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Dept. WS Assigned FILED
Pept Carl Aires, eo (13816! & rior Court of Califomia
AIRES LAW FIRM ‘ounty of Los Anaeles
6 Hughes, Suite 205
Irvine, CA 92618 JUL 05 2018
(949) 718-2020 Sherri R. juve Officer/Clerk
(949) 718-2021 FAX By. Deputy
len
Attorneys for Plaintiff,
WESCO INSURANCE COMPANY
SUPERIOR COURT (UNLIMITED) OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES, STANLEY MOSK COURTHOUSE
10
BC712815
11 WESCO INSURANCE COMPANY, Case No.
12 Plaintiff, COMPLAINT FOR BREACH OF
CONTRACT; BREACH OF CONTRACT
13 v
($32,377.00)
14 P&W PAINTING INCORPORATED; and
DOES 1 through 50, inclusive [C.CP. §425.10]
15
Defendants.
16
17
18 Plaintiff Wesco Insurance Company, by and through its undersigned attorneys, hereby alleges
19 against Defendants, and each of them, as follows
20
21 PRELIMINARY ALLEGATIONS
22
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23 1 Plaintiff Wesco Insurance Company is now, and at all times relevant hetGegg wasca Sa
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24 corporation duly organized and existing under the laws of the State of Delawai HGppeliieae go
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2 Plaintiff is informed and believes and based thereon alleges that Defendant P& W
Painting Incorporated is now, and at all times relevant hereto was, a corporation organized under the
laws of the State of California with its principal place of business in the County of Los Angeles,
State of California and within this judicial district.
3 Plaintiff is ignorant of the true names and capacities of the Defendants sued herein
as Does 1 through 50, inclusive, and therefore sues these Defendants by such fictitious names.
Plaintiff will amend this Complaint to allege the true names and capacities of said Defendants when
the same is ascertained. Plaintiff is informed and believes and based thereon alleges that each of
10 these fictitiously-named Defendants is jointly responsible in some manner for the transactions and
11 /or occurrences herein alleged, and that the Plaintiff's injuries as alleged were proximately caused
12 by such Defendants.
13
14 4 Plaintiff is informed and believes and based thereon alleges that, at all times relevant
15 hereto, a unity of interest has existed between Defendants such that any separateness between the
16 Defendants has ceased and that it would sanction a fraud or promote an injustice if the separateness
17 of the Defendants were recognized. Plaintiffis informed and believes and based thereon alleges that,
18 at all times relevant hereto, that certain of the Defendants were insolvent and/or rendered insolvent
19 by the actions of other Defendants. Plaintiff is informed and believes and based thereon alleges that,
20 at all times relevant hereto, that certain of the Defendants were each active participants, for profit,
21 in the common enterprise conducted through various other Defendants, using the same tangible and
22 intangible assets, including equipment, employees, and goodwill. Plaintiff is informed and believes
23 and based thereon alleges that, at all times relevant hereto, that the entity Defendants have been used
24 by the individual Defendants as subterfuges for illegal, fraudulent and/or otherwise wrongful
25 transactions. Plaintiff is informed and believes and based thereon alleges that, at all times relevant
26 hereto, that Defendants, singularly and in combination, and as part of a common enterprise,
a7 knowingly and intentionally misrepresented the types and number of their employees in order to pay
28 a smaller amount in premiums for the workers compensation insurance policy which is the subject
COMPLAINT
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of this action in violation of California law, e.g., Insurance Code §11760. Moreover, Plaintiff is
informed and believes and based thereon alleges that, at all times relevant hereto, that Defendants
were part of a fraudulent scheme not only to reduce the premium, rate, or cost of the workers
compensation insurance policy which is the subject of this action, but to procure the policy itself in
the first place based on false representations of material fact, all in violation of California law, e.g.,
Insurance Code §11760. Plaintiff is informed and believes and based thereon alleges that, at all
times relevant hereto, Defendants were officers of a corporate or association employing unit or a
person having charge of the affairs of a corporate or association employing unit, that knowingly
undertook or agreed to pay without deduction from remuneration paid to its workers the amounts
10 required by law to be withheld, that willfully failed to hold in trust the amount of worker
11 contributions required of such workers as and for payroll taxes and other contributions, that willfully
12 failed to file one or more complete and accurate returns or reports, that failed to supply required
13 information with the intent to evade a tax imposed by law, and willfully and with like intent, made,
14 rendered, signed, or verified one or more false or fraudulent returns, reports, or statements, and that
15 supplied false or fraudulent information to taxing authorities, all in violation of California law, e.g.,
16 Unemployment Insurance Code §§2108, 2110.7, 2117.5, and 2118.5. Plaintiffis further informed
17 and believes and based thereon alleges that the entity Defendants, at all times relevant hereto, were
18 mere shells and shams without sufficient or adequate capitalization, that the entity Defendants were
19 conceived, intended, and utilized by the natural person Defendants, and each of them, as devices to
20 avoid individual liability and for the purpose of substituting financially insolvent business entities
21 in the place of the natural person Defendants, and each of them, that other Defendants, and each of
22 them, have failed to observe corporate formalities with respect to the activities of the entity
23 Defendants, that other Defendants, and each of them, have used assets of the entity Defendants for
24 personal use, that other Defendants, and each of them, have caused assets of the entity Defendants
25 to be transferred to the other Defendants, and each of them, without adequate consideration, that
26
a other Defendants, and each of them, have caused the entity Defendants to pay excessive
Q7 compensation to insiders at a time when the corporation was insolvent, that other Defendants, and
™28 each of them, have caused the entity Defendants to make distributions to shareholders at a time when
COMPLAINT
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the corporation was insolvent in violation of Corporations Code §500 et seq., and that, during a state
of entity insolvency, Defendants, and each of them, engaged in conduct that diverted, dissipated, or
unduly risked assets of the entity Defendants that might otherwise have been used to satisfy creditors’
claims. Plaintiff is informed and believes and based thereon alleges that Defendants are successors
in interest to a party liable to Plaintiff because: [1] There is an express or implied agreement of
assumption with respect to the assets of the seller (or transferor); [2] The transaction amounts to a
consolidation or merger of the two entities; [3] The purchasing entity is a mere continuation of the
seller (or transferor); or [4] The transfer of assets to the purchaser (or transferee) is for the fraudulent
purpose of escaping liability for the debts of the seller (or transferor). As a result of the preceding
10 allegations, whether Defendants are the alter egos of one another, joint venturers, successors in
11 interest, co-conspirators, or otherwise, Defendants are responsible for the debts, obligations and
12 duties of one another. Plaintiff is informed and believes and based thereon alleges that the damage
13 claim of Plaintiff is separate and distinct from any damage claim of the entirety of the class of the
14 entity Defendants’ creditors in that Plaintiff was the specific and particularized target of Defendants’
15 illegal, fraudulent and/or otherwise wrongful conduct.
16
17 5 As aresult of the preceding allegations, whether Defendants are the alter egos of one
18 another, joint venturers, successors in interest, co-conspirators, or otherwise, Defendants are
19 responsible for the debts, obligations and duties of one another. Plaintiff is informed and believes
20 and based thereon alleges that the damage claim of Plaintiff is separate and distinct from any damage
21 claim of the entirety of the class of the entity Defendants’ creditors in that Plaintiff was the specific
22 and particularized target of Defendants’ illegal, fraudulent and/or otherwise wrongful conduct.
23
24 6 The claim described herein "is substantially related to the construction activities of
25 a licensee licensed under [the Contractor’s State License Law], or to the qualifications, functions,
226 or duties of the license" in that the obligation sued upon arises out of workers’ compensation
Sel insurance supplied by Plaintiff to Defendants in connection with the construction of certain works
es of improvement for which a license is required by the Contractor’s State License Law. Defendants
COMPLAINT
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operate their business under the trade name P&W Painting Incorporated using the California
Contractors State License Board License Nos. 982499.
7 This action is not subject to Civil Code §1812.10 or Civil Code §2984.4. The proper
county for the trial of this action is the County of Los Angeles in that the Defendants, and each of
them, contracted to perform the obligation sued upon and/or have their principal place of business
in the County of Los Angeles and within this judicial district.
FIRST CAUSE OF ACTION
10 (Breach of Contract Against All Defendants)
11
12 8 Plaintiff hereby incorporates by reference paragraphs 1 through 7, inclusive, of this
13 Complaint as if set forth in full in this paragraph.
14
15 9 On or about July 15, 2015, Plaintiff upon the request of Defendants for Workers
16 Compensation and Employers Liability Insurance coverage, provided Defendants with an Insurance
17 Policy No. WWC3149126 for the period of 7/15/2015 through 7/15/2016, which was subject to an
18 audit and recomputation of its premium (the “2015 Policy”). Plaintiff is authorized under the 2015
19 Policy to examine and audit all records that relate to the 2015 Policy during the policy period. The
20 2015 Policy provides that the final premium will be determined by using the actual premium basis
21 and the proper classifications and rates as determined by an audit. The 2015 Policy further obligated
22 Defendants to pay the difference between the estimated and actual premiums after the audit and final
23 premium determined by Plaintiff. In this regard, the 2015 Policy, in part, provides:
24
25 PART FIVE - PREMIUM [§] B. Classifications [{] Item 4 of the
26 information page shows the rate and premium basis for certain
QT business or work classifications. These classifications were assigned
"28 based on an estimate of the exposures you would have during the
COMPLAINT
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policy period. If your actual exposures are not properly described by
those classifications, we will assign proper classifications, rates and
premium basis by endorsement to this policy. [§] C. Remuneration
[{] Premium for each work classification is determined by
multiplying a rate times a premium basis period. Remuneration is the
most common premium basis. This premium basis includes payroll
and all other remuneration paid or payable during the policy period
for the services of: [{] 1. All your officer and employees engaged in
work covered by this policy; and [{] 2. All other persons engaged in
10 work that would make us liable under Part One (Workers
11 Compensation Insurance) of this policy period. If you do not have
12 payroll records for these persons, the contract price for their services
13 and materials may be used as the premium basis. This paragraph 2
14 will not apply if you give us proof that the employers of these persons
15 lawfully secured their workers compensation obligation. [{] E. Final
16 Premium. The premium shown on the Information Page, schedules
17 and endorsements is an estimate. The final premium will be
18 determined after this policy ends by using the actual, and not the
19 estimated, premium basis and the proper classifications and rates that
20 lawfully apply to the business and work covered by this policy. If the
21 final premium is more than the premium you paid us, you must pay
22 us the balance. If it is less, we will refund the balance to you. The
23 final premium will not be less than the highest minimum premium for
24 the classifications covered by this policy. ... [] F. Records. You will
25 keep records of inZormation needed to compute premium. You will
provide us with copies of those records when we ask for them. [f] G.
QT Audit. You will let us examine and audit all your records that relate
128 to this policy. These records include ledgers, journals, registers,
COMPLAINT
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vouchers, contracts, tax reports, payroll and disbursement records,
and programs for storing and retrieving data. We may conduct the
audits during regular business hours during the policy period and
within three years after the policy period ends. Information
developed by audit will be used to determine final premium.
Insurance rate service organizations have the same rights we have
under this provision.
10. An audit was subsequently performed on the effective policy period for the 2015
10 Policy. The audit found the premium basis estimate provided by the Defendants to be inaccurate and
11 found the actual audited total premium and fees for the effective policy period for the 2015 Policy
12 to be an additional $13,715.00 which became fixed or readily ascertainable on November 1, 2016,
13 as evidenced by a premium audit invoice, a true and correct copy of which is attached hereto as
14 Exhibit “A”.
15
16 11. Plaintiff has performed all conditions, covenants and promises required of it on its
17 part in accordance with the terms and conditions of the 2015 Policy, except those which are excused
18 by Defendants’ breach.
19
20 12. After November 1, 2016, Defendants refused to make any further payments toward
21 the policy premium as audited for the 2015 Policy. Thus, within the past four years, Defendants have
22 breached the terms of the 2015 Policy by failing and refusing to satisfy the amount outstanding on
23 the 2015 Policy of $13,715.00.
24
25 13. As a direct and proximate result of Defendants’ breach of the 2015 Policy, Plaintiff
26 has been damaged in the amount of $13,715.00, together with prejudgment interest of $3.76 per day
27 from November 1, 2016 using the legal rate of 10% per annum.
28 Mt
COMPLAINT
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SECOND CAUSE OF ACTION
(Breach of Contract Against All Defendants)
14. Plaintiff hereby incorporates by reference paragraphs | through 13, inclusive, of this
Complaint as if set forth in full in this paragraph.
15. On or about July 15, 2016, Plaintiff upon the request of Defendants for Workers
Compensation and Employers Liability Insurance coverage, provided Defendants with an Insurance
Policy No. WWC3215715 for the period of July 15, 2016 through July 15, 2017, which was subject
10 to an audit and recomputation of its premium (the “2016 Policy”). Plaintiff is authorized under the
11 2016 Policy to examine and audit all records that relate to the 2016 Policy during the policy period.
12 The 2016 Policy provides that the final premium will be determined by using the actual premium
13 basis and the proper classifications and rates as determined by an audit. The 2016 Policy further
14 obligated Defendants to pay the difference between the estimated and actual premiums after the audit
15 and final premium determined by Plaintiff. In this regard, the 2016 Policy, in part, provides:
16
17 PART FIVE - PREMIUM [{] B. Classifications [{] Item 4 of the
18 information page shows the rate and premium basis for certain
19 business or work classifications. These classifications were assigned
20 based on an estimate of the exposures you would have during the
21 policy period. If your actual exposures are not properly described by
22 those classifications, we will assign proper classifications, rates and
23 premium basis by endorsement to this policy. [{] C. Remuneration
24 [{] Premium for each work classification is determined by
25 multiplying a rate times a premium basis period. Remuneration is the
26 most common premium basis. This premium basis includes payroll
a7 and all other remuneration paid or payable during the policy period
128 for the services of: [{] 1. All your officer and employees engaged in
COMPLAINT
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work covered by this policy; and [{] 2. All other persons engaged in
work that would make us liable under Part One (Workers
Compensation Insurance) of this policy period. If you do not have
payroll records for these persons, the contract price for their services
and materials may be used as the premium basis. This paragraph 2
will not apply if you give us proof that the employers of these persons
lawfully secured their workers compensation obligation. [J] E. Final
Premium. The premium shown on the Information Page, schedules
and endorsements is an estimate. The final premium will be
10 determined after this policy ends by using the actual, and not the
11 estimated, premium basis and the proper classifications and rates that
12 lawfully apply to the business and work covered by this policy. If the
13 final premium is more than the premium you paid us, you must pay
14 us the balance. If it is less, we will refund the balance to you. The
15 final premium will not be less than the highest minimum premium for
16 the classifications covered by this policy. ... [{] F. Records. You will
17 keep records of information needed to compute premium. You will
18 provide us with copies of those records when we ask for them. [{] G.
19 Audit. You will let us examine and audit all your records that relate
20 to this policy. These records include ledgers, journals, registers,
21 vouchers, contracts, tax reports, payroll and disbursement records,
22 and programs for storing and retrieving data) We may conduct the
23 audits during regular business hours during the policy period and
24 within three years after the policy period ends. Information
25 developed by audit will be used to determine final premium.
26 Insurance rate service organizations have the same rights we have
2Q7 under this provision.
28 Mt
COMPLAINT
® @
16. An audit was subsequently performed on the effective policy period for the 2016
Policy. The audit found the premium basis estimate provided by the Defendants to be inaccurate and
found the actual audited total premium and fees for the effective policy period for the 2016 Policy
to be an additional $18,662.00 which became fixed or readily ascertainable on January 25, 2018, as
evidenced by a premium audit invoice, a true and correct copy of which is attached hereto as Exhibit
“B”,
17. Plaintiff has performed all conditions, covenants and promises required of it on its
part in accordance with the terms and conditions of the 2016 Policy, except those which are excused
10 by Defendants’ breach.
11
12 18. After January 25, 2018, Defendants refused to make any further payments toward the
13 policy premium as audited for the 2016 Policy. Thus, within the past four years, Defendants have
14 breached the terms of the 2016 Policy by failing and refusing to satisfy the amount outstanding on
15 the 2016 Policy of $18,662.00.
16
17 19. As a direct and proximate result of Defendants’ breach of the 2016 Policy, Plaintiff
18 has been damaged in the amount of $18,662.00, together with prejudgment interest of $5.11 per day
19 from January 25, 2018 using the legal rate of 10% per annum.
20
21 WHEREFORE, Plaintiff prays for judgment against Defendants, and each of them, as
22 follows:
23
24 1 For the principal sum of $13,715.00, together with prejudgment interest of $3.76 per
25 day from November 1, 2016 using the legal rate of 10% per annum; plus the principal sum of
~
$18,662.00, together with prejudgment interest of $5.11 per day from January 25, 2018 using the
27 legal rate of 10% per annum;
Mt
10 COMPLAINT
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2 For costs of suit, including attorney’s fees, if available; and
3 For such other and further relief as the Court deems just and proper.
DATED: July 3, 2018 AIRES LAW FIRM
Fim 10
Attorney
WESCO INS
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11 COMPLAINT
@ Workers’ Compensation and
Employers’ Liability Insurance Policy
PREMIUM NOTICE - FINAL PREMIUM
AUDIT
Wesco Insurance Company
An Amtrust Financial Company
Policy Number: WWC3149126
Invoice Date: 11/1/2016
Balance Due: 13,715.00
P & W PAINTING INCORPORATED Invoice Due Date Upon Receipt
Att: TROY WILLIAMS
P.O. BOX 219
HARBOR CITY CA 90710-0219
Total Policy Cost: 16,540.00
Total Billed to Date: 16,540.00
Total Paid to Date: 2,825.00
Balance Due: 13,715.00
Payment Options:
Online Go to our website at www.amtrustgrou .com to register your policy for one time online
payments by credit card or electronic check.
Credit Card To pay by Mastercard® or Visa® over the phone, please call 877-528-7878. Partial
payment will not be accepted.
E-Check To pay by electronic check direct] from your checking or savings account over the phone
for a single payment, please call 8' 7-528-7878
Check Please make your check payable to Amtrust North America, Inc. and include your policy
number on your check.
Certified and overnight mail should be sent to: Important Numbers:
Amtrust North America, Inc. Customer Service 877-528-7878
800 Superior Avenue East, 21st Floor Claim Reporting 866-272-9267
Cleveland, OH 44114 Broker of Record (916) 772-9200
To ensure accurate and prompt processing, please include this voucher with your payment.
We are unable to process changes noted on the invoice voucher. Please contact your broker if you believe corrections to your policy are required.
Installment Due Date: Upon Receipt
Balance Due: 13,715.00
Amount Paid:
For Company Use Only RST
Policy Number: WWC3149126
Remit Payment to: Effective Date: 75/2015
Agent ID: 73443
Amtrust North America, Inc.
Agency: Builders and Tradesmen's Insurance
P.O. Box 6939
Services, Inc, eet
Cleveland, OH 44101-1939
a
LON \
ah
.
Workers’ Compensation and
Employers’ Liability Insurance Policy
PREMIUM NOTICE - FINAL PREMIUM
AUDIT
Wesco Insurance Company
An Amtrust Financial Company
Policy Number: WWC3215715
Invoice Date: 1/25/2018
Balance Due: 18,662.00
P & W PAINTING INCORPORATED Invoice Due Date: Upon Receipt
Att: TROY WILLIAMS
P.O. BOX 219
HARBOR CITY CA 90710-0219
Total Policy Cost: 21,256.00
Total Billed to Date: 21,256.00
Total Paid to Date 2,594.00
Balance Due: 18,662.00
Check Please make your check payable to Amtrust North America, Inc. and include your policy
number on your check.
Certified and overnight mail should be sent to: important Numbers:
Amtrust North America, Inc. Customer Service 877-528-7878
800 Superior Avenue East, 21st Floor Claim Reporting 866-272-9267
Cleveland, OH 44114 Broker of Record (916) 772-9200
To ensure accurate and prompt processing, please include this voucher with your payment.
We are unable to process changes noted on the invoice voucher. Please contact your broker if you believe corrections to your policy are required.
Installment Due Date: | Upon Receipt
Balance Due: 18,662.00
Amount Paid:
For Company Use Only RST
Policy Number: WWC3215715
Effective Date: 7115/2016
Agent ID: 73443
Agency: Builders and Tradesmen's Insurance
Remit Payment to: Services, Inc.
Amtrust North America, Inc.
P.O. Box 6939
Cleveland, OH 44101-1939
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‘ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, St
eH ORIGINAL e ‘FOR COURT USE ONLY
M-01
[Timothy Carl Aires, Esq. (138169)
AIRES LAW FIRM
6 Hughes, Suite 205
6 Hughes, Suite 205 &sperlor Court of Californie
Irvine, CA 92618 ounty of Los Annales
‘TELEPHONE NO.: 949/718-2020 FAXNO.: 949/718-2021
ATTORNEY FOR (Name): PLAINTIFF JUL 05 2018
SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES
sTreeTAopress:
111 N HILL ST Sheri R. C: uve Offican/Clerk
MaiLiNG Aooress: 111 N HILL ST By. Deputy
citvanpzipcope: LOS ANGELES, CA 90012
BRANCH NAME: MOSK COURTHOUSE
CASE NAME: WESCO INSURANCE COMPANY v. P&W PAINTING
INCORPORATED; and DOES 1 through 50, inclusive
CIVIL CASE COVER SHEET
Unlimited
(Amount
Limited
(Amount
(—)
Complex Case Designation
Counter
JUDGE:
[] Joinder pert 81°
Filed with first appearance by defendant
dema
exceet i5'$25,000)_ $95,0000 ess) (Cal. Rules of Court, rule 3.402) DEPT:
Items 1-6 below must be completed (see instructions on page 2).
1. Check one box below for the case type that best describes this case:
Auto Tort Contract Provisionally Complex Civil Litigation
Auto (22) (2X) Breach of contractiwarranty (06) (Cal. Rules of Court, rules 3.400-3.403)
Uninsured motorist (46) (J Rule 3.740 collections (09) (1) Antitrust Trade regulation (03)
Other PI/PD/WD (Personal Injury/Property (J other collections (09) (J Construction defect (10)
Damage/Wrongful Death) Tort Insurance coverage (18) (J mass tort (40)
[_Jastestos (04) Other contract (37) (_] Securities titigation (28)
(_] Product liability (24) Real Property [_] Environmental/Toxic tort (30)
() Medica! malpractice (45) Eminent domain/Inverse [J insurance coverage claims arising from the
(J other PuPDAWo (23) condemnation (14) above listed provisionally complex case
Non-PI/PD/WD (Other) Tort (__] wrongful eviction (33) types (41)
(1 Business tort/unfair business practice (07) [) otter real property (26) Enforcement of Judgment
CT eivit rights (08) Unlawful Detainer [1] Enforcement of judgment (20)
[1] Defamation (13) co Commercial (31) Miscellaneous Civil Complaint
(CJ Fraud (16) (J Residential (32) [J rico (27)
[J intellectual property (19) [1] pugs (38) [1 other complaint (not specified above) (42)
(_] Professional negligence (25) Judicial Review Miscellaneous Civil Petition
(J Other non-PPDAWD tort (35) (J Asset forfeiture (05) (J Partnership and corporate governance (21)
Employment (| Petition re: arbitration award (11) () other petition (not specified above) (43)
(_] Wrongful termination (36) (_] writ of mandate (02)
CL] Other employment (15) [_] other judicial review (39)
. This case J is (3X) is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the
factors requiring exceptional judicial management:
a Large number of separately represented parties d. CJ Large number of witnesses
b. [__] Extensive motion practice raising difficult or novel e. [__] Coordination with related actions pending in one or more courts
issues that will be time-consuming to resolve in other counties, states, or countries, or in a federal court
c. [__] Substantial amount of documentary evidence f. [_] Substantial postjudgment judicial supervision
3. . Remedies sought (check all that apply): a. monetary b. [__] nonmonetary; declaratory or injunctive relief c. [_] punitive
4 Number of causes of action (specify): TWO
This case [_] is [<1 is not a class action suit.
6. If there are any known related cases, file and serve a notice of related case. (You may use form Ci a
DS CZ
>
Date: 7/3/2018 A)
rl Aires 138169 J
(TYPE OR PRINT NAME) iE OF PARTY OR ATTORNEY FOR, TY)
NOTICE
*laintiff must file this cover sheet with the first paper filed in the action or proceedi ing (3 rg ree anal canonses or cases filed
under the Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule 220.) Failure to file may result
incsanctions.
File this cover sheet in addition to any cover sheet required by local court rule.
B
his case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all
ther parties to the action or proceeding.
inless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only. ot
Form Adopted for Mandatory Use
‘Judicial Council of California CIVIL CASE COVER SHEET sits Gal. Rules of Court, rules 2.30, 3220, 3.400-3.403, 3.740;
Cal, Standards of Judicial Administration, sid. 3.10
‘CM-010 [Rev. July 1, 2007]
INSTRUCTIONS ON HOW TO COMPLETE THE COVER SHEET CM-010
To Plaintiffs and Others Filing First Papers. If you are filing a first paper (for example, a complaint) in a civil case, you must
complete and file, along with your first paper, the Civil Case Cover Sheet contained on page 1. This information will be used to compile
statistics about the types and numbers of cases filed. You must complete items 1 through 6 on the sheet. In item 1, you must check
‘one box for the case type that best describes the case. If the case fits both a general and a more specific type of case listed in item 1,
check the more specific one. If the case has multiple causes of action, check the box that best indicates the primary cause of action.
To assist you in completing the sheet, examples of the cases that belong under each case type in item 1 are provided below. A cover
sheet must be filed only with your initial paper. Failure to file a cover sheet with the first paper filed in a civil case may subject a party, its
counsel, or both to sanctions under rules 2.30 and 3.220 of the California Rules of Court.
To Parties in Rule 3.740 Collections Cases. A "collections case" under rule 3.740 is defined as an action for recovery of money owed
in a sum stated to be certain that is not more than $25,000, exclusive of interest and attorney's fees, arising from a transaction in which
property, services, or money was acquired on credit. A collections case does not include an action seeking the following: (1) tort
damages, (2) punitive damages, (3) recovery of real property, (4) recovery of personal property, or (5) a prejudgment writ of attachment.
The identification of a case as a rule 3.740 collections case on this form means that it will be exempt from the general time-for-service
requirements and case management rules, unless a defendant files a responsive pleading. A rule 3.740 collections case will be subject
to the requirements for service and obtaining a judgment in rule 3.740.
To Parties in Complex Cases. In complex cases only, parties must also use the Civil Case Cover Sheet to designate whether the
case is complex. If a plaintiff believes the case is complex under rule 3.400 of the California Rules of Court, this must be indicated by
completing the appropriate boxes in items 1 and 2. If a plaintiff designates a case as complex, the cover sheet must be served with the
complaint on all parties to the action. A defendant may file and serve no later than the time of its first appearance a joinder in the
plaintiff's designation, a counter-designation that the case is not complex, or, if the plaintiff has made no designation, a designation that
the case is complex. CASE TYPES AND EXAMPLES
Auto Tort Contract Provisionally Complex Civil Litigation (Cal.
Auto (22)—Personal
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@ - - (RIGNL © ne Dept. WS Assigned FILED Pept Carl Aires, eo (13816! & rior Court of Califomia AIRES LAW FIRM ‘ounty of Los Anaeles 6 Hughes, Suite 205 Irvine, CA 92618 JUL 05 2018 (949) 718-2020 Sherri R. juve Officer/Clerk (949) 718-2021 FAX By. Deputy len Attorneys for Plaintiff, WESCO INSURANCE COMPANY SUPERIOR COURT (UNLIMITED) OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, STANLEY MOSK COURTHOUSE 10 BC712815 11 WESCO INSURANCE COMPANY, Case No. 12 Plaintiff, COMPLAINT FOR BREACH OF CONTRACT; BREACH OF CONTRACT 13 v ($32,377.00) 14 P&W PAINTING INCORPORATED; and DOES 1 through 50, inclusive [C.CP. §425.10] 15 Defendants. 16 17 18 Plaintiff Wesco Insurance Company, by and through its undersigned attorneys, hereby alleges 19 against Defendants, and each of them, as follows 20 21 PRELIMINARY ALLEGATIONS 22 Awoa co mesoimn me 23 1 Plaintiff Wesco Insurance Company is now, and at all times relevant hetGegg wasca Sa comas 1 ob 24 corporation duly organized and existing under the laws of the State of Delawai HGppeliieae go 25 business in the State of California. foo ans. Rycn bo 226 MM oO 3 an S27 MI S = a 8 Mt cn cd eee Soca bt tal boob asada COMPLAINT @ WT @ tee . J fesse nad . et fem. et - deagicada OH sand smiotitnd to huod enlanad ao lie y 50S 29 JUL ae sratQnaail ew 1 nay Aivete - eq ~~: Ae NP “Mt ye @ e 2 Plaintiff is informed and believes and based thereon alleges that Defendant P& W Painting Incorporated is now, and at all times relevant hereto was, a corporation organized under the laws of the State of California with its principal place of business in the County of Los Angeles, State of California and within this judicial district. 3 Plaintiff is ignorant of the true names and capacities of the Defendants sued herein as Does 1 through 50, inclusive, and therefore sues these Defendants by such fictitious names. Plaintiff will amend this Complaint to allege the true names and capacities of said Defendants when the same is ascertained. Plaintiff is informed and believes and based thereon alleges that each of 10 these fictitiously-named Defendants is jointly responsible in some manner for the transactions and 11 /or occurrences herein alleged, and that the Plaintiff's injuries as alleged were proximately caused 12 by such Defendants. 13 14 4 Plaintiff is informed and believes and based thereon alleges that, at all times relevant 15 hereto, a unity of interest has existed between Defendants such that any separateness between the 16 Defendants has ceased and that it would sanction a fraud or promote an injustice if the separateness 17 of the Defendants were recognized. Plaintiffis informed and believes and based thereon alleges that, 18 at all times relevant hereto, that certain of the Defendants were insolvent and/or rendered insolvent 19 by the actions of other Defendants. Plaintiff is informed and believes and based thereon alleges that, 20 at all times relevant hereto, that certain of the Defendants were each active participants, for profit, 21 in the common enterprise conducted through various other Defendants, using the same tangible and 22 intangible assets, including equipment, employees, and goodwill. Plaintiff is informed and believes 23 and based thereon alleges that, at all times relevant hereto, that the entity Defendants have been used 24 by the individual Defendants as subterfuges for illegal, fraudulent and/or otherwise wrongful 25 transactions. Plaintiff is informed and believes and based thereon alleges that, at all times relevant 26 hereto, that Defendants, singularly and in combination, and as part of a common enterprise, a7 knowingly and intentionally misrepresented the types and number of their employees in order to pay 28 a smaller amount in premiums for the workers compensation insurance policy which is the subject COMPLAINT @ @ of this action in violation of California law, e.g., Insurance Code §11760. Moreover, Plaintiff is informed and believes and based thereon alleges that, at all times relevant hereto, that Defendants were part of a fraudulent scheme not only to reduce the premium, rate, or cost of the workers compensation insurance policy which is the subject of this action, but to procure the policy itself in the first place based on false representations of material fact, all in violation of California law, e.g., Insurance Code §11760. Plaintiff is informed and believes and based thereon alleges that, at all times relevant hereto, Defendants were officers of a corporate or association employing unit or a person having charge of the affairs of a corporate or association employing unit, that knowingly undertook or agreed to pay without deduction from remuneration paid to its workers the amounts 10 required by law to be withheld, that willfully failed to hold in trust the amount of worker 11 contributions required of such workers as and for payroll taxes and other contributions, that willfully 12 failed to file one or more complete and accurate returns or reports, that failed to supply required 13 information with the intent to evade a tax imposed by law, and willfully and with like intent, made, 14 rendered, signed, or verified one or more false or fraudulent returns, reports, or statements, and that 15 supplied false or fraudulent information to taxing authorities, all in violation of California law, e.g., 16 Unemployment Insurance Code §§2108, 2110.7, 2117.5, and 2118.5. Plaintiffis further informed 17 and believes and based thereon alleges that the entity Defendants, at all times relevant hereto, were 18 mere shells and shams without sufficient or adequate capitalization, that the entity Defendants were 19 conceived, intended, and utilized by the natural person Defendants, and each of them, as devices to 20 avoid individual liability and for the purpose of substituting financially insolvent business entities 21 in the place of the natural person Defendants, and each of them, that other Defendants, and each of 22 them, have failed to observe corporate formalities with respect to the activities of the entity 23 Defendants, that other Defendants, and each of them, have used assets of the entity Defendants for 24 personal use, that other Defendants, and each of them, have caused assets of the entity Defendants 25 to be transferred to the other Defendants, and each of them, without adequate consideration, that 26 a other Defendants, and each of them, have caused the entity Defendants to pay excessive Q7 compensation to insiders at a time when the corporation was insolvent, that other Defendants, and ™28 each of them, have caused the entity Defendants to make distributions to shareholders at a time when COMPLAINT @ @ the corporation was insolvent in violation of Corporations Code §500 et seq., and that, during a state of entity insolvency, Defendants, and each of them, engaged in conduct that diverted, dissipated, or unduly risked assets of the entity Defendants that might otherwise have been used to satisfy creditors’ claims. Plaintiff is informed and believes and based thereon alleges that Defendants are successors in interest to a party liable to Plaintiff because: [1] There is an express or implied agreement of assumption with respect to the assets of the seller (or transferor); [2] The transaction amounts to a consolidation or merger of the two entities; [3] The purchasing entity is a mere continuation of the seller (or transferor); or [4] The transfer of assets to the purchaser (or transferee) is for the fraudulent purpose of escaping liability for the debts of the seller (or transferor). As a result of the preceding 10 allegations, whether Defendants are the alter egos of one another, joint venturers, successors in 11 interest, co-conspirators, or otherwise, Defendants are responsible for the debts, obligations and 12 duties of one another. Plaintiff is informed and believes and based thereon alleges that the damage 13 claim of Plaintiff is separate and distinct from any damage claim of the entirety of the class of the 14 entity Defendants’ creditors in that Plaintiff was the specific and particularized target of Defendants’ 15 illegal, fraudulent and/or otherwise wrongful conduct. 16 17 5 As aresult of the preceding allegations, whether Defendants are the alter egos of one 18 another, joint venturers, successors in interest, co-conspirators, or otherwise, Defendants are 19 responsible for the debts, obligations and duties of one another. Plaintiff is informed and believes 20 and based thereon alleges that the damage claim of Plaintiff is separate and distinct from any damage 21 claim of the entirety of the class of the entity Defendants’ creditors in that Plaintiff was the specific 22 and particularized target of Defendants’ illegal, fraudulent and/or otherwise wrongful conduct. 23 24 6 The claim described herein "is substantially related to the construction activities of 25 a licensee licensed under [the Contractor’s State License Law], or to the qualifications, functions, 226 or duties of the license" in that the obligation sued upon arises out of workers’ compensation Sel insurance supplied by Plaintiff to Defendants in connection with the construction of certain works es of improvement for which a license is required by the Contractor’s State License Law. Defendants COMPLAINT @ @ operate their business under the trade name P&W Painting Incorporated using the California Contractors State License Board License Nos. 982499. 7 This action is not subject to Civil Code §1812.10 or Civil Code §2984.4. The proper county for the trial of this action is the County of Los Angeles in that the Defendants, and each of them, contracted to perform the obligation sued upon and/or have their principal place of business in the County of Los Angeles and within this judicial district. FIRST CAUSE OF ACTION 10 (Breach of Contract Against All Defendants) 11 12 8 Plaintiff hereby incorporates by reference paragraphs 1 through 7, inclusive, of this 13 Complaint as if set forth in full in this paragraph. 14 15 9 On or about July 15, 2015, Plaintiff upon the request of Defendants for Workers 16 Compensation and Employers Liability Insurance coverage, provided Defendants with an Insurance 17 Policy No. WWC3149126 for the period of 7/15/2015 through 7/15/2016, which was subject to an 18 audit and recomputation of its premium (the “2015 Policy”). Plaintiff is authorized under the 2015 19 Policy to examine and audit all records that relate to the 2015 Policy during the policy period. The 20 2015 Policy provides that the final premium will be determined by using the actual premium basis 21 and the proper classifications and rates as determined by an audit. The 2015 Policy further obligated 22 Defendants to pay the difference between the estimated and actual premiums after the audit and final 23 premium determined by Plaintiff. In this regard, the 2015 Policy, in part, provides: 24 25 PART FIVE - PREMIUM [§] B. Classifications [{] Item 4 of the 26 information page shows the rate and premium basis for certain QT business or work classifications. These classifications were assigned "28 based on an estimate of the exposures you would have during the COMPLAINT @ @ policy period. If your actual exposures are not properly described by those classifications, we will assign proper classifications, rates and premium basis by endorsement to this policy. [§] C. Remuneration [{] Premium for each work classification is determined by multiplying a rate times a premium basis period. Remuneration is the most common premium basis. This premium basis includes payroll and all other remuneration paid or payable during the policy period for the services of: [{] 1. All your officer and employees engaged in work covered by this policy; and [{] 2. All other persons engaged in 10 work that would make us liable under Part One (Workers 11 Compensation Insurance) of this policy period. If you do not have 12 payroll records for these persons, the contract price for their services 13 and materials may be used as the premium basis. This paragraph 2 14 will not apply if you give us proof that the employers of these persons 15 lawfully secured their workers compensation obligation. [{] E. Final 16 Premium. The premium shown on the Information Page, schedules 17 and endorsements is an estimate. The final premium will be 18 determined after this policy ends by using the actual, and not the 19 estimated, premium basis and the proper classifications and rates that 20 lawfully apply to the business and work covered by this policy. If the 21 final premium is more than the premium you paid us, you must pay 22 us the balance. If it is less, we will refund the balance to you. The 23 final premium will not be less than the highest minimum premium for 24 the classifications covered by this policy. ... [] F. Records. You will 25 keep records of inZormation needed to compute premium. You will provide us with copies of those records when we ask for them. [f] G. QT Audit. You will let us examine and audit all your records that relate 128 to this policy. These records include ledgers, journals, registers, COMPLAINT @ e vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision. 10. An audit was subsequently performed on the effective policy period for the 2015 10 Policy. The audit found the premium basis estimate provided by the Defendants to be inaccurate and 11 found the actual audited total premium and fees for the effective policy period for the 2015 Policy 12 to be an additional $13,715.00 which became fixed or readily ascertainable on November 1, 2016, 13 as evidenced by a premium audit invoice, a true and correct copy of which is attached hereto as 14 Exhibit “A”. 15 16 11. Plaintiff has performed all conditions, covenants and promises required of it on its 17 part in accordance with the terms and conditions of the 2015 Policy, except those which are excused 18 by Defendants’ breach. 19 20 12. After November 1, 2016, Defendants refused to make any further payments toward 21 the policy premium as audited for the 2015 Policy. Thus, within the past four years, Defendants have 22 breached the terms of the 2015 Policy by failing and refusing to satisfy the amount outstanding on 23 the 2015 Policy of $13,715.00. 24 25 13. As a direct and proximate result of Defendants’ breach of the 2015 Policy, Plaintiff 26 has been damaged in the amount of $13,715.00, together with prejudgment interest of $3.76 per day 27 from November 1, 2016 using the legal rate of 10% per annum. 28 Mt COMPLAINT @ @ SECOND CAUSE OF ACTION (Breach of Contract Against All Defendants) 14. Plaintiff hereby incorporates by reference paragraphs | through 13, inclusive, of this Complaint as if set forth in full in this paragraph. 15. On or about July 15, 2016, Plaintiff upon the request of Defendants for Workers Compensation and Employers Liability Insurance coverage, provided Defendants with an Insurance Policy No. WWC3215715 for the period of July 15, 2016 through July 15, 2017, which was subject 10 to an audit and recomputation of its premium (the “2016 Policy”). Plaintiff is authorized under the 11 2016 Policy to examine and audit all records that relate to the 2016 Policy during the policy period. 12 The 2016 Policy provides that the final premium will be determined by using the actual premium 13 basis and the proper classifications and rates as determined by an audit. The 2016 Policy further 14 obligated Defendants to pay the difference between the estimated and actual premiums after the audit 15 and final premium determined by Plaintiff. In this regard, the 2016 Policy, in part, provides: 16 17 PART FIVE - PREMIUM [{] B. Classifications [{] Item 4 of the 18 information page shows the rate and premium basis for certain 19 business or work classifications. These classifications were assigned 20 based on an estimate of the exposures you would have during the 21 policy period. If your actual exposures are not properly described by 22 those classifications, we will assign proper classifications, rates and 23 premium basis by endorsement to this policy. [{] C. Remuneration 24 [{] Premium for each work classification is determined by 25 multiplying a rate times a premium basis period. Remuneration is the 26 most common premium basis. This premium basis includes payroll a7 and all other remuneration paid or payable during the policy period 128 for the services of: [{] 1. All your officer and employees engaged in COMPLAINT @ @ work covered by this policy; and [{] 2. All other persons engaged in work that would make us liable under Part One (Workers Compensation Insurance) of this policy period. If you do not have payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This paragraph 2 will not apply if you give us proof that the employers of these persons lawfully secured their workers compensation obligation. [J] E. Final Premium. The premium shown on the Information Page, schedules and endorsements is an estimate. The final premium will be 10 determined after this policy ends by using the actual, and not the 11 estimated, premium basis and the proper classifications and rates that 12 lawfully apply to the business and work covered by this policy. If the 13 final premium is more than the premium you paid us, you must pay 14 us the balance. If it is less, we will refund the balance to you. The 15 final premium will not be less than the highest minimum premium for 16 the classifications covered by this policy. ... [{] F. Records. You will 17 keep records of information needed to compute premium. You will 18 provide us with copies of those records when we ask for them. [{] G. 19 Audit. You will let us examine and audit all your records that relate 20 to this policy. These records include ledgers, journals, registers, 21 vouchers, contracts, tax reports, payroll and disbursement records, 22 and programs for storing and retrieving data) We may conduct the 23 audits during regular business hours during the policy period and 24 within three years after the policy period ends. Information 25 developed by audit will be used to determine final premium. 26 Insurance rate service organizations have the same rights we have 2Q7 under this provision. 28 Mt COMPLAINT ® @ 16. An audit was subsequently performed on the effective policy period for the 2016 Policy. The audit found the premium basis estimate provided by the Defendants to be inaccurate and found the actual audited total premium and fees for the effective policy period for the 2016 Policy to be an additional $18,662.00 which became fixed or readily ascertainable on January 25, 2018, as evidenced by a premium audit invoice, a true and correct copy of which is attached hereto as Exhibit “B”, 17. Plaintiff has performed all conditions, covenants and promises required of it on its part in accordance with the terms and conditions of the 2016 Policy, except those which are excused 10 by Defendants’ breach. 11 12 18. After January 25, 2018, Defendants refused to make any further payments toward the 13 policy premium as audited for the 2016 Policy. Thus, within the past four years, Defendants have 14 breached the terms of the 2016 Policy by failing and refusing to satisfy the amount outstanding on 15 the 2016 Policy of $18,662.00. 16 17 19. As a direct and proximate result of Defendants’ breach of the 2016 Policy, Plaintiff 18 has been damaged in the amount of $18,662.00, together with prejudgment interest of $5.11 per day 19 from January 25, 2018 using the legal rate of 10% per annum. 20 21 WHEREFORE, Plaintiff prays for judgment against Defendants, and each of them, as 22 follows: 23 24 1 For the principal sum of $13,715.00, together with prejudgment interest of $3.76 per 25 day from November 1, 2016 using the legal rate of 10% per annum; plus the principal sum of ~ $18,662.00, together with prejudgment interest of $5.11 per day from January 25, 2018 using the 27 legal rate of 10% per annum; Mt 10 COMPLAINT ® @ 2 For costs of suit, including attorney’s fees, if available; and 3 For such other and further relief as the Court deems just and proper. DATED: July 3, 2018 AIRES LAW FIRM Fim 10 Attorney WESCO INS 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 om Q7 28 11 COMPLAINT @ Workers’ Compensation and Employers’ Liability Insurance Policy PREMIUM NOTICE - FINAL PREMIUM AUDIT Wesco Insurance Company An Amtrust Financial Company Policy Number: WWC3149126 Invoice Date: 11/1/2016 Balance Due: 13,715.00 P & W PAINTING INCORPORATED Invoice Due Date Upon Receipt Att: TROY WILLIAMS P.O. BOX 219 HARBOR CITY CA 90710-0219 Total Policy Cost: 16,540.00 Total Billed to Date: 16,540.00 Total Paid to Date: 2,825.00 Balance Due: 13,715.00 Payment Options: Online Go to our website at www.amtrustgrou .com to register your policy for one time online payments by credit card or electronic check. Credit Card To pay by Mastercard® or Visa® over the phone, please call 877-528-7878. Partial payment will not be accepted. E-Check To pay by electronic check direct] from your checking or savings account over the phone for a single payment, please call 8' 7-528-7878 Check Please make your check payable to Amtrust North America, Inc. and include your policy number on your check. Certified and overnight mail should be sent to: Important Numbers: Amtrust North America, Inc. Customer Service 877-528-7878 800 Superior Avenue East, 21st Floor Claim Reporting 866-272-9267 Cleveland, OH 44114 Broker of Record (916) 772-9200 To ensure accurate and prompt processing, please include this voucher with your payment. We are unable to process changes noted on the invoice voucher. Please contact your broker if you believe corrections to your policy are required. Installment Due Date: Upon Receipt Balance Due: 13,715.00 Amount Paid: For Company Use Only RST Policy Number: WWC3149126 Remit Payment to: Effective Date: 75/2015 Agent ID: 73443 Amtrust North America, Inc. Agency: Builders and Tradesmen's Insurance P.O. Box 6939 Services, Inc, eet Cleveland, OH 44101-1939 a LON \ ah . Workers’ Compensation and Employers’ Liability Insurance Policy PREMIUM NOTICE - FINAL PREMIUM AUDIT Wesco Insurance Company An Amtrust Financial Company Policy Number: WWC3215715 Invoice Date: 1/25/2018 Balance Due: 18,662.00 P & W PAINTING INCORPORATED Invoice Due Date: Upon Receipt Att: TROY WILLIAMS P.O. BOX 219 HARBOR CITY CA 90710-0219 Total Policy Cost: 21,256.00 Total Billed to Date: 21,256.00 Total Paid to Date 2,594.00 Balance Due: 18,662.00 Check Please make your check payable to Amtrust North America, Inc. and include your policy number on your check. Certified and overnight mail should be sent to: important Numbers: Amtrust North America, Inc. Customer Service 877-528-7878 800 Superior Avenue East, 21st Floor Claim Reporting 866-272-9267 Cleveland, OH 44114 Broker of Record (916) 772-9200 To ensure accurate and prompt processing, please include this voucher with your payment. We are unable to process changes noted on the invoice voucher. Please contact your broker if you believe corrections to your policy are required. Installment Due Date: | Upon Receipt Balance Due: 18,662.00 Amount Paid: For Company Use Only RST Policy Number: WWC3215715 Effective Date: 7115/2016 Agent ID: 73443 Agency: Builders and Tradesmen's Insurance Remit Payment to: Services, Inc. Amtrust North America, Inc. P.O. Box 6939 Cleveland, OH 44101-1939 €Q LAO CT 34 ye cm by - t ‘ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, St eH ORIGINAL e ‘FOR COURT USE ONLY M-01 [Timothy Carl Aires, Esq. (138169) AIRES LAW FIRM 6 Hughes, Suite 205 6 Hughes, Suite 205 &sperlor Court of Californie Irvine, CA 92618 ounty of Los Annales ‘TELEPHONE NO.: 949/718-2020 FAXNO.: 949/718-2021 ATTORNEY FOR (Name): PLAINTIFF JUL 05 2018 SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES sTreeTAopress: 111 N HILL ST Sheri R. C: uve Offican/Clerk MaiLiNG Aooress: 111 N HILL ST By. Deputy citvanpzipcope: LOS ANGELES, CA 90012 BRANCH NAME: MOSK COURTHOUSE CASE NAME: WESCO INSURANCE COMPANY v. P&W PAINTING INCORPORATED; and DOES 1 through 50, inclusive CIVIL CASE COVER SHEET Unlimited (Amount Limited (Amount (—) Complex Case Designation Counter JUDGE: [] Joinder pert 81° Filed with first appearance by defendant dema exceet i5'$25,000)_ $95,0000 ess) (Cal. Rules of Court, rule 3.402) DEPT: Items 1-6 below must be completed (see instructions on page 2). 1. Check one box below for the case type that best describes this case: Auto Tort Contract Provisionally Complex Civil Litigation Auto (22) (2X) Breach of contractiwarranty (06) (Cal. Rules of Court, rules 3.400-3.403) Uninsured motorist (46) (J Rule 3.740 collections (09) (1) Antitrust Trade regulation (03) Other PI/PD/WD (Personal Injury/Property (J other collections (09) (J Construction defect (10) Damage/Wrongful Death) Tort Insurance coverage (18) (J mass tort (40) [_Jastestos (04) Other contract (37) (_] Securities titigation (28) (_] Product liability (24) Real Property [_] Environmental/Toxic tort (30) () Medica! malpractice (45) Eminent domain/Inverse [J insurance coverage claims arising from the (J other PuPDAWo (23) condemnation (14) above listed provisionally complex case Non-PI/PD/WD (Other) Tort (__] wrongful eviction (33) types (41) (1 Business tort/unfair business practice (07) [) otter real property (26) Enforcement of Judgment CT eivit rights (08) Unlawful Detainer [1] Enforcement of judgment (20) [1] Defamation (13) co Commercial (31) Miscellaneous Civil Complaint (CJ Fraud (16) (J Residential (32) [J rico (27) [J intellectual property (19) [1] pugs (38) [1 other complaint (not specified above) (42) (_] Professional negligence (25) Judicial Review Miscellaneous Civil Petition (J Other non-PPDAWD tort (35) (J Asset forfeiture (05) (J Partnership and corporate governance (21) Employment (| Petition re: arbitration award (11) () other petition (not specified above) (43) (_] Wrongful termination (36) (_] writ of mandate (02) CL] Other employment (15) [_] other judicial review (39) . This case J is (3X) is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the factors requiring exceptional judicial management: a Large number of separately represented parties d. CJ Large number of witnesses b. [__] Extensive motion practice raising difficult or novel e. [__] Coordination with related actions pending in one or more courts issues that will be time-consuming to resolve in other counties, states, or countries, or in a federal court c. [__] Substantial amount of documentary evidence f. [_] Substantial postjudgment judicial supervision 3. . Remedies sought (check all that apply): a. monetary b. [__] nonmonetary; declaratory or injunctive relief c. [_] punitive 4 Number of causes of action (specify): TWO This case [_] is [<1 is not a class action suit. 6. If there are any known related cases, file and serve a notice of related case. (You may use form Ci a DS CZ > Date: 7/3/2018 A) rl Aires 138169 J (TYPE OR PRINT NAME) iE OF PARTY OR ATTORNEY FOR, TY) NOTICE *laintiff must file this cover sheet with the first paper filed in the action or proceedi ing (3 rg ree anal canonses or cases filed under the Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule 220.) Failure to file may result incsanctions. File this cover sheet in addition to any cover sheet required by local court rule. B his case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all ther parties to the action or proceeding. inless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only. ot Form Adopted for Mandatory Use ‘Judicial Council of California CIVIL CASE COVER SHEET sits Gal. Rules of Court, rules 2.30, 3220, 3.400-3.403, 3.740; Cal, Standards of Judicial Administration, sid. 3.10 ‘CM-010 [Rev. July 1, 2007] INSTRUCTIONS ON HOW TO COMPLETE THE COVER SHEET CM-010 To Plaintiffs and Others Filing First Papers. If you are filing a first paper (for example, a complaint) in a civil case, you must complete and file, along with your first paper, the Civil Case Cover Sheet contained on page 1. This information will be used to compile statistics about the types and numbers of cases filed. You must complete items 1 through 6 on the sheet. In item 1, you must check ‘one box for the case type that best describes the case. If the case fits both a general and a more specific type of case listed in item 1, check the more specific one. If the case has multiple causes of action, check the box that best indicates the primary cause of action. To assist you in completing the sheet, examples of the cases that belong under each case type in item 1 are provided below. A cover sheet must be filed only with your initial paper. Failure to file a cover sheet with the first paper filed in a civil case may subject a party, its counsel, or both to sanctions under rules 2.30 and 3.220 of the California Rules of Court. To Parties in Rule 3.740 Collections Cases. A "collections case" under rule 3.740 is defined as an action for recovery of money owed in a sum stated to be certain that is not more than $25,000, exclusive of interest and attorney's fees, arising from a transaction in which property, services, or money was acquired on credit. A collections case does not include an action seeking the following: (1) tort damages, (2) punitive damages, (3) recovery of real property, (4) recovery of personal property, or (5) a prejudgment writ of attachment. The identification of a case as a rule 3.740 collections case on this form means that it will be exempt from the general time-for-service requirements and case management rules, unless a defendant files a responsive pleading. A rule 3.740 collections case will be subject to the requirements for service and obtaining a judgment in rule 3.740. To Parties in Complex Cases. In complex cases only, parties must also use the Civil Case Cover Sheet to designate whether the case is complex. If a plaintiff believes the case is complex under rule 3.400 of the California Rules of Court, this must be indicated by completing the appropriate boxes in items 1 and 2. If a plaintiff designates a case as complex, the cover sheet must be served with the complaint on all parties to the action. A defendant may file and serve no later than the time of its first appearance a joinder in the plaintiff's designation, a counter-designation that the case is not complex, or, if the plaintiff has made no designation, a designation that the case is complex. CASE TYPES AND EXAMPLES Auto Tort Contract Provisionally Complex Civil Litigation (Cal. Auto (22)—Personal