Preview
Gregg S. Garrison (SBN 141653)
PILEB
SAV MATEO COUNTY
GARRISON LAW CORPORATION
161 Cortez Avenue —6
Half Moon Bay, CA 94019 MAY 201
Telephone: (650) 726-1111
C ,e r
Herman I. Kalfen (SBN 160592) Y PEPUTYCLERK
KALFEN LAW CORPORATION
1 Embarcadero Center, Suite 500
San Francisco, CA 94111
Telephone: (415) 315-1710
ATTORNEYS FOR Plaintiffs MICHAELCHANG, an individual and DBA Sunrise
Cleaners
SUPERIOR COURT OF THE STATE OF CALIFORNIA
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COUNTY OF SAN MATEO
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a 13 MICHAELCHANG, an individual,
Case No. CIV 489065
Plaintiff,
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H~Q) Ig 15 vs.
DECLARATIONOF ATTORNEY GREGG S.
GARRISON IN SUPPORT OF RESPONSE
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TO ORDER TO SHOW CAUSE (OSC) AND
17 POINTS & AUTHORITIES IN SUPPORT BY
FAIRER'S INSURANCE COMPANY, INC., MICHAELCHANG
18 FAIRER'S GROUP, INC., FARMER'
INSURANCE EXCHANGE AND TRUCK
19 Date: June 3, 2014
INSURANCE EXCHANGE, reciprocal inter-
T11Ile: 9:00 a.m.
20 insurance exchanges; Does 1 to 99, Inclusive,
Location: 7
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Defendants.
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BY FAX
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I, Gregg S. Garrison, hereby declare under penalty of perjury that:
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l. I am an attorney duly licensed to practice law in the State of California, the
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District of Columbia, the State of New York, State of Texas, and the
27 United States Bankruptcy Court of the Northern District of California and I
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-1-
Declaration of Gregg S. Gamson
'E
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am an attorney for Roxanne Chang and Hea Ja Yang herein; and,
2. I, along with Herman I. Kalfen, Kalfen Law Corporation were attorneys of
record in this matter for Michael Chang since 2008 until termination on or
about April 22, 2014; and,
3. Attached hereto iis Exhibit A is a true and correct copy of the Certified
Court Reporter's Transcript of the said January 27, 2014 Settlement
Conference Hearing; and,
4. Attached hereto as Exhibit B is a true and correct copy of Pre Trial Order
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No. 29 file endorsed February 5, 2014; and,
5. Attached hereto as Exhibit C isa true and correct copy of the final draft
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Settlement Agreement; and,
a 13
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6. Attached hereto as Exhibit D is a true and correct copy of the April 16,
g15
~ 2014 email from Brian Kelleher; and,
16 7. Attached hereto as Exhibit E is a true and correct copy of Pre Trial Order
17 file endorsed
No. 30 April 15, 2014; and,
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8. Attached hereto as Exhibit F is a true and correct copy of the April 23,
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2014 email from Brian Kelleher; and,
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9. Attached hereto as Exhibit G is a true and correct copy of the January 27,
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22 2014
(
Reporter's Transcript of Proceedings before the Honorable Steven L.
23 Dylina, Judge Department 7; and,
24 10. Attached hereto as Exhibit H is a true and correct copy of the April 25,
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2014 email from Brian Kelleher; and,
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11. Attached hereto as Exhibit I is a true and correct copy of the Unpaid
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Expenses Owed to Garrison Law Corporation; and,
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-2-
Declaration of Gregg S. Garrison
12. Attached hereto as Exhibit J is a true and correct copy of the Unpaid Fees
Owed to Garrison Law Corporation; and,
13. Attached hereto as Exhibit K is a true and correct copy of the Notice of
Real & Equitable Lien on Any Settlement or Judgment in this Action file
endorsed Aril 23, 2014 and the Notice of Real & Equitable Lien on Any
Settlement or Judgment in this Action file endorsed April 28, 2014; and,
14. Attached hereto as Exhibit L is a true and correct copy of the May 2, 2014
email from Brian Kelleher; and,
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15. Attached hereto as Exhibit M is a true and correct copy of Garrison Law
Corporation Invoice 4080 and 4097; and,
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16. Attached hereto as Exhibit N isa true and correct copy of William Nagle
Invoice 12505; and
17. I have submitted Garrison Law Corporation Invoices to Farmers for
payment (as summarized in Exhibits I and J) and Farmers has refused to
17 those invoices; and
pay
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18. I confirm that Garrison Law Corporation is owed $ 259,743.34 in fees and
19
expenses relating to the Kartal v Chang and Chang v. Farmers matters; and,
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19. The foregoing is true or I believe it to betrue.
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I declare under penalty of perjury under the laws of the State of California that
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the foregoing is true and correct.
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Executed on May 6, 2014, at Santa Barbara Countv. California.
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GARRISON LAW CORPORATION
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Declaration of Gregg S.Garrison
BY:
Gregg K.'6arrison, JD, REA, CEP
Attorney for ROXANNE CHANG, an individual; HEA JA
YANG, an individual
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Declaration of Gregg S.Garrison
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EXHIBIT A
P 9 P % P
I 4 h 4 I
IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SAN MATEO
--oOo--
4 BILAL KARTAL,
Plaintiff, )
0
)
vs. ) CASE NO. CIV 458146
)
7 MICHAEL CHANG, )
)
Defendant. )
)
10 REPORTER'S TRANSCRIPT OF PROCEEDINGS
BEFORE THE HONORABLE STEVEN L. DYLINA, JUDGE
DEPARTMENT 7
12
13 JANUARY 27@ 2014
14
15
A P P E A R A N C E S:
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SPECIAL MASTER/MEDIATOR: WILLIAM L. NAGLE, ESQ.
17 345 Lorton Avenue
Burlingame, CA 94010
18
FOR BILAL KARTAL: JOHN D. NELSON, ESQ.
19 444 Peninsula Avenue, ¹3
San Mateo, CA 94401
20
FOR MICHAEL'HANG: GREGG GARRISON, ESQ ~
21 Garrison Law Corporation
161 Cortez Avenue
22 Half Moon Bay, CA 94019
23 FOR MICHAEL CHANG, ROXANNE CHANG, HEA JA YANG:
HERMAN I. KALFEN, ESQ.
24 1 Embarcadero Center, Ste. 500
San Francisco, CA 94111
25
26
///
///
CONT'D APPEARANCES
2
FOR GRACE YAMAGUCHI, SUNRISE CLEANERS, INC., GRACE & KUNEO
3 YAMAGUCHI: PROBAL G. YOUNG, ESQ.
2033 n. Main Street, Ste ~ 800
4 Walnut Creek, CA 94596
FOR SUNRISE CLEANERS & GRACE YAMAGUCHI:
NOEL EDLIN, ESQ.
Bassi, Edlin, Huie & Blum, LLP
351 California Street, ste. 200
San Francisco, CA 94104
FOR FARMERS INSURANCE EXCHANGE AND TRUCK INSURANCE
EXCHANGE: ARTHUR SCHWARTZ, ESQ.
Gordon & Rees
275 Battery
10 San Francisco, CA 94111
FOR FARMERS INSURANCE COMPANY:
GREGORY B. SHER, ESQ.
12 Woolls & Peer
Blvd'
1 Wilshire Blvd., 22nd Floor
13 Los Angeles, CA 90017
FOR CHRISTOPHER CHANG:
JON-ERIK MANGUS
15 Wood, Smith, Henning & Berman, LLP
10960 Wilshire , 18th Floor
16 Los Angeles, CA 90024
17
18
REPORTER: RHONDA GUESS
19 Of f icial Court Reporter
CSR No ~ 10593
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1 MON DAY, JANUARY 2 7, 2 01 4 AFTERNOON SESSION
P R 0 C E E D I N G S
--o0o--
THE COURT: All right. Thank you very much,
7 everyone. We have two matters that we'e assisting
8 Mr. Nagle on. Mr. Nagle, the first matter you wish us to
9 call was?
10 MR. NAGLE: Chang versus Farmers, Your Honor.
THE COURT: All right. So this is our action
12 Number: CIV 489065, Michael Chang versus Farmers
13 Insurance Company. And Mr. Nagle, you were the special
14 master in this matter?
15 MR. NAGLE: Correct, Your Honor, if we have
16 appearances, please?
17 THE COURT: Absolutely.
18 MR. SHER: Greg Sher appearing for Farmers
19 Insurance Exchange and Trucking Insurance Exchange, Your
20 Honor.
21 THE COURT: Thank you, Mr. Sher.
22 MR. GARRISON: Gregg Garrison for Michael Chang.
23 THE COURT: Mr. Garrison. Thank you.
24 MR. SHER: Your Honor, we'e been working hard
25 on this case. This is set on the trial calendar today. I
26 have spoken with presiding Judge Robert Foiles.
1 Judge Foiles has recommended that I request that you on
2 the record continue this formally for trial to next
3 Monday; however, we think we have a settlement worked out.
4 There are a couple of carriers that need to get —— agree
5 on some language, cannot consent today. I would like to,
6 Changs are here, I would like to recite some of the basic
7 terms so they can consent to that portion of the
8 settlement, assuming we complete it before the end of the
9 week, so they won't have to come back up here.
10 THE COURT: All right. That's fine. We'l be
11 glad to do that assuming -- now, what we'l do is we'l
12 continue the trial date, Mr. Garrison, until February 3rd,
13 9:00 o'lock, once again, for trial call in front of
14 Judge Foiles. And I assume, Mr. Nagle, you will continue
15 to work with the parties?
16 MR. NAGLE: Yes, Your Honor.
17 THE COURT: So your clients Mr. and Mrs. Chang
18 are here; is that correct?
19 MR. GARRISON: Michael Chang is here, yes,
20 Your Honor.
21 THE COURT: Why don't we have Mr. Chang come
22 forward and we'l swear him in in terms of the terms of
23 the settlement. And Mr. Garrison, you certainly can come
24 forward as well.
25 Mr. Chang, thank you very much, and we
26 appreciate your coming and welcome. So what we'e going
1 to do is we'e going to set forth the terms of the
2 settlement, and we want you to make sure you understand
3 the terms of the settlement, and that you will agree to
4 those terms, okay?
THE PETITIONER: Yes.
THE COURT: All right. So why don't we set
7 forth the terms of your
MR. NAGLE: Your Honor, contingent on the
9 agreement of Great American Farmers Fund in dealing with,
10 and Farmers in dealing with a judgment lien that Great
11 American has, assuming we can come to a meeting of the
12 minds of that for the end of the week. The bad faith case
13 settle for a total of a million dollars that will be paid
14 by Farmers to plaintiffs. And that will result in a
15 dismissal with prejudice and a release and a 1542 clause
16 included.
17 THE COURT: And these parties pay their own fees
18 and costs?
19 MR. NAGLE: Fees and costs be paid by each
20 party.
21 Anything else, Gregg, as far as the settlement?
22 MR. GARRISON: Those are the basic terms.
23 THE COURT: All right. So why don't we swear
24 Mr. Chang in at this time, if we could, Rocket. Would you
25 raise your right hand, please, sir.
26 THE CLERK: Do you solemnly swear -- did you
1 want them both, Your Honor?
THE COURT: Do we need Mrs. Chang to confirm the
3 settlement?
MR. GARRISON: No, Your Honor, just Mr ~ Chang.
THE COURT: Okay.
MICHAEL CHANG
7 CALLED AS A WITNESS, HAVING BEEN FIRST DULY SWORN, WAS
8 EXAMINED AND TESTIFIED AS FOLLOWS:
THE PETITIONER: Yes.
10 THE CLERK: Thank you.
THE COURT: Would you please voir dire your
12 client to make sure he understands the settlement, and
13 that if he has any questions, we'l be glad to answer
14 those.
15 THE REPORTER: Do you want it on the record,
16 Your Honor?
17 THE COURT: Sorry. Mr. Garrison, we just need
18 to ask the questions loudly enough so it will transmit to
19 Rhonda, our court reporter, and then. we'l get Mr. Chang
20 to answer accordingly.
21 BY MR. GARRISON:
22 Q. Mr. Chang, do you understand that the terms of
23 the settlement is that Farmers will pay you $ 1 million?
Yes
25 MR. GARRISON: Thank you, Mr. Chang.
26 THE COURT: Do you have any questions about the
1 terms of the settlement that Mr. Nagle put on the record
2 today, Mr. Chang?
THE PETITIONER: No.
THE COURT: Okay. And you agree to the
5 settlement?
THE PETITIONER:
Yes'HE
COURT: All right. So we have Mr. Chang's
8 confirmation as to the settlement. We'l continue the
9 matter until Monday of next week with directions that
10 everybody continue to cooperate with Mr. Nagle so we can
11 get the language of the released documents essentially
12 complete. But Mr. Chang does not have to return next
13 Monday?
MR. NAGLE: That is correct.
15 THE COURT: You'd like me to order that,
16 wouldn't you, Mr. Nagle?
17 MR. NAGLE: Well, we have one other matter that
18 we need to get on the record, but, yes, once we get his
19 consent on both cases, he will not have to return.
20 THE COURT: All right. So Mr. Chang, don't go
21 away, we'e not quite done yet, okay?
22 THE PETITIONER: Okay.
23 MR. NAGLE: Your Honor, again, before we leave
24 the Changs versus Farmers that is contingent upon working
25 out this judgment lien Great American has, but I think the
26 parties are well on their way to accomplishing that.
The next case, Your Honor, is Kartal versus
2 Chang, CIV 458146.
THE COURT: All right. Thank you very much,
4 Mr. Nagle, and have you were special master in that matter
5 as well?
MR. NAGLE: Yes, Your Honor.
THE COURT: And can I ask counsel to state their
8 appearances on the record on that case?
MR. NELSON: John Nelson appearing for
10 Plaintiff, Defendant and Cross —Defendant Bilal Kartal.
THE COURT: All right. Thank you, Mr. Nelson.
12 And Mr. Kartal, good afternoon.
13 THE PETITIONER: Good afternoon.
14 THE COURT: That's it?
15 MR. KARTAL: My name is Bilal Kartal.
THE COURT: Thank you, Mr. Kartal.
17 MR. GARRISON: Gregg Garrison appearing on
18 behalf of Michael and Roxanne Chang.
19 THE COURT: Thank you, Mr. Garrison.
20 MR. MAGNUS: Good afternoon, Your Honor,
21 Jon-Erik Magnus for Cross —Defendant Christopher Chang.
22 THE COURT: And good afternoon, sir, how are you
23 today?
24 MR. MAGNUS: Good, thank you, sir.
25 MR. EDLIN: Good afternoon, Your Honor, Noel
26 Edlin for Sunrise Cleaners, Inc.
THE COURT: Thank you very much.
MR. YOUNG: Good afternoon, Your Honor,
3 Probal Young for the Yamaguchi Trust'.
THE COURT: Thank you, sir.
MR. KALFEN: Good afternoon, Your Honor,
6 Herman Kalfen from Kalfen Law Corporation for Michael
7 Chang, Roxanne Chang, Hea Ja Yang.
THE COURT: All right. Thank you, Mr. Kalfen.
MR. SCHWARTZ: And, yes, Your Honor, Arthur
10 Schwartz. I'm not counsel of record. I'm counsel for
11 Farmers Insurance Exchange and Truck Insurance Exchange.
12 THE COURT: And Mr. Schwartz, thank you very
13 much. We appreciate you being here. Anyone else
14 appearing on this case? All right. So, Mr. Nagle, why
15 don't lead me and please tell me what we'e doing with
16 this matter?
17 MR. NAGLE: Thank you, Your Honor. We have
18 we have worked for a long time on this case, and we were
19 present before Christmas. I thought we had a settlement
20 at that time. I'm not sure if it was placed on the
21 record, and that settlement has now been changed slightly,
22 but for a total of $ 830,500, this case will be settled
23 with the following contributions: 287, 500 will be coming
24 from the Farmers insured, $ 108,000 will be coming from the
25 State Farmers insured.
26 THE COURT:, I would ask you just to slow down
1 and make sure Rhonda gets the
MR. NAGLE: Am I going too fast? I always loved
3 it when I used to be in the middle of my final argument
4 and some court reporter would say please slow down. The
5 jury missed all my brilliant comments.
THE COURT: But I just want to make sure
7 everyone understands the contributions, the numbers so
8 there's no question.
MR. NAGLE: Absolutely. The 285,000 will be
10 paid on behalf of Grace Yamaguchi, Sunrise Cleaners, Inc.
11 and Grace and Kunio Yamaguchi Trust and the various
12 Yamaguchi interests on behalf of Farmers fund making that
13 payment.
14 In addition -- I'm sorry, that's Michael Chang
15 -- Christopher Chang. I'm sorry. 285,000 from
16 Christopher Chang, 150,000 from the Yamaguchi interest
17 that I just recited.
18 That should be a total of 830,500. Of that
19 money, $ 400,000 will go to Bilal Kartal. And the
20 remainder of the money will go to Michael Chang.
21 THE COURT: And once again, I -- I hope everyone
22 has done the math. I don't have the calculator on the
23 bench, all add up, so if anybody has any questions? There
24 will be a test in five minutes.
25 MR. NAGLE: And then, Your Honor, this will
26 be -- this will include releases with 1542's, these will
1 be -- I'm losing it so
THE COURT: General release with Civil Code
3 Section 1542 waiver.
MR. NAGLE: Yes.
THE COURT: And Mr. Kartal and Mr. Chang, what
6 that means is that release wouldn't affect any claims
7 known or unknown to resolve the entire dispute.
MR. NAGLE: All right and then I think Mr.
9 Nelson has some other terms.
10 MR. NELSON: Yes, Your Honor, if I might, there
11 are a couple of special terms that go into this thing.
12 THE COURT: All right, Mr. Nelson.
13 MR. NELSON: Number One is the characterization
14 and the monies that are coming to Mrs Kartal. Out of the
15 400,000, 100,000 are for release of claims for breach of
16 the contractual covenant of quiet enjoyment. 50,000 for
17 release of claims from loss of good will to his business.
18 Release of claims for lost profits, 50,000, and
19 as a compromise for release of claims for general damages
20 for emotional distress during the seven years of making of
21 a nuisance, 200,000.
22 That takes care of the tax aspects of it. As an
23 additional consideration, Michael Chang agrees that
24 Bilal Kartal may remain in possession of the restaurant
25 premises for seven months after receipt of the above
26 monies in order to transition to a new location for his
1 business.
Basically, under the same terms and conditions,
3 he's there now, set to pay the rent on the first of every
4 months If he doesn't pay on the first of every month, he
5 has to pay the balance of the seven months within ten
6 days. And if he does not move out after the seven months,
7 he can -- he will -- he is consenting at this time to a
8 stipulation for judgment of possession. He will receive
9 his rent deposit back as long as he leaves the place in
10 broom-clean condition.
THE COURT: And obviously, with this settlement,
12 the Court would also add on additional term and condition
13 that the Court would continue to assume jurisdiction
14 pursuant to Code of Civil Procedure Section 664.6 to
15 enforce the terms of the settlement as we would in the
16 other matter with Mr. Chang as well.
17 MR. NAGLE: Thank you, Your Honor. I was going
18 to ask for that reservation. Also we will put on a time
19 table in the form of an order as far as making sure that
20 we get closing papers, the release done properly. There
21 are a couple of parties that are not here presently. We
22 excused them because they'e been here over and over
23 again. We will make sure that they consent to the
24 settlement, and make that a written consent a part of the
25 record. I think that basically covers
26 THE COURT: I assume, once again, each party is
13
1 to bear their own fees and costs'P
MR. NAGLE: Yes, Your Honor.
MR. NELSON: Exactly, Your Honor. If I didn'
4 mention it before, the rent will continue at $ 1,500 per
5 month for the seven-month period.
THE COURT: And in terms of the surrender of the
7 possession that Mr. Kartal is going to agree to or has
8 agreed to pursuant to the settlement, ex parte application
9 could simply be made to this court if he has not vacated
10 the premises within the time stated.
MR. NELSON: Certainly, Your Honor.
12 THE COURT: All right.
13 MR. KALFEN: And if I may add, it's also
14 contingent on a side agreement to be executed with
15 Fireman's Fund Insurance.
16 THE COURT: And may I ask everyone, please
17 identify yourself for Rhonda so we have a records
18 MR. KALFEN: That was Herman Kalfen.
19 THE COURT: I thought, Mr. Kalfen, I knew it was
20 you, but I just needed you to make that has a record.
21 And sir?
22 MR. MAGNUS: Your Honor, Jon-Erik Magnus for
23 Mr. Chang, we discussed with Special Master Nagle just a
24 separate agreement between Michael Chang,
25 Christopher Chang addressing issues such as the one
26 Mr. Kalfen brought
Preview
Gregg S. Garrison (SBN 141653) PILEB SAV MATEO COUNTY GARRISON LAW CORPORATION 161 Cortez Avenue —6 Half Moon Bay, CA 94019 MAY 201 Telephone: (650) 726-1111 C ,e r Herman I. Kalfen (SBN 160592) Y PEPUTYCLERK KALFEN LAW CORPORATION 1 Embarcadero Center, Suite 500 San Francisco, CA 94111 Telephone: (415) 315-1710 ATTORNEYS FOR Plaintiffs MICHAELCHANG, an individual and DBA Sunrise Cleaners SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 COUNTY OF SAN MATEO 12 a 13 MICHAELCHANG, an individual, Case No. CIV 489065 Plaintiff, gA H~Q) Ig 15 vs. DECLARATIONOF ATTORNEY GREGG S. GARRISON IN SUPPORT OF RESPONSE 16 TO ORDER TO SHOW CAUSE (OSC) AND 17 POINTS & AUTHORITIES IN SUPPORT BY FAIRER'S INSURANCE COMPANY, INC., MICHAELCHANG 18 FAIRER'S GROUP, INC., FARMER' INSURANCE EXCHANGE AND TRUCK 19 Date: June 3, 2014 INSURANCE EXCHANGE, reciprocal inter- T11Ile: 9:00 a.m. 20 insurance exchanges; Does 1 to 99, Inclusive, Location: 7 21 Defendants. 22 BY FAX 23 I, Gregg S. Garrison, hereby declare under penalty of perjury that: 24 l. I am an attorney duly licensed to practice law in the State of California, the 25 26 District of Columbia, the State of New York, State of Texas, and the 27 United States Bankruptcy Court of the Northern District of California and I 28 -1- Declaration of Gregg S. Gamson 'E 8 J am an attorney for Roxanne Chang and Hea Ja Yang herein; and, 2. I, along with Herman I. Kalfen, Kalfen Law Corporation were attorneys of record in this matter for Michael Chang since 2008 until termination on or about April 22, 2014; and, 3. Attached hereto iis Exhibit A is a true and correct copy of the Certified Court Reporter's Transcript of the said January 27, 2014 Settlement Conference Hearing; and, 4. Attached hereto as Exhibit B is a true and correct copy of Pre Trial Order 10 No. 29 file endorsed February 5, 2014; and, 5. Attached hereto as Exhibit C isa true and correct copy of the final draft 12 Settlement Agreement; and, a 13 „N 6. Attached hereto as Exhibit D is a true and correct copy of the April 16, g15 ~ 2014 email from Brian Kelleher; and, 16 7. Attached hereto as Exhibit E is a true and correct copy of Pre Trial Order 17 file endorsed No. 30 April 15, 2014; and, 18 8. Attached hereto as Exhibit F is a true and correct copy of the April 23, 19 2014 email from Brian Kelleher; and, 20 9. Attached hereto as Exhibit G is a true and correct copy of the January 27, 21 22 2014 ( Reporter's Transcript of Proceedings before the Honorable Steven L. 23 Dylina, Judge Department 7; and, 24 10. Attached hereto as Exhibit H is a true and correct copy of the April 25, 25 2014 email from Brian Kelleher; and, 26 11. Attached hereto as Exhibit I is a true and correct copy of the Unpaid 27 Expenses Owed to Garrison Law Corporation; and, 28 -2- Declaration of Gregg S. Garrison 12. Attached hereto as Exhibit J is a true and correct copy of the Unpaid Fees Owed to Garrison Law Corporation; and, 13. Attached hereto as Exhibit K is a true and correct copy of the Notice of Real & Equitable Lien on Any Settlement or Judgment in this Action file endorsed Aril 23, 2014 and the Notice of Real & Equitable Lien on Any Settlement or Judgment in this Action file endorsed April 28, 2014; and, 14. Attached hereto as Exhibit L is a true and correct copy of the May 2, 2014 email from Brian Kelleher; and, 10 15. Attached hereto as Exhibit M is a true and correct copy of Garrison Law Corporation Invoice 4080 and 4097; and, 12 16. Attached hereto as Exhibit N isa true and correct copy of William Nagle Invoice 12505; and 17. I have submitted Garrison Law Corporation Invoices to Farmers for payment (as summarized in Exhibits I and J) and Farmers has refused to 17 those invoices; and pay 18 18. I confirm that Garrison Law Corporation is owed $ 259,743.34 in fees and 19 expenses relating to the Kartal v Chang and Chang v. Farmers matters; and, 20 19. The foregoing is true or I believe it to betrue. 21 22 I declare under penalty of perjury under the laws of the State of California that 23 the foregoing is true and correct. 24 25 Executed on May 6, 2014, at Santa Barbara Countv. California. 26 27 GARRISON LAW CORPORATION 28 -3- Declaration of Gregg S.Garrison BY: Gregg K.'6arrison, JD, REA, CEP Attorney for ROXANNE CHANG, an individual; HEA JA YANG, an individual 10 12 13 ]/=14 gA )rl .JQ jQ 16 17 18 19 20 21 22 23 24 25 26 27 28 -4- Declaration of Gregg S.Garrison 10 11 12 13 Ã 14 jg 15 c',Q~ x 16 Q 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT A P 9 P % P I 4 h 4 I IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN MATEO --oOo-- 4 BILAL KARTAL, Plaintiff, ) 0 ) vs. ) CASE NO. CIV 458146 ) 7 MICHAEL CHANG, ) ) Defendant. ) ) 10 REPORTER'S TRANSCRIPT OF PROCEEDINGS BEFORE THE HONORABLE STEVEN L. DYLINA, JUDGE DEPARTMENT 7 12 13 JANUARY 27@ 2014 14 15 A P P E A R A N C E S: 16 SPECIAL MASTER/MEDIATOR: WILLIAM L. NAGLE, ESQ. 17 345 Lorton Avenue Burlingame, CA 94010 18 FOR BILAL KARTAL: JOHN D. NELSON, ESQ. 19 444 Peninsula Avenue, ¹3 San Mateo, CA 94401 20 FOR MICHAEL'HANG: GREGG GARRISON, ESQ ~ 21 Garrison Law Corporation 161 Cortez Avenue 22 Half Moon Bay, CA 94019 23 FOR MICHAEL CHANG, ROXANNE CHANG, HEA JA YANG: HERMAN I. KALFEN, ESQ. 24 1 Embarcadero Center, Ste. 500 San Francisco, CA 94111 25 26 /// /// CONT'D APPEARANCES 2 FOR GRACE YAMAGUCHI, SUNRISE CLEANERS, INC., GRACE & KUNEO 3 YAMAGUCHI: PROBAL G. YOUNG, ESQ. 2033 n. Main Street, Ste ~ 800 4 Walnut Creek, CA 94596 FOR SUNRISE CLEANERS & GRACE YAMAGUCHI: NOEL EDLIN, ESQ. Bassi, Edlin, Huie & Blum, LLP 351 California Street, ste. 200 San Francisco, CA 94104 FOR FARMERS INSURANCE EXCHANGE AND TRUCK INSURANCE EXCHANGE: ARTHUR SCHWARTZ, ESQ. Gordon & Rees 275 Battery 10 San Francisco, CA 94111 FOR FARMERS INSURANCE COMPANY: GREGORY B. SHER, ESQ. 12 Woolls & Peer Blvd' 1 Wilshire Blvd., 22nd Floor 13 Los Angeles, CA 90017 FOR CHRISTOPHER CHANG: JON-ERIK MANGUS 15 Wood, Smith, Henning & Berman, LLP 10960 Wilshire , 18th Floor 16 Los Angeles, CA 90024 17 18 REPORTER: RHONDA GUESS 19 Of f icial Court Reporter CSR No ~ 10593 20 21 22 23 24 25 26 1 MON DAY, JANUARY 2 7, 2 01 4 AFTERNOON SESSION P R 0 C E E D I N G S --o0o-- THE COURT: All right. Thank you very much, 7 everyone. We have two matters that we'e assisting 8 Mr. Nagle on. Mr. Nagle, the first matter you wish us to 9 call was? 10 MR. NAGLE: Chang versus Farmers, Your Honor. THE COURT: All right. So this is our action 12 Number: CIV 489065, Michael Chang versus Farmers 13 Insurance Company. And Mr. Nagle, you were the special 14 master in this matter? 15 MR. NAGLE: Correct, Your Honor, if we have 16 appearances, please? 17 THE COURT: Absolutely. 18 MR. SHER: Greg Sher appearing for Farmers 19 Insurance Exchange and Trucking Insurance Exchange, Your 20 Honor. 21 THE COURT: Thank you, Mr. Sher. 22 MR. GARRISON: Gregg Garrison for Michael Chang. 23 THE COURT: Mr. Garrison. Thank you. 24 MR. SHER: Your Honor, we'e been working hard 25 on this case. This is set on the trial calendar today. I 26 have spoken with presiding Judge Robert Foiles. 1 Judge Foiles has recommended that I request that you on 2 the record continue this formally for trial to next 3 Monday; however, we think we have a settlement worked out. 4 There are a couple of carriers that need to get —— agree 5 on some language, cannot consent today. I would like to, 6 Changs are here, I would like to recite some of the basic 7 terms so they can consent to that portion of the 8 settlement, assuming we complete it before the end of the 9 week, so they won't have to come back up here. 10 THE COURT: All right. That's fine. We'l be 11 glad to do that assuming -- now, what we'l do is we'l 12 continue the trial date, Mr. Garrison, until February 3rd, 13 9:00 o'lock, once again, for trial call in front of 14 Judge Foiles. And I assume, Mr. Nagle, you will continue 15 to work with the parties? 16 MR. NAGLE: Yes, Your Honor. 17 THE COURT: So your clients Mr. and Mrs. Chang 18 are here; is that correct? 19 MR. GARRISON: Michael Chang is here, yes, 20 Your Honor. 21 THE COURT: Why don't we have Mr. Chang come 22 forward and we'l swear him in in terms of the terms of 23 the settlement. And Mr. Garrison, you certainly can come 24 forward as well. 25 Mr. Chang, thank you very much, and we 26 appreciate your coming and welcome. So what we'e going 1 to do is we'e going to set forth the terms of the 2 settlement, and we want you to make sure you understand 3 the terms of the settlement, and that you will agree to 4 those terms, okay? THE PETITIONER: Yes. THE COURT: All right. So why don't we set 7 forth the terms of your MR. NAGLE: Your Honor, contingent on the 9 agreement of Great American Farmers Fund in dealing with, 10 and Farmers in dealing with a judgment lien that Great 11 American has, assuming we can come to a meeting of the 12 minds of that for the end of the week. The bad faith case 13 settle for a total of a million dollars that will be paid 14 by Farmers to plaintiffs. And that will result in a 15 dismissal with prejudice and a release and a 1542 clause 16 included. 17 THE COURT: And these parties pay their own fees 18 and costs? 19 MR. NAGLE: Fees and costs be paid by each 20 party. 21 Anything else, Gregg, as far as the settlement? 22 MR. GARRISON: Those are the basic terms. 23 THE COURT: All right. So why don't we swear 24 Mr. Chang in at this time, if we could, Rocket. Would you 25 raise your right hand, please, sir. 26 THE CLERK: Do you solemnly swear -- did you 1 want them both, Your Honor? THE COURT: Do we need Mrs. Chang to confirm the 3 settlement? MR. GARRISON: No, Your Honor, just Mr ~ Chang. THE COURT: Okay. MICHAEL CHANG 7 CALLED AS A WITNESS, HAVING BEEN FIRST DULY SWORN, WAS 8 EXAMINED AND TESTIFIED AS FOLLOWS: THE PETITIONER: Yes. 10 THE CLERK: Thank you. THE COURT: Would you please voir dire your 12 client to make sure he understands the settlement, and 13 that if he has any questions, we'l be glad to answer 14 those. 15 THE REPORTER: Do you want it on the record, 16 Your Honor? 17 THE COURT: Sorry. Mr. Garrison, we just need 18 to ask the questions loudly enough so it will transmit to 19 Rhonda, our court reporter, and then. we'l get Mr. Chang 20 to answer accordingly. 21 BY MR. GARRISON: 22 Q. Mr. Chang, do you understand that the terms of 23 the settlement is that Farmers will pay you $ 1 million? Yes 25 MR. GARRISON: Thank you, Mr. Chang. 26 THE COURT: Do you have any questions about the 1 terms of the settlement that Mr. Nagle put on the record 2 today, Mr. Chang? THE PETITIONER: No. THE COURT: Okay. And you agree to the 5 settlement? THE PETITIONER: Yes'HE COURT: All right. So we have Mr. Chang's 8 confirmation as to the settlement. We'l continue the 9 matter until Monday of next week with directions that 10 everybody continue to cooperate with Mr. Nagle so we can 11 get the language of the released documents essentially 12 complete. But Mr. Chang does not have to return next 13 Monday? MR. NAGLE: That is correct. 15 THE COURT: You'd like me to order that, 16 wouldn't you, Mr. Nagle? 17 MR. NAGLE: Well, we have one other matter that 18 we need to get on the record, but, yes, once we get his 19 consent on both cases, he will not have to return. 20 THE COURT: All right. So Mr. Chang, don't go 21 away, we'e not quite done yet, okay? 22 THE PETITIONER: Okay. 23 MR. NAGLE: Your Honor, again, before we leave 24 the Changs versus Farmers that is contingent upon working 25 out this judgment lien Great American has, but I think the 26 parties are well on their way to accomplishing that. The next case, Your Honor, is Kartal versus 2 Chang, CIV 458146. THE COURT: All right. Thank you very much, 4 Mr. Nagle, and have you were special master in that matter 5 as well? MR. NAGLE: Yes, Your Honor. THE COURT: And can I ask counsel to state their 8 appearances on the record on that case? MR. NELSON: John Nelson appearing for 10 Plaintiff, Defendant and Cross —Defendant Bilal Kartal. THE COURT: All right. Thank you, Mr. Nelson. 12 And Mr. Kartal, good afternoon. 13 THE PETITIONER: Good afternoon. 14 THE COURT: That's it? 15 MR. KARTAL: My name is Bilal Kartal. THE COURT: Thank you, Mr. Kartal. 17 MR. GARRISON: Gregg Garrison appearing on 18 behalf of Michael and Roxanne Chang. 19 THE COURT: Thank you, Mr. Garrison. 20 MR. MAGNUS: Good afternoon, Your Honor, 21 Jon-Erik Magnus for Cross —Defendant Christopher Chang. 22 THE COURT: And good afternoon, sir, how are you 23 today? 24 MR. MAGNUS: Good, thank you, sir. 25 MR. EDLIN: Good afternoon, Your Honor, Noel 26 Edlin for Sunrise Cleaners, Inc. THE COURT: Thank you very much. MR. YOUNG: Good afternoon, Your Honor, 3 Probal Young for the Yamaguchi Trust'. THE COURT: Thank you, sir. MR. KALFEN: Good afternoon, Your Honor, 6 Herman Kalfen from Kalfen Law Corporation for Michael 7 Chang, Roxanne Chang, Hea Ja Yang. THE COURT: All right. Thank you, Mr. Kalfen. MR. SCHWARTZ: And, yes, Your Honor, Arthur 10 Schwartz. I'm not counsel of record. I'm counsel for 11 Farmers Insurance Exchange and Truck Insurance Exchange. 12 THE COURT: And Mr. Schwartz, thank you very 13 much. We appreciate you being here. Anyone else 14 appearing on this case? All right. So, Mr. Nagle, why 15 don't lead me and please tell me what we'e doing with 16 this matter? 17 MR. NAGLE: Thank you, Your Honor. We have 18 we have worked for a long time on this case, and we were 19 present before Christmas. I thought we had a settlement 20 at that time. I'm not sure if it was placed on the 21 record, and that settlement has now been changed slightly, 22 but for a total of $ 830,500, this case will be settled 23 with the following contributions: 287, 500 will be coming 24 from the Farmers insured, $ 108,000 will be coming from the 25 State Farmers insured. 26 THE COURT:, I would ask you just to slow down 1 and make sure Rhonda gets the MR. NAGLE: Am I going too fast? I always loved 3 it when I used to be in the middle of my final argument 4 and some court reporter would say please slow down. The 5 jury missed all my brilliant comments. THE COURT: But I just want to make sure 7 everyone understands the contributions, the numbers so 8 there's no question. MR. NAGLE: Absolutely. The 285,000 will be 10 paid on behalf of Grace Yamaguchi, Sunrise Cleaners, Inc. 11 and Grace and Kunio Yamaguchi Trust and the various 12 Yamaguchi interests on behalf of Farmers fund making that 13 payment. 14 In addition -- I'm sorry, that's Michael Chang 15 -- Christopher Chang. I'm sorry. 285,000 from 16 Christopher Chang, 150,000 from the Yamaguchi interest 17 that I just recited. 18 That should be a total of 830,500. Of that 19 money, $ 400,000 will go to Bilal Kartal. And the 20 remainder of the money will go to Michael Chang. 21 THE COURT: And once again, I -- I hope everyone 22 has done the math. I don't have the calculator on the 23 bench, all add up, so if anybody has any questions? There 24 will be a test in five minutes. 25 MR. NAGLE: And then, Your Honor, this will 26 be -- this will include releases with 1542's, these will 1 be -- I'm losing it so THE COURT: General release with Civil Code 3 Section 1542 waiver. MR. NAGLE: Yes. THE COURT: And Mr. Kartal and Mr. Chang, what 6 that means is that release wouldn't affect any claims 7 known or unknown to resolve the entire dispute. MR. NAGLE: All right and then I think Mr. 9 Nelson has some other terms. 10 MR. NELSON: Yes, Your Honor, if I might, there 11 are a couple of special terms that go into this thing. 12 THE COURT: All right, Mr. Nelson. 13 MR. NELSON: Number One is the characterization 14 and the monies that are coming to Mrs Kartal. Out of the 15 400,000, 100,000 are for release of claims for breach of 16 the contractual covenant of quiet enjoyment. 50,000 for 17 release of claims from loss of good will to his business. 18 Release of claims for lost profits, 50,000, and 19 as a compromise for release of claims for general damages 20 for emotional distress during the seven years of making of 21 a nuisance, 200,000. 22 That takes care of the tax aspects of it. As an 23 additional consideration, Michael Chang agrees that 24 Bilal Kartal may remain in possession of the restaurant 25 premises for seven months after receipt of the above 26 monies in order to transition to a new location for his 1 business. Basically, under the same terms and conditions, 3 he's there now, set to pay the rent on the first of every 4 months If he doesn't pay on the first of every month, he 5 has to pay the balance of the seven months within ten 6 days. And if he does not move out after the seven months, 7 he can -- he will -- he is consenting at this time to a 8 stipulation for judgment of possession. He will receive 9 his rent deposit back as long as he leaves the place in 10 broom-clean condition. THE COURT: And obviously, with this settlement, 12 the Court would also add on additional term and condition 13 that the Court would continue to assume jurisdiction 14 pursuant to Code of Civil Procedure Section 664.6 to 15 enforce the terms of the settlement as we would in the 16 other matter with Mr. Chang as well. 17 MR. NAGLE: Thank you, Your Honor. I was going 18 to ask for that reservation. Also we will put on a time 19 table in the form of an order as far as making sure that 20 we get closing papers, the release done properly. There 21 are a couple of parties that are not here presently. We 22 excused them because they'e been here over and over 23 again. We will make sure that they consent to the 24 settlement, and make that a written consent a part of the 25 record. I think that basically covers 26 THE COURT: I assume, once again, each party is 13 1 to bear their own fees and costs'P MR. NAGLE: Yes, Your Honor. MR. NELSON: Exactly, Your Honor. If I didn' 4 mention it before, the rent will continue at $ 1,500 per 5 month for the seven-month period. THE COURT: And in terms of the surrender of the 7 possession that Mr. Kartal is going to agree to or has 8 agreed to pursuant to the settlement, ex parte application 9 could simply be made to this court if he has not vacated 10 the premises within the time stated. MR. NELSON: Certainly, Your Honor. 12 THE COURT: All right. 13 MR. KALFEN: And if I may add, it's also 14 contingent on a side agreement to be executed with 15 Fireman's Fund Insurance. 16 THE COURT: And may I ask everyone, please 17 identify yourself for Rhonda so we have a records 18 MR. KALFEN: That was Herman Kalfen. 19 THE COURT: I thought, Mr. Kalfen, I knew it was 20 you, but I just needed you to make that has a record. 21 And sir? 22 MR. MAGNUS: Your Honor, Jon-Erik Magnus for 23 Mr. Chang, we discussed with Special Master Nagle just a 24 separate agreement between Michael Chang, 25 Christopher Chang addressing issues such as the one 26 Mr. Kalfen brought