Preview
1 Christopher D. Nissen, Esq. (SBN 202034)
Adam E. Wayne (SBN 332534)
2 Sonia T. Amodeo (SBN 349279)
WILSON, ELSER, MOSKOWITZ,
3 EDELMAN & DICKER LLP
555 S Flower St, Suite 2900
4 Los Angeles, CA 90071-2407
Telephone: (213) 443-5100
5 Facsimile: (213) 445-5101
Email: christopher.nissen@wilsonelser.com
6 adam.wayne@wilsonelser.com
sonia.amodeo@wilsonelser.com
7 Attorneys for Claimants
CENTRAL COAST AGRICULTURE, INC.
8 dba RAW GARDEN
9
SUPERIOR COURT OF THE STATE OF CALIFORNIA
10 FOR THE COUNTY OF SANTA BARBARA – SOUTH COUNTY DIVISION
11 EAST WEST BANK, a California state Case No.: 23CV02629
banking corporation, [Assigned for all Purposes to the Honorable
12 Colleen K. Stern, Dept. 5]
13 Plaintiff, DECLARATION OF RYAN KEELY AND
EXHIBITS IN SUPPORT OF CLAIMANT
14 v. CENTRAL COAST AGRICULTURE,
INC.’S APPLICATION FOR RIGHT TO
15 ATTACH ORDER AND WRIT OF
HERBL, INC., a California corporation dba ATTACHMENT AND ORDER
16 HERBL, HERBL DISTRIBUTION PERMITTING THE CREATION OF LIEN
SOLUTIONS, and HDS NATURALS,
17 Date: April 29, 2024
Defendant. Time: 10:00 a.m.
18 1. Claimant Central Coast Agriculture,
Inc.’s Notice of And Application For
19 Right To Attach Order And Writ Of
Attachment And Order Permitting The
20 Creation Of Lien;
2. Memorandum of Points and Authorities
21
in Support of Application;
22 3. Declaration of Thomas Martin and
Exhibits
23 4. Declaration of Christopher Nissen and
Exhibits;
24 5. [Proposed] Order;
6. Request for Judicial Notice;
25 7. [Proposed] Order Granting Request for
Judicial Notice
26 8. Motion to File Under Seal;
9. [Proposed] Order Granting Motion to
27 File Under Seal
28
1
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1
2 DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR
3 RIGHT TO ATTACH ORDER AND WRIT OF ATTACHMENT
4 I, Keely Ryan, hereby declare as follows:
5 1. I am Senior Vice President of Finance and Accounting of Defendant/Cross-
6 Complainant Central Coast Agriculture, Inc. (“CCA”). I have held this position since April 2, 2022.
7 From November 29, 2021 to April 2, 2022, I was Vice President, Corporate Controller at CCA.
8 2. I am authorized by CCA to submit this declaration in support of CCA’s Ex Parte
9 Memorandum of Points and Authorities In Support of Application for Right to Attach Order and Writ
10 of Attachment and Order for Lien. The facts stated herein are true and correct, to the best of my
11 knowledge based on records maintained by CCA in the ordinary course of business. If called as a
12 witness, I could and would competently testify to the facts contained herein.
13 3. In my role at CCA, I am responsible for the direct management of accounting and
14 financial reporting functions at the company, including, among other things, reviewing and managing
15 the company’s revenue and expenses, reviewing invoices made and transmitted to CCA’s customers,
16 ensuring timely payout of CCA’s financial obligations, and maintaining accurate and up to date
17 financial reporting and financial statements for CCA. I also oversee other CCA personnel who
18 perform duties that support the function of the Finance and Accounting department.
19 4. During the time that CCA and Plaintiff/Cross-Defendant Herbl, Inc. (“Herbl”) worked
20 together, the Finance and Accounting department prepared and generated invoices for Herbl on a
21 regular basis in the ordinary course of business.
22 5. If Herbl wanted a reduction on an amount owed on an invoice, either in the form of a
23 charge back or a credit, Herbl was required to make a written request to CCA, and receive written
24 approval from CCA, in order for any credit to be applied to Herbl’s account. Herbl could not create
25 charge backs on its own. Any approved credits would be generated and sent to Herbl.
26 6. Herbl’s invoices also reflected a 15% distribution fee to Herbl, sometimes noted as a
27 “discount” on the invoices.
28
2
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1
7. On December 29, 2021, Herbl confirmed to CCA that there were no open credit memos
2
on CCA’s account, meaning that as of December 29, 2021, there were no pending credit or charge
3
back requests from Herbl to CCA. A true and correct copy of that confirmation email, of which I
4
was a recipient, is attached as Exhibit 26 (“There are no other CM’s open on your account,
5
currently”).
6
8. On multiple occasions, Herbl failed to pay its invoices on a net-30 basis. In December
7
2021, the Finance and Accounting department attempted to determine from Herbl when payments on
8
certain unpaid invoices would be received. At that point, Herbl owed CCA at least $3,272,602 in
9
unpaid invoices.
10
9. On or about December 22, 2021, my colleague Samantha Levy sent an email, copying
11
me, to Cecilia Rego, Accounts Payable Associate at Herbl, asking for Herbl to provide an estimated
12
payment date for invoices INV2101900, INV2101899, INV2101893, INV2101801, INV2101802,
13
INV210815, INV2101839, INV2101840. Ms. Rego replied on December 23, 2021, stating that Herbl
14
would pay the invoices on certain promised dates. All the payment dates Herbl promised were past
15
the actual due dates for the invoices. A true and correct copy of Ms. Levy and Ms. Rego’s email
16
exchange is attached as Exhibit 27. Herbl only paid invoices INV2101801 and INV2101802. The
17
dates on which Herbl promised payments came and went. Herbl failed to pay any of the other
18
invoices, or even make partial payments.
19
10. On December 29, 2021, Ms. Levy sent another email to Ms. Rego, copying me, asking
20
for Herbl to provide an estimated payment date for invoice INV2101841, which had been mistakenly
21
left off the list in the December 22, 2021 email. Ms. Rego replied on December 29, 2021, indicating
22
that funds would be paid—again, on a date past the due date for the invoice. A true and correct copy
23
of Ms. Levy and Ms. Rego’s email exchange is in Exhibit 28 attached hereto.
24
11. A breakdown of Herbl’s unpaid invoices to date, and the amounts and payment due
25
dates for each invoice, and the credits that have been authorized by CCA, is as follows:
26
27
28
3
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1<6>598;"2;?7:<=7"41-",3%3%,.3#3)/*#(,/$#/13'#+/*/%)%&%,02
1 Invoice Invoice Date Due Date Invoice Amount Balance Due
2
3
4
5
6
7
8
9
10 12. I have personally reviewed each of the invoices listed in the table in paragraph 11 above
11 and they accurately reflect the amounts currently due and owing by Herbl to CCA. A true and correct
12 copy of the invoices and credits listed in paragraph 11 were attached in Exhibit 1 to the Memorandum
13 d[ Jd^cih VcY ;ji]dg^i^Zh ^c Ljeedgi d[ ==;vh ;eea^XVi^dc [dg K^\]i id ;iiVX] IgYZg VcY Pg^i d[
14 Attachment.
15 13. ;h d[ i]Z YViZ d[ i]Z [^a^c\ d[ ==;vh OZg^[^ZY =gdhh-Complaint, Herbl had an
16 outstanding balance of $6,624,481.52. To date, Herbl has not made any attempts to pay down that
17 outstanding balance.
18 I declare under penalty of perjury under the laws of the State of California that the foregoing
19 is true and correct.
20
21 Executed this February 9, 2024 in Santa Barbara, California.
22
23 ____________
KEELY RYAN
24
25
26
27
28
5
DECLARATION OF RYAN KEELY IS SUPPORT OF DEFENDANT/CROSS-COMPLAINANT CENTRAL COAST
;AKC=NFMNK?* CH=,vL EX PARTE APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT OF ATTACHMENT
288919201v.1
EXHIBIT 26
EXHIBIT 28
1 PROOF OF SERVICE
Code Civ. Proc., § 1013b
2 East West Bank. vs. Herbl, Inc.
Santa Barbara Court Case No: 23CV02629
3 WEMED File No: 24879.00001
4
5 STATE OF CALIFORNIA, COUNTY OF LOS ANGELES
6 I am employed in the County of Los Angeles, State of California. I am over the age of 18 and
not a party to this action. My business address is 555 South Flower Street, Suite 2900, Los Angeles,
7 California 90071. My electronic service address is jamie.cho@wilsonelser.com.
8 On March 8, 2024, I caused the foregoing document, entitled “DECLARATION OF
RYAN KEELY AND EXHIBITS IN SUPPORT OF CLAIMANT CENTRAL COAST
9 AGRICULTURE, INC.’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN,” to be served
10 on the person(s) identified in the attached Service List, at their respective [residential / business /
electronic service] address(es), by the below-indicated means:
11
[X] (BY ELECTRONIC SERVICE) I electronically served the foregoing document in PDF
12 format on behalf of CENTRAL COAST AGRICULTURE, INC. dba RAW GARDEN
13
[] (BY ELECTRONIC SERVICE) I am readily familiar with the business’ practice for filing
14 electronically. I caused the foregoing document to be electronically served on February 23,
2024, in the ordinary course of business following ordinary business practices on behalf of
15 (name or names of parties represented).
16
[] (BY ELECTRONIC SERVICE) – Based upon a court order or an agreement of the parties
17 to accept service by electronic transmission, I caused the documents to be sent to the persons
at the electronic notification addresses as listed on the electronic service list maintained by
18 NAME OF SERVICE.
19
[] (BY U.S. MAIL) I enclosed [] a true copy [] the original(s) documents in a sealed envelope
20 or package addressed to the persons at the addresses in the attached Service List and (specify
one):
21
[] Deposited the sealed envelope with the United States Postal Service, with the postage
22 fully prepaid.
23 [] Placed the envelope for collection and mailing, following our ordinary business
practices. I am readily familiar with this business’s practice for collecting and processing
24 correspondence for mailing. On the same day that correspondence is placed for collection and
mailing, it is deposited in the ordinary course of business with the United States Postal
25 Service, in a sealed envelope with postage fully prepaid.
26 I am a resident or employed in the county where the mailing occurred. The envelope or
package was placed in the mail at Los Angeles, California.
27
[] (BY FACSIMILE) Based on an agreement of the parties to accept service by fax
28 transmission, I faxed the documents to the persons at the fax numbers listed in the attached
5
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1 Service List. No error was reported by the fax machine that I used. A copy of the record of
the fax transmission, which I printed out, is attached.
2
[] (BY OVERNIGHT DELIVERY) I enclosed the documents in an envelope or package
3 provided by an overnight delivery carrier, or other packaging, and addressed to the person(s)
at the address(es) in the attached Service List. I am readily familiar with this business’s
4 practice for collecting and processing correspondence for overnight delivery. On the same
day that correspondence is placed for collection and delivery, it is given in the ordinary course
5 of business to the overnight delivery carrier.
6 [] (BY EXPRESS MAIL) I caused said document(s) to be deposited with the U.S. Postal
Service for Express Mail delivery to the offices of the address(es) listed on the Service List.
7
8 [] (MESSENGER SERVICE) I served the documents by placing them in an envelope or
package addressed to the persons at the addresses listed in the attached Service List and
9 providing them to a professional messenger service for service.
10 [] (BY PERSONAL SERVICE) Said documents were personally/physically delivered
to the addressees as noted on the service List
11
[] (BY CERTIFIED MAIL – RETURN RECEIPT REQUESTED) I caused such
12 envelope(s) fully prepaid to be placed in the United States Mail at Los Angeles, California by
Certified Mail – Return Receipt Requested. I am “readily familiar” with the firm’s practice
13 of collection and processing correspondence or mailing. Under that practice it would be
deposited with the U.S. Postal Service on that same day with postage thereon fully prepaid at
14 Los Angeles, California in the ordinary course of business. I am aware that on motion of the
party served, service is presumed invalid if postal cancellation date or postage meter date is
15 more than one day after date of deposit for mailing in affidavit.
16 I declare under penalty of perjury under the laws of the State of California that the above is
true and correct.
17
Executed on March 8, 2024, at Los Angeles, California.
18
/s/ Jamie Cho
19
Jamie Cho
20
21
22
23
24
25
26
27
28
6
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1 SERVICE LIST
East West Bank. vs. Herbl, Inc.
2 Santa Barbara Court Case No: 23CV02629
WEMED File No: 24879.00001
3
4
Marshall J. Hogan (#286147) Attorneys for Plaintiff
5 mhogan@swlaw.com EAST WEST BANK
6 Andrew B Still (#312444)
astill@swlaw.com
7 SNELL & WILMER L.L.P.
600 Anton Boulevard, Suite 1400
8 Costa Mesa, CA 92626-7689
Telephone: 714.427.7000
9 Facsimile: 714.427.7799
10
Bryce A. Suzuki (pro hac vice forthcoming)
11 bsuzuki@swlaw.com
SNELL & WILMER L.L.P.
12 One East Washington Street, Suite 2700
Phoenix, AZ 85004
13 Telephone: 602.382.6000
14 Facsimile: 602.382.6070
15 Michael S. Fauver (SBN: 205829) Attorneys for Defendant
Marcus J. Kocmur (SBN: 208702) HERBL, INC.
16 Ian L.M. Durdle (SBN: 329187)
FAUVER, LARGE, ARCHBALD &
17
SPRAY, LLP 820 State Street, 4th Floor
18 Santa Barbara, CA 93101
Tel: (805) 966-7000 Fax: (805) 966-7227
19 mfauver@flasllp.com
mkocmur@flasllp.com
20 idurdle@flasllp.com
Marina Ratliff, paralegal
21
mratliff@flasllp.com
22
Lawrence J. Conlan (SBN: 221350) Attorneys for Defendant
23 David L. Cousineau (SBN: 298801) HERBL, INC.
CAPPELLO & NOËL LLP
24 831 State Street
25 Santa Barbara, CA 93101
Tel: (805) 564-2444 Fax: (805) 965-5950
26 lconlan@cappellonoel.com
dcousineau@cappellonoel.com
27 rlloyd@cappellonoel.com
adickerson@cappellonoel.com
28 mduong@cappellonoel.com 7
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1
1 mduong@cappellonoel.com
jwarson@cappellonoel.com
2
3
Larry Russ Attorneys for Nabione, Inc. dba Nabis
4 Nathan D. Meyer
Timothy M. Baumann
5 Russ August & Kabat
12424 Wilshire Boulevard, Suite 1200
6
Los Angeles, CA 90025
7 Tel: (310) 826-7474 Fax: (310) 826-6991
LRuss@raklaw.com
8 NMeyer@raklaw.com
TBaumann@raklaw.com
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
8
DECLARATION OF RYAN KEELY IN SUPPORT OF CCA’S APPLICATION FOR RIGHT TO ATTACH ORDER AND WRIT
OF ATTACHMENT AND ORDER PERMITTING THE CREATION OF LIEN
292923733v.1