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1 PAUL HASTINGS LLP
JENNIFER BALDOCCHI (SB#168945)
2 jenniferbaldocchi@paulhastings.com
JESSICA E. MENDELSON (SB# 280388)
3 jessicamendelson@paulhastings.com
515 South Flower Street
4 Twenty-Fifth Floor
Los Angeles, California 90071
5 Telephone: 1(213) 683-6000
Facsimile: 1(213) 627-0705
6
LAW OFFICES OF DAVID Y. CHUN
7 DAVID Y. CHUN (SB#187427)
dchun@chunlaw.com
8 2005 De La Cruz Blvd, Suite 245
Santa Clara, California 95050-3026
9 Telephone: 1(408) 995-0200
Facsimile: 1(408) 228-5033
10
Attorneys for Defendants
11 Scharf Investments LLC and Brian Krawez
12
SUPERIOR COURT OF THE STATE OF CALIFORNIA
13 IN AND FOR SANTA CRUZ COUNTY
14 CIVIL UNLIMITED
15 JEFFREY SCHARF, an individual, and Case No. 20CV01388
SHERRILL SMITH-SCHARF, an
16 individual, SUPPLEMENTAL DECLARATION OF
DAVID Y. CHUN, ESQ. IN SUPPORT OF
17 Plaintiffs, MOTION BY DEFENDANTS SCHARF
INVESTMENTS, LLC and BRIAN
18 vs. KRAWEZ TO DETERMINE
PREVAILING PARTY AND TO FIX
19 AMOUNT OF ATTORNEY'S FEES
SCHARF INVESTMENTS, LLC, a limited
20 liability company; and BRIAN KRAWEZ, Date: February 10, 2022
an individual, Time: 8:30 a.m.
21 Dept.: 5
Defendants.
Judge: Timothy Volkmann
22
Complaint Filed: June 29, 2020
23 Dismissal Filed: October 8, 2021
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SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF MOTION BY
DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ TO DETERMINE PREVAILING
PARTY AND TO FIX AMOUNT OF ATTORNEY'S FEES/CASE NO. 20CV01388
1 I, DAVID CHUN, ESQ., declare and state:
2 1. I am an attorney at law duly admitted to practice before all the courts of the State of California
3 and am counsel for BRIAN KRAWEZ and SCHARF INVESTMENTS, LLC (“Defendants”)
in the above-captioned action.
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2. A very brief summary of the issues covered in my letters to plaintiffs’ counsel requesting
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dismissal of the First Amended Complaint, which were attached as Exhibit 2 to my original
6 declaration, is as follows: plaintiffs’ lack of probable cause, lack of good faith and violation of
7 Cal. Code Civ. Proc. §128.5, full payment and satisfaction of the Notes and their automatic
8 cancellation, lack of damages, no change in control and lack of previous mention of any change
9 of control by plaintiffs, grounds for stay because of the related arbitration filed before this
action, non-admission of liability when full payment was made on the Notes, lack of requisite
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notice of breach, lack of even nominal damages, no fees under limited fee provision in the
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Notes, calculation of interest, additional points on no change of control, availability of publicly
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filed documents that confirm there was no change in control, no Exchange Interests and Rights,
13 voting rights and no violation thereof, limited voting rights, no failure to respond to inquiries,
14 no improper use of Scharf account for payments and prior payment history, plaintiffs’
15 continuing inability to state any damages, plaintiffs’ abuse of legal process, frivolous action by
plaintiffs, and intent to seek attorney fees against plaintiffs. The demand letters required hours
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of work for analysis of complex agreements and instruments, review of prior counsel
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communications with opposing counsels, involvement of specialty counsel, and extensive legal
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research, as set forth in the billings statements submitted with my original declaration on this
19 motion. Mr. Lanphere’s dismissal of the work above as “a couple of letters” is a gross
20 understatement of the painstaking and time consuming work that was performed to persuade
21 plaintiffs to dismiss the First Amended Complaint at the outset of this action.
22 3. In addition to the attorney fees submitted with my original declaration, defendants have incurred
an additional $66,690 in fees in this case as itemized below, redacted pursuant to Cal. Evidence
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Code §952 as to "confidential communication between client and lawyer" and/or attorney work
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product and redacted for privileged communications:
25 ITEMIZED BILLING
26 DATE DESCRIPTION HRS RATE AMT
12-8-21 Review 3.5 450 1575
27 ; Review email from Caitlin Falk re
; Review f Fee Motion; TC
28 with Court Clerk; Email courtesy copies to all
- Page 1 of 4 -
SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF MOTION BY
DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ TO DETERMINE PREVAILING
PARTY AND TO FIX AMOUNT OF ATTORNEY'S FEES/CASE NO. 20CV01388
1 counsel
12-9-21 TC with Brian Krawez re 0.1 450 45
2 12-17-21 Review email from Andrew Lanphere, Esq. re new 0.2 450 90
counsel and substitution; Review prior
3 ; Review emails from Jennifer
Baldocchi and Brian Krawez re ;
4 Response email
Review information re 0.5 450 225
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TC with Brian Krawez re 0.4 450 180
6 12-20-21 Exchange emails with Jennifer Baldocchi re 0.1 450 45
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Review email from Andrew Lanphere re Santa Cruz 0.1 450 45
8 Fee Motion extension request; Response email
Review 0.2 450 90
9 12-23-21 Zoom call re p 0.7 450 315
Email Court Clerk re available days for postponed 0.1 450 45
10 hearing date
Email co-counsel and client re 0.2 450 90
11 ; Exchange emails with
Jennifer Baldocchi
12 12-27-21 Review email from Court Clerk re available dates 0.2 450 90
for postponed hearing; Exchange emails with all
13 counsel
12-28-21 Review email from Court Clerk re reservation date; 0.1 450 45
14 Exchange emails with all counsel; Email Court
Clerk
15 Review email from Jennifer Baldocchi re 0.2 450 90
16 Response Email to client and Jennifer Baldocchi
Exchange emails with Jennifer Baldocchi re 0.1 450 45
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Draft Stipulation and Order for Postponing Fee 0.5 450 225
18 Motion Hearing; Email to Jennifer Baldocchi
19 Review Court online records; Email Jennifer
1-3-22 0.1 450 45
Baldocchi re
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21 Exchange emails with Andrew Lanphere and 0.3 450 135
Jennifer Baldocchi re Stipulation and Order re
22 Postponing Fee Motion Hearing
1-6-22 Review email from Andrew Lanphere re Stipulation 0.1 450 45
23 and Order re Postponing Fee Motion Hearing
1-7-22 Review and file Stipulation and Order re Postponing 0.1 450 45
24 Fee Motion Hearing
1-14-22 Review endorsed Stipulation and Order re 0.1 450 45
25 Postponing Fee Motion Hearing; Email to client and
Jennifer Baldocchi
26 1-23-22 Review email from Jessica Mendelson 0.9 450 405
and
27 ; Review
28 1-24-22 Exchange emails with Andrew Lanphere re service 0.1 450 45
- Page 2 of 4 -
SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF MOTION BY
DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ TO DETERMINE PREVAILING
PARTY AND TO FIX AMOUNT OF ATTORNEY'S FEES/CASE NO. 20CV01388
1 of opposition papers; Review Stipulation and Order
Exchange emails with Jennifer Baldocchi re 0.5 450 225
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3 1-25-22 Review 11.6 450 5220
re Fee Motion; for Reply
4 TC with Brian Krawez re 0.7 450 315
1-26-22 Review 14.3 450 6435
5 for Reply re Fee Motion; Draft
TC with Brian Krawez re 0.5 450 225
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1-27-22 Review 13.2 450 5940
7 for Reply re Fee Motion; Draft
Zoom call with client and Jennifer Baldocchi re 0.7 450 315
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9 TC with Brian Krawez re 1.1 450 495
1-28-22 Review 14.3 450 6435
10 re Fee Motion; Draft ;
Exchange emails with Brian Krawez
11 TCs with Brian Krawez re 0.6 450 270
1-29-22 Review 15.0 450 6750
12 re Fee Motion; Draft
1-30-22 Review 11.8 450 5310
13 re Fee Motion; Draft
1-31-22 Review 14.2 450 6390
14 ; Draft Reply;
Email to client and co-counsel ;
15 Exchange emails with Brian Krawez
2-1-22 Review for Reply 13.9 450 6255
16 ; Review
; Edit ; Email
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TCs with Brian Krawez re 0.8 450 360
18 2-2-22 Review emails from Brian Krawez p p 8.7 450 3915
p p ; Exchange emails
19 with client and Jennifer Baldocchi re
; Review
20 for Reply
Review Reply 5.5 450 2475
21 re Fee Motion; Review email from Caitlin Falk with
22 TC with Brian Krawez re 0.4 450 180
23 2-3-22 Review Reply; Edits; Exchange emails with 11.5 450 5175
Brian Krawez, Jennifer Baldocchi, Caitlin Falk re
24 ; Review
; Review
25 for
Reply
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148.2 66,690
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- Page 3 of 4 -
SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF MOTION BY
DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ TO DETERMINE PREVAILING
PARTY AND TO FIX AMOUNT OF ATTORNEY'S FEES/CASE NO. 20CV01388
1 4. I personally reviewed the 148.2 hours in the Itemized Billings above and attest that I worked
2 these hours at the rate of $450 per hour totaling $66,690 from December 8, 2021 to February
3 3, 2022 in this action to enforce Defendants’ right to recover attorney fees as the prevailing
parties in this action.
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5 5. As showing in my billings submitted in my original declaration, prior to plaintiffs’ filing of the
First Amended Complaint, I spent 6.6 hours in this matter, thus nearly all of my 389.5 hours in
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this matter was after plaintiffs filed their First Amended Complaint.
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6. For the February 10, 2022 hearing on this matter, I estimate that defendants will incur an
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additional $6,750 for 15 hours at my $450 rate to prepare for and attend hearing.
9 7. Defendants also incurred costs of $102.50 for filing fees on this motion on December 8, 2021
10 and related stipulation and order postponing hearing filed January 7, 2022.
11 8. As set forth in Par. 3 of my original declaration, stakes in this action were extremely high and
demanded a vigorous defense against plaintiffs’ tort claims for concealment, breach of
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fiduciary duty, conversion, and declaratory relief. The consequences of losing on claims
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which attacked defendants’ honesty and integrity would have been devastating for them in the
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financial manager marketplace, where a reputation of integrity is paramount. Plaintiffs’ tort
15 claims also related to claims in the parallel arbitration, which was adjudicated resulting in an
16 award against plaintiffs that was in the tens of millions of dollars excluding punitive damages
17 which were also awarded against plaintiffs. Having forced defendants to endure this tort
18 action and all of the fees and costs required therefor, denying defendants reimbursement of
attorney fees and costs after having prevailed would result in an injustice and a lack of
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accountability for plaintiffs who had the power to stop this action after the Notes were paid
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but chose to litigate for another year.
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I declare under penalty of perjury under the laws of the State of California that the
22 foregoing facts are true and correct.
23 DATED: 2/3/2022
24 LAW OFFICES OF DAVID Y. CHUN
25
BY:
26 DAVID Y. CHUN, ESQ.
Counsel for Defendants
27 BRIAN KRAWEZ and SCHARF
28 INVESTMENTS, LLC
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SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF MOTION BY
DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ TO DETERMINE PREVAILING
PARTY AND TO FIX AMOUNT OF ATTORNEY'S FEES/CASE NO. 20CV01388
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Proof of Service
2
STATE OF AUTHOR STATE )
3 ) ss:
CITY OF LOS ANGELES AND COUNTY OF )
4 LOS ANGELES )
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I am employed in the City of Los Angeles and County of Los Angeles, State
6 of Author State. I am over the age of 18, and not a party to the within action. My
business address is 515 South Flower Street, Twenty-Fifth Floor, Los Angeles, California
7 90071-2228.
8 On February 3, 2022, I served the foregoing document(s) described as:
9 SUPPLEMENTAL DECLARATION OF DAVID Y. CHUN, ESQ. IN SUPPORT OF
MOTION BY DEFENDANTS SCHARF INVESTMENTS, LLC AND BRIAN KRAWEZ
10 TO DETERMINE PREVAILING PARTY AND TO FIX AMOUNT OF ATTORNEY'S
FEES
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on the interested parties by placing a true and correct copy thereof in a sealed envelope(s)
13 addressed as follows:
14 Andrew D. Lanphere Attorney for Respondents, Jeffrey
Pillsbury Winthrop Shaw Pittman LLP Scharf and Sherril Smith-Scharf
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Four Embarcadero Center, 22nd Floor
16 San Francisco, CA 94111-5998
Email: andrew.lanphere@pillsburylaw.com
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VIA ELECTRONIC MAIL:
19 By personally emailing the aforementioned document(s) in PDF format to the
respective email address(es) listed above on February 3, 2022. I did not receive an
20 electronic message indicating any errors in transmission.
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I declare under penalty of perjury under the laws of the State of California
22 that the above is true and correct.
23 Executed on February 3, 2022, at Los, California.
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