IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN DIEGO DEPARTMENT 61 BEFORE HON. JOHN S. MEYER, JUDGE
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1 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN DIEGO DEPARTMENT BEFORE HON. JOHN S. MEYER, JUDGE 0 DAVID RADEL, ) ) Plaintiff, )No CU-FR-CTL ) vs. ) ) RANCHO CIELO ESTATES, ) LTD., ) ) Defendants.) SETTLEMENT ) REPORTER'S TRANSCRIPT February, 0 0 APPEARANCES: FOR THE PLAINTIFF: FOR THE DEFENDANT: AGUIRRE & SEVERSON LLP BY: MARIA C. SEVERSON, ESQ. MICHAEL AGUIRRE, ESQ. 0 W. Broadway, Suite 00 San Diego, California 0 LAMB & KAWAKAMI, LLP BY: PATRICK L. RENDON, ESQ. JUSTIN C. BENTLEY, ESQ South Grand Avenue, nd Fl. Los Angeles, California 00 PETTIT KOHN INGRASSIA & LUTZ BY: MATTHEW C. SMITH, ESQ. El Camino Real, suite 00 San Diego, California 0 REPORTED BY: PAULA A. RAHN, RPR, CSR NO. 0 OFFICIAL REPORTER PRO TEMPORE
2 SAN DIEGO, CALIFORNIA; FEBRUARY, 0; 0: A.M. 0 0 THE COURT: Okay. I heard a rumor, but we'll see what happens. We're on the record. MS. SEVERSON: Yes, Your Honor. Maria Severson for the plaintiffs here with Michael Aguirre. The plaintiffs are all present. And we have reached an agreement that we'd like to put on the record and ask the Court to retain jurisdiction pursuant to -- THE COURT: Okay. This now is now an enforceable final settlement. MR. RENDON: Yes. There's going to be some additional -- THE COURT: Well, I heard the word "yes," and then after that I didn't. MR. RENDON: Yes. That's correct. THE COURT: I need to pay attention. MR. RENDON: I'll just leave it at yes. MS. SEVERSON: I move to strike everything after "yes," Your Honor. MR. AGUIRRE: And yes from the plaintiff. THE COURT: Who is going to recite the settlement on the record. MS. SEVERSON: I will, Your Honor. MR. RENDON: And this is Pat Rendon on behalf of RCE, Linda Hunt, and Mr. Harbushka. MR. BENTLEY: Justin Bentley on behalf of the same defendants. PAULA A. RAHN, RPR, CSR () 0-
3 0 0 THE COURT: All right. MS. SEVERSON: Your Honor, if I may sit so I can read it. The following deal points have been reached by counsel as to their substance and wording, and the parties are here. THE COURT: And agreed on by the parties? MS. SEVERSON: Correct. And they are here to so state. We'd ask that the Court inquire on the record, if the Court would. THE COURT: All right. MS. SEVERSON: Okay. The first point. Rancho Cielo Estates, Limited, (RCE) agrees to build a back road continuing Via Ambiente to -- THE COURT: Let me just interrupt you for a minute. This includes the broker defendants. MS. SEVERSON: Yes. THE COURT: Yes. MR. RENDON: Yes, Your Honor. If you don't mind before you resume, can I slide my chair over so I can read with you? MS. SEVERSON: Sure. Certainly. THE COURT: Just so that I understand, there are three sets of plaintiffs. MR. RENDON: Yes. THE COURT: And the RCE -- Rancho Cielo -- MR. RENDON: Estates. THE COURT: -- Estate developers, and I think two or three brokers who are aligned with the developers who PAULA A. RAHN, RPR, CSR () 0-
4 0 0 are or were in privity with at least one or two of the plaintiffs. MR. RENDON: Well, we disagree -- MR. BENTLEY: Correct. MR. RENDON: -- in terms of the contracts, purchase and sale of the real estate. MR. AGUIRRE: Yes. THE COURT: I'm just trying to -- the HOA is now out of the case -- MR. RENDON: That's correct. THE COURT: -- at least unless there's an appeal or something else. MR. RENDON: Right. THE COURT: But -- MR. AGUIRRE: It's two real estate agents and it's two corporations. It's Rancho Cielo -- Rancho Cielo Estates, Inc. -- Limited, Inc., Rancho Cielo Realty, Linda Hunt, and Harbushka. MR. RENDON: Michael Harbushka. MR. AGUIRRE: And those are the parties. THE COURT: So we'll refer to the defendants as the developer realty defendants, but that's essentially collectively one defendant. MS. SEVERSON: I can recite the names to make it crystal clear. MR. RENDON: For purposes of the settlement, that's fine. THE COURT: You represent all the defendants? PAULA A. RAHN, RPR, CSR () 0-
5 0 0 MR. RENDON: Yes, Your Honor. THE COURT: And then the HOA you represent but they're out? MR. RENDON: We don't represent the HOA, Your Honor, but we have been in discussions with them and there's another component to this that's between the RCE defendants and the HOA. But that's, you know -- THE COURT: Is the HOA included in this settlement. MR. AGUIRRE: The HOA lawyer is here and there is an HOA component because of the -- some outstanding legal fees that were awarded that RCE will be taking responsibility for. THE COURT: Right. So the HOA is included in the settlement. MR. AGUIRRE: I would say yes, Your Honor. THE COURT: Well, yeah, I mean. You would say yes, but -- MR. RENDON: Because the appeal that was recently filed, for example, on that fee issue is going to be dismissed as part of this. So yes, they're part of this settlement. THE COURT: So the entire case, the entire lawsuit, such as it is, is gone -- MR. RENDON: Yes. THE COURT: -- which would include an HOA appeal. MS. SEVERSON: Correct. THE COURT: And an HOA motion for fees and -- PAULA A. RAHN, RPR, CSR () 0-
6 0 0 okay. Good. All right. MS. SEVERSON: And, Your Honor, I'll recite the parties' names for the record so it's clear. All right. The plaintiffs in this case are Diana and Leonard Makens, David and Marcia Radel, and Mike Noorani. As cross-defendant is also Neda Noorani. The Defendants are Rancho Cielo Estates Limited, Rancho, Inc.; Rancho Cielo Realty Co., Inc.; Michael Harbushka, and Linda Hunt. Also parties to the litigation that are currently on appeal is the Cielo Homeowners Association and Board Members Ralph Genovese, Christine Castaneda, Lilii Gonzales, and Carrin Goldstein. The following terms were agreed to between the parties and the respective clients: One, Rancho Cielo -- I'll start over just because I don't think we finished this one. Rancho Cielo Estates Limited, (RCE), agrees to build the back road continuing Via Ambiente to Harmony Grove Road by all available means within the most reasonable time frame consistent with applicable San Diego County standards. RCE agrees to enter into a contract for the construction of same within 0 days from today. RCE will provide progress reports every two months to the HOA and plaintiffs. Two, Rancho Cielo Estates Limited will withdraw its three appointed members from the board of Cielo Homeowners Association so that elections conducted by an PAULA A. RAHN, RPR, CSR () 0-
7 0 0 independent inspector approved by RCE, the HOA, and plaintiffs can be held no later than June 0, 0. Number three, Rancho Cielo Estates Limited agrees to limit its vote to one vote for one lot for which it pays -- I'm sorry. Let me start over on number three. Rancho Cielo Estates Limited agrees to limit its vote to one vote for each lot for which it pays assessments. The parties acknowledge that RCE cannot unilaterally amend the CC&Rs. Number four, RC -- I'm sorry. Each party shall dismiss their claims in the complaint and cross-complaint with prejudice. Each party is to provide a mutual release. Each to pay their own cost and fees pursuant to Civil Code. Five, Plaintiffs in the case entitled Moss v. Cielo Homeowners Association, , will dismiss the entire action with prejudice which will result in dismissal of the entire action as to all parties. Seven, David Radel is the only plaintiff in this action on the board of directors of San Dieguito Community Council, Inc., a council which currently is in litigation with Rancho Cielo Estates Limited. Mr. Radel agrees to step off the board of directors of that council by June 0, 0. It is agreed that he and the other plaintiffs in this action will not take board or officer positions or fund that council. I think we're up to eight. Satisfaction of claims for fees and costs against plaintiffs by the Cielo PAULA A. RAHN, RPR, CSR () 0-
8 0 0 Homeowners Association and its board members, Defendants Ralph Genovese, Christine Castaneda, Lilii Gonzales, and Carrin Goldstein, and its/their agents and affiliates, are to be exclusively resolved, paid or otherwise settled, by Rancho Cielo Estates Limited. This settlement is subject to written agreement signed by all parties involved in the above-referenced cases. The settlement agreement will be drafted. This Court is to retain jurisdiction pursuant to CCP at sec. THE COURT: But this is a final settlement, not dependent on a written agreement? MS. SEVERSON: Will be memorialized in a written agreement. Yes, Your Honor. THE COURT: Well, but it's enforceable now. MR. RENDON: Yes. THE COURT: It's not an agreement to agree. MS. SEVERSON: Correct. THE COURT: All right. Anything further? MR. RENDON: No, Your Honor. MR. AGUIRRE: I just want to make sure the court reporter got the comment from counsel that where he said "yes". MS. SEVERSON: I think if your Honor would -- I think if your Honor would ask that the parties pursuant to. that are orally present and confirm that they agree to this. Thank you. THE COURT: Yes. With regard to the mutual PAULA A. RAHN, RPR, CSR () 0-
9 0 0 release, does that include a waiver? MS. SEVERSON: It does, Your Honor. THE COURT: It does? MR. RENDON: Yes. THE COURT: All right. Do you want to inquire about -- with the client? All plaintiffs are present? MS. SEVERSON: Yes, Your Honor. THE COURT: Okay. MS. SEVERSON: Have you each heard the terms of the settlement as I've described them? MR. AGUIRRE: Please state your name and then say, "Yes." MR. MAKENS: Leonard Makens, yes. MS. MAKENS: Diana Makens, yes. MR. RADEL: David Radel, yes. MS. RADEL: Marcia Radel, yes. MR. NOORANI: Majid Mike Noorani, yes. MS. SEVERSON: Do you understand the terms that have been described to you? MR. MAKENS: Leonard Makens, yes. MS. MAKENS: Diana Makens, yes. MR. RADEL: David Radel, yes. MS. RADEL: Marcia Radel, yes MR. NOORANI: Majid Mike Noorani, yes. MS. SEVERSON: Do each of you agree to the terms of the settlement as described? MR. MAKENS: Leonard Makens, yes. MS. MAKENS: Diana Makens, yes. PAULA A. RAHN, RPR, CSR () 0-
10 0 0 MR. RADEL: David Radel, yes. MS. RADEL: Marcia Radel, yes. MR. AGUIRRE: Mike Noorani, yes. THE COURT: Does anybody have a question? If you do, now is the time to ask it. All right. MS. SEVERSON: Thank you. MR. RENDON: Thank you, Your Honor. And present in the courtroom today are Mr. Fagrell, F-a-g-r-e-l-l, and he's the president of RCE, Rancho Cielo Estates. And you heard the reading of the settlement that we reached into the record. Do you agree with it consistent with your understanding? Do you have any questions on it? MR. FAGRELL: Peter Fagrell on behalf of Rancho Cielo Estates. Yes, we agree. Yes, we understand. THE COURT: Any questions? MR. FAGRELL: No questions, Your Honor. THE COURT: Okay. MR. RENDON: And then we also have Linda Hunt present. And you heard what we read into the record, understand it. Do you have any questions, Ms. Hunt? First of all, do you agree with it? And if you have any questions, let us know, please. MS. HUNT: Linda Hunt. Yes, I do. No, no questions. THE COURT: All right. MR. AGUIRRE: And then, Your Honor, I would like PAULA A. RAHN, RPR, CSR () 0-
11 0 0 0 the record to reflect -- THE COURT: What about the HOA? MR. AGUIRRE: I would like the record to reflect that counsel for the HOA is here. MR. SMITH: Yes, Your Honor. Matthew Smith on behalf of the HOA defendants. We are not a party to this agreement. We have a separate agreement -- THE COURT: Well, you are. MR. SMITH: We are not, Your Honor. We have a separate agreement to satisfy our claim for attorney's fees that RCE is -- we've reached an agreement with RCE over the weekend, which is an integral part of this agreement. But we are not a party to this agreement. However, my understanding is that there will be a larger drafted settlement agreement that will involve mutual releases that we will participate in and sign off on. However, I don't have authority to enter into an agreement on the record on behalf of any of the HOA defendants at this time. THE COURT: Well, the only thought that the Court has is the -- the plaintiffs are entering into this settlement in reliance on your representation that you're not going to cause them to incur further fees and costs with regard to any post-trial motions for fees or otherwise and an appeal. MR. SMITH: I'm happy to represent to the Court and to plaintiffs that my clients, the HOA defendants, have reached an agreement with RCE to compromise our claim PAULA A. RAHN, RPR, CSR () 0-
12 0 0 for fees with the understanding that that compromise will be part of a larger overall settlement, which has just been recited onto the record. So while we are not a party to this agreement, we have a separate agreement with RCE to resolve our claim for fees. And as long as this thing doesn't fall apart over the next couple weeks, everything is going to be complete. THE COURT: Well, even though you don't, perhaps, have a separate agreement with the plaintiffs, obviously if your separate deal falls through, then you can imagine what could happen -- what would happen. MR. SMITH: I honestly don't think it's an issue. THE COURT: Okay. All right. That's fine. All right. And you're authorized to make the representations that you're making? MR. SMITH: The representations that I -- I haven't discussed authority to make those representations. I will tell you this, we have a deal. I've got authority to settle the case on behalf of my clients. We have reached an agreement on the terms of the settlement. It's done. It's just a matter of inking the -- THE COURT: And since you're part of the other deal, you -- what he's saying is in accordance with your understanding? MR. RENDON: That's correct, Your Honor. THE COURT: All right. I guess that's the end of that. PAULA A. RAHN, RPR, CSR () 0-
13 MR. AGUIRRE: It is. Your Honor, thank you very much. 0 0 MR. RENDON: Thank you, Your Honor. THE COURT: For what? MR. RENDON: It was with your assistance. MR. AGUIRRE: Thank you for giving us an opportunity to get our -- this is a big historic change for these people. THE COURT: All right. I'm glad this is over. Have a nice day and thank you. MR. AGUIRRE: Thank you very much, Your Honor. We'll see you -- we're trying to get some more cases filed in your courtroom. They've got some sort of block, "no Aguirre" thing or something down there. THE COURT: That's okay. MR. AGUIRRE: Thank you very much, Your Honor. MR. RENDON: Thank you very much, Your Honor. THE COURT: Thank you (The proceedings were adjourned at 0: a.m.) PAULA A. RAHN, RPR, CSR () 0-
14 STATE OF CALIFORNIA) : SS. COUNTY OF SAN DIEGO) 0 I, Paula A. Rahn, RPR, CSR NO. 0, hereby certify that I reported in shorthand the above proceedings on Monday, February, 0, and I do further certify that the above and foregoing pages numbered to, inclusive, contain a true and correct transcript of said proceedings. I further certify that I am a disinterested person and am in no way interested in the outcome of said proceeding. Dated: March, 0. 0 Paula A. Rahn RPR, CSR No. 0
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