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MATTHEW A. HAULK (SBN: 272457)
RAGGHIANTI FREITAS LLP
1101 Fifth Avenue, Suite 100
San Rafael, California 94901
Telephone: (415) 453-9433 Electronically
Facsimile: (415) 453-8269
by Superior Court of California, County of San Mateo
Attorneys for Defendants ON 9/18/2020
PUNIT K. SARNA and By. /s/ Una Finau
PUJA SARNA Deputy Clerk
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SAN MATEO
10 LOUIS PAYCHECK, CASE NO.: 19C1V02595
W
Plaintiff, DECLARATION OF PUNIT SARNA IN
12 SUPPORT OF APPLICATION FOR PRE-
Vs. JUDGMENT WRIT OF ATTACHMENT
13
PUNIT K. SARNA, et al., DATE: November 10, 2020
14 TIME: 1:30 p.m.
Defendants. DEPT.: 4, Courtroom 8B
15
JUDGE: Honorable Nancy L. Fineman
16
Complaint Filed: May 10, 2019
7 AND RELATED CROSS-ACTION. Trial Date: TBD
18 |, Punit Sarna, declare:
1
19 | am a defendant and cross-complainant in the above captioned action. |
20 have personal knowledge of the information set forth herein below, unless noted as
21 based on information and belief, all of which is true and correct of my own personal
22 knowledge, and if called upon to testify, | could and would competently testify thereto.
23 2 In November 2017, | entered into a written contract with Louis Paycheck for
24 the renovation of a five-unit residential property at 721 Rollins Road, Burlingame,
25 California (the “Property”). Louis Paycheck’s scope of work during the project included,
26 but was not limited to, demolition work, carpentry work, electrical work, plumbing work,
27 the installation of a fire sprinkler system, structural upgrades, and exterior stucco work.
28 3 Louis Paycheck started work on the project with a crew of employees in
1
DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT
mid-November 2017. | remember this distinctly because Paycheck started performing
work before he had a permit and | was concerned that a neighbor would complain and
the project would be put in jeopardy. | instructed Paycheck to pull a permit for the project.
4 The project was supposed to be completed within 90-days, i.e. no later than
March 2018. However, the project was repeatedly delayed for reasons | did not fully
comprehend and, while not necessarily relevant to this application, his work was
defective and sloppy and had to be corrected after he left the jobsite.
5 In July 2018, Paycheck issued a final invoice for work on the project. The
invoice stated that | had paid Paycheck a total of $210,000 and that a balance of
10 $26,900.70 was due “at completion and final inspection”. A true and correct copy of this
1 invoice is attached hereto as Exhibit A. In September 2018, Paycheck issued a “Change
12 order Invoice” for $9,975. | had never approved this change order. A true and correct
13 copy of this document is attached hereto as Exhibit B.
14 6 On November 9, 2018, Louis Paycheck sent me an e-mail with the “final”
16 invoices for the project. The e-mail included an invoice dated July 14, 2018 that stated:
16 “Balance due at completion and final inspection”. The invoice also included the
7 September 2018 change order invoice that | had never approved. A true and correct copy
18 of the e-mail and its attachments are attached hereto as Exhibit C.
19 t On November 26, 2018, the Burlingame Fire Department and Water
20 Department determined that the project could not pass final inspection because the water,
24 supply system to the domestic plumbing system and to the fire sprinkler system needed
22 to be separated. On December 13, 2018, | met on site with Louis Paycheck, Michael
23 Brown from the Burlingame Water Department, and Julie Parenti from the Central County;
24 Fire Department to discuss the needed to correct these violations.
25 8 After the December 13, 2019 meeting, Louis Paycheck failed and refused to}
26 return to the jobsite and | sent him a series of letters culminating in a termination letter:
27 a. On December 19, 2018, | sent Louis Paycheck an e-mail to demand that
28 he return to the project and complete work. A true and correct copy of
2
DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT
|
|
this e-mail is attached hereto as Exhibit D, Paycheck did not respon;
On December 21, 2018, my attorney Alec Adams sent a letter to |
Paycheck demanding that he return to complete work on the project. A
true and correct copy of this letter is attached hereto as Exhibit E.
On December 23, 2018, Louis Paycheck replied to Mr. Adams’ bokeh A
|
true and correct copy this letter is attached hereto as Exhibit F.
On January 28, 2019, my attorney sent Louis Paycheck a formal |
“Termination Notice" instructing him that the contract had been
terminated. A true and correct copy of this letter is attached hereto as
10 Exhibit G.
|
W 9 After Paycheck abandoned the project, and my attorney issued a
12 termination letter, | was forced to retain replacement contractors to correct the slonbbiha
13 work and fire sprinkler system, correct other code defects at the project, and otherwise
14 complete the work on the project and prepare the property for final inspection. The
15 project passed final inspection on February 25, 2019, approximately one year behind
16 schedule, |
7 10. During the period from December 8, 2017 to March 4, 2018, | paidLobis
18 Paycheck dba European Enterprises a total of $80,000 for the performance of wort on
19 the project. A true and correct copy of the checks | wrote to Paycheck areattached|
20 hereto as Exhibit H. In total, | paid Louis Paycheck in excess of $210,000 for the labor
21 and materials supplied to the project. ||
22 11. | declare under penalty of perjury under the laws of the State of California
23 that the foregoing is true and correct. Executed this( 7 th day of September 2020, at
24
25
San hates , California,
Pp
ri |
26
it Sarna
|
27
28
3
|
DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT
Exhibit A
EUROPEAN ENTERPRISES
711 SOUTH ROAD
BELMONT, CA 94002
GENERAL CONTRACTOR
CAL, STATE LIC, # 763968
TEL: (650) 619-0266
July 14, 2018
TO Peter Sarna
721 Rollins Rd.
Burlingame, CA
Tel: (650) 918-9540
Email: punitsarma@yahoo.com
RE; Apartment Remodel
Invoice
Demolition and Hauling ~ Remove ceiling, carpet, cabinet, tub,
bathroom fixtures, interior doors, and debris. $ 600.00
Purchase 30 yard dumpster for a week ma Tonea RATT
ANT TAN 800.00
Electrical Install new 4” LED recessed lights throughout the
apartment, bathroom, and kitchen., new dedicated GFCI plugs
in the bathroom. Replace all knob and tube wiring with Romex.
Install new receptacles as neede Included is all exterior lighting
(fixtures purchased by Owner). $ 2,050.00
Plumbing — Replace all galvanized pipes in the bathroom and the
kitchen, up to where it is possible without removing the floor.
Replace all drain pipes with ABS pipes where possible without
removing the floor. Install new tub and faucets (Tub and facets
purchased by the owner). Install a Washer andES
Provide plumbing for one garden box... $ 5,500.00
Carpentry — Install new cabinets and vanities. Install countertops
and tiles for backsplash (Tiles, cabinets, and countertops purchased
by the owner). Repair dry rot in apartment # 2 $ 4,000.00
Sheetrock — Replace all sheetrock. Tape, mud, and smooth walls
Purchase and Install Insulation throughout the apartment $ 6,000.00
Purchase, Remove and Install new hardwood floors $ 2,700.00
8 Tiles — Install approx., 200 sq ft of floor and wall tiles.atts
purchased by the owner)... 2,000.00
Page 2
Peter Sarna
9. Re-stucco the carport area and shear walls. included
10. Finishing Carpentry — Install baseboards and new doors. Install
hood for all ovens to the roof. 1,600.00
ll Purchase and install new vinyl Milgard windows, Resize Kitchen
window in Apt#1 2,500.00
12, Paint the entire apartment, 900.00
TOTAL LABOR AND MATERIALS 28,650.00
ADDITIONAL EXPENSES:
1 Purchase and Install 5 Ea, Wall heaters at $ 700.00. 3,500.00
2 Purchase new gas vent pipes from the heaters and kitchen vents. 1,200.00
sprinkletS....unsnmmonnnininennnn®
3. Create drawings and install 10530000
Purchase and relocate electrical panel for unit #1 650.00
Permit and Inspection cost and Prints. 1,232.11
Second Permit for unit # 5 128.44
Paid Fees to Structural Engineer. 700.00
Repair Black Mold in Unit # 1 1,200.00
Purchase 5 ea, Tubs with metal overflow. 3,459.88
10. Redo the Laundry room. 6,000.00
11 Purchase lights for Laundry and Storage room, 187.97
12 Pay for permit for seismic. 602.17
13 Removing stucco from the bottom of the balcony. 3,000.00
14, Seismic, Installing metal posts in carport. 20,000.00
15. Redo the balcony walkway — Completely redo the upstairs walkway
with new framing, % plywood, Waterproofing and 3” concrete............ $ 30,000.00
16, Stucco the bottom ceiling in the carport.. $ 13,000.00
17. Purchase materials for closet shelves 1,022.35
18. Purchase additional cabinets Panels............ 245.46
19. Purchase additional sub-way tiles. 232.32
TOTAL ADDITIONAL EXPENSES. ..:.::c0ssc0 — 93,650.70
The above price per apartment, The expenses to redo the laundry room will be
$ 6000.00. Seismic, installing metal posts and repair some balcony boards is
$ 25,000.00, Removing stucco from the bottom of the balcony, evaluating the
damage, and possibly repair, approx. $ 6,000.00. Demolition and repair of the black
mold in unit J will be $ 1,200.00.
The seismic work will include two shear walls and stucco. Install 2 ea. 4”
bollards in front of the electrical panel in the carport. Purchase and replace 4 ea.
exterior doors for the laundry and storage area.
PAYMENT SCHEDULE:
Total apartments Payment (28,650.00 X 5 Apt)... 143,250.00
Additional Expenses..... $ 93,650.70
Total Cost......s-sssee+ sectsteesed 236,900.70
Payments to date, 210,000.00
Balance due $ 26,900.70
Balance due at completion and final Inspection.
Exhibit B
EUROPEAN ENTERPRISES
711 SOUTH ROAD
BELMONT, CA 94002
GENERAL CONTRACTOR
CAL. STATE LIC. # 763968
TEL: (650) 619-0266
September 16, 2018
TO: Peter Sarna
721 Rollins Rd,
Burlingame, CA
Tel: (650) 918-9540
Email: punitsarna@yahoo.com
RE: Apartments Remodel
Change order Invoice
1 Install Wall Cabinets in carport 2,500.00
2 Purchase and Install Laundry room granite............ $ 1,000.00
3. Fire sprinklers additional Valve purchase and Installation....u...8 2,700.00 —
Paint Laundry and storage room floors with epoxy paint........... 600.00
Install shower doors... 875.00
Additional Stucco the front of the Building..........000 1,500.00
Run Electrical conduit for fire alarm system............ 400.00
Run additional AC wire for the Alarm 400.00
TOTAL LABOR AND MATERIALS 9,975.00
Paid to date... 5,000.00
BALANCE DUE. 4,975.00
Exhibit C
From: Louis Paycheck
To: punitsarna@yahoo.com
Sent: Friday, November 9, 2018, 07:28:47 PM PST
Subject: Final Invoices
Hi Punit,
Please review the Final Invoices and let me know if you have any questions. Louis
EUROPEAN ENTERPRISES
711 SOUTH ROAD
BELMONT, CA 94002
GENERAL CONTRACTOR
CAL, STATE LIC, # 763968
TEL: (650) 619-0266
July 14, 2018
TO. Peter Sarna
721 Rollins Rd,
Burlingame, CA
Tel: (650) 918-9540
Email: punitsarna@yahoo.com
RE: Apartment Remodel
Invoice
Demolition and Hauling — Remove ceiling, carpet, cabinet, tub.
bathroom fixtures, interior doors, and debris. 600.00
Purchase 30 yard dumpster for a week 800.00
Electrical Install new 4° LED recessed lights throughout the
apartment, bathroom, and kitchen., new dedicated GFCI plugs
in the bathroom. Replace all knob and tube wiring with Romex
Install new receptacles as needed., Included is all exterior lighting
(fixtures purchased by Owner). 2,050.00
Plumbing — Replace all galvanized pipes in the bathroom and the
kitchen, up to where it is possible without removing the floor.
Replace all drain pipes with ABS pipes where possible without
removing the floor. Install new tub and faucets (Tub and facets
purchased by the owner), Install hook-up Washer and Dryer.
Provide plumbing for one garden box. 5,500.00
Carpentry — Install new cabinets and vanities. Install countertops
and tiles for backsplash (Tiles, cabinets, and countertops purchased —
by the owner). Repair dry rot in apartment # 2.........cccesessesseseeee 4,000.00
Sheetrock — Replace all sheetrock. Tape, mud, and smooth walls
Purchase and Install Insulation throughout the apartment $ 6,000.00
Purchase, Remove and Install new hardwood flOofFs.............0000 $ 2,700.00
8 Tiles — Install approx.. 200 sq ft of floor and wall tiles. (Tiles
purchased by the owner), 2,000.00
Page 2
Peter Sarna
9. Re-stucco the carport area and shear walls. included
10, Finishing Carpentry — Install baseboards and new doors. Install
hood for all ovens to the roOf........ssesssesesnsssssseeseessessssesesesnessesaterneenee $ 1,600.00
I. Purchase and install new vinyl Milgard windows. Resize Kitchen
window in Apt#l 2,500.00
12, Paint the entire apartment 900,00
TOTAL LABOR AND MATERIALS 28,650.00
ADDITIONAL EXPENSES:
Purchase and Install 5 Ea. Wall heaters at $ 700.00 3,500.00
Purchase new gas vent pipes from the heaters and kitchen vents......... $ 1,200.00
Create drawings and install sprinklers....ccsscsssscsecsesseeseessessessessseeseesnessen $ 10,300,00
Purchase and relocate electrical panel for unit #1 650.00
Permit and Inspection cost and Prints. 1,232.11
Second Permit for unit #5 $ 128.44
Paid Fees to Structural Engineer. 700.00
Repair Black Mold in Unit # o.c.sccsssssssessvesssesscssesssssesrssssesssssessanenen $ 1,200.00
Purchase 5 ea. Tubs with metal OVerflOW......scccssessseesseessseensessseesseeeseees 3,459.88
10. Redo the Laundry room 6,000.00
lL Purchase lights for Laundry and Storage room 187.97
12 Pay for permit for seismic... 602.17
13. Removing stucco from the bottom of the balcony. 3,000.00
14 Seismic, Installing metal posts in Carport.....cscecsesscsesesseeseeseneesesseaee 20,000.00,
15. Redo the balcony walkway — Completely redo the upstairs walkway
with new framing, % plywood, Waterproofing and 3” concrete. pedadcewtos $ 30,000.00
seks ioe $
16. Stucco the bottom ceiling in the carport. vats dull eens suey cudvaevvonverer 13,000.00
17. Purchase materials for closet shelves... 1,022.35
18. Purchase additional cabinets Panels...........ssssessseeesssesesseessesesseeneneeeesnes $ 245.46
19. Purchase additional sub-way tileS......ccsscecseeseessesstesessessssesseeseeeeereseesed 232,32
TOTAL ADDITIONAL EXPENSES adedatodadseessivae
ie $ 93,650.70
The above price per apartment. The expenses to redo the laundry room will be
$ 6000.00, Seismic, installing metal posts and repair some balcony boards is
$ 25,000.00, Removing stucco from the bottom of the balcony, evaluating the
damage, and possibly repair, approx. $ 6,000.00. Demolition and repair of the black
mold in unit | will be $ 1,200.00.
The seismic work will include two shear walls and stucco. Install 2 ea, 4”
bollards in front of the electrical panel in the carport. Purchase and replace 4 ea,
exterior doors for the laundry and storage area.
PAYMENT SCHEDULE:
Total apartments Payment (28,650.00 X 5 Apt). $ 143,250.00
Additional Expenses. ana tivaaheaantachiasasasasainbasasastyanaaddaedansapesigayigaytaie $ 93,650.70
"TOta COSticiscsvacscassseccossaticegiatseaaseeccion 236,900.70
Payments to date Re aU Ue wee 210,000.00
Balance due. $ 26,900.70
‘Balance due at completion and final Inspection.
EUROPEAN ENTERPRISES
711 SOUTH ROAD
BELMONT, CA 94002
GENERAL CONTRACTOR
CAL. STATE LIC. # 763968
TEL: (650) 619-0266
September 16, 2018
TO: Peter Sarna
721 Rollins Rd,
Burlingame, CA
Tel: (650) 918-9540
Email: punitsarna@yahoo.cow
RE: Apartments Remodel
Change order Invoice
Install Wall Cabinets in carport 2,500.00
Purchase and Install Laundry room granite 1,000.00
Fire sprinklers additional Valve purchase and Installation 2,700.00
Paint Laundry and storage room floors with epoxy paint... 600.00.
Install shower doors. 875.00
Additional Stucco the front of the Building 1,500.00
Run Electrical conduit for fire alarm system. 400.00
Run additional AC wire for the Alarm. 400.00
TOTAL LABOR AND MATERIALS 9,975.00
Paid to date. 5,000.00
BALANCE DUE. 4,975.00
Exhibit D
From: Punit Sarna
To; Louis Paycheck
Sent: Wednesday, December 19, 2018, 11:20:04 PM PST
Subject: Letter of Demand--721 Rollins Road
Louis,
| understand that you are upset and | am writing this message to ask for your cooperation in
completing the 721 Rollins Rd project. Our original agreement, entered on 11/12/2017, was for a
total of 90 days and we are now in month 13, due solely to your mistakes and missteps. | have never
failed to pay you when you have demanded additional money to proceed with any phase of the
project or supply necessary materials. | have remained patient and understanding of all that has
gone on, as | saw you making progress. However, since your final inspection failed on 11/26/18 you
have not returned to make the necessary cures or repairs to your defective work. The plumbing for
the building -- domestic and fire sprinkler system -- needs to be separated, as was determined after
the Burlingame Water and Burlingame Fire Dept reviewed that phase of the project during their
simultaneous inspections on 11/26/18 and again during our group meeting on 12/13/18--where you
and | were both present.
As to your demands for final payment--please reference and recall your 11/9/18 email to me that the
balance of monies owed would be paid upon completion of work and passing of final
inspections. This has not occurred as of the date of this letter, however your angry demands for
payment are now escalating to verbal threats of liens. It is absolutely necessary that the inspections
from the Burlingame Building Dept, Water Dept and Fire Dept all be satisfactorily completed.
In short, | cannot honor your demand for final payment without you completing the necessary work
and passing ALL inspections. Furthermore, | will require and obtain lien waivers from all your
subcontractors as there are now multiple outstanding/unpaid invoices from them that you have not
paid. These subcontractors are your responsibility to pay, as you selected and hired each one (not
me). | do not have any agreements or contracts with the fire sprinkler subcontractor or Bell Plumbing
subcontractor. They are your sub-contractors for this project. Please reference the email from Julie
Parenti with Burlingame Fire Dept on Dec 6, 2018, outlining the violations and defects and necessary
corrections or cures.
Failing to complete the work for this project is costing me both loss of rents and carrying costs. My
apartment building is presently empty. Our initial agreement was for 90 days--| have now suffered
the loss of 10 months' rent. | therefore appeal to you, Louis, to return to the site and finish this
project. If you choose not to complete this project, | will be compelled to have another contractor
come and do the necessary work and seek legal remedies. My concern is this will cost significantly
more money and time than if you completed the work yourself. Please finish what you started. We
have worked on this project together and | believe it is in both of our interests for you to correct and
cure the remaining work, including the plumbing errors. If you choose to move forward, | must warn
you that your abusive language and tone of voice will no longer be tolerated by me. | expect
professional behavior. But most of all, | expect timely completion of the work. If you can control
and calm your emotions, | do think this is still the best path forward for both of us.
| kindly ask you to respond to this letter within 3 calendar days, with a detailed plan for completing
this project and passing ALL inspections by city officials.
Thank you,
Punit Sarna
Exhibit E
Law Offices of
ALEC E, ADAMS
22762 Main Street, Suite 105
Hayward, California 94541-5114
tel 510,581,0613 email; alec_adams@yahoo.com Sac 510.581.0614
Alec E. Adams
Attorney at Law
21 December 2018
SENT VIA CERTIFIED REGISTERED MAIL:
Mr. Louis Paycheck
General Contractor - CA State Lic. #763968
711 South Road
Belmont, CA 94002
Email: european_enterprises@msn.com
RE: DR_PUNIT SARNA, M.D. (client)// Inter-Office Case No. RP18-00122145 /
Real Property Address: 721 Rollins Road, Burlingame, CA / Demand Letter
to General Contractor te Complete Project,
Dear Mr. Paycheck,
My purpose in writing to you is two-fold,
First, I wish to notify you that I have been retained by Dr. Sarna as his legal counsel in the
present matter involving the renovation of the above-referenced real property. 1 kindly ask that
you refrain from contacting my client, in any manner or medium, I personally consider your
abusive, intemperate language to my client is unacceptable and unprofessional. Consequently,
you will only communicate with me in the future, If you are currently represented by a lawyer,
then I request that you notify your legal representative and instruct him or her to contact me.
Second, I am writing to notify you that Dr. Sarna seeks your answer or response to his December
19", 2018 email to you. In that email, Dr. Sama appears reasonably and understandably to be
asking nothing more than whether you will complete the project in a competent manner, which
will enable the work that you have performed to date (or the work that your sub-contractors have
performed under your supervision), to pass inspections by the Burlingame City officials in the
Fire and Water Departments. To my mind, this is a reasonable request on the part of my client.
J understand that your responses to my client’s earlier inquiries about the completion of his
renovation project have all been rebuffed by you, and your present demand that my client pay
you additional monies for work that you have not performed. In fact, I have a copy of your
November 9, 2018 email invoice, instructing my client to pay the outstanding balance only after
you have completed the project and delivered the final permits. I also have a copy of your most
recent invoice. Based on my review of the history of this renovation project, I have evidence
1|Page
that my client has, to date, paid you nearly $215,000.00, despite the fact the initial contract
provided for payment of $143,000.00 and a completion date within 90 days from the creation of
the contract. In short, you are presently 10 months’ tardy in satisfying the terms of the contract
or, put much more bluntly, you have breached the contract and my client has suffered monetary
damages
My client believes that it has been your contractor’s mistakes and missteps that have caused the
unnecessary delay and his attendant damages, in the loss of rental income and additional costs
incurred in paying or servicing a construction loan. These latter damages my client has been
prudent and carefull to advise you of, repeatedly,
Now, my client has received a recent notice from the City of Burlingame that all of his permits
are due to expire in February 2019. Further, you have failed to respond to the Burlingame Fire
and Water Departments, regarding the fire sprinkler and water supply pipes.
At this point, my client and I are merely asking whether you will complete the project ina
manner that will pass inspection. If not, then my client will hire another contractor to finish the
project, by correcting and curing all of your construction defects and errors, On the other hand,
if you choose to complete Dr. Sarna’s renovation project and enable him to pass all municipal
inspections, then Dr, Sarna will promptly issue a final payment for your construction services,
which payment will be disbursed to you through my office. But I must caution you that I will
not disburse this final payment until you have given me a full accounting of your construction
services, (It has been my experience that contractors routinely double bill and pad their invoices
to the property owners. This may not be the case with you, in this project, but I intend to protect
my client from such exploitation.)
Last, my client has informed me that you have threatened to file a mechanics’ lien, unless he
pays you immediately and before you commence work to complete his renovation project. Such
action by you will be vigorously challenged, and my client will have no option but to pursue
redress and all remedies in a court of law.
You have until Monday, December 24", 2018 by 5:00 p.m. to reply.
Should you have any questions regarding this demand letter, I encourage you or your lawyer to
contact me, I am available to discuss this dispute.
Respectful urs,
Alec E. Adams
AEA//clw
(Dr. Punit Sarna — client — Case No. RP18-00122145)
cc; Dr. Punit Sarna, M.D. (client).
2|Page
Exhibit F
LOUIS PAYCHECK
EUROPEAN ENTERPRISES
711 SOUTH ROAD
BELMONT, CA 94002
GENERAL CONTRACTOR
CAL. STATE LIC. # 763968
TEL: (650) 619-0266
December 23, 2018
TO: Law Offices of Alec E, Adams; ATTN: Alec E. Adams
22762 Main Street, Suite 105
Hayward, CA 94541
Tel: (510) 581-0613
Fax: (510) 581-0614
Email: alec_adams(@yahoo.com
RE: Response to letter Reference: “DR. PUNIT SARNA, M.D. // Inter-Office Case No.
RP18-00122145 // Real Property Address: 721 Rollins Road, Burlingame, CA //
Demand Letter to General Contractor to Complete Project.
Dear Mr. Adams,
Thank you for your letter dated December 21, 2018. You clearly explained you and your
client's demand. As you can understand, there are always two sides of every story. In this
letter I would like to present the factual chain of events that occurred on this job, which
caused the project to last more than 90 days.
On November 12, 2017, through a mutual friend of ours, Dr. Punit Sarna approached me
to remodel his recently purchased 5 apartment units at 721 Rollins Road. The building is
more than 2500 sq. ft., and if he were to remodel 5 units at the same time, he would be
required to install a new fire sprinkler system. He decided to only remodel 4 units to
avoid the need for the new fire system.
On November 29, 2017, I prepared drawings and obtained a permit from the Burlingame
Building Department to remodel 4 units’ kitchens and bathrooms for the price of$
114,600. By the end of January, the job was almost complete. We were waiting for the
cabinets to arrive for installation.
On January 30", your client decided that he was ready to remodel the 5" unit. I prepared
new drawings and on February 6, 2018 I secured a new permit for the requested unit. At
that time, the building department recognized your clients motives, and requested that a
sprinkler system be installed on the building. To accomplish that, it was necessary to
remove all drywall from the units. I gave a new price to your client and he agreed. This
setback put the job at square one. After we removed the drywall, he decided to upgrade
all plumbing from the existing, old galvanized pipes and the electrical. which was old
knob and tube wiring on all units. We also discovered black mold in unit | behind the
walls which needed repair, The job was increasing on size and cost, which he agreed to
pay:
Page 2: Law Offices of Alec E. Adams
When removing the drywall, we also discovered a lot of dry rot at the carport and
walkway in front of units 2 through 5. He decided to replace the walkway completely,
and redo the carport by replacing the main, wood supporting beams with steel beams. A
new permit was required from the Building Department for voluntary seismic and carport
columns replacement. To get a permit, we needed to hire a structural engineer to prepare
drawings and calculations for the upgrade. After interviewing several engineers, he
selected the one which cost the least. This was problematic, as they took extremely an
extremely long time to prepare the drawings, which required revision 4 times by the
Building Department.
Finally. on March 22. I was able to get the drawings approved and received the permit for
the carport and balcony. This job required more than 90 days and additional cost, which
your client agreed to pay. The work lasted almost 6 months with all of the revisions and
added work.
Sereda
a er
Laalan.B lumbing
I
ompany was hired and your client promis y direc
sprinkler system
required the installation of an electronic monitoring system, which was hired and to be
paid without my involvement. With the extra work, came more time and inspections.
Dr. Sarna was very fair to me for making progress payments throughout the job. By
November, the cost was over $ 200,000 and climbing. Your client still owes be
approximately $40,000 as a final payment. I only owe $2,000 to the sprinkler technician.
1 am willing to complete the job and secure all final inspections if the following
conditions are met:
a ee oe a O1 os
>. M lents | ry
Saeed ee — a
s to ne $20,00 res yn
1 am good, fair contractor and have been in business since 1989. I have no complaints or
court actions against my license or my company and would like to keep it that way. I
hope this letter will help you understand the situation of the job. If your client is willing
to take the necessary steps to complete this job, I am willing to help. If not, my attorney
Grant H. Baker from Michael B. Alan Law Group, Inc. in San Mateo will be glad to take
this case to court.
Respectfully,
Louis Paycheck, General Contractor
Exhibit G
Law Offices of
ALEC E. ADAMS
22762 Main Street, Suite 105
Hayward, California 94541-5114
tel $10,581.06
13 email: alec_adamsi@ yahoo.com _fax 510,581,0614
Alec E, Adams
Altorney at Law
28 January 2019
TERMINATION NOTICE
SENT VIA CERTIFIED REGISTERED MAIL:
Mr, Louis Paycheck
General Contractor - CA State Lic, #763968
711 South Road
Belmont, CA 94002
Email: european emerprises@ msn.com
RE: DR. PUNIT SARNA, M.D. (client) // Inter-Office Case No. RP18-00122145 /
Real Property Address: 721 Rollins Road, Burlingame, CA // Notice of
Termination.
Dear Mr, Paycheck,
This letter is to notify you that1 have recommended that my client Dr. Punit (Peter) Sarna
terminate you. My client has accepted my recommendation and therefore your construction
services are ended immediately.
1 PROJECT ABANDONMENT.
Your termination is based, in part, on your abandonment of the Sarna construction project. You
have not performed work in more than 3 months or 90 days. You were sent a Demand Letter by
me, dated December 21, 2018. My letter was to demand that you return to the site of 721 Rollins
Road, Burlingame, CA and complete the Sarna Project. | also demanded that you correct
plumbing defects identified on the November 26, 2018 inspection and successfully guide my
client through the final series of municipal inspections. You have failed to comply with these
written demands for performance.
Your response to my December 21, 2018 Demand Letter was to counter demand that my client
must pay you additional monies, before you would agree to return and complete the project
This counter demand by you was in direct contradiction to your November 9th, 2018 promise,
set forth in writing on your invoice, that the outstanding balance of money awed should be paid
after completion of the Sarna Project and ufier all permits have been finalized and passed
necessary inspections. In addition, you added that Dr. Sarna would now also have to satisfy the
ljPage
requirements of the Burlingame Fire Dept. and Water Dept., as each related to your scope of
work and installation of fire sprinklers.
Tl. BREACH OF DATE TO COMPLETE CONSTRUCTION PROJECT.
Your termination is further based on your breach of the contract term requiring completion of the
Sarna Project within ninety (90) days. As of the date of this Termination Notice, you are more
than I] (eleven) months past due in completing the Sarna Project. As a direct consequence, my
client has suffered the financial loss of substantial rental income. These monetary damages have
been caused directly by you and your willful breach of the contract term in which you expressly
promised to complete the full project within 90 days.
My client further refutes your timeline and account of change orders, namely the addition or
installation of fire sprinklers in the building. Your subcontractor, SSS Sprinklers, original
contract dated December 5, 2017, is 6 days after Dr. Sarna agreed to your contract dated
November 30, 2017 This is clear and credible proof of Dr. Sarna’s plans to install fire sprinklers
with his original agreement, not an afterthought as you now falsely claim in your letter.
My Demand Letter on behalf of Dr Sarna was merely a “good faith” effort to obtain from you
the necessary “assurance” that you would return and complete the construction project (i.e.,
perform your contractual obligations). You replied expressly by counter-demanding more money
for your original contracted scope of work. Thus, my client has established an “anticipatory
repudiation”, in that you repudiated your contractual obligations to perform services and thereby
released my client to hire a new contractor or sub-contractors to complete the project.
mH. OVER-BUDGET AND OVER-PAYMENT.
Consistent with your breach of the promised completion date of the Sarna Project is your
culpability and fault in having gone over-budget for the project and having over-charged my
client. The contract that you signed with Dr. Sarna set forth a total construction charge of
$143,000.00, To date, you have charged and received from Dr, Sarna in excess of $210,000,00.
You have already collected an additional $67,000 and still failed to complete the original project
and pass final inspections.
My client and | also have discovered several instances of you "padding" or inserting mark-ups
onto the invoices that you have received from sub-contractors, The invoice from Bell Plumbing
is evidence of such an instance when you, acting in bad faith, have padded costs
TV. FAILURE TO PAY SUBCONTRACTORS.
A fourth legal ground for your immediate termination is due to your failure to pay the sub-
contractors, including but not limited to (1) Bell Plumbing, (2) SSS Sprinklers and (3) The
Backflow Pro. In fact. he Bel] Plumbing invoice, dated August 20, 2018, remains unpaid as of
the date of this Termination Notice. Bell Plumbing and SSS Sprinklers have now sent notices 10
my client that they intend to commence preliminary action to file mechanics’ liens on my client's
2\Pae
apartment building. This is not acceprable and is in direct violation of California Business &
Professions Code.
I might add that your failure to pay your sub-contractors has also been a contributing factor in
the delay of the completion of the Sarna Project. Your argument to my client that he is
responsible for paying the subcontractors is both dishonest and contrary to construction industry
practices and customs. You directly collected progress payments from Dr. Sarna for payment of
these subcontractors and failed to disburse payments in a timely manner. This is indisputable
evidence of your contract breach and bad faith towards Dr. Sarna
Vv FAILURE TO PAY FOR ENGINEERING DESIGNS OR PLANS.
You are terminated forthwith because you failed to pay for the engineering designs or plans,
although you promised to do so, You undeniably represented to Dr, Sarna at the beginning of
your contractor's services that you would consult with an engineer of your own choosing, have
that engineer create a building design or blueprints for the renovation of Dr. Sarna’s building,
and then pay for it from the monies that you received at the start from Dr. Sarna. You misled Dr
Sarna to believe that you would pay the engineer and not that my client would bear that
burdensome cost, a cost which you represented had already been factored into the total contract
price of $143,000.00.
VI. FATLURE TO RESPOND TO BURLINGAME CITY OFFICIALS.
You are immediately terminated due to your failure to respond to emails from the Burlingame
City Officials in both the Water and Fire Departments, pertaining to violations which inspectors
from each department cited and documented during various inspections. As requested by the
city officials, you did not provide plans to cure or correct the construction flaws as the general
contractor and responsible party, regarding the faulty plumbing defect discovered during the
November 26, 2018 Burlingame City inspections. You were present along with Dr. Sarna on
December 13, 2018 for a site meeting and conference with Mr. Michael Brown of Burlingame
Water Dept. and Ms. Julie Parenti of Central County Fire — you have failed to follow through on
correcting those plumbing and fire code violations to date. In truth, you abandoned the project.
vu. FAILURE TO PROVIDE PROOF OF LIABILITY INSURANCE OR
WORKERS COMPENSATION POLICY,
You are immediately terminated because, you have failed to provide my client with proof that
you possess liability insurance and carry workers’ compensation coverage for your ‘alleged’ 14
employees.
Vill. CONCLUSION.
In concluding, | and my client categorically refute the timeline and rendition of this construction
project, as outlined in your December 21, 2018 response. The building project and the scope of
work expressly contemplated in the contract always included the installation of fire sprinklers.
My client has photographs of the work progress including the installation of fire sprinklers
3\ Pegs
before you installed drywall and closed the interior walls for rough plumbing and electrical. The
original contract included this scope of work and the necessary fire sprinkler permit was issued
on December 26, 2017 — within the first 30 days of your contract period. Your narrative
regarding adding sprinklers to the building, as an afterthought, and demolishing walls a second
time for installation is false, dishonest and shameful. Your agreement with SSS Sprinklers is
dated December 5, 2017, only 6 days after you began renovations.
Now that you have breached the contract by abandoning this project and refusing to return, my
client will now seek to mitigate his damages. In practical terms, you have caused Dr. Sarna
substantial monetary damages with construction defects identified by City officials, loss of rents
and legal fees. Dr. Sarna still has no sense of how many defects in the real property you have
caused by your contractual breach, your negligence and your construction ineptness.
You must deliver all original permits (open or closed) to my office within 5 days of the date of
this Termination Letter. My client has been advised and instructed by me to travel to the City of
Burlingame and transfer all permits into his name, as the property owner
You should know that in the time that I have devoted to investigating your dealings with my
client, 1 discovered that you have caused similar breaches and damages to other Bay Area
property owners, of whom the most conspicuous is Dr. Ramchandran Thircuote of 397 Fletcher
Drive in Atherton, California. This pattern of harmful business practices by you justifies further
investigation by me, on a loca! and state level, to ascertain how many formal complaints have
been lodged against you.
Finally, European Enterprises. its employees or associates and you are immediately and
effectively terminated. You and your employees or agents are strictly forbidden from returning
to 721 Rollins Rd in Burlingame. If you do, you and your employees or agents will be
considered trespassers. Any further communications should be directed to me, as Dr. Sarna’s
attorney. Under no circumstances shall you or your employees contact Dr. Sarna or his family
Tam always available to discuss this dispute with you or your lawyer.
Alec E. Adams
AEAvclw
(Dr. Punit Sarna —cliemt - Case No. RP18-00] 22/45)
ee: Dr Panit Sarna (elients
Preview
MATTHEW A. HAULK (SBN: 272457) RAGGHIANTI FREITAS LLP 1101 Fifth Avenue, Suite 100 San Rafael, California 94901 Telephone: (415) 453-9433 Electronically Facsimile: (415) 453-8269 by Superior Court of California, County of San Mateo Attorneys for Defendants ON 9/18/2020 PUNIT K. SARNA and By. /s/ Una Finau PUJA SARNA Deputy Clerk SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN MATEO 10 LOUIS PAYCHECK, CASE NO.: 19C1V02595 W Plaintiff, DECLARATION OF PUNIT SARNA IN 12 SUPPORT OF APPLICATION FOR PRE- Vs. JUDGMENT WRIT OF ATTACHMENT 13 PUNIT K. SARNA, et al., DATE: November 10, 2020 14 TIME: 1:30 p.m. Defendants. DEPT.: 4, Courtroom 8B 15 JUDGE: Honorable Nancy L. Fineman 16 Complaint Filed: May 10, 2019 7 AND RELATED CROSS-ACTION. Trial Date: TBD 18 |, Punit Sarna, declare: 1 19 | am a defendant and cross-complainant in the above captioned action. | 20 have personal knowledge of the information set forth herein below, unless noted as 21 based on information and belief, all of which is true and correct of my own personal 22 knowledge, and if called upon to testify, | could and would competently testify thereto. 23 2 In November 2017, | entered into a written contract with Louis Paycheck for 24 the renovation of a five-unit residential property at 721 Rollins Road, Burlingame, 25 California (the “Property”). Louis Paycheck’s scope of work during the project included, 26 but was not limited to, demolition work, carpentry work, electrical work, plumbing work, 27 the installation of a fire sprinkler system, structural upgrades, and exterior stucco work. 28 3 Louis Paycheck started work on the project with a crew of employees in 1 DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT mid-November 2017. | remember this distinctly because Paycheck started performing work before he had a permit and | was concerned that a neighbor would complain and the project would be put in jeopardy. | instructed Paycheck to pull a permit for the project. 4 The project was supposed to be completed within 90-days, i.e. no later than March 2018. However, the project was repeatedly delayed for reasons | did not fully comprehend and, while not necessarily relevant to this application, his work was defective and sloppy and had to be corrected after he left the jobsite. 5 In July 2018, Paycheck issued a final invoice for work on the project. The invoice stated that | had paid Paycheck a total of $210,000 and that a balance of 10 $26,900.70 was due “at completion and final inspection”. A true and correct copy of this 1 invoice is attached hereto as Exhibit A. In September 2018, Paycheck issued a “Change 12 order Invoice” for $9,975. | had never approved this change order. A true and correct 13 copy of this document is attached hereto as Exhibit B. 14 6 On November 9, 2018, Louis Paycheck sent me an e-mail with the “final” 16 invoices for the project. The e-mail included an invoice dated July 14, 2018 that stated: 16 “Balance due at completion and final inspection”. The invoice also included the 7 September 2018 change order invoice that | had never approved. A true and correct copy 18 of the e-mail and its attachments are attached hereto as Exhibit C. 19 t On November 26, 2018, the Burlingame Fire Department and Water 20 Department determined that the project could not pass final inspection because the water, 24 supply system to the domestic plumbing system and to the fire sprinkler system needed 22 to be separated. On December 13, 2018, | met on site with Louis Paycheck, Michael 23 Brown from the Burlingame Water Department, and Julie Parenti from the Central County; 24 Fire Department to discuss the needed to correct these violations. 25 8 After the December 13, 2019 meeting, Louis Paycheck failed and refused to} 26 return to the jobsite and | sent him a series of letters culminating in a termination letter: 27 a. On December 19, 2018, | sent Louis Paycheck an e-mail to demand that 28 he return to the project and complete work. A true and correct copy of 2 DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT | | this e-mail is attached hereto as Exhibit D, Paycheck did not respon; On December 21, 2018, my attorney Alec Adams sent a letter to | Paycheck demanding that he return to complete work on the project. A true and correct copy of this letter is attached hereto as Exhibit E. On December 23, 2018, Louis Paycheck replied to Mr. Adams’ bokeh A | true and correct copy this letter is attached hereto as Exhibit F. On January 28, 2019, my attorney sent Louis Paycheck a formal | “Termination Notice" instructing him that the contract had been terminated. A true and correct copy of this letter is attached hereto as 10 Exhibit G. | W 9 After Paycheck abandoned the project, and my attorney issued a 12 termination letter, | was forced to retain replacement contractors to correct the slonbbiha 13 work and fire sprinkler system, correct other code defects at the project, and otherwise 14 complete the work on the project and prepare the property for final inspection. The 15 project passed final inspection on February 25, 2019, approximately one year behind 16 schedule, | 7 10. During the period from December 8, 2017 to March 4, 2018, | paidLobis 18 Paycheck dba European Enterprises a total of $80,000 for the performance of wort on 19 the project. A true and correct copy of the checks | wrote to Paycheck areattached| 20 hereto as Exhibit H. In total, | paid Louis Paycheck in excess of $210,000 for the labor 21 and materials supplied to the project. || 22 11. | declare under penalty of perjury under the laws of the State of California 23 that the foregoing is true and correct. Executed this( 7 th day of September 2020, at 24 25 San hates , California, Pp ri | 26 it Sarna | 27 28 3 | DECLARATION OF PUNIT SARNA IN SUPPORT OF MOTION TO PREJUDGMENT WRIT OF ATTACHMENT Exhibit A EUROPEAN ENTERPRISES 711 SOUTH ROAD BELMONT, CA 94002 GENERAL CONTRACTOR CAL, STATE LIC, # 763968 TEL: (650) 619-0266 July 14, 2018 TO Peter Sarna 721 Rollins Rd. Burlingame, CA Tel: (650) 918-9540 Email: punitsarma@yahoo.com RE; Apartment Remodel Invoice Demolition and Hauling ~ Remove ceiling, carpet, cabinet, tub, bathroom fixtures, interior doors, and debris. $ 600.00 Purchase 30 yard dumpster for a week ma Tonea RATT ANT TAN 800.00 Electrical Install new 4” LED recessed lights throughout the apartment, bathroom, and kitchen., new dedicated GFCI plugs in the bathroom. Replace all knob and tube wiring with Romex. Install new receptacles as neede Included is all exterior lighting (fixtures purchased by Owner). $ 2,050.00 Plumbing — Replace all galvanized pipes in the bathroom and the kitchen, up to where it is possible without removing the floor. Replace all drain pipes with ABS pipes where possible without removing the floor. Install new tub and faucets (Tub and facets purchased by the owner). Install a Washer andES Provide plumbing for one garden box... $ 5,500.00 Carpentry — Install new cabinets and vanities. Install countertops and tiles for backsplash (Tiles, cabinets, and countertops purchased by the owner). Repair dry rot in apartment # 2 $ 4,000.00 Sheetrock — Replace all sheetrock. Tape, mud, and smooth walls Purchase and Install Insulation throughout the apartment $ 6,000.00 Purchase, Remove and Install new hardwood floors $ 2,700.00 8 Tiles — Install approx., 200 sq ft of floor and wall tiles.atts purchased by the owner)... 2,000.00 Page 2 Peter Sarna 9. Re-stucco the carport area and shear walls. included 10. Finishing Carpentry — Install baseboards and new doors. Install hood for all ovens to the roof. 1,600.00 ll Purchase and install new vinyl Milgard windows, Resize Kitchen window in Apt#1 2,500.00 12, Paint the entire apartment, 900.00 TOTAL LABOR AND MATERIALS 28,650.00 ADDITIONAL EXPENSES: 1 Purchase and Install 5 Ea, Wall heaters at $ 700.00. 3,500.00 2 Purchase new gas vent pipes from the heaters and kitchen vents. 1,200.00 sprinkletS....unsnmmonnnininennnn® 3. Create drawings and install 10530000 Purchase and relocate electrical panel for unit #1 650.00 Permit and Inspection cost and Prints. 1,232.11 Second Permit for unit # 5 128.44 Paid Fees to Structural Engineer. 700.00 Repair Black Mold in Unit # 1 1,200.00 Purchase 5 ea, Tubs with metal overflow. 3,459.88 10. Redo the Laundry room. 6,000.00 11 Purchase lights for Laundry and Storage room, 187.97 12 Pay for permit for seismic. 602.17 13 Removing stucco from the bottom of the balcony. 3,000.00 14, Seismic, Installing metal posts in carport. 20,000.00 15. Redo the balcony walkway — Completely redo the upstairs walkway with new framing, % plywood, Waterproofing and 3” concrete............ $ 30,000.00 16, Stucco the bottom ceiling in the carport.. $ 13,000.00 17. Purchase materials for closet shelves 1,022.35 18. Purchase additional cabinets Panels............ 245.46 19. Purchase additional sub-way tiles. 232.32 TOTAL ADDITIONAL EXPENSES. ..:.::c0ssc0 — 93,650.70 The above price per apartment, The expenses to redo the laundry room will be $ 6000.00. Seismic, installing metal posts and repair some balcony boards is $ 25,000.00, Removing stucco from the bottom of the balcony, evaluating the damage, and possibly repair, approx. $ 6,000.00. Demolition and repair of the black mold in unit J will be $ 1,200.00. The seismic work will include two shear walls and stucco. Install 2 ea. 4” bollards in front of the electrical panel in the carport. Purchase and replace 4 ea. exterior doors for the laundry and storage area. PAYMENT SCHEDULE: Total apartments Payment (28,650.00 X 5 Apt)... 143,250.00 Additional Expenses..... $ 93,650.70 Total Cost......s-sssee+ sectsteesed 236,900.70 Payments to date, 210,000.00 Balance due $ 26,900.70 Balance due at completion and final Inspection. Exhibit B EUROPEAN ENTERPRISES 711 SOUTH ROAD BELMONT, CA 94002 GENERAL CONTRACTOR CAL. STATE LIC. # 763968 TEL: (650) 619-0266 September 16, 2018 TO: Peter Sarna 721 Rollins Rd, Burlingame, CA Tel: (650) 918-9540 Email: punitsarna@yahoo.com RE: Apartments Remodel Change order Invoice 1 Install Wall Cabinets in carport 2,500.00 2 Purchase and Install Laundry room granite............ $ 1,000.00 3. Fire sprinklers additional Valve purchase and Installation....u...8 2,700.00 — Paint Laundry and storage room floors with epoxy paint........... 600.00 Install shower doors... 875.00 Additional Stucco the front of the Building..........000 1,500.00 Run Electrical conduit for fire alarm system............ 400.00 Run additional AC wire for the Alarm 400.00 TOTAL LABOR AND MATERIALS 9,975.00 Paid to date... 5,000.00 BALANCE DUE. 4,975.00 Exhibit C From: Louis Paycheck To: punitsarna@yahoo.com Sent: Friday, November 9, 2018, 07:28:47 PM PST Subject: Final Invoices Hi Punit, Please review the Final Invoices and let me know if you have any questions. Louis EUROPEAN ENTERPRISES 711 SOUTH ROAD BELMONT, CA 94002 GENERAL CONTRACTOR CAL, STATE LIC, # 763968 TEL: (650) 619-0266 July 14, 2018 TO. Peter Sarna 721 Rollins Rd, Burlingame, CA Tel: (650) 918-9540 Email: punitsarna@yahoo.com RE: Apartment Remodel Invoice Demolition and Hauling — Remove ceiling, carpet, cabinet, tub. bathroom fixtures, interior doors, and debris. 600.00 Purchase 30 yard dumpster for a week 800.00 Electrical Install new 4° LED recessed lights throughout the apartment, bathroom, and kitchen., new dedicated GFCI plugs in the bathroom. Replace all knob and tube wiring with Romex Install new receptacles as needed., Included is all exterior lighting (fixtures purchased by Owner). 2,050.00 Plumbing — Replace all galvanized pipes in the bathroom and the kitchen, up to where it is possible without removing the floor. Replace all drain pipes with ABS pipes where possible without removing the floor. Install new tub and faucets (Tub and facets purchased by the owner), Install hook-up Washer and Dryer. Provide plumbing for one garden box. 5,500.00 Carpentry — Install new cabinets and vanities. Install countertops and tiles for backsplash (Tiles, cabinets, and countertops purchased — by the owner). Repair dry rot in apartment # 2.........cccesessesseseeee 4,000.00 Sheetrock — Replace all sheetrock. Tape, mud, and smooth walls Purchase and Install Insulation throughout the apartment $ 6,000.00 Purchase, Remove and Install new hardwood flOofFs.............0000 $ 2,700.00 8 Tiles — Install approx.. 200 sq ft of floor and wall tiles. (Tiles purchased by the owner), 2,000.00 Page 2 Peter Sarna 9. Re-stucco the carport area and shear walls. included 10, Finishing Carpentry — Install baseboards and new doors. Install hood for all ovens to the roOf........ssesssesesnsssssseeseessessssesesesnessesaterneenee $ 1,600.00 I. Purchase and install new vinyl Milgard windows. Resize Kitchen window in Apt#l 2,500.00 12, Paint the entire apartment 900,00 TOTAL LABOR AND MATERIALS 28,650.00 ADDITIONAL EXPENSES: Purchase and Install 5 Ea. Wall heaters at $ 700.00 3,500.00 Purchase new gas vent pipes from the heaters and kitchen vents......... $ 1,200.00 Create drawings and install sprinklers....ccsscsssscsecsesseeseessessessessseeseesnessen $ 10,300,00 Purchase and relocate electrical panel for unit #1 650.00 Permit and Inspection cost and Prints. 1,232.11 Second Permit for unit #5 $ 128.44 Paid Fees to Structural Engineer. 700.00 Repair Black Mold in Unit # o.c.sccsssssssessvesssesscssesssssesrssssesssssessanenen $ 1,200.00 Purchase 5 ea. Tubs with metal OVerflOW......scccssessseesseessseensessseesseeeseees 3,459.88 10. Redo the Laundry room 6,000.00 lL Purchase lights for Laundry and Storage room 187.97 12 Pay for permit for seismic... 602.17 13. Removing stucco from the bottom of the balcony. 3,000.00 14 Seismic, Installing metal posts in Carport.....cscecsesscsesesseeseeseneesesseaee 20,000.00, 15. Redo the balcony walkway — Completely redo the upstairs walkway with new framing, % plywood, Waterproofing and 3” concrete. pedadcewtos $ 30,000.00 seks ioe $ 16. Stucco the bottom ceiling in the carport. vats dull eens suey cudvaevvonverer 13,000.00 17. Purchase materials for closet shelves... 1,022.35 18. Purchase additional cabinets Panels...........ssssessseeesssesesseessesesseeneneeeesnes $ 245.46 19. Purchase additional sub-way tileS......ccsscecseeseessesstesessessssesseeseeeeereseesed 232,32 TOTAL ADDITIONAL EXPENSES adedatodadseessivae ie $ 93,650.70 The above price per apartment. The expenses to redo the laundry room will be $ 6000.00, Seismic, installing metal posts and repair some balcony boards is $ 25,000.00, Removing stucco from the bottom of the balcony, evaluating the damage, and possibly repair, approx. $ 6,000.00. Demolition and repair of the black mold in unit | will be $ 1,200.00. The seismic work will include two shear walls and stucco. Install 2 ea, 4” bollards in front of the electrical panel in the carport. Purchase and replace 4 ea, exterior doors for the laundry and storage area. PAYMENT SCHEDULE: Total apartments Payment (28,650.00 X 5 Apt). $ 143,250.00 Additional Expenses. ana tivaaheaantachiasasasasainbasasastyanaaddaedansapesigayigaytaie $ 93,650.70 "TOta COSticiscsvacscassseccossaticegiatseaaseeccion 236,900.70 Payments to date Re aU Ue wee 210,000.00 Balance due. $ 26,900.70 ‘Balance due at completion and final Inspection. EUROPEAN ENTERPRISES 711 SOUTH ROAD BELMONT, CA 94002 GENERAL CONTRACTOR CAL. STATE LIC. # 763968 TEL: (650) 619-0266 September 16, 2018 TO: Peter Sarna 721 Rollins Rd, Burlingame, CA Tel: (650) 918-9540 Email: punitsarna@yahoo.cow RE: Apartments Remodel Change order Invoice Install Wall Cabinets in carport 2,500.00 Purchase and Install Laundry room granite 1,000.00 Fire sprinklers additional Valve purchase and Installation 2,700.00 Paint Laundry and storage room floors with epoxy paint... 600.00. Install shower doors. 875.00 Additional Stucco the front of the Building 1,500.00 Run Electrical conduit for fire alarm system. 400.00 Run additional AC wire for the Alarm. 400.00 TOTAL LABOR AND MATERIALS 9,975.00 Paid to date. 5,000.00 BALANCE DUE. 4,975.00 Exhibit D From: Punit Sarna To; Louis Paycheck Sent: Wednesday, December 19, 2018, 11:20:04 PM PST Subject: Letter of Demand--721 Rollins Road Louis, | understand that you are upset and | am writing this message to ask for your cooperation in completing the 721 Rollins Rd project. Our original agreement, entered on 11/12/2017, was for a total of 90 days and we are now in month 13, due solely to your mistakes and missteps. | have never failed to pay you when you have demanded additional money to proceed with any phase of the project or supply necessary materials. | have remained patient and understanding of all that has gone on, as | saw you making progress. However, since your final inspection failed on 11/26/18 you have not returned to make the necessary cures or repairs to your defective work. The plumbing for the building -- domestic and fire sprinkler system -- needs to be separated, as was determined after the Burlingame Water and Burlingame Fire Dept reviewed that phase of the project during their simultaneous inspections on 11/26/18 and again during our group meeting on 12/13/18--where you and | were both present. As to your demands for final payment--please reference and recall your 11/9/18 email to me that the balance of monies owed would be paid upon completion of work and passing of final inspections. This has not occurred as of the date of this letter, however your angry demands for payment are now escalating to verbal threats of liens. It is absolutely necessary that the inspections from the Burlingame Building Dept, Water Dept and Fire Dept all be satisfactorily completed. In short, | cannot honor your demand for final payment without you completing the necessary work and passing ALL inspections. Furthermore, | will require and obtain lien waivers from all your subcontractors as there are now multiple outstanding/unpaid invoices from them that you have not paid. These subcontractors are your responsibility to pay, as you selected and hired each one (not me). | do not have any agreements or contracts with the fire sprinkler subcontractor or Bell Plumbing subcontractor. They are your sub-contractors for this project. Please reference the email from Julie Parenti with Burlingame Fire Dept on Dec 6, 2018, outlining the violations and defects and necessary corrections or cures. Failing to complete the work for this project is costing me both loss of rents and carrying costs. My apartment building is presently empty. Our initial agreement was for 90 days--| have now suffered the loss of 10 months' rent. | therefore appeal to you, Louis, to return to the site and finish this project. If you choose not to complete this project, | will be compelled to have another contractor come and do the necessary work and seek legal remedies. My concern is this will cost significantly more money and time than if you completed the work yourself. Please finish what you started. We have worked on this project together and | believe it is in both of our interests for you to correct and cure the remaining work, including the plumbing errors. If you choose to move forward, | must warn you that your abusive language and tone of voice will no longer be tolerated by me. | expect professional behavior. But most of all, | expect timely completion of the work. If you can control and calm your emotions, | do think this is still the best path forward for both of us. | kindly ask you to respond to this letter within 3 calendar days, with a detailed plan for completing this project and passing ALL inspections by city officials. Thank you, Punit Sarna Exhibit E Law Offices of ALEC E, ADAMS 22762 Main Street, Suite 105 Hayward, California 94541-5114 tel 510,581,0613 email; alec_adams@yahoo.com Sac 510.581.0614 Alec E. Adams Attorney at Law 21 December 2018 SENT VIA CERTIFIED REGISTERED MAIL: Mr. Louis Paycheck General Contractor - CA State Lic. #763968 711 South Road Belmont, CA 94002 Email: european_enterprises@msn.com RE: DR_PUNIT SARNA, M.D. (client)// Inter-Office Case No. RP18-00122145 / Real Property Address: 721 Rollins Road, Burlingame, CA / Demand Letter to General Contractor te Complete Project, Dear Mr. Paycheck, My purpose in writing to you is two-fold, First, I wish to notify you that I have been retained by Dr. Sarna as his legal counsel in the present matter involving the renovation of the above-referenced real property. 1 kindly ask that you refrain from contacting my client, in any manner or medium, I personally consider your abusive, intemperate language to my client is unacceptable and unprofessional. Consequently, you will only communicate with me in the future, If you are currently represented by a lawyer, then I request that you notify your legal representative and instruct him or her to contact me. Second, I am writing to notify you that Dr. Sarna seeks your answer or response to his December 19", 2018 email to you. In that email, Dr. Sama appears reasonably and understandably to be asking nothing more than whether you will complete the project in a competent manner, which will enable the work that you have performed to date (or the work that your sub-contractors have performed under your supervision), to pass inspections by the Burlingame City officials in the Fire and Water Departments. To my mind, this is a reasonable request on the part of my client. J understand that your responses to my client’s earlier inquiries about the completion of his renovation project have all been rebuffed by you, and your present demand that my client pay you additional monies for work that you have not performed. In fact, I have a copy of your November 9, 2018 email invoice, instructing my client to pay the outstanding balance only after you have completed the project and delivered the final permits. I also have a copy of your most recent invoice. Based on my review of the history of this renovation project, I have evidence 1|Page that my client has, to date, paid you nearly $215,000.00, despite the fact the initial contract provided for payment of $143,000.00 and a completion date within 90 days from the creation of the contract. In short, you are presently 10 months’ tardy in satisfying the terms of the contract or, put much more bluntly, you have breached the contract and my client has suffered monetary damages My client believes that it has been your contractor’s mistakes and missteps that have caused the unnecessary delay and his attendant damages, in the loss of rental income and additional costs incurred in paying or servicing a construction loan. These latter damages my client has been prudent and carefull to advise you of, repeatedly, Now, my client has received a recent notice from the City of Burlingame that all of his permits are due to expire in February 2019. Further, you have failed to respond to the Burlingame Fire and Water Departments, regarding the fire sprinkler and water supply pipes. At this point, my client and I are merely asking whether you will complete the project ina manner that will pass inspection. If not, then my client will hire another contractor to finish the project, by correcting and curing all of your construction defects and errors, On the other hand, if you choose to complete Dr. Sarna’s renovation project and enable him to pass all municipal inspections, then Dr, Sarna will promptly issue a final payment for your construction services, which payment will be disbursed to you through my office. But I must caution you that I will not disburse this final payment until you have given me a full accounting of your construction services, (It has been my experience that contractors routinely double bill and pad their invoices to the property owners. This may not be the case with you, in this project, but I intend to protect my client from such exploitation.) Last, my client has informed me that you have threatened to file a mechanics’ lien, unless he pays you immediately and before you commence work to complete his renovation project. Such action by you will be vigorously challenged, and my client will have no option but to pursue redress and all remedies in a court of law. You have until Monday, December 24", 2018 by 5:00 p.m. to reply. Should you have any questions regarding this demand letter, I encourage you or your lawyer to contact me, I am available to discuss this dispute. Respectful urs, Alec E. Adams AEA//clw (Dr. Punit Sarna — client — Case No. RP18-00122145) cc; Dr. Punit Sarna, M.D. (client). 2|Page Exhibit F LOUIS PAYCHECK EUROPEAN ENTERPRISES 711 SOUTH ROAD BELMONT, CA 94002 GENERAL CONTRACTOR CAL. STATE LIC. # 763968 TEL: (650) 619-0266 December 23, 2018 TO: Law Offices of Alec E, Adams; ATTN: Alec E. Adams 22762 Main Street, Suite 105 Hayward, CA 94541 Tel: (510) 581-0613 Fax: (510) 581-0614 Email: alec_adams(@yahoo.com RE: Response to letter Reference: “DR. PUNIT SARNA, M.D. // Inter-Office Case No. RP18-00122145 // Real Property Address: 721 Rollins Road, Burlingame, CA // Demand Letter to General Contractor to Complete Project. Dear Mr. Adams, Thank you for your letter dated December 21, 2018. You clearly explained you and your client's demand. As you can understand, there are always two sides of every story. In this letter I would like to present the factual chain of events that occurred on this job, which caused the project to last more than 90 days. On November 12, 2017, through a mutual friend of ours, Dr. Punit Sarna approached me to remodel his recently purchased 5 apartment units at 721 Rollins Road. The building is more than 2500 sq. ft., and if he were to remodel 5 units at the same time, he would be required to install a new fire sprinkler system. He decided to only remodel 4 units to avoid the need for the new fire system. On November 29, 2017, I prepared drawings and obtained a permit from the Burlingame Building Department to remodel 4 units’ kitchens and bathrooms for the price of$ 114,600. By the end of January, the job was almost complete. We were waiting for the cabinets to arrive for installation. On January 30", your client decided that he was ready to remodel the 5" unit. I prepared new drawings and on February 6, 2018 I secured a new permit for the requested unit. At that time, the building department recognized your clients motives, and requested that a sprinkler system be installed on the building. To accomplish that, it was necessary to remove all drywall from the units. I gave a new price to your client and he agreed. This setback put the job at square one. After we removed the drywall, he decided to upgrade all plumbing from the existing, old galvanized pipes and the electrical. which was old knob and tube wiring on all units. We also discovered black mold in unit | behind the walls which needed repair, The job was increasing on size and cost, which he agreed to pay: Page 2: Law Offices of Alec E. Adams When removing the drywall, we also discovered a lot of dry rot at the carport and walkway in front of units 2 through 5. He decided to replace the walkway completely, and redo the carport by replacing the main, wood supporting beams with steel beams. A new permit was required from the Building Department for voluntary seismic and carport columns replacement. To get a permit, we needed to hire a structural engineer to prepare drawings and calculations for the upgrade. After interviewing several engineers, he selected the one which cost the least. This was problematic, as they took extremely an extremely long time to prepare the drawings, which required revision 4 times by the Building Department. Finally. on March 22. I was able to get the drawings approved and received the permit for the carport and balcony. This job required more than 90 days and additional cost, which your client agreed to pay. The work lasted almost 6 months with all of the revisions and added work. Sereda a er Laalan.B lumbing I ompany was hired and your client promis y direc sprinkler system required the installation of an electronic monitoring system, which was hired and to be paid without my involvement. With the extra work, came more time and inspections. Dr. Sarna was very fair to me for making progress payments throughout the job. By November, the cost was over $ 200,000 and climbing. Your client still owes be approximately $40,000 as a final payment. I only owe $2,000 to the sprinkler technician. 1 am willing to complete the job and secure all final inspections if the following conditions are met: a ee oe a O1 os >. M lents | ry Saeed ee — a s to ne $20,00 res yn 1 am good, fair contractor and have been in business since 1989. I have no complaints or court actions against my license or my company and would like to keep it that way. I hope this letter will help you understand the situation of the job. If your client is willing to take the necessary steps to complete this job, I am willing to help. If not, my attorney Grant H. Baker from Michael B. Alan Law Group, Inc. in San Mateo will be glad to take this case to court. Respectfully, Louis Paycheck, General Contractor Exhibit G Law Offices of ALEC E. ADAMS 22762 Main Street, Suite 105 Hayward, California 94541-5114 tel $10,581.06 13 email: alec_adamsi@ yahoo.com _fax 510,581,0614 Alec E, Adams Altorney at Law 28 January 2019 TERMINATION NOTICE SENT VIA CERTIFIED REGISTERED MAIL: Mr, Louis Paycheck General Contractor - CA State Lic, #763968 711 South Road Belmont, CA 94002 Email: european emerprises@ msn.com RE: DR. PUNIT SARNA, M.D. (client) // Inter-Office Case No. RP18-00122145 / Real Property Address: 721 Rollins Road, Burlingame, CA // Notice of Termination. Dear Mr, Paycheck, This letter is to notify you that1 have recommended that my client Dr. Punit (Peter) Sarna terminate you. My client has accepted my recommendation and therefore your construction services are ended immediately. 1 PROJECT ABANDONMENT. Your termination is based, in part, on your abandonment of the Sarna construction project. You have not performed work in more than 3 months or 90 days. You were sent a Demand Letter by me, dated December 21, 2018. My letter was to demand that you return to the site of 721 Rollins Road, Burlingame, CA and complete the Sarna Project. | also demanded that you correct plumbing defects identified on the November 26, 2018 inspection and successfully guide my client through the final series of municipal inspections. You have failed to comply with these written demands for performance. Your response to my December 21, 2018 Demand Letter was to counter demand that my client must pay you additional monies, before you would agree to return and complete the project This counter demand by you was in direct contradiction to your November 9th, 2018 promise, set forth in writing on your invoice, that the outstanding balance of money awed should be paid after completion of the Sarna Project and ufier all permits have been finalized and passed necessary inspections. In addition, you added that Dr. Sarna would now also have to satisfy the ljPage requirements of the Burlingame Fire Dept. and Water Dept., as each related to your scope of work and installation of fire sprinklers. Tl. BREACH OF DATE TO COMPLETE CONSTRUCTION PROJECT. Your termination is further based on your breach of the contract term requiring completion of the Sarna Project within ninety (90) days. As of the date of this Termination Notice, you are more than I] (eleven) months past due in completing the Sarna Project. As a direct consequence, my client has suffered the financial loss of substantial rental income. These monetary damages have been caused directly by you and your willful breach of the contract term in which you expressly promised to complete the full project within 90 days. My client further refutes your timeline and account of change orders, namely the addition or installation of fire sprinklers in the building. Your subcontractor, SSS Sprinklers, original contract dated December 5, 2017, is 6 days after Dr. Sarna agreed to your contract dated November 30, 2017 This is clear and credible proof of Dr. Sarna’s plans to install fire sprinklers with his original agreement, not an afterthought as you now falsely claim in your letter. My Demand Letter on behalf of Dr Sarna was merely a “good faith” effort to obtain from you the necessary “assurance” that you would return and complete the construction project (i.e., perform your contractual obligations). You replied expressly by counter-demanding more money for your original contracted scope of work. Thus, my client has established an “anticipatory repudiation”, in that you repudiated your contractual obligations to perform services and thereby released my client to hire a new contractor or sub-contractors to complete the project. mH. OVER-BUDGET AND OVER-PAYMENT. Consistent with your breach of the promised completion date of the Sarna Project is your culpability and fault in having gone over-budget for the project and having over-charged my client. The contract that you signed with Dr. Sarna set forth a total construction charge of $143,000.00, To date, you have charged and received from Dr, Sarna in excess of $210,000,00. You have already collected an additional $67,000 and still failed to complete the original project and pass final inspections. My client and | also have discovered several instances of you "padding" or inserting mark-ups onto the invoices that you have received from sub-contractors, The invoice from Bell Plumbing is evidence of such an instance when you, acting in bad faith, have padded costs TV. FAILURE TO PAY SUBCONTRACTORS. A fourth legal ground for your immediate termination is due to your failure to pay the sub- contractors, including but not limited to (1) Bell Plumbing, (2) SSS Sprinklers and (3) The Backflow Pro. In fact. he Bel] Plumbing invoice, dated August 20, 2018, remains unpaid as of the date of this Termination Notice. Bell Plumbing and SSS Sprinklers have now sent notices 10 my client that they intend to commence preliminary action to file mechanics’ liens on my client's 2\Pae apartment building. This is not acceprable and is in direct violation of California Business & Professions Code. I might add that your failure to pay your sub-contractors has also been a contributing factor in the delay of the completion of the Sarna Project. Your argument to my client that he is responsible for paying the subcontractors is both dishonest and contrary to construction industry practices and customs. You directly collected progress payments from Dr. Sarna for payment of these subcontractors and failed to disburse payments in a timely manner. This is indisputable evidence of your contract breach and bad faith towards Dr. Sarna Vv FAILURE TO PAY FOR ENGINEERING DESIGNS OR PLANS. You are terminated forthwith because you failed to pay for the engineering designs or plans, although you promised to do so, You undeniably represented to Dr, Sarna at the beginning of your contractor's services that you would consult with an engineer of your own choosing, have that engineer create a building design or blueprints for the renovation of Dr. Sarna’s building, and then pay for it from the monies that you received at the start from Dr. Sarna. You misled Dr Sarna to believe that you would pay the engineer and not that my client would bear that burdensome cost, a cost which you represented had already been factored into the total contract price of $143,000.00. VI. FATLURE TO RESPOND TO BURLINGAME CITY OFFICIALS. You are immediately terminated due to your failure to respond to emails from the Burlingame City Officials in both the Water and Fire Departments, pertaining to violations which inspectors from each department cited and documented during various inspections. As requested by the city officials, you did not provide plans to cure or correct the construction flaws as the general contractor and responsible party, regarding the faulty plumbing defect discovered during the November 26, 2018 Burlingame City inspections. You were present along with Dr. Sarna on December 13, 2018 for a site meeting and conference with Mr. Michael Brown of Burlingame Water Dept. and Ms. Julie Parenti of Central County Fire — you have failed to follow through on correcting those plumbing and fire code violations to date. In truth, you abandoned the project. vu. FAILURE TO PROVIDE PROOF OF LIABILITY INSURANCE OR WORKERS COMPENSATION POLICY, You are immediately terminated because, you have failed to provide my client with proof that you possess liability insurance and carry workers’ compensation coverage for your ‘alleged’ 14 employees. Vill. CONCLUSION. In concluding, | and my client categorically refute the timeline and rendition of this construction project, as outlined in your December 21, 2018 response. The building project and the scope of work expressly contemplated in the contract always included the installation of fire sprinklers. My client has photographs of the work progress including the installation of fire sprinklers 3\ Pegs before you installed drywall and closed the interior walls for rough plumbing and electrical. The original contract included this scope of work and the necessary fire sprinkler permit was issued on December 26, 2017 — within the first 30 days of your contract period. Your narrative regarding adding sprinklers to the building, as an afterthought, and demolishing walls a second time for installation is false, dishonest and shameful. Your agreement with SSS Sprinklers is dated December 5, 2017, only 6 days after you began renovations. Now that you have breached the contract by abandoning this project and refusing to return, my client will now seek to mitigate his damages. In practical terms, you have caused Dr. Sarna substantial monetary damages with construction defects identified by City officials, loss of rents and legal fees. Dr. Sarna still has no sense of how many defects in the real property you have caused by your contractual breach, your negligence and your construction ineptness. You must deliver all original permits (open or closed) to my office within 5 days of the date of this Termination Letter. My client has been advised and instructed by me to travel to the City of Burlingame and transfer all permits into his name, as the property owner You should know that in the time that I have devoted to investigating your dealings with my client, 1 discovered that you have caused similar breaches and damages to other Bay Area property owners, of whom the most conspicuous is Dr. Ramchandran Thircuote of 397 Fletcher Drive in Atherton, California. This pattern of harmful business practices by you justifies further investigation by me, on a loca! and state level, to ascertain how many formal complaints have been lodged against you. Finally, European Enterprises. its employees or associates and you are immediately and effectively terminated. You and your employees or agents are strictly forbidden from returning to 721 Rollins Rd in Burlingame. If you do, you and your employees or agents will be considered trespassers. Any further communications should be directed to me, as Dr. Sarna’s attorney. Under no circumstances shall you or your employees contact Dr. Sarna or his family Tam always available to discuss this dispute with you or your lawyer. Alec E. Adams AEAvclw (Dr. Punit Sarna —cliemt - Case No. RP18-00] 22/45) ee: Dr Panit Sarna (elients