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Gordon Rees Scully Mansukhani, LLP
275 Battery Street, Suite 2000
San Francisco, CA 94111
MARK S. POSARD (SBN 208790)
mposard@grsm.com
MELISSA M. FAIRBROTHER (SBN 149787)
mfairbrother@grsm.com
GORDON REES SCULLY MANSUKHANI, LLP
275 Battery Street, Suite 2000
San Francisco, CA 94111 “eeu OfSan treneoe
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Telephone: (415) 986-5900
Facsimile: (415) 986-8054 "Nov 2.6 2019
Attorneys for Defendants
oe OF THE COURT
2121 LAGUNA STREET CONDOMINIUM <=
HOMEOWNERS ASSOCIATION and RAND RICHARDS Deputy Clerk
IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SAN FRANCISCO
Coniplaint Filed: August 9, 2017
CHARU SAROJ DAVE, SHANNON )
GALLAGHER, CATHERINE SILER, ) :
Plaintiffs, } MOTION TO JUDICIALLY ENFORCE
} THE SETTLEMENT AGREEMENT AND
vs. ) AWARD OF SANCTIONS
2121 LAGUNA STREET )
CONDOMINIUM. HOMEOWNERS’ 2 Date: November 26, 2019
ASSOCIATION, RAND RICHARDS and 2) Time: 9:30am.
DOES 1-10, ; Dept: 302
Defendants. } Reservation No. 010231126-06
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[PROP6SED ORDER GRANTING MOTION TO ENFORCE SETTLEMENT AND AWARD OF SANCTIONSSan Francisco, CA 94111
Gordon Rees Scully Mansukhani, LLP
275 Battery Street, Suite 2000
'
Defendants 2121 LAGUNA STREET CONDOMINIUM HOMEOWNERS’
ASSOCIATION and RICHARD RANDS’ Motion to Enforce Settlement came on for hearing at
9:30 a.m., in Department 302 of this Court on November 26, 2019. Appearances were noted on
the record. The briefs, declarations, objections and arguments having been duly received and
considered by the Court. As no party contested the court’s tentative ruling, it is the order of the
Court.
IT IS HEREBY ORDERED:
That Motion to Enforce Settlement is GRANTED.
It is FURTHER ORDERED,
The final settlement and mutual release agreement, a copy of which is attached hereto, be
deemed signed by SHANNON GALLAGHER.
FURTHER it is ordered that SHANNON GALLAGHER shall pay sanctions in the
amount of $3,540 to defense counsel for the benefit of Defendants to cover the expense of this
motion. (cc? §12¢.5,)
IT IS SO ORDERED. .
Dated: if2b 2019. [bikd b Mik :
Judge of the Superior Court
RICHARD ULMER
2.
[P2G26SED-ORDER GRANTING MOTION TO ENFORCE SETTLEMENT AND AWARD OF SANCTIONSRELEASE AND SETTLEMENT AGREEMENT
This Release and Settlement Agreement (“Agreement”) is made and entered into as of
June 7, 2019, (the “Effective Date”), by and between Catherine Siler and Shannon Gallagher
(“Plaintiffs”) and 2121 Laguna Street Condominium Homeowners’ Association (“the
Association”), Rand Richards, and Does 1-10 on behalf of themselves, their respective heirs,
executors, administrators, agents, and assignees (collectively “Defendants”). (Plaintiffs and
Defendants are referred to herein collectively as the “Party” or “Parties.”)
WHEREAS, certain disputes have arisen between the Parties regarding the financial
dealings and operational management of the Association as well as maintenance of the
Association’ property, in addition to issues regarding alleged violations of The Open Meeting
Act and of the governing documents including, but not limited to, renovation work to the
condominium unit previously owned by prior owner and Director Defendant Rand Richards; and
WHEREAS, Plaintiffs have articulated their contentions and made multiple demands of
the Defendants for ADR/IDR (“the Disputes”) regarding their disputes; and
WHEREAS, Plaintiffs have filed an action in the Superior Court of California in and for
the County of San Francisco in the matter of Charu Saroj Dave, Shannon Gallagher and
Catherine Siler vs. 2121 Laguna Street Condominium Homeowners’ Association, Rand Richards
and Does 1-10, case number CGC-17-560647, (“The Action”) alleging in the Complaint : 1)
Breach of Covenant, 2) Breach of Fiduciary Duty, 3) Negligence, 4) and Declaratory Relief for
violations of the Davis-Stirling Act (the “Complaint”), as is more fully set-forth in Plaintiffs’
discovery responses and the motion practice submitted in the Action; and
WHEREAS, Plaintiff Charu Saroj Dave, the Association and Rand Richards executed a
Settlement Agreement with an effective date of March 13, 2018, and Plaintiff Charu Saroj
Dave’s claims were dismissed in total; and
WHEREAS, PlaintiffS have complained of economic damages and for equitable relief
arising out of the Disputes and The Action, and Defendants expressly deny any and all liability
related to or arising from Plaintiffs’ alleged claims as set forth in the Disputes and The Action;
and
WHEREAS, Plaintiffs have firther filed in 2018 and 2019 small claims court actions
against Defendant 2121 Laguna Street Condominium Association, including but not limited to
case numbers CSM 18-858223, CSM 18-858224, CSM 18-858225, CSM 19-860031, CSM 19-
860146, CSM 19-860032 (the “Small Claims Actions”) in the Superior Court of California in
and for the County of San Francisco alleging the Associations’ violations of the Davis-Stirling
Act, which Defendants expressly deny in total; and
WHEREAS, the Parties, without any admission of liability or fault in any way by
Defendants or Plaintiffs, desire to compromise and comprehensively settle the Disputes, The
Action and Small Claims Actions without any further administrative or court proceedings, or
incurring additional legal costs; andWHEREFORE, intending to be legally bound by this Agreement and stipulating that the
implementation of this Agreement will fully and finally resolve the controversies between and
among the Parties set forth in the Disputes, The Action and the Small Claims Actions, the Parties
hereby agree as follows:
1. Consideration:
a. In exchange for Plaintiffs’ complete release and discharge of any and all claims
against Defendants related to or arising ftom the Disputes, The Action or Small Claims Actions,
Defendants, through their insurer, will pay to Plaintiffs a total of One Hundred and Forty-Five
Thousand Dollars ($145,000.00). From the Association, Defendants will pay a total of Sixty-Five
Thousand Dollars ($65,000). No funds will be paid from Rand Richards. Together the payments
will total Two-Hundred Ten Thousand Dollars. Plaintiffs hereby expressly waives all rights that
they have or may have under section 6149.5 of the California Business and Professions Code,
which requires that a copy of the cover letter accompanying the settlement fimds paid as described
in this release be sent to Plaintiffs herein. Plaintiffs hereby authorize and direct that the settlement
sums shall be made payable to Shannon Gallagher P.C. and shall be delivered via overnight mail
to 3150 18th Street, #111, San Francisco, CA 94110.
b. As further consideration, the Association agrees to replace Canyon Pacific as the
Association’s Management company by January 2, 2020.
c. As further consideration, the Association agrees that the Association shall hold a
Town Hall style training for Board of Director members and any interested owner.
d. Plaintiffs firther expressly release and forever discharge all Defendants, their
attorneys, employees, officers, directors, partners, successors and assigns, insurers and their
agents from any and all common law and/or statutory claims of any kind, whether known or
unknown, which they now have or may have in the future that arise, without the addition of
further alleged future wrongful action, out of the events which are described in the Disputes, The
Action and Small Claims Actions. This Settlement Agreement specifically, but not exclusively,
covers the pending disputes and actions described herein which have been brought against
Defendants including those in the Superior Court, County of San Francisco, State of California,
and any and all claims, rights, or causes of action which arise out of any alleged violations of
state or federal law, including any tort, and any federal, state or municipal statute, regulation or
ordinance, alleged therein. Defendants, and each of them, further expressly release and forever
discharge Catherine Siler, Shannon Gallagher, their attorneys, employees, officers, directors,
partners, successors and assigns, insurers and their agents from any and all common law and/or
statutory claims of any kind, whether known or unknown, which they now have or may have in
the future that arise, without the addition of firther alleged future wrongful action, out of the
events which are described in the Disputes, The Action and Small Claims Actions, including
but not limited to any claim based on any past action or inaction by Catherine Siler and/or
Shannon Gallagher, their attorneys and agents.
2e. This waiver and release is intended to and shall include all claims of any kind,
whether past, present or future, known or unknown, that have arisen or may after this date arise
from the facts and circumstances stated in the Disputes, The Action and Small Claims Actions.
This waiver and release in no way affects the parties” rights based on any future conduct or
failure to act. With this acknowledgement and reservation of the parties’ rights, Plaintiffs
Shannon Gallagher and Catherine Siler acknowledge the provisions of Section 1542 of the Civil
Code of the State of California and agree to knowingly waive the benefit of such provisions
which provide:
“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the Release, which if known by
him must have materially affected his settlement with the debtor.”
It is understood and agreed that Plaintiffs represent that they are currently unaware of
any claim, right, obligation, liability, or cause of action that they currently have against the
named Defendants, or against any of the Association’s officers, employees, agents, or attorneys
that has not been released in this Agreement. It is further understood and agreed that
Defendants represent that they are currently unaware of any claim, right, obligation, liability, or
cause of action that they currently have against the named Plaintiffs, or against any of their,
employees, agents, or attorneys that has not been released in this Agreement.
f Each Party to this Release and Settlement Agreement shall bear their own fetes
and costs including all attorney's fees and costs arising ftom the action of the Parties' own
counsel in connection with any complaints, claims, or the defense thereof, and the filing ofa
dismissal of any complaints, cross-complaints and all related matters.
g Within 30 days of receiving the fully executed Settlement Agreement, Defendants
shall send via overnight delivery to Shannon Gallagher, the consideration to be provided by
Defendants’ insurer as described in Section 1(a) Within three days of the date such
consideration is mailed, Plaintiffs shall deliver via overnight mail an executed Request for
Dismissal of the entire Action with prejudice that Defendants may immediately file with the
court. The parties acknowledge that the dismissal will dispose of the entire Action, as well as the
Small Claims Actions CSM 18-858223, CSM 18-858224, CSM 18-858225, CSM 19-860031,
CSM 19-860146, CSM 19-860032. On or before December 31, 2019, the Association will
deliver to Shannon Gallagher the remaining monetary consideration as described in Section 1(a).
The Parties acknowledge that the Court will maintain jurisdiction pursuant to California Code of
Civil Procedure Section 664.5 over the case pending the fulfillment of the terms of this
Agreement.
2. No Admission of Liability: The Parties agree that nothing contained herein, and no
action taken by any Party with respect to this Agreement, shall be construed as an admission of
liability.
3. Entire Agreement:
3.a. This Release and Settlement Agreement constitutes the complete understanding
between the Parties. No other promises, representations, or agreements shall be binding unless
signed by these Parties.
b. This Agreement cannot be altered, amended, or modified in any respect, except
by a writing duly executed by all Parties to the Release and Settlement Agreement.
cc This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement may be circulated electronically for signature, and all such
signatures obtained shall be deemed for all purposes under this Agreement to have the same legal
effect as delivery of an original executed copy of this Agreement.
4. Severability: In the event that any court of enforcement authority determines that
any provision of this Agreement is unenforceable, the provision at issue shall be enforced to
the maximum extent permitted by law, and all other provisions shall remain in full effect.
5. This Release and Settlement Agreement shall be interpreted in accordance with and
governed in all respects by the laws of the State of California. This Agreement may be
executed in several counterparts, each of which shall be deemed an original and all of which
taken together shall constitute a single instrument.
6. The parties each request the Court to retain jurisdiction pursuant to C.C.P. section
664.6. All parties shall dismiss their entire claims and causes of action subject to the parties’
664.6 to enforce the remaining terms of this settlement agreement and judgment in the event
any party fails to comply with all the obligations set forth therein.
In the event the matter is dismissed, and pursuant to the express statement set forth in Wackeen
y. Malis (2002) 97 Cal.App.4't 429, the Court may nevertheless retain jurisdiction to enforce
the terms of the settlement, until such time as all of its terms have been performed by the
parties, as the parties requested this specific retention of jurisdiction. The parties agree that the
Court may set aside dismissal if necessary, upon application by any party, for the purpose of
enforcing the terms of this Agreement and entering judgment pursuant to its terms.
6. Authorization to Act: The Parties warrant that they are authorized and empowered to
execute this Agreement on their own behalf and on behalf of any person or entity for which they
have signed this Agreement. The Association specifically warrants it has the requisite authority,
including but not limited to, the authority vested in it pursuant to California Civil Code Section
5980 and the Association’s CC&Rs, as amended, to enter this Settlement Agreement.
7. Vo Act:
a. The Parties acknowledge that they have read this Agreement and agree to the
terms as set forth in it.
4.b. Further the Parties acknowledge that they have had an opportunity to consult
with legal counsel and any other advisers they wish of their own choice with respect to the
contents hereof and are signing this Agreement of their own free will
IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have
executed the foregoing Settlement Agreement. Note: for the signature block, two Directors must
sign per our governing documents.
Catherine Siler, Plaintiff Rand Richards, Defendant
Shannon Gallagher, Plaintiff 2121 Laguna Condominium Homeowners’
Association, Defendant
2121 Laguna Condominium Homeowners’
Association, Defendant
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