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  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
  • ['BERTAGNA, BERTON N ET AL V. DEAL REAL INTERNATIONAL, INC.', 'VOLLRATH, MICHAEL DAVID V. MID VALLEY TITLE AND ESCROW'](07) Unlimited Business Tort/Unfair Business Practice document preview
						
                                

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I DAVrD R. GRTFFTTH, ESQ. (SBN 170172) JAMESON E.P. SHEEHAN, ESQ. (SBN 327287) 2 GRIFFITH HORN & SHEEHAN, LLP 11/12/2020 1530 Humboldt Road, Suite 3 J Chico, California 9 5928 Telephone: (530) 812-1000 4 Facsimile: (530) 809-1 093 Emails : david@davidgriffrthlaw.com 5 i ameson@ griffrthandhorn. com 6 Attorneys for Plaintiffs 7 8 THE SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 IN AND FOR THE COUNTY OF BUTTE 10 BERTON N. BERTAGNA; ) Case No.: 20CV00531 WADE R. PORTER; ) 11 JEREMY M. FUNK; ) DECLARATION OF BERTON N. BERTAGNA SEBASTIEN TAMARELLE; ) IN SUPPORT OF APPLICATION FOR RIGHT I2 B. SCOTT HOOD; ) TO ATTACH ORDER AND ORDER FOR ROGER HEYM and ROSANNE HEYM; ) ISSUANCE OF \ilRIT OF ATTACHMENT 13 ) Plaintiffs, ) Hearing Date: December 16,2020 t4 ) Time: 9:00 A.M. vs. ) Dept.: I 15 ) Judge: Hon. Tamara L. Mosbarger DEL REAL INTERNATIONAL, INC., ) T6 a California corporation, ) dba DEL REAL COMPANY; ) t7 M. MAX DEL REAL, ) aka MATTHEW B. DEL REAL, ) 18 aka MATTHEW DEL REAL, ) aka MATTHEW M. DEL REAL, ) t9 aka MAX DEL REAL; ) AMMERICANN DEVELOPMENT, LLC, ) 20 a Califomia limited liability company; ) AMMERICANN HOLDINGS I, LLC, ) 2I a California limited liability company; ) BzuAN PRITCHARD; ) 22 NORMAN P. MARSHALL; ) DOES 1 through 50, inclusive, ) 23 Defendants. 24 25 I, BERTON N. BERTAGNA, declare: 26 l. I am aPlaintiff in this action. I make this Declaration in support of the Application for 27 Right to Attach Order and Order for Issuance of V/rit of Attachment filed herein by me and the other 28 plaintiffs in this action against Defendant M. MAX DEL REAL, aka MATTHEW B. DEL REAL, aka Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for \ürit of Attachment 1 1 MATTHEW DEL REAL, aka MATTHEV/ M. DEL REAL, aka MAX DEL REAL (hereinafter referred 2 to herein as "MAX DEL REAL"). I have personal knowledge of the matters stated herein, except as to J those matters stated on information and belief and would and could testify to those matters if called upon 4 to do so. 5 Factual Background 6 2. In or about April 2018, Defendant MAX DEL REAL, by and through DEL REAL 7 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN 8 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte 9 County, California such as myself and the other plaintiffs herein with information and representations 10 made in written Investment Memorandum for the establishment of new cannabis dispensaries under the ooTrez" 11 trade name in Redding, California. A true and correct copy of the Investment Memorandum for t2 the Redding, California dispensaries is attached to the Complaint filed herein on February 20,2020, as 13 Exhibit "1". t4 3. I am informed and believe that in or about September 2018, Defendant MAX DEL 15 REAL, by and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, I6 LLC,and AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began I7 soliciting investors in Butte County, California such as myself and the other plaintiffs herein with 18 information and representations made in written Investment Memorandum for the establishment of new T9 cannabis dispensaries under the trade name "TreÌ' in Oroville, California. A true and correct copy of the 20 Investment Memorandum for the Oroville, California dispensaries is attached to the Complaint filed o62rr. 2T herein on February 20,2020, as Exhibit 22 4. In or about February 20l9,Defendant MAX DEL REAL, by and through DEL REAL 23 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN 24 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte 25 County, California such as myself and the other plaintiffs herein with information and representations 26 made in written lnvestment Memorandum for the establishment of new cannabis dispensaries under the 27 trade name ooTfeÌ'in South Lake Tahoe, California. A true and correct copyof the Investment 28 Memorandum for the South Lake Tahoe, California dispensaries is attached to the Complaint filed Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for Writ of Attachment 2 1 herein on February 20,2020, as Exhibit "3". 2 5. I am informed and believe that in or about }i4ay2019, Defendant MAX DEL REAL, by J and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and 4 AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began soliciting 5 investors in Butte County, California such as myself and the other plaintiffs herein with information and 6 representations made in written Investment Memorandum for the establishment of new cannabis 7 dispensaries under the trade name "Tret' in Chico, California. A true and correct copy of the Investment 8 Memorandum for the Chico, California dispensaries is attached to the Complaint filed herein on 9 February 20,2020, as Exhibit "4". 10 The Investment Memorandum for the Redding, Oroville, South Lake Tahoe, and Chico projects l1 are collectively referred to herein as the "Investment Memorandum". t2 6. The lnvestment Memorandum produced and disseminated byDefendant MAX DEL 13 REAL represented that permits for new cannabis dispensaries would initiallybe obtained for Placerville t4 and South Lake Tahoe in Summer 2019, and would have an estimated valuation of $1,000,000.00 each l5 with estimated projected net profits of $1 10,625.00 per month in the first year of operation to an t6 estimated 5240,416.00 per month by the third year. It was represented by Defendant MAX DEL REAL I7 that for an investment of $25,000, there would be a return on investment $132,750.00 in 2019 with an 18 estimated three year return on investment of $663,000.00. T9 7. I am informed and believe that Defendant MAX DEL REAL intended to have the 20 information and representations set forth in the Investment Memorandum reviewed and considered by 2t investors such as myself and the other plaintiffs to induce our investments with Defendants DEL REAL 22 INTERNATIONAL,INC., and BRIAN PRITCHARD, the changes in laws claimed to make obtaining of 23 cannabis dispensary permits achievable, use of invested funds for the projects, the short time frame for 24 the investment to result in high equity positions, and high returns on investments. 25 8. I am informed and believe that Defendant MAX DEL REAL intended that the 26 representations set forth in the Investment Memorandum would be disseminated to the friends, business 27 associates, and family members of me and the other plaintiffs to try and solicit and generate further 28 investments with DEL REAL INTERNATIONAL, INC. Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for Writ of Attachment 3 I 9. In reliance upon the representations set forth in the Investment Memorandum, I was 2 induced to enter into New Client Agreements and Project Guarantees with Defendant DEL REAL J INTERNATIONAL, INC. 4 10. I invested $95,000.00, summarized as follows: 5 A. New Client Agreement dated February 20,2019 for $50,000.00 for a "buy-in" of 6 5oloownership of the Placerville Project and,20Yo ownership of the South I¿ke Tahoe Project, a true and 7 correct copy of which is attached to the Complaint filed herein on February 20,2020, as Exhibit '65'r. 8 B. Project Guarantee dated February 20,2019 for the $50,000 "buy-in" of 5o/o 9 ownership of the Placerville Project and20o/o ownership of the South Lake Tahoe Project, a true and 10 correct copy of which is attached to the Complaint filed herein on February 20,2020, asExhibit "6". 11 C. New Client Agreement dated May 14,2019 for $45,000.00 for a "buy-in" of 33o/o l2 ownership of the Dunsmuir Project, a true and correct copy of which is attached to the Complaint filed l3 herein on February 20,2020, as Exhibit "7". 14 D. Project Guarantee dated May 14,2019, for the S45,000.00 "buy-in" of 33% 15 ownership of the Dunsmuir Project, a true and correct copy of which is attached to the Complaint filed I6 herein on February 20,2020, as Exhibit 008". The Project Guarantee was amended and superseded by I7 way of a Payment Trade of the same date which provided that the $45,000.00 "buy-in" would be made 18 up of a $20,000.00 Dodge Charger RT as credit and 525,000.00 cash, a true and correct copy of which is t9 attached to the Complaint filed herein on February 20,2020, as Exhibit oo9rr. 20 11. I am informed and believe that Defendant MAX DEL REAL has diverted, dissipated, and 2l used the funds invested by me and the other plaintiffs with Defendant DEL REAL INTERNATIONAL, 22 INC., to himself and for his own personal use, and not for the purpose as designated for the respective 23 cannabis dispensary projects, including without limitation, paying cash to his former spouse to purchase 24 and buyout her interest in his personal residence located at 2080 Bidwell Avenue, Chico, California 25 95926. 26 12. I am informed and believe that Defendant MAX DEL REAL has diverted and dissipated 27 the funds and capital of Defendant DEL REAL INTERNATIONAL, INC., for his own benefit, so 28 extremely that the DEL REAL INTERNATIONAL, INC., has become insolvent, unable to pay its Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for rilrit of Attachment 4 1 creditors, including me and the other plaintifß herein and its taxes, resulting in DEL REAL 2 INTERNATIONAL, INC., being designated by the State of California as suspended and unable to J conduct lawful business. As such, my and the other plaintiffs' New Client Agreements and Project 4 Guarantees are of no value and worthless. 5 As of the date of this declaration, Defendant DEL REAL INTERNATIONAL, INC., is FTB 6 Suspended. A true and correct copy of a printout of the Business Search Information from the website 7 for the California Secretary of State for Defendant DEL REAL INTERNATIONAL, INC., is attached as 8 Exhibit "l" to the Request for Judicial Notice in Support of Application for Right to Attach Order and 9 Order for Writ of Attachment ("Request for Judicial Notice") filed concurrentlyherewith. l0 Breach of Contract Alleqations and Right to Judgment asainst Defendant MAX DEL REAL. 1l 13. In the Complaint filed herein on February 20,2020, the other plaintiffs and I alleged as an T2 alternative cause of action, the sixth cause of action for Breach of Contract against Defendants MAX l3 DEL REAL and DEL REAL INTERNATIONAL, INC., based upon the New Client Agreements and T4 Project Guarantees. 15 14. I have performed all obligations required of me to be performed under the terms of the I6 New Client Agreement(s) and Project Guaranty(ees) entered into by me. t7 15. In or about Summer 2019, and thereafter, Defendant DEL REAL INTERNATIONAL, 18 INC., breached the terms and conditions of the agreements by: 1) failing to obtain any new cannabis I9 dispensary permits or operations; 2) diverting and dissipating my and the other plaintiffs' investments to 20 its control person MAX DEL REAL, and 3) becoming inactive and FTB Suspended rendering it unable 2l to lawfully conduct any business. 22 16. At all times relevant herein, Defendant MAX DELREAL is and was the primary 23 shareholder, director, officer, agent, and control psrson of Defendant DEL REAL INTERNATIONAL, 24 INC. A true and correct copy of the Articles of Incorporation filed on May 25,2017, and the Statement 25 of Information filed on March 6,2020, are attached as Exhibits "2" artd "3" to the Request for Judicial 26 Notice filed concurrently herewith. 27 17. I am informed and believe that Defendant MAX DEL REAL has operated DEL REAL 28 INTERNATIONAL, INC., in an undercapitalized condition for the known debts incurred by the Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for rWrit of Attachment 5 1 corporation to me and the other plaintiffs in the Project Guarantees, and that Defendant MAX DEL 2 REAL diverted, dissipated, and used the funds invested by me and the other plaintifß with DEL REAL a J INTERNATIONAL, INC., for his own personal use and unjust enrichment to my and the other 4 plaintiffs' detriment, such that the corporate veil of DEL REAL INTERNATIONAL, INC., should be 5 pierced with MAX DEL REAL be deemed one and the same as the corporate entity and personally 6 obligated for its debts. 7 18. As a direct and proximate result of the breach by Defendant DEL REAL 8 INTERNATIONAL, INC., I have suffered compensatory damages of $95,000.00, plus accrued pre- 9 judgment interest at the maximum rate of interest allowed by law. 10 The total amount of compensatory damages suffered by me and the other plaintifß as a resultof 11 the defendant's breach is $357,000.00, plus accrued pre-judgment interest at the maximum rate of I2 interest allowed by law. 13 Defendant MAX DEL REAL is the alterego of Defendant DEL REAL INTERNATIONAL, T4 INC., and is personally and jointly liable for the damages incurred by me and the other plaintiffs. 15 19. From the date of filing of the complaint on February 20,2020, to September 3,2020, t6 prejudgment interest at the legal rate of l0% simple interest per annum has accrued on the total principal l7 sum due of $357,000.00 from the date of filing of the complaint on February 20,2020 to the present date 18 in the total amount of S19,268.57 (196 days x daily rate of $97.81). l9 20. The total amount of damages incurred by plaintiffs in this matter, including pre-judgment 20 interest, is 837 6,268.57 . 21 21 . As of September 3 , 2020, the other plaintiffs and I have incurred legal costs reimbursable 22 under Cal. Civ. Proc. Code $1033.5 in the sum of $1,494.40. 23 Grounds for Ex Parte Issuance of Writ of Attachment/Issuance of Temporary Restraininq Order 24 22. If a right to attach order is not issued by this court along with an order for writ of 25 attachment on an Ex Parte basis, the other plaintiffs and I will suffer irreparable harm due to the delay in 26 having to wait for a noticed hearing during which time Defendant MAX DEL REAL can otherwise 27 dissipate, divert, and spend the sums contributed by plaintiffs to DEL REAL INTERNATIONAL, INC., 28 and misappropriated by MAX DEL REAL. Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for Writ of Attachment 6 1 Based on MAX DEL REAL's prior conduct and misappropriation of tlre funds contributed to 2 DEL REAL INTERNATIONÁL, INC., by the other plaintiffs and me, it can be inGned that it is more 3 likely than not that MAX DEL REAL will dissipate, diver! conceal, or otherwise transfer the funds 4 remaining in his possession, or the assets subject to attachment in his cwnership. 5 23. In the event the courl is not inclined to grant ã right to atüach order and order for issuance 6 of writ of attachment on an expîrte basis, I request that the court issue a temporary protective order until 7 a hearing may be heard on thís matter that: I Defendant MAX DEL REAL is restrained from transfening or otherr*ise disposing ofhis property subjecf to attachment as follows: Any and All real properly (including 2080 9 Bidwell Avenue, Chico, CA95926}^ ¡rersonal properfy, equip'nrenÇ motor vehicles, chattel paper, negotiable and otheri4strum,elts, securities, deposit accounts, safe deposit 10 boxes, accounts receivable, general intangibles, propefy subject to pending actions, final money judgements, and personalty in esaæs of decedents. ll t2 I declare under penalty of perjury under the laws of the State of California that the foregoing is l3 true and correcl zraCO t4 DATED: o"tob", 30 . 2a20. Berton Eertagna {Oct 30,2020 16:00 PDT) BERTON N. BERTAGNA l5 t6 t7 l8 t9 20 2t 22 23 24 25 26 27 28 Decl. of Berton N. Bertagna in Support of App. for Right to Atfach Order and Order for lVrit of Attachmen t 7 I PROOF OF SERVICE 2 I am employed in the County of Butte, State of California, I am over the age of 18 years and not a party to the within action; my business address is 1530 Humboldt Road, Suite 3, Chico, California a J 9s928. 4 On this date, I served the foregoing document described as: 5 DECLARATION OF BERTON N. BERTAGNA IN SUPPORT OF APPLICATION FOR RIGHT TO ATTACH ORDER AND ORDER FOR \ilRIT OF ATTACHMENT 6 Said document was served on the interested party or parties in this action by placing a true copy 7 thereof, enclosed in a sealed envelope, and addressed as noted below. 8 Stephen H. Johanson, Esq. Stephan L. Ramazzini, Esq. Johanson & Associates 2656 GuynnAvenue 9 2020 W . El Camino Avenue, Suite 1 15 Chico, CA95973 Sacramento, CA 95833 Telephone : (9 I 6) 203 -927 8 10 Telephone: (91 6) 567-l 000 E-mail : sh arnazzini@ gmail.com Facsimile: (916) 649-t373 for M. Max Del Real] lt E-mail : sjohanson@johanson-assoc.com fCounsel [Counsel for Norman P. Marshall] t2 13 I am familiar with our firm's practice of collection and processing correspondence for mailing. Under that practice it would be deposited with the U.S. Postal Service on that same day with postage t4 thereon fully prepaid at Chico, California in the ordinary course of business. I am aware that on motion of the party served, service is presumed invalid ifthe postal cancellation date or postage meter date is 15 more than one working day after the date of deposit for mailing in this declaration. t6 _x_postage (By Mail) I deposited such envelope in the mail at Chico, California. The envelope was mailed with thereon fully prepaid to the person(s) at the address(es) set forth above. t7 I declare under penalty of perjury under the laws of the State of California that the above is true 18 and correct. I further declare that I made the service set forth herein on the date set forth below. Executed on Novemb.. 2020,at Chico, California. T9 +, 20 By 2T 22 23 24 25 26 27 28 Decl. of Berton N. Bertagna in Support of App. for Right to Attach Order and Order for Writ of Attachment 8