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  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
  • Jeffrey Seaberg vs. Specific Properties LLC06 Unlimited - Breach of Contract/Warranty document preview
						
                                

Preview

E-FILED 1 PETERSON WATTS LAW GROUP, LLP 1/5/2021 12:41 PM RICHARD M. WATTS, JR., ESQ. (SBN 221268) Superior Court of California 2 2267 Lava Ridge Court, Suite 210 County of Fresno Roseville, CA 95661 By: A. Ramos, Deputy 3 Phone: (916) 780-8222 Fax: (916) 780-8775 4 Attorneys for Plaintiff/Cross-Defendant Jeffrey Seaberg, an individual and Cross-Defendant/Cross-Complainant Seaberg Construction, Inc. IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF FRESNO 10 JEFFREY SEABERG, an individual, ) Case No.: 20CECG00012 11 ) Plaintiffs, ) CROSS-COMPLAINT OF SEABERG 12 ) CONSTRUCTION, INC. V. ) 13 ) SPECIFIC PROPERTIES LLC, a California ) 14 limited liability company; JOHN S. FOGGY, an) UNLIMITED CIVIL CASE individual; ROBERT E. ELLIS, an individual; ) STEPHEN D. LONG, an individual; and DOES ) 1 to 50, ) 16 ) Defendants. ) 17 ) ) 18 ) ) 19 SEABERG CONSTRUCTION, INC., ) ) 20 Cross-Complainant, ) ) 21 V. ) ) 22 JOHN S. FOGGY, an individual, and ZOES 1- ) 20, inclusive ) 23 ) Cross-Defendant. ) 24 ) 25 AND ALL RELATED CROSS ACTIONS 26 27 28 CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC. 1 Cross-Complainant Seaberg Construction, Inc. ("SCI") hereby complains against Cross- 2 Defendant John S. Foggy (" Foggy" ) as follows: I. PARTIES 4 1. Cross-Complainant Seaberg Construction, Inc. is, and has at all times relevant herein, 5 been a California corporation with its principal place of business in El Dorado County, California. 6 2. SCI holds a Class-B Contractor's license issued by the California Contractor's State 7 Licensing Board, and maintained such license at times relevant to the matters in this Cross- 8 Complaint (Effective Date for its license is 9/29/2005). 9 3. Cross-Defendant John S. Foggy (" Foggy" ) is a resident of San Francisco County, 10 California. 11 4. Cross-Defendants Zoes 1 through 20, inclusive, are sued pursuant to the provisions of 12 California Code of Civil Procedure section 474. Cross-Complainant is ignorant of the true names 13 and capacities of Cross-Defendants Zoes 1 through 20 and will seek to amend this Cross-Complaint 14 to set forth their true names and capacities when ascertained. Cross-Complainant is informed and 15 believes, and on that basis alleges that each of these fictitiously-named Cross-Defendants is 16 responsible in some manner for the occurrences herein alleged in that Cross-Complainant's damages 17 as herein alleged were proximately caused by such Cross-Defendant. Allegations herein applicable 18 to Foggy or "Cross-Defendants" are also applicable to and shall include Zoes 1 through 20, 19 inclusive, unless specifically averred otherwise. 20 5. In doing the acts herein alleged, unless otherwise stated, each of the 21 fictitiously-named Cross-Defendants acted as the agent, employee, partner, representative or co- 22 conspirator of Cross-Defendants as well as each other, and in so doing, they were acting within the 23 course and scope of such agency, employment, partnership, representation or conspiracy. 24 II. FACTS COMMON TO ALL CLAIMS 25 9. SCI is owned and operated by Jeffrey A. Seaberg. 26 10. Mr. Seaberg has provided construction services for Foggy on his various projects for 27 more than 20 years, including, but not limited to project management and acting as a general 28 contractor. 2 CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC. I 11. In or about June 2014, Foggy retained SCI at a monthly fee of $ 12,500 to act as his 2 personal general contractor for projects owned or operated by Foggy. Under the agreement between 3 Foggy and SCI, SCI would act as his personal general contractor working on any project assigned to 4 SCI by Seaberg (the "Contract'. SCI would bill all such projects to Foggy*s entities, and Foggy 5 would pay SCI for project costs only, without markup, upon invoice. SCI maintained in a Foggy 6 owned project located in Rocklin, CA, and Foggy maintained an office provided by Foggy in 7 Foggy's Rocklin 65 office complex. 8 11. In late December 2015, Foggy requested SCI accept an advance of $ 304,646 toward 9 projects SCI would provide services to Foggy for various yet to be identified projects, and on or 10 about February I, 2016, Foggy unilaterally advanced an additional $ 1,030,000 for the same purpose 11 (the "Construction Advance" ). Under Foggy's orders, SCI would provide an invoice and bill against 12 the construction advance for Foggy assigned work until it was exhausted. 13 12. The Construction Advance was memorialized in a written Promissory Note dated 14 January 29, 2016 (the "Promissory Note"). The Promissory Note was a sham instituted by Foggy, 15 but itdid reflect the parties'perational procedures under the Contract in that SCI performed work 16 for Foggy, as assigned, and SCI was paid by Foggy after invoice. SCI neither requested the advance, 17 nor the execution of the Promissory Note, and is informed, believes, and thereon alleges, that the 18 purpose of the Construction Advance was for Foggy to take deductions for work that had yet to be 19 completed in his 2015 Tax returns. 20 13. In early 2016, Foggy requested SCI provide services at 2011 Fresno Street, Fresno, 21 CA, a project owned by Foggy's trust with partners. From early 2016 through October 25, 2017 22 Foggy assigned projects (approximately 30 assignments). During this period, Foggy also made 23 payments towards selected invoices, but by October 25, 2017, the total amount of the Construction 24 Advance had been exhausted. As of October 25, 2017, Foggy owed SCI $ 31,925.98. 25 14. The arrangement between Foggy and SCI continued from October 2017 through mid- 26 2019 with numerous projects and assignments from Foggy to SCI. By December 25, 2018, SCI was 27 owed the sum of $ 497,132.16 for outstanding invoices dating back to November 2017. 28 3 CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC. I 15. On or about December 29, 2018, Foggy provided four checks totaling $ 510,407.20 to 2 SCI, overpaying the outstanding invoices by $ 13,275, creating a credit for that amount. 3 16. From January 25, 2019, through May 21, 2019, Foggy directed SCI to work on 4 numerous additional assignments owned or operated by Foggy. SCI provided the following invoices 5 (the "Unpaid Invoices" ) for such work: ~ SCI Invoice ¹12519 dated January 25, 2019 - $ 95,269.00; ~ SCI Invoice ¹2250 dated February 25, 2019 - $ 153,556.76; ~ SCI Invoice ¹5719 dated May 7, 2019 — $ 83,368.61; ~ SCI Invoice ¹52919 dated May 29, 2019 - $ 1,487.91; 10 ~ SCI Invoice ¹6119 dated May 29, 2019 - $ 8,522.73; and ~ SCI Invoice ¹SP52919 dated May 29, 2019 - $ 20,215.00 12 15. In or about May 2019, Seaberg, who is a co-member of Specific Properties, LLC 13 ("SPLLC") with Foggy, notified Foggy that he believed Foggy was breaching his fiduciary duty as 14 the manager, among other things, and ultimately filed the underlying lawsuit. Foggy has not made 15 any payments on the Unpaid invoices, despite numerous demands, and the total of $ 349,145.42 16 (after deducting the $ 13,275 credit) is now owed (the "Default Amount" ). 17 16. The Default Amount set forth in the Unpaid invoices is almost entirely 18 reimbursement owed to SCI for costs incurred by SCI on behalf of Foggy, and the Foggy owned 19 projects. FIRST CAUSE OF ACTION 20 Breach of Contract (Against Foggy and Zoes 1-20) 21 22 17. Cross-Complainant realleges and incorporates herein by reference each and every 23 allegation contained in paragraphs I through 16 above. 24 18. From January 2019 through May 2019, Foggy ordered SCI to perform services for 25 him at his various projects, and pursuant to the oral agreement between the Foggy and SCI, Foggy 26 would reimburse SCI for all expenses incurred by SCI in performing the work for Foggy, and the 27 Foggy owned projects. SCI was paid $ 12,500 per month for its services, reimbursed for all costs and 28 materials, would not otherwise markup its project costs, and Foggy promised that further 4 CROSS-COMPLAINT OF SKABERG CONSTRUCTION, INC. I compensation would be paid to SCI, and/or Seaberg, in the form of interests in other existing and 2 future projects. 3 19. SCI provided the Unpaid Invoices to Foggy, but Foggy has breached the Contract by 4 failing to pay any amount owed. 5 20. SCI has performed all terms and conditions of the Contract other than those excused 6 by Foggy's breach. 7 21. As a result of Foggy's breach, SCI has been damaged in the amount of not less than 8 $ 349,145.42. SECOND CAUSE OF ACTION Open Book Account 10 (Against Foggy and Zoes 1-20) 11 22. Cross-Complainant realleges and incorporates herein by reference each and every 12 allegation contained in paragraphs 1 through 21 above. 13 23. Within the last two years, in Rocklin, California, SCI is informed and believes, and 14 on that basis alleges Foggy and Zoes Ithrough 20, became indebted to SCI on an open book account 15 and/or account stated for money due in the principal sum of $ 349,145.42 for the services provided 16 by SCI at Foggy's special instance and request, for which Foggy agreed to pay the above sum. 17 23. Although demand therefore has been made, the entire sum has not been paid and 18 there is now due, owing and unpaid from Foggy to SCI the sum of 348,145.42. 19 THIRD CAUSE OF ACTION Unjust Enrichment 20 (Against Foggy and Zoes 1-20) 21 24. Cross-Complainant realleges and incorporates herein by reference each and every 22 allegation contained in paragraphs I through 23 above. 23 25. Within the past two years, due to the conduct alleged herein, SCI furnished services, 24 material, and/or equipment to Cross-Defendants, as set forth above. The services, materials, and 25 equipment furnished to the projects at the demand of Foggy caused to be provided to Cross- 26 Defendants were and are of a reasonable value, according to proof, but not less than $ 349,145.42, 27 together with interest at the maximum rate allowed by law. No amount has been paid against this 28 amount, and there is now due, owing, and unpaid to Cross-Complainant from said Cross-Defendants 5 CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC. the sum of $ 349,145.42, together within interest at the maximum rate allowed by law, and reasonable attorney's fees, or, in the alternative, attorney's fees under Civil Code Section 1717.5. 26. Given the conduct of Cross-Defendants alleged above, Cross-Defendants have been unjustly enriched at Cross-Complainant's expense, and Cross-Defendants have and owe a legal and/or equitable duty and obligation to provide reimbursement to Cross-Complainant in the sum of at least $ 349,145.42, together with interest at the maximum rate allowed by law, costs, and attorney's fees which are the damages suffered as a direct and proximate result of Cross-Defendants'otlduct. THIRD CAUSE OF ACTION Quantum Meruit 10 (Against Foggy and Zoes 1-20) 27. Cross-Complainant realleges and incorporates herein by reference each and every 12 allegation contained in paragraphs 1 through 26 above. 13 28. Within the past two years, Cross-Complainant supplied services, materials, and/or 14 equipment to Cross-Defendants as set forth above. Cross-Defendants, and each of them, knew these 15 services, materials, and or/ equipment were being provided, and Cross-Defendants, and each of them 16 have enjoyed the services, materials and/or equipment provided by Cross-Defendants. Cross- 17 Defendants, and each of them, became indebted to Cross-Complainant in the sum of $ 349,145.42. 18 Said sums were and now are the reasonable value of the materials and equipment furnished by 19 Cross-Complainant that remain unpaid. 20 29. There is now due, owing, and unpaid to Cross-Complainant the sum of at least 21 $ 349,145.42, together with interest at the maximum rate allowed by law. 22 23 24 25 26 27 6 CROSS-COMPLAINT OF SKABERG CONSTRUCTION, INC. 1 PRAYER FOR RELIEF 2 WHEREFORE, Cross-Complainant prays judgment against Cross-Defendants as follows: 3 1. For compensatory, general, and special damages in an amount to be proven at trial in an 4 amount of at least $ 349,145.42; 5 2. For prejudgment interest; 6 3. For costs authorized by statute; and 7 4. For such other and further relief as the court may deem just and proper. 8 DATED: January 5, 2021 PETERSON WATTS LAW GROUP, LLP 9 10 RICHARD M. WATTS, JR. 12 Attorneys for Plaintiff/Cross-Defendant Jeffrey Seaberg 13 and Cross-Defendant/Cross-Complainant Seaberg Construction, Inc 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC. CASE TITLE: JefPey Seaberg v. Specific Properties, et al. COURT/CASE NO: Fresno County Superior Court, Case No. 20CECG00012 PROOF OF SERVICE I am employed in the County of Placer; my business address is 2267 Lava Ridge Court, Suite 210, Roseville, California. I am over the age of 18 years and not a party to the foregoing action. On January 5, 2021 I served the following documents: CROSS-COMPLAINT OF SEABERG CONSTRUCTION, INC, by mail on the following party(ies) in said action, in accordance with Code of Civil Procedure II1013a(3), by placing a true copy thereof enclosed in a sealed envelope in a designated area for outgoing mail, addressed as set forth below. At Peterson Watts Law Group, LLP, mail placed in that designated area is given the correct amount of postage 10 and is deposited that same day, in the ordinary course of business, in a United States mailbox in the City of Roseville, California. by overnight delivery on the following party(ies) in said action, in accordance with 12 Code of Civil Procedure II1013(c), by placing a true copy thereof enclosed in a sealed envelope, with delivery fees paid or provided for, and delivering that envelope to an 13 overnight express service carrier as defined in Code of Civil Procedure II 1013(c). 14 courtesy copy by electronic service [Code Civ. Proc 1010.6] by electronically mailing a true and correct copy of the documents listed above through electronic mail to 15 the e-mail address(es) set forth below per agreement in accordance with Code of Civil Procedure section 1010.16. 16 Don J. Pool 17 FENNEMORE DOWLING AARON 8080 N. Palm Ave., Third Floor 18 Fresno, CA 93711 dpool@fennemorelaw.corn 19 Attorney for Defendant, Specific Properties, LLC. 20 Patrick J. Gorman 21 WILD, CARTER, & TIPTON 246 W. Shaw Ave. 22 Fresno, CA 93704 PGorman@wctlaw. corn 23 Attorney for Defendants, John S. Foggy, Robert D, Ellis, and Stephen D. Long 24 25 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on January 5, 2021, at Roseville, California. 26 27 TARA PARIS 28 PROOF OF SERVICE