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1 Christopher D. Nissen, Esq. (SBN 202034)
Adam E. Wayne (SBN 332534)
2 WILSON, ELSER, MOSKOWITZ,
EDELMAN & DICKER LLP
3 555 S Flower St, Suite 2900
Los Angeles, CA 90071-2407
4 Telephone: (213) 443-5100
Facsimile: (213) 445-5101
5 Email: christopher.nissen@wilsonelser.com
adam.wayne@wilsonelser.com
6 Attorneys for Claimant,
CENTRAL COAST AGRICULTURE, INC.
7 dba RAW GARDEN
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
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FOR THE COUNTY OF SANTA BARBARA – SOUTH COUNTY DIVISION
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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, CLAIMANT CENTRAL COAST
AGRICULTURE, INC. DBA RAW
14 v. GARDEN’S OPPOSITION TO RECEIVER
KEVIN SINGER’S MOTION FOR
15 ISSUANCE OF ORDER AUTHORIZING
HERBL, INC., a California corporation dba RECEIVER TO DISTRIBUTE FUNDS TO
16 HERBL, HERBL DISTRIBUTION EAST WEST BANK; and PROOF OF
SOLUTIONS, and HDS NATURALS, SERVICE
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Defendant. Date: April 29, 2024
18 Time: 10:00 A.M.
Dept. 5
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Complaint Filed: June 20, 2023
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Trial Date: None Set
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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OPPOSITION TO MOTION TO DISTRIBUTE FUNDS TO EAST WEST BANK
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I. INTRODUCTION
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Claimant Central Coast Agriculture, Inc. (“Claimant” or “CCA”) opposes the motion to
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distribute the funds to East West Bank in the receivership estate filed by State Court Receiver Kevin
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Singer (“Receiver”).
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Claimant has a pending motion before this court seeking a Right to Attach Order and Order
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permitting creation of a lien, set for hearing concurrent with this motion.
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As discussed in Claimant’s pending Motion, Defendant Herbl, Inc. (“Herbl”) owes Claimant
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and Proposed Intervenor Central Coast Agriculture, Inc. dba Raw Garden (“CCA”) $6,624,481.52 in
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unpaid invoices, plus attorney’s fees under contract between the parties (i.e., Supplier Agreement for
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Distribution of Products giving rise to CCA’s filing of its Verified Cross-Complaint (herein “Verified
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CCA Cross-Complaint")
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On October 1, 2019, CCA and Herbl entered into the Agreement. Not long after CCA and
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Herbl began working together, it became clear that Herbl was unable and unwilling to meet its
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obligations under the Agreement or make payments due to CCA. CCA repeatedly notified Herbl that
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it was in breach of the Agreement and CCA continually tried to make its relationship with Herbl
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work. However, Herbl remained in breach of the Agreement. By May 2021, the parties understood
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that Herbl would not be able to fulfill the contract obligations, meet sales goals or timely pay invoices
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and CCA informed Herb it was considering moving its distribution needs to Nabis and terminating
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the Agreement with Herbl (which CCA eventually was forced to do).
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Herbl’s Receiver is in the process of selling its assets, and counsel for the Receiver has
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recently taken over representing Herbl in the CCA lawsuit. Although creditors are under an Order
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form this Court limiting actions they may take against Herbl, Herbl is allowed to continue prosecuting
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its claims against CCA in the other lawsuit. This creates the inequitable situation where Herbl may
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vigorously prosecute its claims against CCA and recover is it prevails at trial; however, if CCA
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prevails at trial, Herbl would be shielded from any CCA judgment under the Receivership order. If
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this Court is inclined to allow Herbl to proceed with its litigation against CCA, the Court should grant
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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CCA a right to attach order and lien, and/or require Herbl to post a bond, in order to protect equally
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the rights of Herbl and CCA to any recovery in their litigation. Accordingly, CCA is entitled to, and
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now seeks a Right to Attach Order and Writ of Attachment in the instant Action filed by East West
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Bank to allow CCA to place an attachment lien on Herbl’s assets to secure funds to pay the final
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judgment in the CCA v. Herbl Litigation. CCA’s Application is vital to protect CCA’s interests,
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given the impending asset sale by Herbl’s Receiver or Court Order shielding Herbl from debt actions
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by unsecured creditors.
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Thus, Claimant’s primary objection to the Motion is the distribution of money to East West
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Bank without any reserve for CCA’s significant monetary damages claims again Herbl, while Herbl
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is free to pursue its own litigation against CCA, arising out of the same set of facts and seeking to
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recover for breach of contract.
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II. STATEMENT OF FACTS
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To avoid duplication and lessen the burden on the Court in its review of this matter, CCA
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incorporates the Statement of Facts filed in connection with its Motion for Writ of Attachment, filed
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on March 8, 2024, and set for hearing on April 29, 2024. (See Request for Judicial Notice (“RJN”)
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Exhibit A). As set forth in CCA’s moving papers in its Motion for Writ of Attachment, Herbl owes
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CCA $6,624,481.52 in past due invoices. (Id). Herbl also breached its Agreement with CCA by
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consistently failed to deliver within the agreed-upon 3-day window, provided false analysis of
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delivery times, and failed to achieve agreed upon sales goals. While Herbl beat CCA in the race to
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the courthouse steps and filed its Complaint against CCA first, it is CCA who is the aggrieved party
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and is now left in the inequitable and costly position of defending Herbl’s specious claims for breach
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of contract, while its remaining assets are depleted.
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III. CCA’S PENDING MOTION FOR WRIT OF ATTACHMENT SETS FOR GOOD
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CAUSE WHY THE RECEIVED SHOULD NOT BE PERMITTED TO
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DISTRIBUTE HERBL’S REMAINING ASSETS TO EAST WEST BANK
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CCA’s requested relief in its Motion for Writ of Attachment and Creation of Lien seeks to
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preserve the status quo and preserve Herbl’s remaining assets until there has been a final judgment
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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in the Herbl v. CCA matter. Herbl should not be allowed to simultaneously use the Receiver as a
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sword to comfortably pursue its claims and attorney’s fees in its lawsuit against CCA and as a shield
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from CCA’s cross claims and fees in this action because their assets have been depleted by the
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Receiver.
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CCA’s Motion Seeking Right to Attach Order and Writ of Attachment was necessary to
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protect against the disbursement and dissipation of assets while judicial proceedings are pending.
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(Loeb & Loeb v. Beverly Glen Music (1985) 166 Cal.App.3d 1110, 1118.)
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A court “shall issue a right to attach order” if it finds all of the following:
9 (1) The claim upon which the attachment is based is one upon which an
attachment may be issued;
10 (2) The plaintiff has established the probable validity of the claim upon which the
attachment is based;
11 (3) The attachment is not sought for a purpose other than recovery on the claim
upon which the attachment is based; and
12 (4) The amount to be secured by the attachment is greater than zero.
13 (Code Civ. Proc., § 484.090, subd. (a).)
14 CCA has satisfied these elements, as set forth below in its moving papers. CCA’s claim is
15 ascertainable, as under the Agreement, as Herbl owes CCA the amount of $6,624,481.52. CCA is
16 also likely to prevail on its claims against Herbl, as set forth in CCA’s Motion for Writ of Attachment.
17 CCA seeks attachment for the purpose of obtaining recovery on the claim upon which the attachment
18 is based. Without the enforcement of CCA’s right to attachment with respect to Herbl’s obligations
19 and past due payments under the contract, CCA bears the risk that assets may become unavailable to
20 satisfy the judgment in this case. CAA also satisfies the final requirement for issuance of a Right to
21 Attach Order as it seeks a monetary amount of $6,624,481.52.
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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IV. CONCLUSION
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Based on the foregoing, CCA respectfully requests the Court deny the Receiver’s Motion or
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alternatively, grant CCA’s concurrently filed Motion for Writ of Attachment and Creation of Lien to
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preserve funds in the interests of justice.
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6 Dated: April 16, 2024 WILSON, ELSER, MOSKOWITZ,
EDELMAN & DICKER LLP
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By: /s/ Christopher D. Nissen
9 Christopher D. Nissen
Adam E. Wayne
10 Attorneys for Defendants/Cross-Complainants
CENTRAL COAST AGRICULTURE, INC.
11 dba RAW GARDEN
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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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 STATE OF CALIFORNIA, COUNTY OF LOS ANGELES
5 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,
6 California 90071. My electronic service address is Alethia.Whitehead@wilsonelser.com
7 On April 16, 2024, I caused the foregoing document, entitled “CLAIMANT CENTRAL
COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN
8 SINGER’S MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO
DISTRIBUTE FUNDS TO EAST WEST BANK” to be served on the person(s) identified in the
9 attached Service List, at their respective [residential / business / electronic service] address(es), by
the below-indicated means:
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[X] (BY ELECTRONIC SERVICE) I electronically served the foregoing document in PDF
11 format on behalf of CENTRAL COAST AGRICULTURE, INC. dba RAW GARDEN
12 I declare under penalty of perjury under the laws of the State of California that the above is
true and correct.
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Executed on April 16, 2024, at Los Angeles, California.
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/s/ Alethia Whitehead
15 Alethia Whitehead
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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1 SERVICE LIST
East West Bank. vs. Herbl, Inc.
2 Santa Barbara Court Case No: 23CV02629
WEMED File No: 24879.00001
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Marshall J. Hogan (SBN: 286147) Attorneys for Plaintiff,
4 mhogan@swlaw.com EAST WEST BANK
5 Andrew B Still (SBN: 312444)
astill@swlaw.com
6 SNELL & WILMER L.L.P.
600 Anton Boulevard, Suite 1400
7 Costa Mesa, CA 92626-7689
Telephone: 714.427.7000
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Facsimile: 714.427.7799
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Bryce A. Suzuki (pro hac vice forthcoming)
10 bsuzuki@swlaw.com
SNELL & WILMER L.L.P.
11 One East Washington Street, Suite 2700
Phoenix, AZ 85004
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Telephone: 602.382.6000
13 Facsimile: 602.382.6070
14 Michael S. Fauver (SBN: 205829) Attorneys for Defendant,
Marcus J. Kocmur (SBN: 208702) HERBL, INC.
15 Ian L.M. Durdle (SBN: 329187)
16 FAUVER, LARGE, ARCHBALD &
SPRAY, LLP 820 State Street, 4th Floor
17 Santa Barbara, CA 93101
Tel: (805) 966-7000 Fax: (805) 966-7227
18 mfauver@flasllp.com
mkocmur@flasllp.com
19 idurdle@flasllp.com
20 Marina Ratliff, paralegal
mratliff@flasllp.com
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Lawrence J. Conlan (SBN: 221350) Attorneys for Defendant,
22 David L. Cousineau (SBN: 298801) HERBL, INC.
CAPPELLO & NOËL LLP
23 831 State Street
24 Santa Barbara, CA 93101
Tel: (805) 564-2444 Fax: (805) 965-5950
25 lconlan@cappellonoel.com
dcousineau@cappellonoel.com
26 rlloyd@cappellonoel.com
adickerson@cappellonoel.com
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mduong@cappellonoel.com
28 jwarson@cappellonoel.com
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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Blake C. Alsbrook (SBN: 262603) Attorneys for Receiver,
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ERVIN COHEN & JESSUP LLP KEVIN SINGER
3 9401 Wilshire Boulevard, Twelfth Floor
Beverly Hills, CA 90212-2974
4 Tel.: (310) 273-6333 Fax (310) 859-2325
balsbrook@ecjlaw.com
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CLAIMANT CENTRAL COAST AGRICULTURE, INC. DBA RAW GARDEN’S OPPOSITION TO KEVIN SINGER’S
MOTION FOR ISSUANCE OF ORDER AUTHORIZING RECEIVER TO DISTRIBUTE FUNDS TO EAST WEST BANK
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