Preview
CUMMINS & WHITE, LLP
Li M. Arnold, P.C. (Bar No. 060459) F
E-mail: larnold@cwlawyers.com Supe rior Court of Califoria
unty of Los Angeles
J. Thomas Gilbert (Bar No. 183362)
E-mail: tgilbert@cwlawyers.com
Noura Kawar (Bar No. 291455) APR 24 2018
E-mail: nkawar cwlawyers.com (Clerk
2424 S.E. Bristol Street, Suite 300 Deputy
Ne ort Beach, CA 92660-0764
Telephone: (949) 852-1800
Facsimile: (949) 852-8510
Attorneys for Plaintiff
JOHN LAZAROV
SUPERIOR COURT OF THE STATE OF CALIFORNIA
10 COUNTY OF LOS ANGELES, CENTRAL DISTRICT
11
12 JOHN LAZAROV, ) CASE NO:: BC703690
13 Plaintiff, co MPLAINT:
FOR RESCISSION OF
14 vs. CONTRACT;
2. FOR ACTUAL AND
15 LA URBAN COMPANY, INC.; WILLIAM EXEMPLARY DAMAGES FOR
ALBERT; AND DOES | through 10, FRAUD;
16 inclusive, FOR DAMAGES FOR BREACH
Defendants. OF FIDUCIARY DUTY; AND
17 FOR DAMAGES FOR BREACH
OF CONTRACT
18
19
20 Plaintiff alleges:
21 1 Plaintiff, JOHN LAZAROV (hereinafter “Plaintiff”) is, and at all times material
22 hereto, an individual residing in Los Angeles County, California.
23 2 Plaintiff is informed and believes, and on that ground alleges, that Defendant LA
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24 URBAN COMPANY, INC. (hereinafter “LA Urban”) is, and at all times herein mentioned
25 was, a California corporation actively doing business in and under the laws of the State of
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26 California, with its principal place of business in Los Angeles County, California.
27 3 Plaintiff is informed and believes, and on that ground alleges, that Defendant
28 WILLIAM ALBERT (hereinafter “Albert” and, together with LA Urban, “Defendants”) is, and
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COMPLAINT
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at all times herein mentioned was, an officer, director and shareholder of LA Urban and
otherwise authorized to act on behalf of LA Urban, and an individual residing in Los Angeles
County, California.
4 Defendants DOES 1 through 10, inclusive, are sued herein under fictitious names
since their true names and capacities are unknown to Plaintiff. When the true names and
capacities have been ascertained, Plaintiff will amend this Complaint to state the same.
5 Plaintiff is informed and believes and thereon alleges that at all times mentioned
herein Defendants and DOES 1 through 10 were acting as the agent and/or employee of each
remaining Defendant, and acting within the course and scope of said agency and/or
10 employment, and that each of the fictitiously named Defendants is responsible in some manner
11 for the occurrences herein alleged and that Plaintiff's damages, as herein alleged, were
12 proximately caused by such Defendants, and each of them.
13 FIRST CAUSE OF ACTION
14 (Rescission of Contract)
15 (Against Defendants LA Urban and Albert, and Does 1 through 10)
16 6 Plaintiff realleges Paragraphs 1 through 5, inclusive, and incorporates said
17 paragraphs herein by reference as though set forth in full.
18 7. Plaintiff and LA Urban entered into a written Joint Venture Agreement (the
19 “Agreement”) on or about December 15, 2017. Plaintiff was to contribute capital for purposes
20 of the joint venture’s acquisition of real property, and Defendants were to contribute additional
21 funding, labor and expertise in the selection, purchase, rehabilitation and resale for profit
22 suitable real property and improvements. In order to induce Plaintiff to enter into the
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23 Agreement and convince him to invest $100,000 as a capital contribution to participate in the
24 so-called “joint venture,” Defendants made certain material representations of fact, including
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@ 25 but not limited to the following:
26 a) Defendants had already identified specific suitable property for acquisition by
27 the joint venture;
28 (2) Defendants had the expertise and wherewithal to identify, purchase, refurbish
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COMPLAINT
Iw492I178257| doex DOC; 1}
and resale property for profit; and
(3) Defendants would account to Plaintiff on regular intervals and on request for the
status of the joint venture, including the acquisition of property and the financial records of the
joint venture.
8 In reliance on Defendants’ representations, Plaintiff in fact wire transferred
$100,000 to Defendants’ account on or about December 19, 2017. Upon information and belief,
since that time Defendants have undertaken no efforts to comply with their obligations under
the Agreement and to inform Plaintiff of the status of the joint venture. Defendants have
ignored and otherwise completely failed to respond to Plaintiff's repeated inquiries and request
10 for the return of his money.
11 9 It is now apparent that Defendants made the above-referenced representations
12 with knowledge that they were untrue and/or with no intention of actually performing under the
13 Agreement. But for Defendants’ misrepresentations, Plaintiff would not have entered into the
14 Agreement and would not have contributed $100,000 to the joint venture.
15 10. As a result of Defendants’ conduct, Plaintiff is entitled to a judgment rescinding
the Agreement and ordering Defendants to refund to Plaintiff the $100,000 contributed by
17 Plaintiff to the joint venture.
18 SECOND CAUSE OF ACTION
19 (Actual Fraud)
20 (Against Defendants LA Urban and Albert, and Does I through 10)
21 ll. Plaintiff realleges Paragraphs 1 through 10, inclusive, and incorporates said
22 paragraphs herein by reference as though set forth in full.
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23 12. As alleged herein, Defendants’ conduct constitutes actual fraud, for which
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24 Plaintiff is entitled to recover damages in an amount not less than $100,000 plus exemplary
a 25 damages pursuant to Civil Code §3294.
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26 W/
27 ///
28 ‘11
-3-
COMPLAINT
1¥492|1782571 .docx.DOC;lI
THIRD CAUSE OF ACTION
(Breach of Fiduciary Duty)
(Against Defendants LA Urban and Albert, and Does 1 through 10)
13. Plaintiff realleges Paragraphs 1 through 12, inclusive, and incorporates said
; paragraphs herein by reference as though set forth in full.
14. As alleged herein, Defendants’ conduct constitutes a breach of the fiduciary
duties the managing members of a joint venture owe to other members of the joint venture, for
which Plaintiff is entitled to recover damages in an amount not less than $100,000.
FOURTH CAUSE OF ACTION
10 (Breach of Contract)
ll (Against Defendant LA Urban, and Does I through 10)
12 15. Plaintiff realleges Paragraphs 1 through 14, inclusive, and incorporates said
13 paragraphs herein by reference as though set forth in full.
14 16. As alleged herein, LA Urban’s conduct constitutes a breach of the Agreement,
15 for which Plaintiff is entitled to recover damages in an amount not less than $100,000.
16 WHEREFORE, Plaintiff prays for judgment as follows:
17 As to the First Cause of Action against Defendants LA Urban and Albert and Does 1
18 through 10, jointly and severally:
19 1 For rescission of the Agreement;
20 2 For refund of Plaintiffs $100,000 investment;
21 3 For interest incurred thereon at the highest legal rate per annum;
22 4 For costs and such other and further relief as the Court deems just and proper.
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23 As to the Second Cause of Action against Defendants LA Urban and Albert and Does 1
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24 through 10, jointly and severally:
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e 25 1 For $100,000;
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26 2 For interest incurred thereon at the highest legal rate per annum;
27 3 For exemplary damages;
28 4 For costs and such other and further relief as the Court deems just and proper.
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COMPLAINT
]V492{1 782571 .docx.DOC;1]
As to the Third Cause of Action against Defendants LA Urban and Albert and Does 1
through 10, jointly and severally:
1 For $100,000;
2 For interest incurred thereon at the highest legal rate per annum;
3 For costs and such other and further relief as the Court deems just and proper.
As to the Fourth Cause of Action against Defendant LA Urban and Does | through 10,
jointly and severally:
1 For $100,000;
2 For interest incurred thereon at the highest legal rate per annum;
10 3 For costs and such other and further relief as the Court deems just and proper.
11
12 Dated: April 23, 2018 CUMMINS & WHITE, LLP
13
14 By: YS
M. Arnol Pc.
15 homas Gilb:
foura Kawar
16 ‘Attorneys for Plaintiff
JOHN LAZAROV
17
18
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COMPLAINT
1¥492|1782571.docx.DOC;|}
CM-01
ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address): FOR COURT USE ONLY
J. Thomas Gilbert, 183362 FILED
Noura Kawar, 291455 Superior Court of Califomia
Cummins & White, LLP ounty of Los Angeles
2424 S.E,. Bristol St., Suite 300
Newport Beach, CA 92660
852-1800 852-8510
APR 24 2018
‘TELEPHONE NO.: (949) FAX NO: (949)
ATTORNEY FOR (Name): Plaintiff JOHN LAZAROV Sh c lerk
SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES By. Deputy
street aooress: 111 N. Hill Street
MAILING ADDRESS:
city ano zipcove: LOS Angeles, CA 90012
BRANCH NAME: Stanley Mosk Courthouse
CASE NAME: LAZAROV v. LA Urban
Complex Case Designation ‘CASE NUMBER:
CIVIL CASE COVER SHEET
Unlimited Limited (-) Counter (J Joinder
(Amount (Amount Filed with first appearance by defendant JUDGE: BC703620
der ded.
exceeds $25,000) $55800.0r
is
less) DEPT:
(Cal. Rules of Court, rule 3.402)
Items 1-6 below must be completed (see instructions on page 2).
4. Check one box below for the case type that best describes this case:
Auto Tort Contract Provisionally Complex Civil Litigation
(Cal. Rules of Court, rules 3.400-3.403)
Auto (22) Breach of contract/warranty (06)
Uninsured motorist (46) [J Rule 3.740 collections (09) (__] Antitrust/Trade regulation (03)
Other PI/PD/WD (Personal Injury/Property (—_] other collections (09) {_] construction defect (10)
Damage/Wrongful Death) Tort (J insurance coverage (18) [J Mass tort (40)
[__] Asbestos (04) (J other contract (37) [) securities litigation (28)
(J Product liability (24) Real Property (J Environmental/Toxic tort (30)
(J Medicat malpractice (45) (] condemnation /inverse
Eminent domain(14) (J insurance coverage claims arising from the
above listed provisionally complex case
(J other PvPD/Wo (23)
Non-Pl/PD/WD (Other) Tort
(_] wrongful eviction (33) types (41)
(Business tort/unfair business practice (07) (J other real property (26) Enforcement of Judgment
[1] civit rights (08) Unlawful Detainer (J Enforcement of judgment (20)
(__] Defamation (13) [1] commercial (31) Miscellaneous Civil Complaint
(—_] Fraud (16) [J Residential (32) [J rico (27)
J intellectual property (19) (J prugs (38) [] other complaint (not specified above) (42)
[_] Professional negligence (25) Judicial Review Miscellaneous Civil Petition
(J other non-P/PDWD tort (35) (J Asset forfeiture (05) (1 Partnership and corporate governance (21)
Employment (_] Petition re: arbitration award (11) (J other petition (not specified above) (43)
(J Wrongful termination (36) (__] writ of mandate (02)
(J other employment (15) (__] other judicial review (39)
This case Cis (31 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. [__]} 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
Remedies sought (check ail that apply): a. monetary b. DK] nonmonetary; declaratory or injunctive relief c. () punitive
=
#4 Number of causes of acti (specify): Four (4)
8 This case
re [_] is 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 CM-015,
;Date: April 23, 2018
ag Thomas Gilbe rt 183362
(TYPE OR PRINT NAME) IGNATURE OF PARTY OR ATTORNEY FOR PAI
NOTICE
Plaintiff must file this cover sheet with the first paper filed in the action or p!
if
eeding (except fen claims cases or cases filed
under the Probate Code, Family Code, or Welfare and Institutions Code). (Ca } Rules of Court, rule 3.220.) Failure to file may result
in sanctions.
File this cover sheet in addition to any cover sheet required by local court rule.
If this 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
other parties to the action or proceeding.
* Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes on ige ly.
tof 2
Form Adopted for Mardatory Use CIVIL CASE COVER SHEET Cal, Rules of Cour, rules 2.30, 3.220, 3.400-3.403, 3.740;
Judicial Council of California Solutig ns Cal, Standards of Judicial Administration, std. 3.10
‘M010 (Rev. July 1, 2007} lus
x.
SHORT TITLE: LAZAROV v. LA Urban CASE NUMBER
BC70260 |
CIVIL CASE COVER SHEET ADDENDUM AND
STATEMENT OF LOCATION
(CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION)
This form is required pursuant to Local Rule 2.3 in all new civil case filings in the Los Angeles Superior Court.
Step 1: After completing the Civil Case Cover Sheet (Judicial Council form CM-010), find the exact case type in
Column A that corresponds to the case type indicated in the Civil Case Cover Sheet.
Step 2: In Column B, check the box for the type of action that best describes the nature of the case.
Step 3: In Column C, circle the number which explains the reason for the court filing location you have
chosen.
Applicable Reasons for Choosing Court Filing Location (Column C)
1. Class actions must be filed in the Stanley Mosk Courthouse, Central District. 7. Location where petitioner resides.
2. Permissive filing in central district. 8. Location wherein defendant/respondent functions wholly.
3. Location where cause of action arose. 9. Location where one or more of the parties reside.
4. Mandatory personal injury filing in North District. 10. Location of Labor Commissioner Office.
11. Mandatory filing location (Hub Cases ~ uniawtul detainer, limited
5. Location where performance required or defendant resides.
non-collection, limited collection, or personal injury).
6. Location of property or permanently garaged vehicle.
A B c
Civil Case Cover Sheet Type of Action Applicable Reasons -
. Category No. (Check only one) See Step 3 Above
Auto (22) CJaz100 Motor Vehicle - Personal Injury/Property Damage/Wrongful Death 1,4,11
Uninsured Motorist (46) C5azi10 Personal Injury/Property Damage/Wrongful Death — Uninsured Motorist 1,4,11
(J aso70 Asbestos Property Damage 4,11
Asbestos (04)
CJazz221 Asbestos - Personal Injury/Wrongful Death 1,11
ae
Product Liability (24) (J azz260 Product Liability (not asbestos or toxic/environmental) 1,4,11
Ea
2 CJaz2i0 Medical Malpractice - Physicians & Surgeons 1,4,11
Medical Malpractice (45)
& = (J azza0 Other Professional Health Care Malpractice 1,4,11
mS
ws (5 az250 Premises Liability (e.g., slip and fall) 14,11
Other Personal
reoR Injury Property () a7230 Intentional Bodily Injury/Property Damage/Wrongful Death (e.g 1,4,11
es Damage Wrongful assault, vandalism, etc.)
1,4, 11
oF
Death (23) [J az270 Intentional Infliction of Emotional Distress
CJ az7220 Other Personal Injury/Property Damage/Wrongful Death 14,11
LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3
LASC Approved 03-04 AND STATEMENT OF LOCATION Page 1 of 4
lacvi0g
SHORTTITLE: LAZAROV v. LA Urban CASE NUMBER
B C Applicable
Civil Case Cover Sheet Type of Action ‘easons -,See Step 3
Category No. (Check only one) Above
Business Tort (07) () acoz9 Other Commercial/Business Tort (not fraud/breach of contract) 1,2,3
oe
os Civil Rights (08) [J asoos Civil Rights/Discrimination 1,2,3
Defamation (13) [J asoto Defamation (slander/libel) 1,2,3
22
Fraud (16) CJ aco13 Fraud (no contract) 1,2,3
Professional Negligence (25)
() aso17 Legal Malpractice 1,2,3
(J acoso Other Professional Malpractice (not medical or legal) 1,2,3
za
Other (36) (J aso2s Other Non-Personal Injury/Property Damage tort 1,2,3
Wrongful Termination (36) LJ 6037 Wrongful Termination 1,2,3
[1 aso24 Other Employment Complaint Case 1,2,3
Other Employment (15)
(J aet09 Labor Commissioner Appeals 10
(CJ aso04 Breach of Rental/Lease Contract (not unlawful detainer or wrongful 25
eviction)
Breach of Contract/ Warranty 2,5
(—) a6oos Contract/Warranty Breach -Seller Plaintiff (no fraud/negligence)
1,2,5
(not insurance) (J aco19 Negligent Breach of Contract/Warranty (no fraud)
1,2,5
(J aso28 Other Breach of Contract/Warranty (not fraud or negligence)
S- (J asoo2 Collections Case-Seller Plaintiff 5,6, 11
Collections (09)
CJ aso12 Other Promissory Note/Collections Case 5,11
[J aso34 Collections Case-Purchased Debt (Charged Off Consumer Debt 5,6,114
Purchased on or after January 1, 2014)
Insurance Coverage (18) CJ aso1s Insurance Coverage (not complex) 1,2,5,8
A009 Contractual Fraud 1,200
Other Contract (37) CJ a6031 Tortious Interference 1,2,3,5
[1] a6027 Other Contract Dispute(not breach/insurance/fraud/negligence) 1,2,
3, 8,9
Eminent Domain/Inverse Number of parcels
Condemnation (14) [1] a7300 Eminent Domain/Condemnation 2.6
Wrongful Eviction (33) [J aso23 Wrongful Eviction Case 2,6
(J asora Mortgage Foreclosure 2,6
Other Real Property (26) [J acos2 Quiet Title 2,6
fm
ws [J asoso Other Real Property (not eminent domain, landlord/tenant, foreclosure) 2,6
bat
2 Unlawful Detainer-Commercial (Jasoa1 Unlawful Detainer-Commercial (not drugs or wrongful eviction) 6,11
oe Unlawful Detaingr-Residential [] asozo Unlawful Detainer-Residential (not drugs or wrongful eviction) 6,11
Unlawful Detainer- (J aco20F Untawful Detainer-Post-Foreclosure 2,6,11
Post-Foreclosure (34)
Unlawful Detainer-Drugs (38) |[__] A6022 Unlawful Detainer-Drugs 6, 11
LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3
LASC Approved 03-04 AND STATEMENT OF LOCATION Page 2 of 4
3
snort tire: LAZAROV v. LA Urban CASE NUMBER
A B C Applicable
Civil.Case Cover Sheet Type of Action: Reasons - See Step 3
Category No. (Check only one) Above ~
Asset Forfeiture (05) (J a6108 Asset Forfeiture Case 2,3,6
Petition re Arbitration (11) CJ aets Petition to Compel/Confirm/Vacate Arbitration 2,6
2
(J a6151 Writ - Administrative Mandamus 2,8
Writ of Mandate (02) (J 6152 Writ - Mandamus on Limited Court Case Matter 2
(CJ 6153 Writ - Other Limited Court Case Review 2
Other Judicial Review (39) [J aets0 Other Writ /Judicial Review 2,8
Antitrus/Trade Regulation (03) (__] asoo03 Antitrust/Trade Regulation 1,2,8
Construction Defect (10) (1 a6007 Construction Defect 1,23
Claims tnvowing Mass Tort [) asoos Claims Involving Mass Tort 1,28
Securities Litigation (28) [J aso3s Securities Litigation Case 1,28
rt (J aso3s Toxic Tort/Environmental 1,2,3,8
Environmental (30)
Insurance Coverage Claims
from Complex Case (41) (=) acots Insurance Coverage/Subrogation (complex case only) 1,2,5,8
CJ ae6ia1 Sister State Judgment 2,5,11
(J a6160 Abstract of Judgment 2,6
Enforcement () a6107 Confession of Judgment (non-domestic relations) 29
of Judgment (20) (J ae140 Administrative Agency Award (not unpaid taxes) 2,8
(J aei14 Petition/Certificate for Entry of Judgment on Unpaid Tax 2,8
CJ ae112 Other Enforcement of Judgment Case 2,8,9
RICO (27) (_} aso33 Racketeering (RICO) Case 1,2,8
[J aso30 Declaratory Relief Only 1,2,8
Other Complaints {J acoso Injunctive Relief Only (not domestic/harassment) 2,8
(Not Specified Above) (42) (J aco11 Other Commercial Complaint Case (non-tort/non-complex) 1,2,8
[J asooo Other Civil Complaint (non-tortvnon-complex) 1,2,8
Partnership Corporation 2,8
eS Governance (21) (7) 6113 Partnership and Corporate Governance Case
Ind (J e121 Civil Harassment 2,3,9
Wn (Ja6123 Workplace Harassment 2,3,9
me
Other Petitions (Not CJ 6124 Elder/Dependent Adult Abuse Case 2,3,9
=&
eS Specified Above) (43) (Jae1s0 Election Contest
or
CJaett0 Petition for Change of Name/Change of Gender 2,7
[Jae170 Petition for Relief from Late Claim Law 2,3,8
[J astoo Other Civil Petition 2,9
LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3
LASC Approved 03-04 AND STATEMENT OF LOCATION Page 3 of 4
a
.
sHcrTtme: LAZAROV v. LA Urban CASE NUMBER
Step 4: Statement of Reason and Address. Check the appropriate boxes for the numbers shown under Column C for the
type of action that you have selected. Enter the address which is the basis for the filing location, including zip code.
(No address required for class action cases).
ADDRESS:
REASON: 5042 Wilshire Blvd
(1.(2.003.004.005.6.07.C8f9.0010.011
city: STATE: ZIP CODE:
Los Angeles CA 90036
Step 5: Certification of Assignment: | certify that this case is properly filed in the Central District of
the Superior Court of California, County of Los Angeles [Code Civ. Proc., §392 et seq., and Local Rule 2.3(a)(1)(E)].
y arable
i
Dated: 4/23/18
E OF aTrorNefi /IFILING PARTY)
homas tre
PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLY
COMMENCE YOUR NEW COURT CASE:
1 Original Complaint or Petition
2 If filing a Complaint, a completed Summons form for issuance by the Clerk.
3 Civil Case Cover Sheet, Judicial Council form CM-010
Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev.
02/16)
Payment in full of thefiling fee, unless there is court order for waiver, partial or scheduled payments.
A signed order appointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiff or petitioner is a
minor under 18 years of age will be required by Court in order to issue a sumimons.
Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendum
must be served along with the summons and complaint, or other initiating pleading in the case.
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LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3
LASC Approved 03-04 AND STATEMENT OF LOCATION Page 4 of 4
Preview
CUMMINS & WHITE, LLP Li M. Arnold, P.C. (Bar No. 060459) F E-mail: larnold@cwlawyers.com Supe rior Court of Califoria unty of Los Angeles J. Thomas Gilbert (Bar No. 183362) E-mail: tgilbert@cwlawyers.com Noura Kawar (Bar No. 291455) APR 24 2018 E-mail: nkawar cwlawyers.com (Clerk 2424 S.E. Bristol Street, Suite 300 Deputy Ne ort Beach, CA 92660-0764 Telephone: (949) 852-1800 Facsimile: (949) 852-8510 Attorneys for Plaintiff JOHN LAZAROV SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 COUNTY OF LOS ANGELES, CENTRAL DISTRICT 11 12 JOHN LAZAROV, ) CASE NO:: BC703690 13 Plaintiff, co MPLAINT: FOR RESCISSION OF 14 vs. CONTRACT; 2. FOR ACTUAL AND 15 LA URBAN COMPANY, INC.; WILLIAM EXEMPLARY DAMAGES FOR ALBERT; AND DOES | through 10, FRAUD; 16 inclusive, FOR DAMAGES FOR BREACH Defendants. OF FIDUCIARY DUTY; AND 17 FOR DAMAGES FOR BREACH OF CONTRACT 18 19 20 Plaintiff alleges: 21 1 Plaintiff, JOHN LAZAROV (hereinafter “Plaintiff”) is, and at all times material 22 hereto, an individual residing in Los Angeles County, California. 23 2 Plaintiff is informed and believes, and on that ground alleges, that Defendant LA hw 24 URBAN COMPANY, INC. (hereinafter “LA Urban”) is, and at all times herein mentioned 25 was, a California corporation actively doing business in and under the laws of the State of oe 26 California, with its principal place of business in Los Angeles County, California. 27 3 Plaintiff is informed and believes, and on that ground alleges, that Defendant 28 WILLIAM ALBERT (hereinafter “Albert” and, together with LA Urban, “Defendants”) is, and -l- COMPLAINT |¥492|1782571.docx.DOC;1] XN. =M g888 Soe oo B s & 2 oO wo & ma Penn ee “o = Sh mo ey ws = nN os Fee re . o og ™ ” Ms 2G “= oe $= a Lu se * ST oo et i > eo mi= ta ee w Sanea a ee bt wt 2 TREY GNI Oe , La Gass epee pe Vbs Su Sole NOR GN Gy pes wn, *.3uut Cor VEC TPO a=i fh at all times herein mentioned was, an officer, director and shareholder of LA Urban and otherwise authorized to act on behalf of LA Urban, and an individual residing in Los Angeles County, California. 4 Defendants DOES 1 through 10, inclusive, are sued herein under fictitious names since their true names and capacities are unknown to Plaintiff. When the true names and capacities have been ascertained, Plaintiff will amend this Complaint to state the same. 5 Plaintiff is informed and believes and thereon alleges that at all times mentioned herein Defendants and DOES 1 through 10 were acting as the agent and/or employee of each remaining Defendant, and acting within the course and scope of said agency and/or 10 employment, and that each of the fictitiously named Defendants is responsible in some manner 11 for the occurrences herein alleged and that Plaintiff's damages, as herein alleged, were 12 proximately caused by such Defendants, and each of them. 13 FIRST CAUSE OF ACTION 14 (Rescission of Contract) 15 (Against Defendants LA Urban and Albert, and Does 1 through 10) 16 6 Plaintiff realleges Paragraphs 1 through 5, inclusive, and incorporates said 17 paragraphs herein by reference as though set forth in full. 18 7. Plaintiff and LA Urban entered into a written Joint Venture Agreement (the 19 “Agreement”) on or about December 15, 2017. Plaintiff was to contribute capital for purposes 20 of the joint venture’s acquisition of real property, and Defendants were to contribute additional 21 funding, labor and expertise in the selection, purchase, rehabilitation and resale for profit 22 suitable real property and improvements. In order to induce Plaintiff to enter into the e 23 Agreement and convince him to invest $100,000 as a capital contribution to participate in the 24 so-called “joint venture,” Defendants made certain material representations of fact, including te @ 25 but not limited to the following: 26 a) Defendants had already identified specific suitable property for acquisition by 27 the joint venture; 28 (2) Defendants had the expertise and wherewithal to identify, purchase, refurbish -2- COMPLAINT Iw492I178257| doex DOC; 1} and resale property for profit; and (3) Defendants would account to Plaintiff on regular intervals and on request for the status of the joint venture, including the acquisition of property and the financial records of the joint venture. 8 In reliance on Defendants’ representations, Plaintiff in fact wire transferred $100,000 to Defendants’ account on or about December 19, 2017. Upon information and belief, since that time Defendants have undertaken no efforts to comply with their obligations under the Agreement and to inform Plaintiff of the status of the joint venture. Defendants have ignored and otherwise completely failed to respond to Plaintiff's repeated inquiries and request 10 for the return of his money. 11 9 It is now apparent that Defendants made the above-referenced representations 12 with knowledge that they were untrue and/or with no intention of actually performing under the 13 Agreement. But for Defendants’ misrepresentations, Plaintiff would not have entered into the 14 Agreement and would not have contributed $100,000 to the joint venture. 15 10. As a result of Defendants’ conduct, Plaintiff is entitled to a judgment rescinding the Agreement and ordering Defendants to refund to Plaintiff the $100,000 contributed by 17 Plaintiff to the joint venture. 18 SECOND CAUSE OF ACTION 19 (Actual Fraud) 20 (Against Defendants LA Urban and Albert, and Does I through 10) 21 ll. Plaintiff realleges Paragraphs 1 through 10, inclusive, and incorporates said 22 paragraphs herein by reference as though set forth in full. =e 23 12. As alleged herein, Defendants’ conduct constitutes actual fraud, for which tet 24 Plaintiff is entitled to recover damages in an amount not less than $100,000 plus exemplary a 25 damages pursuant to Civil Code §3294. oe 26 W/ 27 /// 28 ‘11 -3- COMPLAINT 1¥492|1782571 .docx.DOC;lI THIRD CAUSE OF ACTION (Breach of Fiduciary Duty) (Against Defendants LA Urban and Albert, and Does 1 through 10) 13. Plaintiff realleges Paragraphs 1 through 12, inclusive, and incorporates said ; paragraphs herein by reference as though set forth in full. 14. As alleged herein, Defendants’ conduct constitutes a breach of the fiduciary duties the managing members of a joint venture owe to other members of the joint venture, for which Plaintiff is entitled to recover damages in an amount not less than $100,000. FOURTH CAUSE OF ACTION 10 (Breach of Contract) ll (Against Defendant LA Urban, and Does I through 10) 12 15. Plaintiff realleges Paragraphs 1 through 14, inclusive, and incorporates said 13 paragraphs herein by reference as though set forth in full. 14 16. As alleged herein, LA Urban’s conduct constitutes a breach of the Agreement, 15 for which Plaintiff is entitled to recover damages in an amount not less than $100,000. 16 WHEREFORE, Plaintiff prays for judgment as follows: 17 As to the First Cause of Action against Defendants LA Urban and Albert and Does 1 18 through 10, jointly and severally: 19 1 For rescission of the Agreement; 20 2 For refund of Plaintiffs $100,000 investment; 21 3 For interest incurred thereon at the highest legal rate per annum; 22 4 For costs and such other and further relief as the Court deems just and proper. e 23 As to the Second Cause of Action against Defendants LA Urban and Albert and Does 1 tet 24 through 10, jointly and severally: he e 25 1 For $100,000; oe 26 2 For interest incurred thereon at the highest legal rate per annum; 27 3 For exemplary damages; 28 4 For costs and such other and further relief as the Court deems just and proper. -4- COMPLAINT ]V492{1 782571 .docx.DOC;1] As to the Third Cause of Action against Defendants LA Urban and Albert and Does 1 through 10, jointly and severally: 1 For $100,000; 2 For interest incurred thereon at the highest legal rate per annum; 3 For costs and such other and further relief as the Court deems just and proper. As to the Fourth Cause of Action against Defendant LA Urban and Does | through 10, jointly and severally: 1 For $100,000; 2 For interest incurred thereon at the highest legal rate per annum; 10 3 For costs and such other and further relief as the Court deems just and proper. 11 12 Dated: April 23, 2018 CUMMINS & WHITE, LLP 13 14 By: YS M. Arnol Pc. 15 homas Gilb: foura Kawar 16 ‘Attorneys for Plaintiff JOHN LAZAROV 17 18 19 20 21 22 23 te wi 24 tet = - 25 we 26 27 28 -5- COMPLAINT 1¥492|1782571.docx.DOC;|} CM-01 ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address): FOR COURT USE ONLY J. Thomas Gilbert, 183362 FILED Noura Kawar, 291455 Superior Court of Califomia Cummins & White, LLP ounty of Los Angeles 2424 S.E,. Bristol St., Suite 300 Newport Beach, CA 92660 852-1800 852-8510 APR 24 2018 ‘TELEPHONE NO.: (949) FAX NO: (949) ATTORNEY FOR (Name): Plaintiff JOHN LAZAROV Sh c lerk SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES By. Deputy street aooress: 111 N. Hill Street MAILING ADDRESS: city ano zipcove: LOS Angeles, CA 90012 BRANCH NAME: Stanley Mosk Courthouse CASE NAME: LAZAROV v. LA Urban Complex Case Designation ‘CASE NUMBER: CIVIL CASE COVER SHEET Unlimited Limited (-) Counter (J Joinder (Amount (Amount Filed with first appearance by defendant JUDGE: BC703620 der ded. exceeds $25,000) $55800.0r is less) DEPT: (Cal. Rules of Court, rule 3.402) Items 1-6 below must be completed (see instructions on page 2). 4. Check one box below for the case type that best describes this case: Auto Tort Contract Provisionally Complex Civil Litigation (Cal. Rules of Court, rules 3.400-3.403) Auto (22) Breach of contract/warranty (06) Uninsured motorist (46) [J Rule 3.740 collections (09) (__] Antitrust/Trade regulation (03) Other PI/PD/WD (Personal Injury/Property (—_] other collections (09) {_] construction defect (10) Damage/Wrongful Death) Tort (J insurance coverage (18) [J Mass tort (40) [__] Asbestos (04) (J other contract (37) [) securities litigation (28) (J Product liability (24) Real Property (J Environmental/Toxic tort (30) (J Medicat malpractice (45) (] condemnation /inverse Eminent domain(14) (J insurance coverage claims arising from the above listed provisionally complex case (J other PvPD/Wo (23) Non-Pl/PD/WD (Other) Tort (_] wrongful eviction (33) types (41) (Business tort/unfair business practice (07) (J other real property (26) Enforcement of Judgment [1] civit rights (08) Unlawful Detainer (J Enforcement of judgment (20) (__] Defamation (13) [1] commercial (31) Miscellaneous Civil Complaint (—_] Fraud (16) [J Residential (32) [J rico (27) J intellectual property (19) (J prugs (38) [] other complaint (not specified above) (42) [_] Professional negligence (25) Judicial Review Miscellaneous Civil Petition (J other non-P/PDWD tort (35) (J Asset forfeiture (05) (1 Partnership and corporate governance (21) Employment (_] Petition re: arbitration award (11) (J other petition (not specified above) (43) (J Wrongful termination (36) (__] writ of mandate (02) (J other employment (15) (__] other judicial review (39) This case Cis (31 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. [__]} 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 Remedies sought (check ail that apply): a. monetary b. DK] nonmonetary; declaratory or injunctive relief c. () punitive = #4 Number of causes of acti (specify): Four (4) 8 This case re [_] is 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 CM-015, ;Date: April 23, 2018 ag Thomas Gilbe rt 183362 (TYPE OR PRINT NAME) IGNATURE OF PARTY OR ATTORNEY FOR PAI NOTICE Plaintiff must file this cover sheet with the first paper filed in the action or p! if eeding (except fen claims cases or cases filed under the Probate Code, Family Code, or Welfare and Institutions Code). (Ca } Rules of Court, rule 3.220.) Failure to file may result in sanctions. File this cover sheet in addition to any cover sheet required by local court rule. If this 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 other parties to the action or proceeding. * Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes on ige ly. tof 2 Form Adopted for Mardatory Use CIVIL CASE COVER SHEET Cal, Rules of Cour, rules 2.30, 3.220, 3.400-3.403, 3.740; Judicial Council of California Solutig ns Cal, Standards of Judicial Administration, std. 3.10 ‘M010 (Rev. July 1, 2007} lus x. SHORT TITLE: LAZAROV v. LA Urban CASE NUMBER BC70260 | CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION (CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION) This form is required pursuant to Local Rule 2.3 in all new civil case filings in the Los Angeles Superior Court. Step 1: After completing the Civil Case Cover Sheet (Judicial Council form CM-010), find the exact case type in Column A that corresponds to the case type indicated in the Civil Case Cover Sheet. Step 2: In Column B, check the box for the type of action that best describes the nature of the case. Step 3: In Column C, circle the number which explains the reason for the court filing location you have chosen. Applicable Reasons for Choosing Court Filing Location (Column C) 1. Class actions must be filed in the Stanley Mosk Courthouse, Central District. 7. Location where petitioner resides. 2. Permissive filing in central district. 8. Location wherein defendant/respondent functions wholly. 3. Location where cause of action arose. 9. Location where one or more of the parties reside. 4. Mandatory personal injury filing in North District. 10. Location of Labor Commissioner Office. 11. Mandatory filing location (Hub Cases ~ uniawtul detainer, limited 5. Location where performance required or defendant resides. non-collection, limited collection, or personal injury). 6. Location of property or permanently garaged vehicle. A B c Civil Case Cover Sheet Type of Action Applicable Reasons - . Category No. (Check only one) See Step 3 Above Auto (22) CJaz100 Motor Vehicle - Personal Injury/Property Damage/Wrongful Death 1,4,11 Uninsured Motorist (46) C5azi10 Personal Injury/Property Damage/Wrongful Death — Uninsured Motorist 1,4,11 (J aso70 Asbestos Property Damage 4,11 Asbestos (04) CJazz221 Asbestos - Personal Injury/Wrongful Death 1,11 ae Product Liability (24) (J azz260 Product Liability (not asbestos or toxic/environmental) 1,4,11 Ea 2 CJaz2i0 Medical Malpractice - Physicians & Surgeons 1,4,11 Medical Malpractice (45) & = (J azza0 Other Professional Health Care Malpractice 1,4,11 mS ws (5 az250 Premises Liability (e.g., slip and fall) 14,11 Other Personal reoR Injury Property () a7230 Intentional Bodily Injury/Property Damage/Wrongful Death (e.g 1,4,11 es Damage Wrongful assault, vandalism, etc.) 1,4, 11 oF Death (23) [J az270 Intentional Infliction of Emotional Distress CJ az7220 Other Personal Injury/Property Damage/Wrongful Death 14,11 LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 LASC Approved 03-04 AND STATEMENT OF LOCATION Page 1 of 4 lacvi0g SHORTTITLE: LAZAROV v. LA Urban CASE NUMBER B C Applicable Civil Case Cover Sheet Type of Action ‘easons -,See Step 3 Category No. (Check only one) Above Business Tort (07) () acoz9 Other Commercial/Business Tort (not fraud/breach of contract) 1,2,3 oe os Civil Rights (08) [J asoos Civil Rights/Discrimination 1,2,3 Defamation (13) [J asoto Defamation (slander/libel) 1,2,3 22 Fraud (16) CJ aco13 Fraud (no contract) 1,2,3 Professional Negligence (25) () aso17 Legal Malpractice 1,2,3 (J acoso Other Professional Malpractice (not medical or legal) 1,2,3 za Other (36) (J aso2s Other Non-Personal Injury/Property Damage tort 1,2,3 Wrongful Termination (36) LJ 6037 Wrongful Termination 1,2,3 [1 aso24 Other Employment Complaint Case 1,2,3 Other Employment (15) (J aet09 Labor Commissioner Appeals 10 (CJ aso04 Breach of Rental/Lease Contract (not unlawful detainer or wrongful 25 eviction) Breach of Contract/ Warranty 2,5 (—) a6oos Contract/Warranty Breach -Seller Plaintiff (no fraud/negligence) 1,2,5 (not insurance) (J aco19 Negligent Breach of Contract/Warranty (no fraud) 1,2,5 (J aso28 Other Breach of Contract/Warranty (not fraud or negligence) S- (J asoo2 Collections Case-Seller Plaintiff 5,6, 11 Collections (09) CJ aso12 Other Promissory Note/Collections Case 5,11 [J aso34 Collections Case-Purchased Debt (Charged Off Consumer Debt 5,6,114 Purchased on or after January 1, 2014) Insurance Coverage (18) CJ aso1s Insurance Coverage (not complex) 1,2,5,8 A009 Contractual Fraud 1,200 Other Contract (37) CJ a6031 Tortious Interference 1,2,3,5 [1] a6027 Other Contract Dispute(not breach/insurance/fraud/negligence) 1,2, 3, 8,9 Eminent Domain/Inverse Number of parcels Condemnation (14) [1] a7300 Eminent Domain/Condemnation 2.6 Wrongful Eviction (33) [J aso23 Wrongful Eviction Case 2,6 (J asora Mortgage Foreclosure 2,6 Other Real Property (26) [J acos2 Quiet Title 2,6 fm ws [J asoso Other Real Property (not eminent domain, landlord/tenant, foreclosure) 2,6 bat 2 Unlawful Detainer-Commercial (Jasoa1 Unlawful Detainer-Commercial (not drugs or wrongful eviction) 6,11 oe Unlawful Detaingr-Residential [] asozo Unlawful Detainer-Residential (not drugs or wrongful eviction) 6,11 Unlawful Detainer- (J aco20F Untawful Detainer-Post-Foreclosure 2,6,11 Post-Foreclosure (34) Unlawful Detainer-Drugs (38) |[__] A6022 Unlawful Detainer-Drugs 6, 11 LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 LASC Approved 03-04 AND STATEMENT OF LOCATION Page 2 of 4 3 snort tire: LAZAROV v. LA Urban CASE NUMBER A B C Applicable Civil.Case Cover Sheet Type of Action: Reasons - See Step 3 Category No. (Check only one) Above ~ Asset Forfeiture (05) (J a6108 Asset Forfeiture Case 2,3,6 Petition re Arbitration (11) CJ aets Petition to Compel/Confirm/Vacate Arbitration 2,6 2 (J a6151 Writ - Administrative Mandamus 2,8 Writ of Mandate (02) (J 6152 Writ - Mandamus on Limited Court Case Matter 2 (CJ 6153 Writ - Other Limited Court Case Review 2 Other Judicial Review (39) [J aets0 Other Writ /Judicial Review 2,8 Antitrus/Trade Regulation (03) (__] asoo03 Antitrust/Trade Regulation 1,2,8 Construction Defect (10) (1 a6007 Construction Defect 1,23 Claims tnvowing Mass Tort [) asoos Claims Involving Mass Tort 1,28 Securities Litigation (28) [J aso3s Securities Litigation Case 1,28 rt (J aso3s Toxic Tort/Environmental 1,2,3,8 Environmental (30) Insurance Coverage Claims from Complex Case (41) (=) acots Insurance Coverage/Subrogation (complex case only) 1,2,5,8 CJ ae6ia1 Sister State Judgment 2,5,11 (J a6160 Abstract of Judgment 2,6 Enforcement () a6107 Confession of Judgment (non-domestic relations) 29 of Judgment (20) (J ae140 Administrative Agency Award (not unpaid taxes) 2,8 (J aei14 Petition/Certificate for Entry of Judgment on Unpaid Tax 2,8 CJ ae112 Other Enforcement of Judgment Case 2,8,9 RICO (27) (_} aso33 Racketeering (RICO) Case 1,2,8 [J aso30 Declaratory Relief Only 1,2,8 Other Complaints {J acoso Injunctive Relief Only (not domestic/harassment) 2,8 (Not Specified Above) (42) (J aco11 Other Commercial Complaint Case (non-tort/non-complex) 1,2,8 [J asooo Other Civil Complaint (non-tortvnon-complex) 1,2,8 Partnership Corporation 2,8 eS Governance (21) (7) 6113 Partnership and Corporate Governance Case Ind (J e121 Civil Harassment 2,3,9 Wn (Ja6123 Workplace Harassment 2,3,9 me Other Petitions (Not CJ 6124 Elder/Dependent Adult Abuse Case 2,3,9 =& eS Specified Above) (43) (Jae1s0 Election Contest or CJaett0 Petition for Change of Name/Change of Gender 2,7 [Jae170 Petition for Relief from Late Claim Law 2,3,8 [J astoo Other Civil Petition 2,9 LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 LASC Approved 03-04 AND STATEMENT OF LOCATION Page 3 of 4 a . sHcrTtme: LAZAROV v. LA Urban CASE NUMBER Step 4: Statement of Reason and Address. Check the appropriate boxes for the numbers shown under Column C for the type of action that you have selected. Enter the address which is the basis for the filing location, including zip code. (No address required for class action cases). ADDRESS: REASON: 5042 Wilshire Blvd (1.(2.003.004.005.6.07.C8f9.0010.011 city: STATE: ZIP CODE: Los Angeles CA 90036 Step 5: Certification of Assignment: | certify that this case is properly filed in the Central District of the Superior Court of California, County of Los Angeles [Code Civ. Proc., §392 et seq., and Local Rule 2.3(a)(1)(E)]. y arable i Dated: 4/23/18 E OF aTrorNefi /IFILING PARTY) homas tre PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLY COMMENCE YOUR NEW COURT CASE: 1 Original Complaint or Petition 2 If filing a Complaint, a completed Summons form for issuance by the Clerk. 3 Civil Case Cover Sheet, Judicial Council form CM-010 Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev. 02/16) Payment in full of thefiling fee, unless there is court order for waiver, partial or scheduled payments. A signed order appointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiff or petitioner is a minor under 18 years of age will be required by Court in order to issue a sumimons. Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendum must be served along with the summons and complaint, or other initiating pleading in the case. e ws tet e= oF LACIV 109 (Rev 2/16) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 LASC Approved 03-04 AND STATEMENT OF LOCATION Page 4 of 4