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  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
  • BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al CONSTRUCTION document preview
						
                                

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MAE SUPERIOR COURT OF CALIFORNIA COUNTY OF SAN FRANCISCO Document Scanning Lead Sheet Jul-17-2012 3:43 pm Case Number: CGC-08-478453 Filing Date: Jul-17-2012 3:39 Filed by: Juke Box: 001 Image: 03688414 MEMORANDUM OF POINTS AND AUTHORITIES BEACON RESIDENTIAL COMMUNITY ASSOCIATION VS. CATELLUS THIRD AND KING LLC et al 001003688414 Instructions: Please place this sheet on top of the document to be scanned.1 | Charles A. Hansen (Bar No. 76679) Peter J. Laufenberg (Bar No. 172979) 2 || WENDEL, ROSEN, BLACK & DEAN LLP 1111 Broadway, 24th Floor 3 | Oakland, California 94607-4036 Telephone: (510) 834-6600 4 | Facsimile: (510) 834-1928 5 | Steven M. Cvitanovic (Bar No. 168031) Zachary W. Shine (Bar No. 271522) 6 | HAIGHT BROWN & BONESTEEL LLP y71 Stevenson Street, 20th Floor 7 || San Francisco, California 94105-2981 Telephone: (415) 546-7500 8 | Facsimile: (415) 546-7505 9 0 Attorneys for Defendants and Cross-Complainants Mission Place LLC; Mission Place Mezz Holding LLC; Mission Place Mezzanine LLC; Mission Place Partners LLC; Centurion Real Estate Investors IV, LLC; and Centurion Real Estate Partners, LLC (sued in its own name and erroneously sued as Centurion Partners LLC) ul 12 SUPERIOR COURT OF THE STATE OF CALIFORNIA 13 FOR THE COUNTY OF SAN FRANCISCO 14 15 | BEACON RESIDENTIAL COMMUNITY ) Case No. CGC 08-478453 ASSOCIATION, 16 Plaintiff, SUPPLEMENTAL MEMORANDUM 17 OF POINTS AND AUTHORITIES IN v. SUPPORT OF MISSION PLACE’S 18 MOTION FOR SUMMARY CATELLUS THIRD AND KING LLC, et ) ADJUDICATION 19 jal., 20 Defendants. Date: August 24, 2012 Time: 10:00 a.m. Dept: 304 Judge: Hon. Richard A. Kramer AND RELATED CROSS-ACTIONS nN eee EID LL 27 28 | LAW OFFICES HAIGHT, BROWN & BONESTEEL, LLP. ZU29-0000032 San Francisco 3960334.1 Supplemental Brief In Support of Motion for Summary Adjudicationoo Om NTN DOH BP Ye YY NN RN N NN KN KN Se Be eB He ewe ew Be Be oN AA BF WN = DO DANI DH BF WN =| LAW OPEICES: HAIG: se OWN & BONES 1 LLP. San : sanciseo INTRODUCTION Defendants and Cross-Complainants Mission Place LLC and its affiliated entities! submit the following Supplemental Memorandum of Points and Authorities in support of their Motion for Summary Adjudication against Webcor Construction, Inc., dba Webcor Builders, Inc. (““Webcor”) and HKS, Inc., doing business in California as HKS Architects, Inc. (“HKS”) (hereinafter collectively referred to as “Cross-Defendants”). Over a year ago, the Court continued the hearing on this motion to allow for discovery of the “mutual intent” — not the “undisclosed subjective intent” — of the parties in executing the various assignments and consents. That discovery has confirmed exactly what the documents clearly say, namely, that Third and King Investors LLC (“TKI”) and Mission Place LLC intended to enter into a non-exclusive assignment of all of TKI’s rights (but not obligations) under the contracts with Webcor and HKS. Moreover, the discovery has confirmed that Webcor and HKS: (1) were provided with the assignment documents so they could review the terms of the assignment; (2) were offered an opportunity to make substantive changes to the assignments and consents, yet apparently failed to make any comment, changes or register any objections to the language they now complain of; and, (3) failed to disclose or discuss with TKI any subjective belief regarding their interpretation of the assignment or consent. The assignments and consents are clear and straightforward. Webcor and HKS are sophisticated business entities who had in-house counsel review and approve the documents for signature. Webcor and HKS knew what they were signing and had a full three months in 2004 to raise questions and concerns about the documents, yet they utterly failed to do so. Mission Place respectfully requests that the Court not sanctify Webcor’s and HKS’ gamesmanship by granting this Motion for Summary Adjudication. " The affiliated entities are: Mission Place Mezz Holding LLC; Mission Place Mezzanine LLC; Mission Place Partners LLC; Centurion Real Estate Investors IV, LLC; and Centurion Real Estate Partners, LLC (sued in its own name and erroneously sued as Centurion Partners LLC). Mission Place LLC and its affiliated entities will be collectively referred to as “Mission Place” or “Cross-Complainants”. 1 21029.0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationCo wn nn kW N S 11 17 18 <> SUPPLEMENTAL MEMORANDUM OF POINTS AND AUTHORITIES 1 Extrinsic Evidence as to the Assignments and Consents Must Be Excluded A. The Parol Evidence Rule Bars Extrinsic Evidence The parol evidence rule bars extrinsic evidence (oral or written) of prior or contemporaneous agreements to add to or modify the terms of an unambiguous “integrated” written instrument. Masterson v. Sine (1968) 68 Cal. 2d. 222, 225; Los Angeles Unified School Dist. V. Great American Ins. Co. (2008) 163 Cal. App. 4th 944, 957; Pacific State Bank v, Greene (2003) 110 Cal. App. 4th 375, 379; CCP § 1856(a). Once it is found that the parties intended the writing to be the final expression of their agreement, contrary expressions of intent are excluded. Brant v. California Dairies (1935) 4 Cal. 2d 128, 134; CCP § 1856(a); Hayter Trucking, Inc. v. Shell Western E & P, Inc. (1993) 18 Cal. App. 4th 1, 15. The only limited exceptions where extrinsic evidence is admissible are circumstances where the party offering the evidence can show the contract language is reasonably susceptible to a different meaning or the evidence will explain or aid in the interpretation of an ambiguous writing. Denver D. Darling, Inc. v. Controlled Environments Const., Inc. (2001) 89 Cal. App. 4th 1221, 1236; Hedging Concepts, Inc. v. First Alliance Mortgage Co. (1996) 41 Cal. App. 4th 1410, 1416. However, while extrinsic evidence is admissible to show what the parties meant by what they said, it is still 19 | inadmissible to show the parties meant something other than what they said. Larsen v. 20 | Johannes (1970) 7 Cal. App. 3d 491, 500. This is because parties to a transaction must be 21 |able to clearly express their intent regarding the nature and scope of their legal relationship 22 | and be able to rely on the legal certainty of that expression. Banco Do Brasil, S.A. v. 23 24 25 26 27 28 LAW OFS CES: HAIGHT, BROWN & BONESTEES. 1.1. San Francisco Latian, Inc. (1991) 234 Cal. App. 34 973, 1011. Here, HKS and Webcor argue they did not understand the terms of the agreements and did not consent to the assignment of all of TK1’s rights, including indemnity rights, to Mission Place. However, the language of the Assignments of Contractor and Architect Agreements, and the Consents thereto, are fully integrated agreements, the terms of which are neither ambiguous nor reasonably susceptible to a different meaning. The Assignment 2 ‘2029-9000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLAW OO: SCs HAIGHT, 8 OWN & BONESTEF! LP. San Francisco of Contractor Agreement plainly states TIXI assigns to Mission Place “all of its right, title and interest in and to ... that certain Construction Agreement dated August 24, 2001 by and between Third and King and Webcor Construction, Inc., dba Webcor Builders ...” (Fact No. 5)? (emphasis added) Additionally, the Assignment of Architect Agreement states TKI assigns to Mission Place “all of Third and King’s right, title and interest in and to all contracts ... to which Third and King is a party or assignee and relating to the preparation of the Plans with architects, engineers and any other party, including, without limitation, that certain contract dated July 25, 2000 (the “Contract”) with HKS Architects, Inc. ...” (Fact No. 15) (emphasis added) On their face, these assignments clearly and unambiguously transfer “all right, title and interest” in the Webcor and HKS contracts to Mission Place. This includes the right to seek indemnity and defense from Cross-Defendants under those contracts. Because the Assignments are fully integrated writings expressing the final intent of the parties, evidence of the Cross-Defendants’ contrary intent should be excluded. Mission Place must be allowed to rely on the certainty of the parties’ expression. B. The Subjective Intent of the Parties is Immaterial. It is a “settled principle of the law of contract that the undisclosed intentions of the parties are, in the absence of mistake, fraud, etc., immaterial; and that the outward manifestation or expression of assent is controlling.” Brant v. California Dairies, Inc. (1935) 4 Cal.2d 128, 133; Schultz v. County of Contra Costa (1984) 157 Cal. App. 3d 242, 249. As such, “[w]here the terms of an agreement are set forth in writing, and the words are not equivocal or ambiguous, the writing or writings will constitute the contract of the parties, and one party is not permitted to escape its obligations by showing he did not intend to do what his words bound him to do.” Brant, 4 Cal. 2d 128, 134. In Brant v. California Dairies, Inc., the seminal California case dealing with subjective intent and the parol evidence rule, plaintiff dairy farmer brought a breach of ? Please see the Amended Separate Statement of Undisputed Material Facts filed concurrently herewith. 3 2U29-0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationoOo ND HW PF WN 10 San Francisca conteact action against defendant dairy marketing company. In support of its argument that it was not bound by the terms of the contract, the defendant offered testimony of its vice-president, in which he testified he did not interpret the contract language the same way the plaintiff did. /d. at 132 — 133. The California Supreme Court, in ruling in favor of the plaintiff, dismissed defendant’s testimony stating it amounted “to nothing more than a statement of what [the vice-president] personally believed the agreement of the parties to be.” Jd. at 133. The court reasoned the defendant’s personal belief was inconsequential and inadmissible under the parol evidence rule. /d. Here, Cross-Defendants allege, contrary to the express language of the assignments, they did not understand the assignments included indemnity rights, and thus, they did not consent to the assignments. However, any concerns Webcor and HKS may have had regarding the assignment of indemnity rights were kept entirely in house. Nonetheless, Cross-Defendants now wish to offer extrinsic evidence of their undisclosed intentions in an effort to escape their indemnity and defense obligations under the contracts. The well settled principles of contract law forbid such tactics. John Bowles, the Chief Legal Officer of Webcor, admits he never communicated Webcor’s interpretation of the scope of the Assignment and Consent to anyone. (Fact No. 6) Instead, each statement made by Mr. Bowles in his Declaration, which is heavily relied upon by Webcor in its Opposition, was based on Mr. Bowles personal beliefs regarding the scope of the Assignment. (Fact No. 6) During his deposition, each time Mr. Bowles was asked whether he outwardly communicated his belief that indemnity rights were not assigned from TKI to Mission place, Mr. Bowles repeatedly responded “I don’t believe that I did.” (Fact No. 6) Webcor’s undisclosed subjective intent must not be considered in determining whether the Assignment properly transferred TKI’s rights to Mission Place. HKS also argues it did not “intend, understand, believe or agree” to the assignment of any indemnity rights or obligations. (See HKS’ Opposition to Mission Place’s Motion for Summary Adjudication, p. 6) This argument is solely supported by the unsubstantiated testimony of HKS’s own employee, Jack Price. In his Declaration, Mr. Price contends 4 21329-0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLAW OFFICES HAIGHT, BROWN 0 ON DAH PF WN | SoeouUOARAG RGR ES 20 21 23 24 25 26 27 28 & BONESTEEL, | LP. San Francisco | that, at the time he executed the Consent ar] Agreement, he-did not “intend” to agree to the assignment of indemnity rights, nor did he “understand” the language of the assignment to encompass any obligation on the part of HKS to assign indemnity rights to Mission Place. (See Declaration of Jack Price in support of HKS, Inc.’s Opposition, p. 4) However, HKS never once outwardly objected to the assignment of indemnity rights in the Consent and Agreement. (Fact No. 16) HKS is a sophisticated multi-national business whose past projects include Cowboy’s Stadium and Dodger’s Stadium as well as numerous hotels, university facilities and corporate buildings across the globe. (See HKS, Inc.’s website at http://hksinc.com/) As an international architecture firm with projects located in 1,178 cities throughout 77 countries that employs more than 900 experienced professionals, HKS is undoubtedly experienced in contract drafting and interpretation. If HKS was really confused about the terms of the Assignment and Consent, these issues should have been raised at the time of execution. Instead, these concerns were not raised until after Mission Place was forced to file its Motion for Summary Adjudication. Evidence of HKS’s subjective intent must be excluded as it is immaterial in determining whether TKI’s indemnity rights were assigned to Mission Place. II. The Parties Agreed to Assign to Mission Place Ali Rights Contained in the Contracts Between TKI and Webcor / HKS Even if the Court allows extrinsic evidence regarding the parties’ intentions in entering into the Assignments and Consents, the Court should still find that TKI properly assigned all rights in its contracts, including the right to seek indemnity and defense from Webcor and HKS, to Mission Place. A. The Assignments of Contractor and Architect Agreements In December 2004, Mission Place LLC purchased the Beacon, and in connection with that purchase, and pursuant to the Assignment of Contractor Agreement, TKI assigned to Mission Place LLC all “right, title, interest in and to” the Webcor Agreement and all warranties by Webcor. (Fact No. 5) Around the same time, TKI also assigned to Mission Place LLC, as successor-in-interest to TKI, all “right, title and interest” in its 5 20290000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLAW OFFICES. HAIGHT, BROWN BONESTEEL, I LP. ‘San Francisco 1} contract with HKS. (Fact No. 15) Webcor and HKS now argue the Assignments only transferred warranties and guarantees and somehow did not extend to indemnity rights. These arguments are directly contradicted by the language of the Assignments, as well as the deposition testimony of representatives of both TKI and Mission Place. Both parties to the Assignments, TKI and Mission Place, understood indemnity 2 3 4 5 6 | rights were included in the assignment of rights to Mission Place. (Facts Nos. 5 and 15) 7 In his deposition, Keith Anderson, Senior Vice President of Catellus, asserts that TKI 8 | intended the assignments to be full assignments. (Facts Nos. 5 and 15) He explains that 9 | TKI’s intent in signing the Assignment of Architect Agreement and the Assignment of 10 | Contractor Agreement was to assign the contracts, including all obligations HKS and 11 | Webcor had under those contracts, to Mission Place. (Facts Nos. 5 and 15) The “non- 12 | exclusive” language was not meant to limit the rights transferred to Mission Place in any 13 | way, but was instead merely an attempt by TKI to reserve its rights. (Facts Nos. 5 and 15) 14 Mission Place had an identical understanding of the Assignments. John Tashjian, 15 | who was intimately involved in the negotiation and execution of the Assignments on 16 | behalf of Mission Place, explains that by classifying the assignment of rights from TKI to 17 | Mission place as “non-exclusive”, the parties were attempting to share the rights under the 18 | contract. That way, the benefits would go to both TKI and Mission Place. (Facts Nos. 5 19 } and 15) Mission Place also understood the term “with a reservation of all rights” to mean 20 | that TKI would reserve their rights under the contracts while also transferring those same 21 | rights to Mission Place. (Facts Nos. 5 and 15) It was always very clear to Mission Place 22 | that they were receiving all rights under the contracts. (Facts Nos. 5 and 15) Mr. Tashjian 23 | also emphasized that the assignments of the Architect Agreement and Contractor 24 [seen were an integral part of Mission Place’s purchase of the project. In fact, the 25 Assignments “were the linchpin. They were the foundation of the transaction.” (Facts 26 |“ 5 and 15) Without the assignments, Mission Place would not have purchased the 27 | project. (Facts Nos. 5 and 15). 28 6 & I 7u20.0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary Adjudicationoo wm ND HW FF WN = LAW OFFICES HAIGHT, BROWN & BONESTEEL, LLP. San Francisco Based on the foregoing, it is clear Mission Place and TKd both intended that TKI would assign all of its rights under the Webcor and HKS contracts to Mission Place. As such, even if extrinsic evidence is allowed, the evidence clearly supports Mission Place’s position that all rights, including indemnity rights, were assigned to Mission Place. B. The Consents and Agreements On or about December 16, 2004, and December 13, 2004, respectively, Webcor and HKS each executed a “Consent and Agreement” pursuant to which Cross-Defendants expressly consented to the assignment of the Webcor and HKS Agreements to Mission Place, affirmed that the contracts remained in full force and effect, affirmed that the Webcor and HKS Agreements constituted valid and binding obligations of Webcor and HKS, and affirmed that they were enforceable against Webcor and HKS in accordance with their terms. (Facts Nos. 6 and 16) Webcor also acknowledged that Mission Place LLC was TKI’s successor ‘Company.”” (Fact No. 6) Similarly, HKS acknowledged that Mission Place LLC was the “successor Owner (as defined in the Contract) under the Contract.” (Fact No. 16) Webcor and HKS now argue they did not consent to the assignment of all rights to Mission Place. This argument is misguided as the Consents, which were reviewed and signed by both parties, clearly encompass all rights assigned to Mission Place. The language of the Webcor Consent and Agreement clearly states “[t]he undersigned Contractor [Webcor] hereby consents to the foregoing Assignment of Contractor Agreement and agrees to perform pursuant to the Contract.” (Fact No. 6) Webcor was given ample opportunity to review the contract language and make any changes it saw fit. On November 5, 2004, Catellus sent Webcor the following email, which included drafts of both the Assignment and Consent and Agreement, and asked Webcor to review the documents and provide feedback. (Fact No. 6) From: Blank, Kathleen [mailto:Kathleen Blank@catellus.com] Sent: Friday, November 05, 2004 3:26 PM To: John Bowles Subject: FW: Mission Place - Assignments Architect/Contractor John, 7 -2U29-0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLAW OF TES. HAIGHT, BROWN Co wm nN A HW BF WN 10 & BONESTEEL LLP. San Francisev As giscussed, attached is the revised Assignment. Please review and let ne know if you have questions or, if none, please attach Exhibits, have executed and return to me at your earliest convenience. Thanks very much. Kathleen Blank (415) 425-1343 Three days later, Webcor’s attorney, Mr. Bowles, responded stating he was “agreeable with all the modifications” except certain language regarding contract obligations with future homeowners. (Fact No. 6) Mr. Bowles made no reference to indemnity rights nor did he attempt to add language limiting the rights transferred to Mission Place in any way. If Webcor was actually harboring concerns regarding the assignment of indemnity rights, those concerns should have been raised following Webcor’s review of the documents and prior to its execution of the Consent and Agreement. The language of the documents, together with the testimony of Mr. Bowles and Mr. Anderson, clearly shows Webcor consented to the assignment of all rights under the contract, including indemnity rights. HKS also argues it did not consent to the assignment of indemnity rights. In support of this argument, HKS argues that “when HKS received the ‘Consent and Agreement’, the ‘Assignment of Architectural Agreement’” was not attached. (See HKS, Inc.’s Opposition to Mission Place’s Motion for Summary Adjudication, p. 6) This statement is blatantly false. First, Mr. Anderson testified it was Catellus’ practice to send the Assignment of Architect Agreement to HKS along with the Consent and Agreement. (Fact No. 16) Second, numerous emails between representatives of HKS and counsel for Catellus not only discuss the Assignment, but also include copies of the Assignment and Consent as attachments to the emails. On October 26, 2004, HKS’s Vice President, Neal Vincent, sent an email to Tim Carey of Catellus that included a revised Assignment document with HKS’s changes and comments in it. (Fact No. 16) Additionally, on November 8, 2004, Kathleen Blank of Catellus sent the following email to Craig Williams, Chief Legal Officer of HKS, with attached “redlined and clean copies of the revised Assignment, Consent and Agreement.” (Fact No. 16) 8 2029.0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLAW OFFICES HAIGHT, BROWN 16 17 18 19 20 21 22 23 24 25 26 27 28 & BONESTEEL, LLP San Francisco From: Blank, Kathleen [mailto:Kathleen_Blank@catellus.com] ” Sent: Monday, November 08, 2004 1:33 PM To: Williams, Craig Subject: Mission Place - Assignment of Architect Craig, Attached are redlined and clean copies of the revised Assignment, Consent and Agreement. | understand that you are out until tomorrow. Could you please give me a call to discuss when you return to the office. Thanks very much for your assistance. | Kathleen Blank (415) 425-1343 Mr. Williams reviewed the documents and responded the following day, stating “I |have added to and modified, your redline.” (Fact No. 16) Additionally, on December 10, 2004, Ms. Blank sent Mr. Williams another email containing copies of both the Consent | and Assignment, and requested that Mr. Williams review the documents and respond with any comments or revisions. (Fact No. 16) HKS’s argument that it did not receive the Assignment of Architect Agreement along with the Consent and Agreement lacks all factual support and appears to be nothing more than a ploy to create a triable issue of fact. j Ul. Webcor and HKS Have a Duty to Defend Mission Place In Crawford et al. v. Weather Shield Mfg. Inc., 44 Cal. 4th 541 (2008), the | california Supreme court held that the indemnitor was contractually required to indemnify the indemnitee against all claims for damages growing out of the execution of the | indemnitor’s work and was further required to defend any suit or action brought against the indemnitee founded upon the claim of such damage. The court also observed that Civil Code Section 2778(4) “places in every indemnity contract, unless otherwise [provided], a | éuty to assume the indemnitee’s defense, if tendered, against all claims ‘embraced by the o>» indemnity’,” regardless of the outcome of the litigation. Id. at 557 — 558. | In their contracts with TKI, Webcor and HKS expressly agreed to defend, indemnify and hold TKI harmless from claims involving their work. (Facts Nos. 2 and 14) In connection with Mission Place’s purchase of the Beacon, TKI assigned to Mission place all right title and interest in the Webcor and HKS contracts. (Facts Nos. 5 and 15) Webcor I 9 2128.0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationLawes HAIGH! BONES ‘San i 0 © NY DH BRB WN 4 N RP N YN NN NY Be Be Be ew ew Ee BD Bw LL eiSegvz PS SOsrX8sezsuxranarsscte ES, OWN & LP. and HKS each subsequently consented to the assignment of their contracts to Mission | Place by way of the Consent and Agreements. (Facts No. 6 and 16) In 2008, the Beacon RCA filed this action against Mission Place alleging various construction and design defects. (Facts Nos. 10 and 20) Because Beacon RCA’s allegations of construction and design defects arise from the scope of work of Webcor and HKS, Mission Place tendered its defense to Webcor and HKS pursuant to the indemnity and defense obligations in the assigned contracts. (Facts Nos. 10 and 20) To date, Webcor and HKS have not accepted Mission Place’s tenders and have not defended Mission Place. (Facts Nos. 11 and 21) As such, pursuant to the reasoning in Crawford et al. v. Weather Shild Mfg. Inc. (2008) 44 Cal. 4th 541, Webcor and HKS have an immediate duty to defend Mission Place. }IV. Conclusion The facts are clear. Webcor and HKS expressly agreed to indemnify and defend TKI from all claims implicating their work. TKI expressly assigned its contract rights to Mission Place, and Webcor and HKS both consented to the assignment. Webcor and HKS cannot manufacture a triable issue of fact by introducing “evidence” of their supposed intent back at the time of contracting. Where, as here, the express language of the contract is clear and unambiguous, extrinsic “evidence” of the parties’ subjective intent must be excluded. However, even if such evidence is allowed, the evidence shows that all parties intended that Mission Place receive all of TKI’s rights under its contracts. As there is no triable issue of fact regarding the duty to defend Mission Place, this Court should enter summary adjudication in Mission Place’s favor as to the Seventh Cause of Action. Dated: July 17, 2012 HAIGHT BROWAYS | By: Zachary W.S n Attorneys for Defendants Mission Place LLC, et al. 10 ‘2u20-0000032 Supplemental Memorandum of Points and Authorities In Support of 3960334.1 Motion for Summary AdjudicationEID F LAW OFFICES HAIGHT, BROWN BONESTEEL, LLP. San Francisco oOo ND WH BF WN Se Se ee w NS Oo 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 & Charles A. Hansen (Bar No. 76679) Peter J. Laufenberg (Bar No. 172979) JUL Tf ge WENDEL, ROSEN, BLACK & DEAN LLP 1111 Broadway, 24th Floor CLERK OF TH Oakland, California 94607-4036 By: Telephone: (510) 834-6600 Facsimile: (510) 834-1928 Steven M. Cvitanovic (Bar No. 168031) HAIGHT BROWN & BONESTEEL LLP 71 Stevenson Street, 20th Floor San Francisco, California 94105-2981 Telephone: (415) 546-7500 Facsimile: (415) 546-7505 Attorneys for Defendants and Cross-Complainants Mission Place LLC; Mission Place Mezz Holding LLC; Mission Place Mezzanine LLC; Mission Place Partners LLC; Centurion Real Estate Investors IV, LLC; and Centurion Real Estate Partners, LLC (sued in its own name and erroneously sued as Centurion Partners LLC) SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SAN FRANCISCO BEACON RESIDENTIAL COMMUNITY ) Case No. CGC 08-478453 ASSOCIATION, ; Plaintiff, DECLARATION OF ZACHARY W. SHINE IN SUPPORT OF MISSION v. PLACE’S MOTION FOR SUMMARY ) ADJUDICATION CATELLUS THIRD AND KING LLC, et } al., ) Defendants. ) Date: August 24, 2012 Time: 10:00 a.m. Dept: 304 AND RELATED CROSS-ACTIONS } Judge: Hon. Richard A. Kramer 1. I, Zachary W. Shine, declare as follows: 2. lam an attorney at the law firm of Haight Brown & Bonesteel, L.L.P. counsel of record for Defendants and Cross-Complainants Mission Place LLC, Mission Place Mezzanine LLC, Mission Place Mezz Holdings LLC, Mission Place Partners LLC, Centurion Real Estate Investors IV, LLC, and Centurion Real Estate Partners, LLC (sued 1 zu29-0000032, +~«-: DECLARATION OF ZACHARY W. SHINE ISO MISSION PLACE’S MOTION FOR 3960719.1 SUMMARY ADJUDICATION1 | in its own name and erroneously sued as Centurion Partners LLC) (hereinafter collectively 2 | “Mission Place” or “Cross-Complainants”) in the above-captioned action. | am a member 3 | in good standing of the State Bar of California. 4 3. I have personal knowledge of the facts set forth in this Declaration and, if 5 | called as a witness, I could and would testify competently to such facts under oath. I make 6 | this declaration in support of Defendants’ Motion for Summary Adjudication against 7 | Webcor Construction, Inc., dba Webcor Builders, Inc. (“Webcor”) and HKS, Inc., doing 8 || business in California as HKS Architects, Inc. (“HKS”) (hereinafter collectively referred to 9 | as the “Cross-Defendants”) 10 4. Keith Anderson was deposed in this matter on March 21, 2012 as the 11 | Catellus Related Defendants’ person most knowledgeable. Mr. Anderson was the Senior 12 | Vice President of Catellus at the time the Assignment of Architect Agreement, the 13 | Assignment of Contractor Agreement, and the Consent and Agreements thereto, were 14 | negotiated and executed. True and correct copies of pages 52 to 54, 69, 72, 75, 77 and 78 15 of Mr. Anderson’s deposition transcript are attached as Exhibit 15.' 16 5. John Bowles, was deposed in this action on April 26, 2012 as Webcor’s 17 | person most knowledgeable. Mr. Bowles was the Chief Legal Officer of Webcor at the 18 | time the Assignment of Contractor Agreement and Consent and Agreement were 19 | negotiated and executed. True and correct copies of pages 12, 13, and 17 to 19 of Mr. 20 | Bowles’s deposition transcript are attached as Exhibit 16. 21 6. John Tashjian, was deposed in this action on April 27, 2011 and April 24, 22 |2012 as Mission Place’s person most knowledgeable. Mr. Tashjian was involved in the 23 | negotiation and execution of the Assignment of Contractor Agreement, the Assignment of 24 | Architect Agreement, and the Consent and Agreements thereto. True and correct copies of 25 | pages 59 to 61, 63, 103, 105 and 143 of Mr. Tashjian’s deposition transcript are attached as 26 | Exhibit 17. 27 28 \ Please refer to the Supplemental Compendium of Exhibits filed concurrently herewith. LAW OFFICES: 2 HAIGHT, BROWN & DECLARATION OF ZACHARY W. SHINE ISO MISSION PLACE’S MOTION FOR, rs c 2U29-0000032, 7 Fancisa | 3960019 1 SUMMARY ADJUDICATIONCe end DHA BRB WN = wR N NN NN NY KN |= Fe Se Se Be Be Be Se CIA A BF HN KF SO ONIN DH BF Ww NH |= ST LAW OFFICES. HAIGHT, BROWN & BONESTEEL, LLLP. San Francisco 7. Mission Place served Requests for Admission on HKS, Inc. True and correct copies of HKS, Inc.’s Responses to Mission Place’s Requests for Admission, served on Mission Place June 22, 2012, are attached as Exhibit 23. I declare under penalty of perjury under the laws of the State of California that the [resin is true and correct. Executed on July 17", 2012, at San Francisco, California. N 2 ° a = 3 suzo.ooos?-- DECLARATION OF ZACHARY W. SHINE ISO MISSION PLACE’S MOTION FOR 3960719.1 SUMMARY ADJUDICATION