FIRST AMEND, Cases involving other agreements or torts not classified elsewhere, 190, 1190, 2190, 3190, 4190, 4194, 5190, 5196. Laura S. Lehman v. Transbay Joint Powers Authority, et al., No. ;128.7. This man controlled who was able to buy and sell in his building. "That $11 million has never been accounted for," one resident told us. In August 2019, the parties informed the court that a tentative and conditional global settlement was agreed upon. endstream endobj 34 0 obj <> endobj 35 0 obj <> endobj 36 0 obj <>stream Services: Failure Analysis / Structural Assessment and Strengthening / Litigation Support. Courts determining whether a court has exclusive concurrent jurisdiction apply an expansive subject matter test which considers whether the two actions arise from the same transaction. Plant Insulation Co. v. Fireboard Corp. (1990) 224 Cal.App.3d 781, 789. To read this as a knowing misrepresentation under ;128.7 would require a narrow, counterintuitive reading. Copyright 2007-22 Digital Media Law Project and respective authors. In late 2009 the owner hired Controlled Demolition Inc to start planning the implosion of the building since it was too costly and impractical to try and repair the structure, much less get anyone to move in considering the stigma now associated with the building. In 2019, Ocean Towers HOA became the sole plaintiff in the 2015 action. [3] It continued for two years with much of the main structure completed until differential settlement saw parts of the building sink by over 14 inches (360mm). Proc. Beginning in 2016, a series of lawsuits were filed concerning a 56-story condominium tower, colloquially referred to as "San Francisco's Leaning Tower," which has vertically moved more than 16 . "That $11 million has never been accounted for," one resident told us. Public Records Policy. All to prevent us from getting approval for the original foreclosed unit. Post author: Post published: June 10, 2022; Post category: do coyotes eat crows; Post comments: . NOTE: The information and commentary contained in this database entry are based on court filings and other informational sources that may contain unproven allegations made by the parties. He straight out explained to us that the above was the reason that we were not getting approved. Proc. Stone claimed that the company did this despite statements that it lacked sufficient funds to engage in "much needed building repairs.". Ocean Towers has taken on 3 loan since that time and has passed all due diligence from all the lenders. Paragraph 2 of the complaint does not violate ;128.7, even if plaintiff proved Bainbridge has no agents, employees, servants, officers, directors or shareholders. 3. " If the conditions for exclusive concurrent jurisdiction exist, the issuance of a stay order is a matter of right. People ex rel Garamendi v. American Autoplan, Inc. (1993) 20 Cal.App.4th 760, 772. This action will be stayed pending the outcome of the original action. Contrary to plaintiffs argument, the courts prior denial of defendants notice of related cases and demurrer has no preclusive effect. Defendant argues the 2019 action constitutes an improper attempt to divide this primary right, since both actions are brought by the HOA and are based on the same alleged scheme by Spahi. *******0918, Demurrer and Motion to Strike Portions of the First Amended Complaint, Motion for Admission as Counsel Pro Hac Vice. 0000184083 00000 n FEMA is the US government's Federal Emergency Management agency. 0000010581 00000 n Case law states exclusive concurrent jurisdiction applies to conflicting adjudications of the same subject-matter by different departments of one court., The two cases do involve different defendants, different causes of action and different primary rights. The story goes that way back in the 90's, then mayor Ed Cyganiewicz came up with the idea of outlawing neckties as a way of promoting the laidback atmosphere on the island. She did not make any such comments about misappropriation of funds. I'm happy to discuss the receivership motion in detail, but please issue a retraction of this article as none of it is true. {MCS}, Subscribe to our content! According to the appellate courts ruling, Spahi believed representatives of Isen Investments attempted to exploit his financial difficulties to obtain his Ocean Tower units at artificially depressed prices., Specifically, Spahi alleged Isen Investments informed prospective buyers and tenants both him and his family were thieves, crooks and swindlers.. This caused increasing levels of damage to the structural system due to load redistribution and overload of structural elements. Follow us on Twitter. The Retro-style Diner Will Open Shop Back Up on Wilshire Boulevard and Expand Into the Old Vienna Bakery Space. 0000184153 00000 n %PDF-1.5 % A trial court reportedly dismissed the lawsuit. Nonetheless, they arise out of the same subject matter purchase agreements entered by Spahis alleged alter egos and seek the same damages the costs incurred by the HOA in defending against the US Bank litigation. 0000058586 00000 n Donald Trump has settled a lawsuit with more than 100 would-be condo buyers who lost millions of dollars when a Trump-branded luxury condominium project in Baja . Case Number: *******0918 Hearing Date: July 31, 2020 Dept: P, Ocean Towers Housing Corporation v. Seif Ascar et al., Case No. "Ocean Towers are twin, 5-star highrise Co-op towers near the beach in beautiful Santa Monica, CA. [6], The developers have filed a $125 million lawsuit against geotechnical engineering firm Raba-Kistner Engineering and Consulting of San Antonio and structural engineers Datum Engineers of Austin and Dallas. Clients STIPULATED JUDGMENT. 0000008813 00000 n Spahi demurs to plaintiffs three causes of action, arguing the claims alleged must have been brought in the 2015 lawsuit due to the primary right doctrine. Venice When the agreements were executed, the units were subject to liens in favor of the HOAs lenders. This action is stayed pending the outcome of the 2015 action. I'm happy to . Additionally, the 5AC contains new allegations regarding damages stemming from bank lawsuits that were not operative when the demurrer was decided. Defendants concede plaintiff pleads alter ego liability, but argue alter ego cannot be alleged both in this action and the 2015 action due to the primary right doctrine. BC359619 (Superior Ct.); B198657 (Appellate). They are contractual and do not depend on any allegation of fraud or undue influence by HOA directors. Id. Description. During the forensic investigation, Walter P Moore performed a detailed evaluation and used computer modeling to analyze causation of failure, as well as predict future failure of structural elements. I'm happy to meet with you in person to discuss all the relevant facts. Also alleged: the firm stated the units owned by Spahi and his family were about to be auctioned off in bankruptcy court. Plaintiff Ocean Towers Corporation (HOA) argues the nominal owners defaulted on their indemnity obligations and seeks appointment of a receiver to preserve its collateral namely, the units and their rents. ;128.7(b)(1), (4). Yelp, Inc. v. Hadeed Carpet Cleaning, Inc. Massachusetts Bay Transportation Authority v. Anderson, Kessler International v. Citizen Media Law Project, New York County v. Twitter, Inc. (subpoena), Suffolk County District Attorney's Office v. Twitter, Inc. (subpoena), Seven Years of Serving and Studying the Legal Needs of Digital Journalism, DMLP Announcement: A New Report on Media Credentialing in the United States. 0000305624 00000 n 0000009967 00000 n *******0918, Plaintiffs Ex Parte Application for Appointment of Receiver. Who knows, right now all i can say is that a geotechnical report for a project of this magnitude is usually written by one engineer and reviewed by another more senior engineer. of Forestry & Fire Protection v. Howell (2017) 18 Cal.App.5th 154, 191. 54 0 obj <>stream 0000134847 00000 n In 2015 Ocean Towers Housing Corporation (HOA) shareholder Michael Reach filed a derivative complaint, case no. A trial court reportedly dismissed the lawsuit. Under the doctrine of exclusive concurrent jurisdiction, a court has jurisdiction over a case even if a prior ongoing case concerns the same subject matter until a party files a proper motion to stay the second action or a separate pleading requesting relief. Ct. San Francisco Cty., Cal. Spahi concedes the primary right at issue in the 2015 action is the HOAs right to be governed by honest and faithful directors, who were duty-bound to act in good faith and in the best interests of the corporation. Opposition at pg. [1][2], The Ocean Tower project was developed by Coastal Constructors Southwest Ventures, a subsidiary of Zachry Construction. The proclamation read 'The very . his wife, Maria. Saturday, October 10, 2009 Ocean Tower Settlement and Implosion In 2006 construction began on the 31-story condo building known at the "Ocean Tower" . Palisades News. 0000144111 00000 n A fifth amended complaint (5AC) was filed in the 2015 action on October 16, 2019. Plaintiff adequately alleges alter ego liability, allowing this cause of action to proceed against Spahi. In 2015, an HOA shareholder filed a derivative complaint against Spahi and his alleged alter egos and co-conspirators, alleging breach of his duties as director and fraud on the HOA. "We believe that he used the money to acquire more units for himself because he appointed himself CEO of the co-op corporation and could do whatever he wanted or felt he could. HOPKINS v. 05/15/2009 - According to the case summary (search "BC359619"), the case was dismissed by the plaintiff without prejudice. Relief Based on Rescission; 2. Proc. Preliminary evaluation showed that the tower's core had sunk 14 to 16 inches (360 to 410mm), while the attached parking lot had shifted less than half that distance. Contact: Doug Elmets. Section 128.7 does not apply to disclosures and discovery requests, responses, objections, and motions. Cal. Additionally, even if the court accepted plaintiffs interpretation, plaintiff does not adequately justify imposition of such an extreme remedy as entry of default. ;128.7 by stating in its answer answering Defendant denies that Plaintiff has or will sustain any damage or loss by reason of any act or omission of this answering Defendant, or its agent, employees, servants, officers, directors, shareholders, representatives or otherwise. Plaintiff argues this constitutes a representation that defendant has employees . The suit names as defendants all three of Ocean Tower's contractors: engineering firms Raba-Kistner Consultants Inc., based in San Antonio, and Datum Engineering Inc., based in Austin, as well as Delaware based Zachry Construction Corp. . They reassured them "Your unit will be delivered, and the building will be stronger and safer than ever", stating that completion of the construction would be delayed by "6 to 9 months". There is a substantial danger that, if the lawsuits proceed separately, the courts could reach conflicting (or redundant) decisions regarding those damages. 2022-02-14, California Courts Of Appeal | Other | The court also explicitly rejected the "interest" privilege, which Stone argued had not been addressed in the trial court. The nearby Texas Park Road 100 was closed on safety grounds just before the building was set to be razed. ;128.7. Plant Insulation Co. v. Fibreboard Corp. (1990) 224 Cal.App.3d 781. 0000007824 00000 n The lawsuit has nothing at all to do with these allegations. Since section 128.7(g) explicitly exempts discovery responses from its scope, a request for sanctions for such conduct is not well taken. another department of the same court to interfere with the exercise of the power of the department to which the proceeding has been so assigned[. Id. [6][9][14][1], The implosion was watched by a large crowd, many of whom stayed in local hotels and visited restaurants in the area. . Plaintiff may amend to allege the date of the alleged repudiation. The court also found that the litigation privilege didn't apply because both Stone and his comments were unrelated to the other Ocean Towers lawsuit. Nope! [9] Soon after, the building became known as the "leaning tower of South Padre" and was viewed as a looming eyesore.[6][10]. The hi-rise included a 4-level parking garage immediately adjacent and connected to it. LEONARD LUDOVICO VS OCEAN TOWERS HOUSING CORPORATION, A CALIFORNIA CORPORATION. An attorney who files papers violating these requirements is subject to sanctions, including dismissal. Defendant seeks sanctions against plaintiff, arguing this motion was brought for an improper purpose. Los Angeles County Superior Courts | Property | 1. . 0000074857 00000 n Proc. will keep Verizon from solving a "significant gap in its coverage," triggering . Central Tower Building1424-4th Street, Suite 310Santa Monica, CA 90401[emailprotected], Powered by ROAR Online Publication Software from Lions Light Corporation CGC-16-553758 (Super. GRANTED, contingent on service on the State Bar. 0000001976 00000 n if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[580,400],'smobserved_com-medrectangle-3','ezslot_5',155,'0','0'])};__ez_fad_position('div-gpt-ad-smobserved_com-medrectangle-3-0'); The lawsuit alleges that Spahi, who now owns a controlling interest and 40 units in the property, misappropriated $11 million out of $50 million FEMA paid Ocean Towers to make repairs after the 1994 Northridge earthquake. The Pride LA Stone appealed to California's Second Appellate District. Therefore, under Garamendi and the doctrine of exclusive concurrent jurisdiction, this court lacks jurisdiction to appoint a receiver. 0000005896 00000 n He argues a significant risk of contradictory rulings in the two actions and that a stay will not conflict with the courts prior demurrer ruling because the demurrer ruling was based on the primary right doctrine, whereas this motion seeks to apply the broader exclusive concurrent jurisdiction doctrine. Punitive damages may not be granted in an action based on breach of contract, even if the defendants breach was willful or fraudulent. Crogan v. Metz (1956) 47 Cal.2d 398, 405. In contrast to condominium owners who own a particular unit, cooperative building owners own a share in the Ocean Towers has 300 units, but voting power is allotted by square footage, and a formula that takes into account ocean views and sale price. [5][6] The proposed fixes would have the garage beams separated from the tower, and new columns to be placed under the beams. According to the buildings website, Spahis father, John, serves on the Ocean Towers board of directors as secretary. OVERRULED as to the second and third causes of action but SUSTAINED without leave to amend as to the first cause of action. The second two causes of action are based on a primary right not involved in the 2015 action. Plaintiff argues the rule only applies when different superior courts have jurisdiction over the cases in question. . FAC at 47, 52. According to the ruling, representatives of Isen Investments allegedly began defaming Spahi and conspiring to deflate the value of his real estate holdings after Spahi had filed for Chapter 11 bankruptcy protection in December 2009. Thus, Spahi argues, the cases are necessarily related, and the concurrent jurisdiction rule applies. Code of Civ. Comments 1 | Recommend 0 . The court sustained defendants demurrer to the first cause of action on the grounds that it was based on the same primary right as the original action and overruled the demurrer to the second and third causes of action. A posted article about Ocean towers contains a ton of false information, I'd love a chance to discuss with the author and set the record straight. Jones Day represented Transbay Joint Powers Authority ("TJPA"), one of the primary parties in the Millennium Tower litigation, which is one of the highest profile litigation matters in the United States. SUSTAINED as to the first cause of action without leave to amend but OVERRULED as to the second and third causes of action. The language does not affirmatively state any of the identified categories exists but is a broad denial that neither defendant nor anyone associated with defendant harmed plaintiff. Franklin & Franklin v. 7-Eleven Owners for Fair Franchising (2000) 85 Cal.App.4th 1168, 1175. Defendant seeks to stay this action, arguing the 2015 action seeks to recover litigation fees and expenses incurred in the bank lawsuits, while the instant action seeks contractual indemnification of the same fees and expenses. Rel Garamendi v. American Autoplan, Inc. (1993) 20 Cal.App.4th 760, 774.
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