Scanned Third Amended Complaint For True Harmony - 10-10-17

• •
1 JEFFREY G. THOMAS CA SBN 83076

201 WILSHIRE BLVD. Second Floor
2 SANTA MONICA, CALIFORNIA 90401
3 TELEPHONE: 310-650-8326
FACSIMILE: 310-388-1555
4
ATTORNEY AT LAW FOR PLAINTIFF TRUE HARMONY
5
8 IN THE SUPERIOR COURT OF CALIFORNIA UNLIMITED JURISDICTION

FOR THE COUNTY OF LOS ANGELES, CENTRAL DISTRICT - MOSK COURTHOUSE
9
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10 TRUE HARMONY, a California nonprofit Case No.: BC546574 ·C~f1:\

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11 public benefit corporation (and public HIRD AMENDED COMPLAINT FOR ~ ~ ~
MONEY DAMAGES, RESTITUTION AN~. -a ~
12 charity registered under Internal Revenue INJUNCTION: .",.,. ~ t11
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13 Code §sol(c)(3)), (1) INDEPENDENT EQUITABLE
14 CTION TO SET ASIDE VOID ORDERS
Plaintiff, ND JUDGMENT(S) OF THIS COURT; (2
15 DENIAL OF DUE PROCESS OF THE
v. LAWS UNDER THE STATE
CONSTITUTION ARTICLE ONE, SECTION
16 ROSARIO PERRY, an individual, LAW SEVEN (3) EQUITABLE RELIEF UNDER
HE QUIET TITLE STATUTE (4)
17 OFFICES OF ROSARIO PERRY, a CANCELLATION OF INSTRUMENTS, ( (5)
BREACH OF FIDUCIARY DUTIES AND
18 professional corporation, NORMAN IOLATIONS OF CHARITABLE TRUST
ND NONPROFIT CORPORATION
19 SOLOMON, an individual, and LAWS, (6) RESTITUTION AND
INJUNCTION AGAINST UNFAIR,
20 HOPE PARK LOFTS 2001-02910056, LLC, FRAUDULENT AND UNLAWFUL
PRACTICES; (7) VOIDABLE
21 a California limited liability company, 1130 RANSACTION UNDER CIVIL CODE
3439.01 ET SEQ.; (8) DAMAGES FOR
22 SOUTH HOPE STREET INVESTMENT CONVERSION OF MEMBERSHIP IN
LIMITED LIABILITY COMPANY, (9)
23 ASSOCIATES LLC, a former California RECEIPT OF STOLEN PROPERTY, AND
(10) IMPLIED RIGHT OF ACTION FOR
24 limited liability company with articles of IOLATION OF THE NONPROFIT
INTEGRITY ACT.
26 Hope Street Investment Associates LLC,

27 BIMHF, LLC, a California limited liability
28 company, and ALL PERSONS UNKNOWN,
p.1
Third Amended Complaint - True Harn10ny Inc. v. Rosario Perry et a1. - LASC #BC546574
1 CLAIMING ANY LEGAL OR EQUITABLE
2 RIGHT, TITLE, ESTATE, LIEN, OR
3 INTEREST IN THE PROPERTY
4 DESCRIBED HEREIN ADVERSE TO
5 PLAINTIFF’S TITLE, OR ANY CLOUD
6 UPON PLAINTIFF’S TITLE THERETO,
7 and DOES 5 to 10, individuals and/or
8 entities,
9 Defendants.
10
11 I.
12 PARTIES AND STANDING
13 1. Plaintiff TRUE HARMONY is a nonprofit public benefit corporation organized
14 under the laws of the state of California. Its principal office and place of business are in
15 Compton in Los Angeles County.
16 2. Plaintiff is a public charity registered by the Internal Revenue Service under
17 Section 501(c)(3) of the Internal Revenue Code (“IRC”). Plaintiff was formerly known
18 as Turner’s Technical Institute, Inc. This action concerns the title to, and sale of,
19 Property located at 1130 Hope Street, Los Angeles, California 90015 (the “Property”).
20 3. Under the Corporations Code §5913, the state’s Attorney General (“Attorney
21 General”) must approve a transfer or disposition of substantial property of a nonprofit
22 public benefit corporation, or state that the Attorney General does not disapprove.
23 Compare Government Code §§12580 – 12599.8 (the Uniform Act for Supervision of
24 Trustees and Fundraisers for Charitable Purposes). The supervising deputy assistant
25 attorney general Sonja Berndt declared the transfer of the Property by Defendant
26 SOUTH HOPE STREET LLC, in which Defendants regarded Plaintiff as a holder of a
27 fifty percent (50%) membership interest, as a violation of Corporations Code §5913, and
28 ordered Defendants to cease and desist. A true and correct copy of the letter written by
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Third Amended Complaint – True Harmony Inc. v. Rosario Perry et al. – LASC #BC546574
1 Ms. Berndt ordering the Defendants to cease and desist in the sale of the Property is
2 attached hereto behind Exhibit Tab 1.
3 4. Defendant ROSARIO PERRY (“PERRY”) is an individual residing in Los Angeles
4 County. He is a member of the State Bar of California licensed to practice law thereby.
5 5. Defendant LAW OFFICES OF ROSARIO PERRY (“LORP”) is a professional
6 corporation principally owned and directed by PERRY. Whenever a reference is made
7 to Defendant PERRY herein, it is presumed to include a reference also to LORP, unless
8 otherwise stated in the context to refer solely to Defendant PERRY.
9 6. Defendant HOPE PARK LOFTS 2001-02910056, LLC (“HOPE PARK LLC”) is a
10 limited liability company organized under the laws of California. The articles of Hope
11 Park Lofts, Llc were cancelled by the Secretary of State of the state in 2008.
12 7. This court entered an order on August 28, 2013 in action no. BS140365 of
13 reinstatement of Hope Parks Lofts LLC to active status, more than four years after the
14 Secretary of State cancelled its articles. Hope Park Lofts Llc had not paid its taxes.
15 8. Defendant PERRY and LORP organized 1130 Hope Street Investment Associates
16 LLC (“Hope Street Llc”) by the filing of the articles of organization under this name in
17 2003 in the office of the Secretary of State of the state. Defendant PERRY and/or LORP
18 described the purpose of Hope Street Llc in its articles of organization in 2003 as a
19 “lawsuit settlement vehicle.” The Defendants caused the Secretary of state to change its
20 name to Defendant 1130 SOUTH HOPE STREET INVESTMENT ASSOCIATES LLC
21 (“SOUTH HOPE STREET LLC”) in 2005. Hope Street Llc went out of existence
22 permanently in 2005 with its change of name in 2005 to SOUTH HOPE STREET LLC.
23 9. The Secretary of State changed the name of SOUTH HOPE STREET LLC
24 administratively to Hope Street Llc (a/k/a “1130 Hope Street Investment Associates
25 LLC”) under Corporations Code §12261 in 2013, after the court purported to reinstate
26 the articles of SOUTH HOPE STREET LLC as explained hereinbelow. It will be referred
27 to by the name SOUTH HOPE STREET LLC in this Third Amended Complaint to avoid
28 confusion with Hope Street Llc.
p. 3
1 10. Hope Street Llc represented in pleadings and documents filed herein and in other
2 civil actions in the state courts that it is the continuing or successor entity of the
3 Defendant SOUTH HOPE STREET LLC. As alleged supra, Hope Street Llc went out of
4 existence in 2005. Hope Street Llc is referred to alternatively herein as a “progenitor.”
5 11. Defendants petitioned the court for an order of reinstatement of SOUTH HOPE
6 STREET LLC and Hope Park Lofts Llc in action no. BS140530. As alleged supra, the
7 court entered an order reinstating SOUTH HOPE STREET LLC and Hope Park Lofts Llc
8 on August 28, 2013, and the Defendants caused this court order to be filed with the
9 Secretary of State of the state on or about September 13, 2013. Hope Park Lofts Llc is
10 referred to alternatively herein as a “progenitor.”
11 12. The office of Secretary of State could not reinstate SOUTH HOPE STREET LLC
12 with the name “1130 South Hope Street Investment Associates Llc” because the
13 Secretary of State had registered a Delaware limited liability company by that name in
14 2008. Defendants caused the Secretary to file a name change amendment with the
15 order of the court dated August 28, 2013. The Secretary of State reinstated SOUTH
16 HOPE STREET LLC under its former name of “1130 Hope Street Investment Associates
17 Llc,” but under Corp. Code §12261 and prior law, it did not revive the extinct Hope
18 Street Llc as a separate entity.
19 13. Defendant NORMAN SOLOMON (“SOLOMON”) is an individual residing in Los
20 Angeles County.
21 14. Defendant BIMHF, LLC (“BIMHF”) is a limited liability company organized
22 under the laws of the state of California, according to public records.
23 15. Former Defendant Shawn Manshoory (“Manshoory”) is an individual residing in
24 Los Angeles County. Plaintiff substituted Manshoory as a named party defendant for
25 Doe No. 4 in the Second Amended Complaint (“2AC”). He was dismissed from this
26 action as a defendant when the court sustained his demurrer to the 2AC without leave to
27 amend in this action in June of 2017.
28
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1 16. Defendants DOES 5 to 10 are individuals or entities whose true names and
2 identities are unknown to Plaintiff. Plaintiff prays for leave of the court to amend this
3 Third Amended Complaint to substitute the true names of DOES 5 to 10 hereto, when
4 Plaintiff discovers them.
5 17. The true names and capacities, whether individual, corporate, associate or
6 otherwise, of Defendants named herein as ALL PERSONS UNKNOWN, CLAIMING
7 ANY LEGAL OR EQUITABLE RIGHT, TITLE, ESTATE, LIEN, OR INTEREST IN THE
8 PROPERTY DESCRIBED HEREIN ADVERSE TO PLAINTIFF’S TITLE, OR ANY
9 CLOUD UPON PLAINTIFF’S TITLE THERETO (hereinafter "Unknown Parties"), who
10 therefore sue the named Defendants by such fictitious names. Plaintiff will seek leave of
11 this Court to amend this Third Amended Complaint to show such true names and
12 capacities when it has ascertained such names.
13 II.
14 VICARIOUS LIABILITY
15 18. Defendants established and maintained Defendant SOUTH HOPE STREET LLC,
16 Hope Street Llc, Hope Park Lofts, Llc, and Defendant HOPE PARK LLC as mere
17 artifices, devices, ectoplasms, corporate shells, or passthrough or conduit entities having
18 no assets, employees, officers, contracts, accounts, offices, addresses, and regular places
19 of business, lacking legal privileges or rights, legal status or capacity, and at all times
20 relevant herein, misrepresented the assets, control, corporeality, and lack of
21 individuality and independence of these entities. The defendants and their progenitors
22 had no independent substance, assets, control, or personality, and did no business
23 separately or independently.
24 19. Defendants and their progenitors at all times that the events described herein
25 occurred, were agents, servants, employees, employers, masters, principals, contractors,
26 partners, partners-in-fact, attorneys-in-fact, shareholders, directors, members,
27 managers, officers, joint venturers, joint enterprisers or in some other capacity
28
p. 5
1 vicariously responsible for damages caused by the other defendants herein, as its
2 successor in interest to the Property.
3 20. Defendants and their progenitors, and each of them, had knowledge of the
4 wrongful acts done by the other Defendants as alleged herein, and participated in,
5 substantially assisted and aided or abetted the wrongful acts of the other defendants.
6 21. Defendants and their progenitors, and each of them, had a duty of due care and a
7 duty to act in accordance with law to avoid acts doing causing injury to Plaintiff, and
8 agreed and conspired to cause injuries to Plaintiff nevertheless, and did overt acts in
9 furtherance of the conspiracy.
10 22. Defendants and their progenitors had at all times unity of interest and ownership
11 and/or control, commingled their assets, finances and business affairs and failed to
12 create and maintain separate records, financial statements, and books of accounts, and
13 agents, employees, servants, managers, places of business, records of ownership,
14 partners, members or shareholders. Therefore, Defendants must in equity and law be
15 regarded as one and the same person, or alter egos of one another.
16 23. Throughout the events recounted herein, Defendants PERRY and SOLOMON
17 have dominated the affairs of the conduit or shell entities of Defendant SOUTH HOPE
18 STREET LLC, Hope Park Lofts LLC, Hope Street Llc and Defendant HOPE PARK LLC.
19 Defendants PERRY, SOLOMON, SOUTH HOPE STREET LLC and HOPE PARK LLC,
20 non-Defendants Hope Park Lofts Llc and Hope Street Llc have intentionally and
21 fraudulently excluded Plaintiff TRUE HARMONY from any and all information
22 concerning possible activities in the conduit entities including government and
23 elections, sale of the Property, communications concerning the sale of the Property, and
24 from plans or activities to sell the Property.
25 24. Throughout the relevant time period, Defendants and their progenitors conspired
26 to fraudulently conceal and to cover up their unlawful acts and damages. Plaintiff used
27 reasonable diligence to investigate the causes of its injuries, and Plaintiff reasonably
28
p. 6
1 relied on Defendants’ performance of fiduciary duties as principals, agents, or alter egos
2 of one another.
3 III.
4 JURISDICTION AND VENUE
5 25. Plaintiff’s money damages pleaded herein exceed Twenty-five Thousand Dollars
6 ($25,000).
7 26. All of the acts complained of herein occurred within Los Angeles County during
8 the period of time from 1998 to the present, and related to or involved title and/or
9 ownership to the Property.
10 IV.
11 BACKGROUND
12 27. Plaintiff’s predecessor in interest, Turner’s Technical Institute, Inc., acquired the
13 property located at 1130 South Hope Street, Los Angeles, California (“Property”) in
14 1998, under a grant deed made out to it as grantor.
15 28. In 1999 Turner Technical Institute, Inc. terminated Mr. Joey Davis as its
16 President. A few days later, Mr. Davis retaliated by signing and recording a grant deed
17 to the Property under the grantor’s name of “Turner’s Technical Institute, a California
18 corporation,” as “Mr. Joey Davis, its president,” to Gladstone Hollar as grantee.
19 Plaintiff changed its name to TRUE HARMONY.
20 29. Mr. Gladstone Hollar forged a deed to Clearview Investment Corp., and signed a
21 sales contract for the Property for Clearview Investment Corp. as seller with Pacific
22 Intercontinental Partners Llc as buyer for the consideration of One Hundred and Ninety
23 Thousand Dollars ($190,000).
24 30. Defendant SOLOMON was the principal owner of Pacific Continental Investment
25 Partners Llc (“Pacific Llc”) was Defendant SOLOMON. Defendant SOLOMON caused
26 Pacific Continental Investment Partners Llc to bring suit against TRUE HARMONY for
27 quiet title and for specific performance in action no. BC244718 in this court. Defendant
28 SOLOMON later formed Hope Park Lofts, Llc by filing articles of organization with the
p. 7
1 secretary of state of the state, and assigned the purchase contract for the Property from
2 Pacific Llc to Hope Park Lofts, Llc. Defendant SOLOMON caused Hope Park Lofts Llc
3 to be substituted as the Plaintiff in action no. BC244718. Rick Edwards, and Defendants
4 SOLOMON and PERRY matriculated in the same law school class, and collaborated
5 together in practicing law after graduation.
6 31. Plaintiff TRUE HARMONY engaged attorneys at law Defendants ROSARIO
7 PERRY and LORP to represent it in the quiet title action brought by Defendant
8 SOLOMON under the name of his Hope Park Lofts Llc. Defendant SOLOMON arranged
9 for attorney at law Rick Edwards Esq. to represent Pacific Llc (“Pacific”) and Hope Park
10 Lofts Llc.
11 32. Defendants PERRY’s and LORP’s contract of engagement with Plaintiff provided
12 that their “contingent” attorneys’ fee was the lesser of a percentage of money or property
13 recovered, or three (3) times the number of hours expended on the client’s work
14 multiplied by PERRY’s and LORP’s typical hourly rate for professional services. This
15 contract for compensation was unconscionable under Rule of Professional Conduct
16 (“RPC”) 4-400(B) and Business and Professions Code §6147 and §6148.
17 33. For Plaintiff TRUE HARMONY, Defendants PERRY and LORP filed a cross-
18 complaint for quiet title against Hope Park Lofts Llc and the additional defendants
19 named in the complaint of Hope Park Lofts Llc for quiet title. A trial occurred in
20 twenty-one (21) non-consecutive court days began with October 10, 2003 and concluded
21 on May 18, 2004. On or about April 5, 2004, the superior court ruled in the presence of
22 the parties that it quieted title in TRUE HARMONY because the deed signed by Mr. Joey
23 Davis was a forgery. However the court entered its judgment in the records on April 8,
24 2005.
25 34. On February 25, 2004, for the plaintiff Hope Park Lofts Llc, attorney at law Rick
26 Edwards introduced the testimony under oath in the courtroom of an appraiser that the
27 Property was worth Two Hundred Thousand Dollars ($200,000). This appraised value
28 was a small fraction of its market value at the time. Defendants PERRY and LORP
p. 8
1 allowed this false appraisal testimony to be introduced into evidence, without rebuttal
2 or cross-examination for Plaintiff.
3 35. Defendant SOLOMON’s wholly owned entity, Metro Resources Inc., was the
4 designated broker for the seller, and the contract of sale provided for deduction of its
5 commission from the sales price.
6 36. The court called the action no. BC244718 for trial on or about October 9, 2003.
7 Behind closed doors in the jury room of the courtroom, Edwards and Defendants
8 SOLOMON and PERRY exclusively discussed the evidence and the trial procedures and
9 settlement of the action also. Moments before the court recessed at the close of the
10 proceedings for October 9, Defendant PERRY emerged from the private meeting with
11 Defendant SOLOMON and Edwards, and surprised the Plaintiff’s chief financial officer
12 (and a member of the board of directors of TRUE HARMONY), Mr. Jonathan Marzet,
13 with a one page document that he identified as the signature page of an agreed upon
14 typed settlement agreement (“so-called settlement agreement”).
15 37. Defendant presented this document to Marzet for his review and signature in his
16 courtroom. Defendant PERRY did not provide Marzet with the first page of the so-
17 called settlement agreement, which first page included the substantive terms and
18 conditions.
19 38. Defendant PERRY misrepresented the content of the settlement agreement
20 including the first page that was missing as he presented it to Marzet to be an agreement
21 which provided that Plaintiff TRUE HARMONY agreed to pay a fraction of Hope Park
22 Lofts Llc’s attorneys’ fees in exchange for the dismissal of Hope Park Lofts Llc’s
23 agreement to dismiss its complaint against Plaintiff. On October 9, 2003, Marzet signed
24 the signature page of the so-called settlement agreement, without the opportunity to
25 read the first page of the so-called settlement agreement.
26 39. Defendant PERRY took the page of the so-called settlement agreement with
27 Marzet’s signature away from the courtroom on October 9, 2003, and did not discuss
28 the so-called settlement agreement with Plaintiff or provide Plaintiff’s representatives
p. 9
1 with a copy of it, until after the court announced its decision in the trial for Plaintiff
2 TRUE HARMONY against cross-defendants Joey Davis, Debbie Nash and others on or
3 about April 5, 2004. The court did not serve its Statement of Decision on Plaintiff or
4 enter it in the records until September 16, 2004. The court first entered judgment on
5 April 8, 2005.
6 40. In May of 2004, defendant PERRY presented the so-called settlement agreement
7 attached behind Exhibit Tab 2 hereto to Plaintiff’s representatives and members of the
8 board of directors, Marzet and Samuel F. Benskin II, in his law office. Both Marzet and
9 Benskin disavowed knowledge of a settlement agreement that exchanged ownership in
10 the Property for dismissal of Hope Park Lofts Llc’s complaint against Plaintiff TRUE
11 HARMONY. Marzet did not recognize his signature on the signature page that
12 Defendant PERRY presented to him that day, the same signature page that appears
13 behind Exhibit Tab 2 hereto. Defendant PERRY falsely represented to Marzet that he
14 had consented to this agreement for Plaintiff, and requested Benskin to sign the so-
15 called settlement agreement.
16 41. A cursory review of the so-called settlement agreement discloses a number of
17 issues with the definiteness and certainty of its expression of covenants and conditions
18 of a legal agreement:: the expected division of anticipated total proceeds of sale of the
19 Property of One Million Four Hundred Thousand Dollars ($1,400,000) to third parties
20 who were not parties to action no. BC466413 and who did not sign the agreement, , the
21 distribution of proceeds of sale to Plaintiff TRUE HARMONY after the proceeds were
22 distributed to the parties not signing the so-called settlement agreement, the formation
23 of a “new llc” (not yet formed) to be called 1130 South Hope Investment Associates LLC
24 (the Defendant SOUTH HOPE STREET LLC) in whose name title was “quieted,” and
25 division of ownership of the “new llc” equally between Plaintiff TRUE HARMONY and
26 Hope Park Lofts Llc, the designation of Defendant PERRY as the manager of the “new
27 llc,” the listing of the Property for sale with Defendant SOLOMON’s Metro Resources,
28 Inc. (sic named as “Metro Resources Llc” therein), and the provision for warranty of
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1 authority of the persons signing the so-called settlement agreement for entity parties for
2 whom they signed the agreement, among other things.
3 42. The court held hearings to consider evidence for and against the enforcement of
4 the agreement under the authority of Code Civ. Proc. §664.6. Plaintiff was represented
5 therein by a counselor at law who substituted into the action in lieu of Defendant
6 PERRY. These hearings began in the courtroom on or about August 30, 2004 and
7 concluded on November 30, 2004. LORP’s associate attorney at law, Renay Rodriguez,
8 Esq. testified that Marzet signed the agreement for Plaintiff; when it appeared to Marzet
9 and Benskin that Rodriguez signed Marzet’s name to the agreement. Upon the
10 conclusion of these hearings, on or about November 30, 2004, the court announced its
11 ruling that Marzet had signed the so-called settlement agreement that appears as
12 Exhibit 2, and TRUE HARMONY had ostensibly authorized him to sign it
13 43. On April 8, 2005 the court entered its judgment after trial, which expressly stated
14 that Plaintiff TRUE HARMONY prevailed in the trial, and was the holder of quiet title to
15 the Property. On April 15, 2005, the court entered its first amended judgment that
16 Plaintiff TRUE HARMONY prevailed in the trial, and was the holder of quiet title to the
17 Property. The amended judgment included a clause that the owner of the Property as of
18 October 9, 2003 was SOUTH HOPE STREET LLC (which was not yet organized by filing
19 of its articles of organization in the state’s Secretary of State on October 9, 2003 and
20 apparently was formed by the change of the name from Hope Street Llc at about the
21 same time as the court entered the amended judgment. On August 17, 2005 the court
22 entered a second amended judgment in its records, which is virtually identical to the
23 amended judgment except that the handwritten language in the amended judgment is
24 typed in the second amended judgment.
25 44. Defendants PERRY and LORP knew that the so-called settlement agreement was
26 a hoax, and if it were executed on October 9, 2003 as they contended, they withheld it
27 from the court to effectuate the fraud on the court and to conceal their conspiracy with
28 Defendant SOLOMON, Hope Park Lofts Llc and Rick Edwards. Defendants PERRY,
p. 11
1 SOLOMON, and Hope Park Lofts LLC had agreed to a sales price for the Property of
2 One Million Four Hundred Thousand Dollars ($1,400,000) in the fraudulent agreement
3 on October 9, 2003 according to Defendant PERRYs later testimony in the courtroom.
4 If the settlement agreement was mutually executed and agreed to as of October 9, 2003
5 as Defendants argued and as the court apparently found to be true, the best evidence of
6 the Property’s value in the trial between TRUE HARMONY and SOLOMON and Hope
7 Park Lofts, Llc was that it was worth $1,400,000. And if the so-called settlement
8 agreement had been admitted into evidence at the trial, such that Plaintiff and/or the
9 remaining defendants, eg. Joey Davis, etc. could have relied upon it to prove that the
10 contract with Gladstone Hollar with respect to which Pacific and Hope Park Lofts sued
11 Plaintiff in action no. BC244718 was void, because the contract between Hollar and
12 Pacific was for a grossly inadequate purchase price of $200,000 as compared to
13 $1,400,000, and there was an issue with title. Biancalana v. T.D. Service Co. (2014) 56
14 Cal. 4th 807. The court would then be required to dismiss the action, and the settlement
15 agreement would be null and void, because there would be no action in the court to
16 settle. Or the court could have dismissed the action on its own motion.
17 45. Solely the Defendants knew the foregoing information concerning the agreed to
18 value of the Property and the misinterpretation of Corp. Code §5913 to which Defendant
19 PERRY testified in the court that if the Secretary of State of the state did not disapprove
20 of the transfer of substantially all of the assets of the nonprofit public benefit
21 corporation, the Secretary of state approved the transfer under Corp. Code §5913. It is
22 clear that the nonprofit corporation must receive at a minimum a “no action” response
23 from the Attorney General to the notice required by Corp. Code §5913, and the Attorney
24 General merely responded that he acknowledged receipt of the notice and he would
25 make a further response, in 2004. In 2011, the Attorney General rejected the transfer
26 from SOUTH HOPE STREET LLC to Shawn Manshoory and Defendant BIHMF, LLC.
27 See the letter which is attached behind Exhibit Tab 1; compare 11 Cal. Admin. Code
28 §999.2. And Defendants PERRY and LORP knew that they did not represent Plaintiff
p. 12
1 when they delivered the notice to the Attorney General, or would not be representing
2 Plaintiff when the Attorney General completed its duties under Corp. Code §5913 and 11
3 Cal. Admin. Code §999.2. Defendants also solely knew that the appraisal for Two
4 Hundred Thousand Dollars ($200,000) was fraudulent. This information constituted a
5 confidence or secret of the client under Rule of Professional Conduct 3-100 and Bus. &
6 Prof. Code §6068(e)(1).
7 46. The foregoing information pertaining to the void status of the so-called
8 settlement agreement constituted a confidence or secret of the client under Rule of
9 Professional Conduct 3-100 and Bus. & Prof. Code §6068(e)(1). Furthermore,
10 Defendants PERRY and LORP had the duty of competence as Plaintiff’s attorney at law
11 under Rule of Professional Conduct 3-110 to present the settlement agreement to the
12 court in the trial court, if it really was mutually executed and agreed to on October 9,
13 2003 to prove that the consideration for the purchase contract of Hope Park Lofts LLC
14 from Gladstone Hollar at a price of One Hundred and Ninety Thousand Dollars
15 ($190,000) was grossly inadequate, and breached the duty of competency to Plaintiff.
16 Nevertheless, Defendant PERRY initiated a quiet title action against Plaintiff TRUE
17 HARMONY as plaintiff in propria persona in action no. BC324419 in this court on
18 November 11, 2004, before the trial court announced its decision on or about November
19 30, 2004, and before the court entered any of its three judgments in 2005 in action no.
20 BC244718. Defendant PERRY later voluntarily dismissed the action.
21 47. Defendant PERRY testified in these hearings that in the Settlement Agreement he
22 agreed to perform the duties of manager of SOUTH HOPE STREET LLC because he had
23 the same duty to maximize the return to the Plaintiff of cash proceeds upon sale of the
24 Property as though he continued to represent Plaintiff as its attorney at law under a
25 contingent fee agreement. Defendant PERRY repeated this statement in writing in a
26 declaration under oath filed in this court. These statements are the basis of Plaintiff’s
27 claims that Defendant PERRY assumed the role of fundraiser for the Plaintiff charity
28
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1 under the Nonprofit Integrity Act of 2004. See Government Code §§12599(a),
2 12599.1(a), 12599.2(a).
3 48. Defendants PERRY and LORP failed to register with the Attorney General as
4 commercial co-venturers, commercial fund raising counselors and commercial
5 fundraisers for nonprofit corporations, as required by the Nonprofit Integrity Act of
6 2004. The Nonprofit Integrity Act of 2004, S.B. 1262 became effective on January 1,
7 2005. This Act, conferred the right to terminate the fundraising contract between
8 Plaintiff TRUE HARMONY, PERRY and Hope Park Lofts LLC upon thirty (30) days
9 prior written notice. Government Code §§12599(i)(11)(A), 12599.1(f)(8)(A).
10 49. Defendants ROSARIO PERRY and LORP did not obtain a written waiver of
11 conflicts of interest for their role as attorney at law to Plaintiff, or ROSARIO PERRY’s
12 fiduciary duties in his role as purported manager of Defendant SOUTH HOPE STREET
13 LLC, as required by Rule of Professional Conduct 3-300. Furthermore they did not
14 advise Plaintiff of its rights to advice from independent legal counselor at law which
15 caused Defendants PERRY and LORP to be subject to disqualification as attorneys at
16 law for Plaintiff, and as removal as manager of Defendant SOUTH HOPE STREET LLC
17 under Rules of Professional Conduct 3-310 & 3-100 and Business & Professions Code
18 §6068(e)(1). Defendants PERRY and LORP also violated Rule of Professional Conduct
19 4-400 as they expressly or impliedly represented to Plaintiff that their ties and
20 connections with SOLOMON and Edwards assured Plaintiff TRUE HARMONY that
21 Defendants would perform their obligations under any Settlement Agreement.
22 50. In arbitration hearings after initially assuming that Plaintiff TRUE HARMONY
23 was the majority owner of Defendant SOUTH HOPE STREET LLC, Ret. Judge
24 Schoettler later accepted that Plaintiff TRUE HARMONY and SOUTH HOPE STREET
25 LLC were equal members with equal ownership of property and voting rights as stated
26 in the so-called settlement agreement.
27 51. In 2005, Plaintiff filed a notice of appeal from the second amended judgment in
28 action no. BC244718 to the second district court of appeals of the “validity” of the so-
p. 14
1 called settlement agreement. The court of appeals affirmed the second amended
2 judgment, concluding that the settlement agreement was “enforcible.”
3 52. In 2005, Plaintiff executed a purchase and sale contract with a buyer for a
4 purchase price of Four Million Dollars ($4,000,000) for the Property. The buyer
5 deposited a cash deposit in the escrow account. Defendants disapproved of the the
6 deal, and caused the escrow to cancel in 2005. Defendant PERRY signed a contract for
7 Defendant SOUTH HOPE STREET LLC to sell the Property to Shawn Manshoory in
8 2006 for a purchase price of Two Million Seven Hundred Thousand Dollars
9 ($2,700,000). Plaintiff refused consent to the sale to Manshoory because the purchase
10 price was inadequate and was below fair market value. Because Defendant SOUTH
11 HOPE STREET LLC had not been deeded the Property, Defendant PERRY could not
12 deliver title to Manshoory, and Defendant PERRY cancelled the escrow for this contract
13 for sale of the Property.
14 53. After the court of appeals released its decision on March 21, 2007, Defendants
15 requested the arbitrator to hold a hearing to compel Plaintiff TRUE HARMONY to
16 execute a deed to the Property to Defendant SOUTH HOPE STREET LLC. Apparently
17 an arbitration hearing occurred in the fall, and apparently Defendant PERRY testified
18 for Defendants despite his undisclosed conflicts of interest as alleged hereinabove in
19 paragraph 49. The arbitrator made an award which included an order for transfer of the
20 title to Defendant SOUTH HOPE STREET LLC. Plaintiff contends that the only issue
21 raised in the arbitration hearing was the recusal of the arbitrator because of personal
22 affiliation and reciprocal business relationships with Defendants.
23 54. Plaintiff TRUE HARMONY delivered written notice to Defendant PERRY that he
24 had been removed as the manager of SOUTH HOPE STREET LLC in January of 2008.
25 On or about January 24, 2008, the Secretary of State of the state accepted the
26 cancellation of articles of Hope Park Lofts, Llc tendered by Mr. Marzet, and it was
27 dissolved. On or about February 8, 2008, Plaintiff TRUE HARMONY caused the
28 Secretary of State to accept the cancellation of articles of SOUTH HOPE STREET LLC
p. 15
1 (the California limited liability company), and it dissolved. In January of 2008, Plaintiff
2 TRUE HARMONY caused the formation of the Delaware limited liability company 1130
3 South Hope Street Investment Associates Llc (same name as “Hope Street Llc”), and
4 caused it to be registered with the Secretary of State of California to do business in this
5 state.
6 55. Subsequently Plaintiff TRUE HARMONY caused a deed to the Property to be
7 executed on or about February 7, 2008 transferring title to the Property to the Delaware
8 limited liability company 1130 SOUTH HOPE STREET INVESTMENT ASSOCIATES
9 LLC. Plaintiff caused the deed to be recorded in the official records.
10 56. The Defendants moved the court to confirm the arbitration award, and the court
11 decided this motion on February 11, 2008. It is not clear whether the Defendants failed
12 to advise the court that the so-called settlement agreement did not require binding
13 arbitration between Plaintiff and Defendants, but since only agreements for binding
14 arbitration result in confirmed awards as judgments, Defendants must have
15 fraudulently represented to the court that the agreement called for binding arbitration
16 as they did in the petition for arbitration in action no. BC385560 that this court decided
17 for Defendants on September 11 2008. Furthermore, Retired Judge Schoettler did not
18 decide the legality of Defendant SOUTH HOPE STREET LLC holding title to the
19 Property under Corp. Code §5913, and in fact neither did the trial court make any
20 findings regarding this law in the post-decision evidentiary hearings on the legality of
21 the so-called settlement agreement.
22 57. Plaintiff did not execute the deeds required by the judgment entered on July 9,
23 2008 (which should have been entitled “third amended judgment”), confirming the so-
24 called arbitration award which is neither expressly recited in the judgment nor attached
25 to the judgment. This judgment recited that the so-called settlement agreement, the
26 arbitration award, amended judgment and second amended judgment required Plaintiff
27 to execute deeds to the Property transferring title to Defendant SOUTH HOPE STREET
28 LLC, and is therefore void or voidable because these are false facts.
p. 16
1 58. Defendant SOUTH HOPE STREET LLC was not a party to the action no.
2 BC244718 and had not been formed, organized or recognized by the secretary of state on
3 October 9, 2003. Nonetheless, Defendants, represented by Jeff Berke, Esq., attorney at
4 law, moved the court in action no. BC244718 to order clerk’s deeds to the Property to be
5 executed for Defendant. Attorney at law Jeff Berke Esq. also represented Defendant
6 SOUTH HOPE STREET LLC in action no. BC385560.
7 59. The court entertained arguments by the attorneys at law solely in written
8 pleadings on Defendants’ motion in the court on November 5, 2008, and rejected
9 Plaintiff’s argument that SOUTH HOPE STREET LLC had been dissolved after the
10 Secretary of State of the state cancelled its articles of organization, and could not hold
11 title to Property. On December 15, 2008, the court entered an order requiring the clerk
12 to execute the deed(s). The clerk of the court executed a deed from Plaintiff TRUE
13 HARMONY to Defendant SOUTH HOPE STREET LLC on or about February 18, 2009.
14 60. The execution of the clerk’s deed transferring title to Defendant SOUTH HOPE
15 STREET LLC exerted economic duress and coercion on Plaintiff TRUE HARMONY
16 because it made it impossible for Plaintiff TRUE HARMONY to borrow money against
17 the security of the Property to pay for attorneys’ fees in its ongoing legal dispute with
18 Defendants. And added biased arbitration awards to Hope Park Lofts Llc to encumber
19 and pledge Plaintiff’s membership interest in Defendant SOUTH HOPE STREET LLC to
20 frustrate and thwart a pledge of the membership as collateral for a loan to pay attorneys’
21 fees, too. As a nonprofit public benefit corporation, Plaintiff TRUE HARMONY did not
22 have independent source of income or funds to pay attorneys’ fees.
23 61. The Defendants brought an action entitled “1130 South Hope Street Investment
24 Associates Llc v. 1130 South Hope Street Investment Associates Llc and True Harmony
25 et al” on or about February 10, 2008, in no. BC385560 in this court. Defendants
26 petitioned the court to compel arbitration on a cause of action for cancellation of
27 specified instruments, ie. the quitclaim deed that Plaintiff TRUE HARMONY executed
28 to transfer title to the Property to Delaware limited liability company 1130 South Hope
p. 17
1 Street Investment Associates Llc as grantee, deeds of trust recorded on the Property by
2 the Delaware limited liability company, and 9other instruments; and in their petition for
3 arbitration they attached a copy of the so-called settlement agreement which had not
4 been approved by the court in action no. BC244718, which crossed out the word
5 “binding” before the arbitration and was initialed by Defendant PERRY and his
6 colleague and friend Rick Edwards, Esq. The so-called settlement agreement did not
7 have a clause to resolve disputes by binding arbitration, and the petition to compel
8 arbitration was a fraud on the court.
9 62. Defendant PERRY as the manager of Defendant SOUTH HOPE STREET LLC,
10 caused it to notice the arbitration proceeding to decide the issues in the complaint or
11 amended complaint in action no. BC385560. The arbitration hearing was held on
12 January 27, 2009 without Plaintiff attending it. Defendants provided one week’s notice
13 of the hearing to Plaintiff TRUE HARMONY and its attorney at law Vadim Frisch, who
14 objected to the arbitrator that it violated due process of the laws because Plaintiff and its
15 attorney at law needed more time to prepare for the hearing. The arbitrator rejected
16 this argument for Plaintiff to postpone the hearing. Plaintiff defaulted and did not
17 appear at the arbitration hearing. In the Partial and Final award dated February 23,
18 2009, the arbitrator, Retired Judge Schoettler, awarded Hope Park Lofts LLC money
19 damages approximately equal to Four Hundred Thousand Dollars ($400,000) against
20 Plaintiff, and incorporating a lump sum of approximately Three Hundred and Forty-five
21 Thousand Dollars ($345,000) in prior awards against Plaintiff by the same arbitrator.
22 The award failed to individually identify the incorporated prior awards by date, amount
23 and type of damages and/or claims decided in the prior awards, or to account for the
24 summation of the prior awards to calculate the total final award, and therefore exceeded
25 the arbitrator’s powers and violated Plaintiff’s rights to due process of the laws.
26 63. Ret. Judge Schoettler failed to acknowledge that Plaintiff’s public rights were at
27 stake in his Partial and Final Award including its rights to exercise majority control of
28 Defendant SOUTH HOPE STREET LLC under the Corporations Code. Ret. Judge
p. 18
1 Schoettler Partial and Final Award dated February 23, 2009 purported to be a binding
2 arbitration award despite the contrary language in Exhibit 1. The Partial and Final
3 arbitration award violated Plaintiff’s public rights, and is unconscionable. The Partia
4 and Final Award was void because the presumed real party in interest in the arbitration,
5 SOUTH HOPE STREET LLC, was dissolved at the time of the petition to compel
6 arbitration. The arbitrator’s award included an order that TRUE HARMONY must do
7 nothing to affect title to the Property, which was overbroad and chilled Plaintiff’s
8 constitutional rights of speech and petitioning, and exceeded the arbitrator’s powers.
9 64. In May of 2009, officers of the Plaintiff filed a voluntary petition in bankruptcy
10 for the Delaware limited liability company “1130 South Hope Street Investment
11 Associates Llc.” This court acknowledged it stayed the action no. BC385560 and the
12 entry of the judgment dated June 3, 2009 because of the bankruptcy. However, this
13 court decided the motion for summary adjudication on the fifth cause of action for
14 cancellation of instruments in December of 2009 for Defendants, and simply postponed
15 the entry of judgment until the stay in bankruptcy had been lifted by the bankruptcy
16 court.
17 65. Defendants obtained an order of the bankruptcy court lifting the automatic stay,
18 but not annulling the stay in February of 2010. Defendants returned to the superior
19 court in action no. BC385560 for a trial on March 15, 2010, at which Plaintiff caused a
20 counselor at law to be present, who moved the court for a continuance to prepare for
21 trial. The court denied this continuance and the attorney at law declined representation
22 of Plaintiff for the trial to begin on March 15, 2010. The court refused to permit
23 Plaintiff’s representatives to present evidence. The trial consisted of Defendant PERRY
24 reading the order for summary adjudication into the record, and the court entered the
25 order for summary adjudication on March 15, 2010, the same day as the trial.
26 66. Throughout the events recounted herein, PERRY and SOLOMON have
27 dominated the affairs of the conduit or shell entities of Defendant SOUTH HOPE
28 STREET LLC, Hope Street Llc and/or Hope Park Lofts Llc and Defendant HOPE PARK
p. 19
1 LLC. Defendants PERRY and SOLOMON have intentionally and fraudulently excluded
2 TRUE HARMONY from any and all participation in the conduit entities including
3 government and elections, sale of the Property, communications concerning the sale of
4 the Property, and from plans or activities to prepare the Property for sale or its sale.
5 67. Defendants SOLOMON and PERRY caused SOUTH HOPE STREET LLC to
6 contract to sell the Property with two purchasers, the “direct” purchaser Shawn
7 Manshoory and the indirect purchaser Defendant BIHMF, LLC. The contracts of the
8 two purchasers were originally set to close at different dates, but Shawn Manshoory
9 failed to close his purchase escrow on time and the Defendants permitted him to
10 reinstate his contract solely dependent on closing his sale of the Property to Defendant
11 BIHMF, LLC. Manshoory’s purchase price for the reinstated contract was established
12 based on the ten percent (10%) allowance of his right of first refusal based on a
13 concurrent offer from another purchaser, in this instance, the offer in the contract to sell
14 to Defendant BIHMF, LLC. This arrangement effectively substituted Manshoory back
15 into the sale escrow as the agent of Defendant BIHMF, LLC.
16 68. Defendants did not consult with Plaintiff TRUE HARMONY, and Defendants
17 obtained a price of approximately Two Million One Hundred and Fifty Thousand
18 Dollars ($2,150,000) for the sale to BIHMF, LLC of which they were assigned the
19 receipt of One Million Nine Hundred and Twenty-one Thousand Dollars ($1,921,000)
20 from Shawn Manshoory, who received his ten percent (10%) commission or allowance
21 promised to him by Defendant PERRY directly from Defendant BIHMF, LLC. The
22 purchaser who formally closed first on the “back-to-back” contracts in July 2011 was
23 Manshoory. BIMHF, LLC was the “second” purchaser in July 2011 in chronological
24 sequence.
25 69. Defendant SOLOMON received a distribution of One Hundred and Twenty- Five
26 Thousand Dollars ($125,000) in cash from the escrow account for the sale by in the
27 form of a check written in the escrow account to Cordova Investment Partners, LLC,
28 which on information obtained from public records of the Secretary of State of the state
p. 20
1 is owned by SOLOMON. On information and belief, Defendant SOLOMON is the sole
2 owner of Cordova Investment Partners, LLC.
3 70. Despite that the judgment in action no. BC385560 dated March 15, 2010 stated
4 that the articles of organization of SOUTH HOPE STREET LLC had been fraudulently
5 cancelled and the cancellation had never occurred, Defendant PERRY had been
6 removed as manager of Defendant SOUTH HOPE STREET LLC and his contract of
7 management was cancelled. Defendant PERRY had no right to direct the affairs of the
8 dissolved California limited liability company SOUTH HOPE STREET, LLC, and
9 Plaintiff also contends that Defendant SOUTH HOPE STREET LLC as a dissolved
10 limited liability company had no right to make or enforce the contracts of sale with
11 Manshoory or with BIMHF, LLC through Manshoory as its nominee or agent despite the
12 provision in the court’s judgment that the articles of organization had been fraudulent
13 and “never” cancelled.
14 71. As a dissolved limited liability company, SOUTH HOPE STREET LLC made a
15 void assignment of its rights to the cash proceeds of the sale to the nonexistent entity
16 Hope Street Llc, and the escrow holder paid the proceeds of the sale to an account in the
17 name of the nonexistent entity Hope Street Llc. Defendants reported the tax
18 identification number for Hope Street Llc, the nonexistent entity, as the seller of the
19 Property to the escrow holder Lawyers Title Insurance Company, a prima facie violation
20 of the criminal statute 18 U.S.C. §371, as a conspiracy to defraud the United States of
21 America (in this case, the Internal Revenue Service).
22 72. Defendants caused a nonexistent entity to bring a fake interpleader action in case
23 no. BC466413 naming the named conspirators as co-defendants and an additional
24 person, Ray Haiem, who was not their co-conspirator. The nonexistent plaintiff was
25 Hope Street Llc. As a nonexistent entity Hope Street Llc had no standing to bring any
26 action in a court. As Hope Street Llc caused the voluntary dismissal of all co-
27 defendants, the court never had jurisdiction of the action. The action no. BC466413 was
28 brought as a ruse to deceive the superior court into approving a private settlement
p. 21
1 agreement for release of funds from the fake fund in court in the fake interpleader
2 between co-conspirators to make the court’s order of May 22, 2013 seem like a judicial
3 act, when it was not a judicial act because the court never acquired jurisdiction of action
4 no. BC466413 in which the plaintiff never existed.
5 73. The order of the court dated May 22, 2013 in action no. BC466413 purported to
6 completely distribute the remaining fund in court between all co-conspirator
7 Defendants herein, which the Defendants alleged in the fake interpleader complaint was
8 the proceeds of the sale escrow for the Property with Manshoory. Plaintiff TRUE
9 HARMONY received nothing from the sales escrows, and nothing from Defendants in
10 exchange for their misappropriation of the title to the Property under the illegal and
11 void enforcement of the fake so-called settlement agreement.
12 74. On June 11, 2012, Defendants PERRY and LORP obtained a judgment by default
13 from this court in action no. BC404640 against Plaintiff for attorneys’ fees for
14 representing it in action no. BC244718, but Defendants did not provide the notice of
15 right to arbitration under the Mandatory Fee Arbitration Act to Plaintiff at any time
16 herein.
17 75. Plaintiff’s attorney at law has notified the immediate past and the current
18 Attorney Generals of the pending action and served them with copies of the First
19 Amended Complaint, Second Amended Complaint and Third Amended Complaint.
20 Plaintiff’s attorney at law has invited in writing the state’s Attorney General to intervene
21 in this action on multiple occasions with the service of each pleading, and the Attorney
22 General has so far failed to respond.
23
V. FIRST CAUSE OF ACTION
24
INDEPENDENT EQUITABLE ACTION TO SET ASIDE VOID ORDERS AND
JUDGMENT(S) OF THIS COURT
25
(AGAINST ALL DEFENDANTS)
76. Plaintiff realleges and incorporates by reference the allegations made in
26
paragraphs 1 through 75 herein.
27
///
28
p. 22
1 77. The default judgment for attorneys’ fees that Defendants PERRY and LORP
2 obtained in action no. BC404640 against Plaintiff is void, because Defendants PERRY
3 and LORP did not provide pre-action notice of the right to arbitration to Plaintiff
4 required by the Mandatory Fee Arbitration Act, Bus. & Prof. Code §6062 et seq.
5 Furthermore Defendants PERRY’s and LORP’s engagement agreement was
6 substantively and procedurally unconscionable, as alleged herein in Part IV, supra.
7 78. The order of the court for summary adjudication that Defendants obtained in
8 action no. BC385560 on the fifth cause of action on the complaint or amended
9 complaint is void, because the court decided the motion for summary adjudication in
10 December of 2008 while the automatic stay in bankruptcy was in effect in the
11 bankruptcy case for the Delaware limited liability company 1130 SOUTH HOPE
12 STREET INVESTMENT ASSOCIATES LLC. Defendants obtained an order of the
13 bankruptcy court lifting the automatic stay entered in February of 2009, but the order
14 did not retroactively annul the stay.
15 79. The arbitration award dated February 11, 2008 for execution of deeds to the
16 Property from Plaintiff TRUE HARMONY as grantor to Defendant SOUTH HOPE
17 STREET LLC is void, because it is the result of conflicts of interest of the Defendants
18 which violated Rule of Professional Conduct, 3-100, Business & Professions Code
19 §6068(e)(2), Rules of Professional Conduct 3-300, 3-310, and 4-400, and ABA Model
20 Rules of Professional Conduct 1.9 and 3.7.
21 80. The “judgment” entered on July 9, 2008 (should be entitled “third amended
22 judgment”) in action no. BC244718 for execution of deeds to the Property from Plaintiff
23 TRUE HARMONY as grantor to Defendant SOUTH HOPE STREET LLC is void on its
24 face, because it depends for its validity on the void arbitration award of February 11,
25 2008. The recitals of fact in the “judgment” that the decision of the court of appeals in
26 appeal no. B183928 required the deeds to be executed is false because the court of
27 appeals upheld the judgments and amended and second judgments in action no.
28 BC244718, and the prior judgments did not require Plaintiff TRUE HARMONY to
p. 23
1 execute deeds to the Property to Defendants. The recitals of fact in the “judgment” that
2 the judgment, amended judgment and second amended judgment required Plaintiff
3 TRUE HARMONY to execute these deeds are false because the so-called judgment
4 simply provided that Plaintiff TRUE HARMONY is the owner of title to the Property.
5 The amended judgment and second amended judgment unambiguously provide that
6 Plaintiff TRUE HARMONY is entitled to quiet title as of the dates in 2005 when these
7 judgments were entered. Although the amended judgment and second amended
8 judgment provide that Defendant SOUTH HOPE STREET LLC is the “owner” of the
9 Property as of October 9, 2003, the dates of the amended judgment and second
10 amended judgment are later than 2003, and the provision of the judgment that Plaintiff
11 TRUE HARMONY is the holder of quiet title takes precedence.
12 81. The order for clerk’s deeds entered by the court in action no. BC244718 is void on
13 its face, because it is based on the void judgment entered on July 9, 2008.
14 82. The clerks’ deeds executed and recorded on February 18, 2009 are void on their
15 faces, because the order of the court requiring the clerks’ deeds is void.
16 83. The Partial and Final Arbitration Award dated February 23, 2009, and the prior
17 arbitration awards incorporated therein, are void because they are the result of conflicts
18 of interest of the Defendants which violated Rule of Professional Conduct 3-100,
19 Business & Professions Code §6068(e)(2), Rules of Professional Conduct 3-300, 3-310,
20 and 4-400, and ABA Model Rules of Professional Conduct 1.9 and 3.7.
21 84. The judgment dated April 22, 2010 in action no. BC385560 is void on its face
22 because it depends for its validity on the Partial and Final Arbitration Award.
23 85. Plaintiff TRUE HARMONY is entitled to the set aside, vacation or nullification of
24 the clerks’ deeds transferring title to the Property recorded in official records on
25 February 18, 2009, to the vacation and set-aside of the judgment entered on July 9,
26 2008 in action no. BC244718, and to the vacation and set aside of the judgment entered
27 on April 22, 2010 in action no. BC385560 which falsely claimed that SOUTH HOPE
28 STREET LLC was the intended third party beneficiary of the s0-called settlement
p. 24
1 agreement and had standing to enforce the so-called settlement agreement, that SOUTH
2 HOPE STREET LLC existed and was not dissolved, and that the so-called settlement
3 agreement contained a clause for binding arbitration when in fact the so-called
4 settlement agreement erroneously approved by this court in action no. BC244718 and
5 the court of appeals in appeal no. B183928 as enforcible included a clause for
6 nonbinding arbitration.
7 86. Furthermore, Plaintiff TRUE HARMONY is entitled to the vacation and set-aside
8 of these judgments entered on July 9, 2008 and April 22, 2010 in this court because the
9 order for arbitration is void on its face, because it is the result of Defendants’ fraud on
10 the court in the petition for arbitration
11 87. Plaintiff TRUE HARMONY is entitled to the set-aside and vacation of the order
12 for clerk’s deeds entered on December 15, 2008 in action no. BC244718, and to the
13 order for summary adjudication in action no. BC385560 entered on March 15, 2010.
14 88. Plaintiff has no adequate remedy at law for the relief requested herein to vacate
15 or to set aside the void judgments and orders of the court, and the void clerks’ deeds.
16 89. Plaintiff was, and continues to be, irreparably injured by the continued official
17 recognition of these void judgments, orders and clerks’ deeds.
18 90. Plaintiff is entitled to an injunction pendente lite restraining Defendants from
19 further transferring title to the Property, including any transfer of title by Defendant
20 BIMHF, LLC who is not a bona fide or good faith purchaser for value from Plaintiff
21 TRUE HARMONY or Shawn Manshoory, as alleged herein in the seventh cause of
22 action. Plaintiff is also entitled to a permanent mandatory injunction requiring the
23 Defendants to transfer title to the Property to Plaintiff.
24 91. Plaintiff is entitled to a constructive trust on the proceeds on the sale and resale
25 of the Property by Defendants, and is entitled to restitution and disgorgement of all
26 proceeds and monies received by the Defendants based on their illegal holding of title to
27 the Property.
28 92. Plaintiff is entitled to costs of suit.
p. 25
1 93. Plaintiff is entitled to public interest attorneys’ fees under Code Civ. Proc.
2 §1021.5.
3 94. Plaintiff is entitled to prejudgment interest under Civil Code §3289.
4 VI. SECOND CAUSE OF ACTION
DENIAL OF CONSTITUTIONAL DUE PROCESS OF THE LAWS
5
6
7
96. If the Attorney General were exercising its rights to enforce the provisions of the
8
Corporations Code invoked by plaintiff in the fifth cause of action, statute the Attorney
9
General as a state official would be engaging in state action therein. Plaintiff is standing
10
in the shoes of the Attorney General under Corp. Code §5142 because the Attorney
11
General has declined to intervene herein, and Plaintiff is engaging in state action.
12
97. Defendants failed to comply with Corp. Code §5913 and failed to obtain either the
13
Attorney General’s approval or the court’s approval of the so-called settlement
14
agreement in 2004 for the transfer of Plaintiff’s property to the Defendant SOUTH
15
HOPE STREET LLLC as required by this law. Defendants PERRY and LORP caused the
16
Property to be sold by SOUTH HOPE STREET LLC to Manshoory and to Defendant
17
BIHMF, LLC in 2011 without approval or at least a “no action” letter from the Attorney
18
General or an order of the court approving it under Corp. Code §5913. See the attached
19
letter behind Exhibit Tab 1. Defendants have never obtained approval of any transfer
20
under Corp. Code §5913 from the court, or a “no action” letter from the Attorney
21
General.
22
98. Defendants also engaged in state action when they wrote and delivered the notice
23
invoking Corp. Code §5913 to the Attorney General in May of 2004, despite that Plaintiff
24
had already informed Defendants PERRY and LORP that they no longer represented
25
Plaintiff in action no. BC244718. Defendants engaged in state action when they noticed
26
the arbitration hearings under the so-called settlement agreement because of excessive
27
entanglement of the arbitration hearings with their fiduciary duties to Plaintiff under
28
p. 26
1 the Corporations Code as pleaded in the fifth cause of action herein, and entanglement
2 of the arbitrations with their several violations of the Rules of Professional Conduct
3 primarily pertaining to self-dealing of an attorney at law in transactions involving
4 clients, and self-appropriation of the confidence or secrets of the client.
5 99. Rule of Professional Conduct 1-100 authorizes the application of professional
6 standards derived from another jurisdiction besides the government of California on a
7 case-by-case basis, and the disputes in the courts between Plaintiff and Defendants were
8 appropriate for the application of ABA Model Rule 3.7 regarding the prohibition of
9 testimony by an attorney at law in an action in which he represents the client, in lieu f
10 Rule of Professional Conduct 5-100. Furthermore it is also appropriate for the court to
11 apply ABA Model Rule 1.9 which defines this knowledge of the Defendants as
12 proprietary information belonging to Plaintiff.
13 100. In action no. BC385560 Defendant PERRY read the summary judgment entered
14 by the court in violation of the automatic stay in bankruptcy into the record of the trial.
15 His testimony at the trial also violated the automatic stay in bankruptcy and was, ipso
16 facto, a criminal violation of the Bankruptcy Act. ABA Model Rule 3.7 should have been
17 applied to prohibit his testimony.
18 101. Defendants caused a denial of due process of the laws under the state
19 constitution article I, section 7 by opposing a continuance of the arbitration hearing
20 held in January 2009 so that Plaintiff could engage counselors at law to represent it, and
21 thus Plaintiff defaulted and did not appear.
22 102. This court denied due process of the laws under the state constitution article I,
23 section 7 to Plaintiff by denying a continuance of the trial in action no. BC385560 to
24 permit it to associate an attorney at law to represent it, and by denying it the
25 opportunity to present evidence on its behalf at the trial, despite that on the day of the
26 trial Defendants changed their theory of the action from cancellation of instruments to
27 quiet title.
28
p. 27
1 103. The quiet title statute, Code Civ. Proc. §764.010, requires a fair and impartial
2 evidentiary hearing, including the issue of approval of the transfer of assets from
3 Plaintiff to Defendants under Corp. Code §5913, with an opportunity to present
4 testimony of live witnesses for each party to the action, and to cross-examine witnesses
5 for the opposing parties for quiet title. In these circumstances involving bias and
6 prejudice of the arbitrator and the severe conflicts of interest of Defendants which are
7 entangled with the arbitration proceedings, the due process of the laws under the state
8 constitution article I, section 7 also requires that Plaintiff be permitted the evidentiary
9 hearing required by statute.
10 104. The arbitration awards of Ret. Judge Schoettler ordered Plaintiff to execute deeds
11 transferring title to the Property to Defendants and also awarded damages to
12 Defendants for enforcement of the unconscionable so-called settlement agreement that
13 seemed to put Plaintiff’s membership interest in Defendant SOUTH HOPE STREET
14 LLC “under water” or with negative net worth of its investment therein.
15 105. Fundamental rights of the Plaintiff to continue to engage in nonprofit activities
16 are involved in the Defendants’ fiduciary duties to Plaintiff to refrain from self-dealing
17 with Plaintiff under Corporations Code §5227, §5233, and §5913, and the Defendant
18 various conflicts of interest caused by their breaches of the Rules of Professional
19 Conduct, and strict scrutiny should be applied to nullify or vacate the arbitration awards
20 of Ret. Judge Schoettler, because the state has no compelling interest in stopping the
21 Plaintiff’s nonprofit activities.
22 106. In the alternative, the balancing standard of Mathews v. Eldridge (S. Ct. 1977) as
23 applied to the breaches of fiduciary duties of the Defendants and their conflicts of
24 interest in arbitration and in court proceedings with Plaintiff compels the conclusion
25 that the risk of error in the arbitrations required more adjudicative procedures
26 disqualifying Defendant PERRY from assuming the role of manager of Defendant
27 SOUTH HOPE STREET LLC in the arbitrations and from testifying against Plaintiff in
28
p. 28
1 the arbitrations and in the court proceedings and should have resulted in
2 disqualification of Ret. Judge Schoettler.
3 107. Defendants violated Plaintiff’s rights to procedural due process in the
4 arbitrations, and since the so-called judgment in action no. BC244718 dated July 9,
5 2008 and the judgment dated April 22, 2010 in action no. BC385560 depended on the
6 arbitration awards that violated Plaintiff’s due process rights, these judgments must also
7 be set aside and vacated.
8 108. Furthermore, Plaintiff seeks the relief of an evidentiary hearing on quiet title in
9 which it can present its evidence that it is entitled to title and possession of the Property,
10 and the setting aside or vacation of all judgments and orders of the court in actions nos.
11 BC244718 and BC385560 adversely affecting its title and possession to the Property.
12 109. Plaintiff has no adequate remedy at law for denial of the evidentiary hearing.
13 Plaintiff is irreparably injured by the lack of a hearing on quiet title.
15 of the Property by Defendants, and is entitled to restitution and disgorgement of all
16 proceeds and monies received by the Defendants based on their illegal holding of title to
17 the Property.
19 §1021.5.
20 112 Plaintiff is entitled to costs of suit, and prejudgment interest under Civil Code
21 §3289.
22 VII. THIRD CAUSE OF ACTION
EQUITABLE RELIEF TO ENFORCE THE QUIET TITLE STATUTE (AGAINST ALL
23 DEFENDANTS)
24 113. Plaintiff realleges and incorporates by reference the allegations made in
25 paragraphs 1 through 75 herein.
26 114. A true and correct copy of a current preliminary title commitment for the
27 Property which identifies BIMHF, LLC as the current owner of record of legal title is
p. 29
1 115. A true and correct copy of a document similar to a preliminary title commitment
2 for the Property called a “litigation title guarantee” was prepared by the Chicago Title
3 Insurance Company in 2001 for the Property. It identifies Plaintiff as record owner of
4 the legal title in January of 2001, and it is attached hereto behind Exhibit Tab 4for the
5 purpose of comparison to the report behind Exhibit Tab 3.
6 116. Plaintiff is informed and believes that each of the following named defendants
7 claim the right to ownership and possession of the Property adverse to Plaintiff:
8 Defendants SOLOMON, PERRY, HOPE PARK LLC, SOUTH HOPE STREET LLC,
9 BIMHF, LLC and Manshoory. Each of the following unnamed defendants also claim the
10 right to ownership and possession of the Property from whatever source or origin: ALL
11 PERSONS UNKNOWN, CLAIMING ANY LEGAL OR EQUITABLE RIGHT, TITLE,
12 ESTATE, LIEN, OR INTEREST IN THE PROPERTY DESCRIBED HEREIN ADVERSE
13 TO PLAINTIFF’S TITLE, OR ANY CLOUD UPON PLAINTIFF’S TITLE THERETO.
14 117. Plaintiff is entitled to a judgment of this court finding that these named and
15 unnamed Defendants have no rightful claim to ownership and/or possession, or right,
16 title and interest in the Property, and it is the only rightful holder of quiet title.
17 Provided that, Plaintiff is solely entitled to a judgment of quiet title if the court decides
18 either cause of action no. one for Plaintiff and grants relief to the Plaintiff of setting
19 aside the judgments and orders of the court as requested, or the court decides cause of
20 action no. two for Plaintiff and finds that Defendants denied due process of the laws to
21 Plaintiff in defrauding and deceiving Plaintiff as to the transfer of title from Plaintiff.
22 118. Plaintiff was, and continues to be, deprived of a meaningful opportunity to assert
23 its statutory and constitutional rights to the due process of an evidentiary hearing on
24 quiet title as guaranteed by Code Civ. Proc. §764.010.
25 119. Neither Manshoory nor BIMHF, LLC were or are bona fide or good faith
26 purchasers of the Property for value from Plaintiff TRUE HARMONY or from Defendant
27 SOUTH HOPE STREET LLC, the California limited liability company, as alleged in the
28 seventh cause of action herein.
p. 30
1 120. Plaintiff is entitled to an injunction pendente lite and a permanent injunction
2 restraining Defendants from further transferring title to the Property, until Plaintiff has
3 been afforded its evidentiary hearing required by statute.
5 of the Property by Defendants.
8 §1021.5.
10
VIII. FOURTH CAUSE OF ACTION
11 CANCELLATION OF INSTRUMENTS – CIVIL CODE §3412
12
13
14
126. Civil Code §3412 authorizes the court to cancel instruments transferring or
15
conveying title to real property which are unauthorized forged, or which contain forged
16
signatures, or are improperly notarized and/or acknowledged.
17
127. Plaintiff is entitled to a judgment of this court voiding the deeds of the Property
18
to Manshoory and/or Defendant BIHMF, LLC from Defendant SOUTH HOPE STREET
19
LLC, and the clerk’s deeds from Plaintiff to Defendant SOUTH HOPE STREET LLC
20
provided that the court either decides causes of action no. one for Plaintiff and grants
21
relief to the Plaintiff of setting aside the judgments and orders of the court as requested
22
or the court decides cause of action no. two for Plaintiff and finds that Defendants
23
denied due process of the laws to Plaintiff in the transfer of title by the clerk’s deeds.
24
128. Provided that Plaintiff prevails on causes of action nos. one, two, five, six, or
25
seven, Plaintiff is entitled to a judgment of this court voiding the deeds of the Property
26
to Manshoory and/or Defendant BIHMF, LLC.
27
28
p. 31
1 129. The clerks’ deeds to the Property, and the deeds from SOUTH HOPE STREET
2 LLC to Shawn Manshoory and from Shawn Manshoory to Defendant BIHMF, LLC are
3 causing serious injury to Plaintiff as defined in Civil Code §3412. Plaintiff is entitled to
4 the cancellation of these deeds.
5 130. Plaintiff has no adequate remedy at law to the cancellation of these deeds to the
6 Property. Plaintiff is irreparably injured by the existence in the official records of the
7 clerks’ deeds to the Property.
9 of the Property by Defendants.
12 §1021.5.
14
IX. FIFTH CAUSE OF ACTION
15 BREACHES OF FIDUCIARY DUTIES AND VIOLATIONS OF CHARITABLE TRUST
AND CORPORATION LAWS
16 (AGAINST DEFENDANTS PERRY, LORP, SOLOMON, HOPE PARK LLC AND SOUTH
HOPE STREET LLC)
17

20 136. When Defendants PERRY and LORP served the notice and/or responded to the
21 Attorney General’s letter acknowledging receipt of the notice from Defendants of the
22 transfer of assets under Corporations Code §5913, Plaintiff TRUE HARMONY had
23 already informed Defendants PERRY and LORP that they no longer represented
24 Plaintiff in action no. BC244718. Defendant PERRY testified falsely under oath in the
25 courtroom in the hearings on the consideration and authority for the so-called
26 settlement agreement in 2004 that a transfer of assets is approved by the Attorney
27 General when the Attorney General fails to disapprove the notice, or fails to respond to
28 the notice. Defendants PERRY and LORP concealed from Plaintiff that the Attorney
p. 32
1 General had neither approved it nor written a “no action” letter in response to the notice
2 under Corp. Code §5913 and they did not comply with Corp. Code §5913.
3 137. In 2004, Defendants PERRY and LORP concealed from Plaintiff and the court
4 that the Attorney General had neither approved it nor written a “no action” letter in
5 response to the notice under Corp. Code §5913, and therefore, they did not comply with
6 Corp. Code §5913. In 2011 Defendants caused the Property to be sold by SOUTH HOPE
7 STREET LLC to Manshoory and Defendant BIHMF, LLC in violation of a lawful cease
8 and desist order under Corporations Code §5913. See the letter under the signature of
9 Deputy Assistant Attorney General Sonja Berndt behind Exhibit Tab 1.
10 138. Corporations Code §5227 prohibits the service of more than forty-nine percent
11 (49%) interested persons for the board of directors of a nonprofit public benefit
12 corporation. Corporations Code §5233 requires the approval by a majority in interest of
13 the board of directors of the nonprofit public corporation of contracts with interested
14 persons, defined as officers, directors etc.
15 139. Defendant SOUTH HOPE STREET LLC is a conduit or passthrough entity or
16 alter ego of Defendants. As a mere “lawsuit settlement vehicle” it had no written
17 operating agreement signed by the members, no elections for officers or the manager,
18 no resolutions or consent documents for the members, and no separate books of account
19 or records. Defendant SOUTH HOPE STREET LLC was simply an association of its two
20 members for the purpose to jointly own the Property and to sell it.
21 140. Defendant SOUTH HOPE STREET LLC is not a nonprofit public benefit
22 corporation which is capable of performing a charitable asset settlement. Defendants
23 were “interested persons” under Corp. Code §§5227 & 5233. And Defendants violated
24 Corp. Code §§5227 & 5233because they received title to the Plaintiff’s property.
25 141. Defendants violated their fiduciary duty to Plaintiff under Corporations Code
26 §§6813(a) & (b), which prohibited their receipt of title to the Property from the Plaintiff
27 at a bargain sale price with intent to defraud, in this case, the sales price was practically
28 speaking, nothing.
p. 33
1 142. As the putative designated manager and agent of the joint venture known as
2 SOUTH HOPE STREET LLC between Plaintiff and Defendants, Corporations Code
3 §6215(a) required Defendant PERRY to make truthful reports for the joint venture with
4 Plaintiff, a nonprofit corporation, and Defendants violated this fiduciary duty to Plaintiff
5 by falsely reporting to the court the existence of arbitration awards which violated the
6 constitutional due process rights of Plaintiff, in the Partial and Final Arbitration Award
7 dated February of 2009 which they caused the court to incorporate illegally in the
8 judgment entered on April 22, 2010 in action no. BC385560.
9 143. Under Corporations Code §5142 when the Attorney General has failed to
10 intervene in an action brought by a nonprofit public benefit corporation to enforce
11 Corporations Code §§5227, 5233, 5913, 6215 and 6813 after notice was provided to the
12 official, the corporation has standing to bring the action in its own behalf. Section 5142
13 of the Corporations Code confers standing on the Plaintiff to sue Defendants on the
14 rights of action created by these laws. Plaintiff’s right is a nonwaivable public right
15 under Civil Code §3513.
16 144. Plaintiff’s rights under Corp. Code §5227 & §5233 are direct causes of action,
17 which avoids the requirement of the plaintiff’s prior demand on Defendants to bring a
18 derivative suit or action in the court to establish plaintiff’s standing herein
19 145. The Nonprofit Integrity Act imposed a fiduciary duty of Defendants to register as
20 fundraisers for the Plaintiff as a public charity, and to account to Plaintiff for the
21 proceeds and expenses of the sale of the Property to Plaintiff, which fiduciary duty the
22 Defendants breached.
23 146. Defendants breached their common law fiduciary duty of care and of loyalty to
24 Plaintiff as the majority in interest controlling member or venturer in SOUTH HOPE
25 STREET LLC to obtain a fair and reasonable market price for the sale of the Property to
26 Manshoory and Defendant BIHMF, LLC in July of 2011.
27
28
p. 34
1 147. Defendants willfully and maliciously caused Defendant SOUTH HOPE STREET
2 LLC to sell the Property to Manshoory and to Defendant BIHMF, LLC at less than a fair
3 and reasonable market price in breach of their fiduciary dutiesy.
4 148. Defendants fraudulently and maliciously caused the proceeds of the sale of the
5 Property to be distributed to themselves in 2011, and again in 2013 through action no.
6 BC466413, in violation of their fiduciary duty to account for the proceeds of the raising
7 of funds to Plaintiff.
8 149. Defendants caused damages of no less than Two Million Dollars ($2,000,000) to
9 Plaintiff because they failed to obtain a fair and reasonable market price for the property
10 and failed to account for the proceeds of the sale of their breach of common law
11 fiduciary duty to Plaintiff.
12 150. Defendants willfully and maliciously violated their fiduciary duties to Plaintiff as
13 alleged herein with conscious disregard for the continued security and integrity of the
14 Plaintiff’s assets and its finances as a nonprofit public benefit corporation and registered
15 public charity, in violation of by Civil Code §3294.
16 151. Plaintiff is entitled to punitive or exemplary damages as described in the
17 Statement of Damages.
19 §1021.5.
20 153. Plaintiff is entitled to costs as a prevailing party, and to prejudgment interest
22 X. SIXTH CAUSE OF ACTION
RESTITUTION AND INJUNCTION AGAINST UNFAIR, FRAUDULENT AND
23 UNLAWFUL PRACTICES
24

26 paragraphs 1 through 75 herein, and allegations in fifth cause of action, supra, and
27 seventh cause of action, infra.
28 ///
p. 35
1 155. Business and Professions Code §17200 prohibits unlawful, unfair and fraudulent
2 business practices that injure the Plaintiff’s business or property.
3 156. The Defendants’ breaches of fiduciary duty as alleged in the fifth cause of action
4 are unlawful, fraudulent and unfair practices that violate Cal. Business and Professions
5 Code §17200.
6 157. Defendants sold the Property to Manshoory and to Defendant BIHMF LLC, in
7 violation of 18 U.S.C. §371. This is because Defendants provided the tax identification
8 number of Hope Street Llc instead of Defendant SOUTH HOPE STREET LLC to the
9 escrow agent Lawyers Title Insurance Company, willfully to defraud the Internal
10 Revenue Service of the United States.
11 158. Defendants including Defendant BIHMF LLC, and Manshoory, violated the
12 Voidable Transactions Act in the sale of the Property from SOUTH HOPE STREET LLC
13 to Manshoory and to Defendant BIHMF, LLC as alleged in the seventh cause of action
14 hereinbelow.
15 159. The Defendants deceived the Plaintiff as to their purpose to take the Property
16 from Plaintiff without compensation therefore, in violation of the Nonprofit Integrity
17 Act (tenth cause of action) which is unlawful, fraudulent and unfair under Business and
18 Professions Code §17200.
19 160. Plaintiff’s right to majority in interest control of Defendant SOUTH HOPE
20 STREET LLC under the Corporations Code (see fifth cause of action, supra) was, and
21 still is, Plaintiff’s vested nonpossessory interest in the passthrough or conduit entity
22 SOUTH HOPE STREET LLC (as beneficiary of an irrevocable trust therefore).
23 161. Defendants intentionally and fraudulently concealed their unlawful and unfair
24 violations of Bus. & Prof. Code §17200 from Plaintiff.
25 162. Defendants unfairly, fraudulently and unlawfully in violation of Bus. & Prof. Code
26 §17200 deprived Plaintiff of title to the Property in 2009, and they caused the arbitrator
27 to include biased and unjustified arbitration awards to Hope Park Lofts Llc in the Partial
28 and Final Arbitration Award, which was beyond the scope of the arbitrator’s powers, in
p. 36
1 violation of Bus. & Prof. Code §17200. The Defendants’ intent was to exert economic
2 coercion and duress on Plaintiff to frustrate its efforts to engage the services of an
3 attorney at law defend title to the Property.
4 163. As a remedy, Plaintiff is entitled to the vesting in it of the record legal title to the
5 Property because of the Defendants’ unfair, fraudulent and unlawful acts as alleged.
6 Plaintiff is entitled to Defendants’ restitution or disgorgement of monies received by the
7 Defendants relating to sale of the Property. Plaintiff is entitled to the vesting of its
8 majority in interest control of the passthrough or conduit Defendant SOUTH HOPE
9 STREET LLC, which Defendants hold in trust for Plaintiff.
10 164. There is no adequate remedy at law for the equitable remedies requested.
11 Plaintiff will be irreparably injured if the court does not grant the remedies.
12 165. Plaintiff is entitled to costs as a prevailing party, and prejudgment interest under
13 Civil Code §3289.
XI. SEVENTH CAUSE OF ACTION
14 EQUITABLE RELIEF AND MONEY DAMAGES FOR TRANSACTIONS VOIDABLE
UNDER CIVIL CODE §3439.01 ET SEQ. AND THE COMMON LAW
15 (AGAINST ALL DEFENDANTS)
18 167. The Uniform Fraudulent Transfer Act (“UFTA”) as enacted in this state in 1987,
19 Civil Code §§3439 – 3439.12 (now known as the Uniform Voidable Transactions Act)
20 prohibits a debtor’s transfers of assets with intent to defraud a creditor, and a debtor’s
21 transfers of assets for inadequate consideration.
22 168. Plaintiff is a creditor of SOUTH HOPE STREET LLC, Manshoory, and BIMHF,
23 LLC with respect to its claims for relief against these Defendants herein.
24 169. As explained supra at Part IV, the contract of purchase of the Property that
25 Defendant SOLOMON and Hope Park Lofts Llc sued Plaintiff upon was void, and there
26 was no consideration for the so-called settlement agreement which was void as a result.
27 170. The consideration for the clerks’ deeds transferring title to the Property from
28 Plaintiff TRUE HARMONY to Defendant SOUTH HOPE STREET LLC on February 18,
p. 37
1 2009 was therefore void and/or substantively and procedurally unconscionable, and the
2 clerks’ deeds are a voidable transaction under the Act.
3 171. Defendants SOLOMON, PERRY and LORP together with Hope Park Lofts Llc
4 conspired to intentionally and fraudulently cause Plaintiff TRUE HARMONY to transfer
5 the title to the Property to Defendant SOUTH HOPE STREET LLC in a voidable
6 transaction under the Act and the common law, and knew or had reason to know that
7 the transfer of the title to Defendant SOUTH HOPE STREET LLC would exert economic
8 coercion and duress on Plaintiff and make it very difficult if not impossible for Plaintiff
9 to engage the services of an attorney at law to defend its title.
10 172. Defendants SOLOMON, PERRY, LORP together with Hope Park Lofts Llc
11 continued to conspire to exert economic coercion and duress on Plaintiff TRUE
12 HARMONY by engaging in sham arbitration hearings for which Plaintiff was denied
13 constitutional due process of the laws of prior notice and opportunity to defend itself,
14 and which were used to encumber and to destroy Plaintiff’s membership equity in
15 Defendant SOUTH HOPE STREET LLC as further economic duress and coercion that
16 made it difficult if not impossible for Plaintiff TRUE HARMONY to discover the cause of
17 the voidness or unconscionability of the so-called settlement agreement, and the
18 transfer of title to Defendant SOUTH HOPE STREET LLC.
19 173. Manshoory did not close escrow on his first purchase contract with Defendants
20 in 2006 for purchase of the Property at a price of Three Million Five Hundred Thousand
21 Dollars ($3,500,000), because title to the Property was not vested in SOUTH HOPE
22 STREET LLC. Manshoory could not have been a good faith or bona fide purchaser in
23 2006, even if purchase escrow had closed.
24 174. Manshoory was not a good faith or bona fide or good faith purchaser in 2011,
25 because he would not have been a good faith or bona fide purchaser in 2006.
26 175. As alleged in section IV supra, Defendants reinstated Manshoory’s purchase
27 escrow in 2011 and made the sale to Manshoory dependent on the closing of
28 Manshoory’s sale of the Property to Defendant BIHMF, LLC, such that Manshoory
p. 38
1 became the agent or nominee for Defendant BIHMF, LLC in back-to-back or linked
2 escrows.
3 176. As Manshoory was the agent or nominee for Defendant’s sale of the Property to
4 Defendant BIHMF, LLC, the title conditions for the sale to Manshoory were identical to
5 the title conditions for Manshoory’s sale of the Property to Defendant BIHMF, LLC,
6 such that Manshoory’s knowledge of Plaintiff’s claim to title to the Property was
7 imputed to Defendant BIHMF LLC. Defendant BIHMF, LLC was not a good faith or
8 bona fide or good faith purchaser in 2011.
9 177. Defendants intentionally transferred the Property to Shawn Manshoory and
10 caused Manshoory to transfer it to Defendant BIHMF, LLC to hinder or delay the
11 collection of the judgment against Defendants to which Plaintiff is entitled upon
12 conclusion of this action. Civil Code §3439.04(a)(1).
13 178. The following is a nonexclusive list of the badges of fraud of the intentionally
14 fraudulent transfer of the Property to Shawn Manshoory and/or Defendant BIHMF,
15 LLC: the below market value purchase price; judgments dated June 3, 2009 and April
16 22, 2010 in action no. BC385560 were in the chain of title for both Manshoory and
17 BIHMF, LLC, and the judgments in the chain of title required that all signatures for a
18 purchase escrow of the Property between SOUTH HOPE STREET LLC as seller and any
19 purchaser required notarized signatures for all parties, but none of the escrow
20 documents contained notarized signatures; the defendant SOUTH HOPE STREET LLC
21 lacked a written operating agreement signed by all members including Plaintiff;
22 defendant SOUTH HOPE STREET LLC lacked written resolutions of authority of the
23 members for the sale of the Property; and there was no contract between the members
24 of the limited liability company to appoint Defendant PERRY as the manager after its
25 articles of organization had been cancelled in 2008; the purchase escrows of Shawn
26 Manshoory and Defendant BIHMF, LLC were interdependent or back-to-back; and its
27 articles of organization had been cancelled in 2008; and the cease and desist order letter
p. 39
1 179. Plaintiff TRUE HARMONY has standing to raise its claims under the Voidable
2 Transactions Act as a putative member of SOUTH HOPE STREET LLC, and because of
3 direct injury to its vested nonpossessory right to majority in interest control of SOUTH
4 HOPE STREET LLC.
5 180. Furthermore, Manshoory’s purchase of the Property from Defendant SOUTH
6 HOPE STREET LLC, and Defendant BIHMF, LLC’s purchase of the Property from
7 Manshoory were constructively fraudulent as to Plaintiff because the back-to-back
8 escrows netted cash proceeds of One Million Nine Hundred and Twenty-one Thousand
9 Dollars ($1,921,000), when the fair market value of the Property was at least Three
10 Million Five Hundred Thousand Dollars ($3,500,000) in 2011.
11 181. Shawn Manshoory knew or had reason to know that he paid a below market value
12 price for the Property because he arranged for an owner’s title insurance policy with a
13 face value of Three Million Six Hundred Thousand Dollars ($3,600,000) to be issued to
14 him, compared to the One Million Nine Hundred and Twenty-one Thousand Dollars
15 ($1,921,000) that Defendants deemed that he paid to him, despite that the source of the
16 money paid was BIHMF, LLC. Manshoory’s knowledge is constructively imputed to
17 Defendant BIHMF, LLC because Manshoory was the agent or nominee of Defendant
18 BIHMF, LLC in the escrow.
19 182. Defendants PERRY and SOLOMON and Hope Park Lofts Llc also aided and
20 abetted Defendant SOUTH HOPE STREET LLC’s transfer of the Property to Manshoory
21 and then to BIMHF, LLC by providing substantial assistance to Manshoory and
22 BIMHF, LLC , including money, legal services, escrow services, and financial and
23 brokerage services for the transfer.
24 183. Plaintiff is entitled to a mandatory injunction requiring Defendant BIHMF, LLC
25 and Shawn Manshoory as the agent or privy of party Defendant BIHMF, LLC to rescind
26 their purchase of the Property and to restore title to the Property to SOUTH HOPE
27 STREET LLC, and/or to impress a performance lien on the title to the Property in the
28
p. 40
1 hands of Defendant BIHMF, LLC to secure the damages that Defendants owe to Plaintiff
2 for the violations of the Act.
3 184. Plaintiff is entitled to monetary damages directly and proximately caused to it by
4 Defendant BIMHF, LLC, and its agent Manshoory of at least One Million Five Hundred
5 Thousand Dollars ($1,500,000) and/or restitution and/or disgorgement of monies
6 received by Defendant BIMHF, LLC relating to future transactions concerning the
7 Property from persons not parties to this action, in an amount according to proof.
8 185. Defendants willfully and maliciously violated the Act as alleged herein with
9 conscious disregard for the continued security and integrity of the Plaintiff’s assets and
10 its finances as a nonprofit public benefit corporation and registered public charity, in
11 violation of by Civil Code §3294.
12 186. Plaintiff is entitled to a preliminary injunction pendente lite restraining
13 Defendant BIMHF LLC from selling or otherwise transferring title to the Property while
14 this action is pending in this court.
15 187. There is no adequate remedy at law for the equitable remedies requested.
16 Plaintiff will be irreparably injured if the court does not rescind the sale to BIMHF, LLC
17 through the intermediary nominee Manshoory, and does not cancel the grant deeds to
18 BIMHF, LLC and its privy or agent Manshoory, and does not cancel the clerks’ deeds to
19 SOUTH HOPE STREET LLC.
20 188. Plaintiff is entitled to a preliminary injunction pendente lite restraining
21 Defendant BIMHF LLC from selling or otherwise transferring title to the Property while
22 this action is pending in this court.
23 189. Plaintiff is entitled to costs as a prevailing party, and prejudgment interest under
24 Civil Code §3289.
25 ///
26 ///
27 ///
28 ///
p. 41
1 XIV. EIGHTH CAUSE OF ACTION
DAMAGES FOR CONVERSION OF MEMBERSHIP IN
2 LIMITED LIABILITY COMPANY
(AGAINST DEFENDANTS ROSARIO PERRY, LAW OFFICES OF ROSARIO PERRY,
3 NORMAN SOLOMON, HOPE PARK LLC, and SOUTH HOPE STREET LLC etc.)
4
5
6
191. Defendants dominated and controlled the business and legal affairs of SOUTH
7
HOPE STREET LLC, to the exclusion of Plaintiff’s right to vote in the government of the
8
limited liability company and Plaintiff’s right to proceeds of the sale of the Property as a
9
fifty percent (50%) member of the limited liability company.
10
192. The Attorney General disapproved of the sale or sales by SOUTH HOPE STREET
11
LLC to Shawn Manshoory and to Defendant BIHMF, LLC under Corporations Code
12
§5913, and served an order on Defendants to cease and desist from the sale of the
13
Property on or about April 1, 2011, under the signature of Deputy Assistant Attorney
14
General, Sonja Berndt. See letter behind Exhibit Tab 1.
15
193. Defendants sold the Property to Shawn Manshoory and directed Manshoory’s
16
sale of the Property to his principal, Defendant BIHMF LLC, through interdependent,
17
linked or back-to-back escrow accounts.
18
194. Defendants sold the Property to Manshoory and to Defendant BIHMF LLC, in
19
violation of 18 U.S.C. §371, because Defendants provided the tax identification number
20
of Hope Street Llc instead of Defendant SOUTH HOPE STREET LLC to the escrow
21
agent Lawyers Title Insurance Company, willfully to defraud the Internal Revenue
22
Service of the United States.
23
195. Defendants’ sale of the Property in violation of Corporations Code §5913 and in
24
violation of 18 U.S.C. §371 was pursuant to a void or illegal contract.
25
196. Defendants caused the escrow agent, Lawyers Title Insurance Company, to
26
distribute the proceeds of the illegal sale of the Property to themselves, knowing that
27
Plaintiff was entitled to at least one-half of the proceeds of the sale.
28
p. 42
1 197. Defendants thereafter caused the proceeds of the sale escrow to be deposited into
2 this court’s registry. On July 28, 2011 Defendants caused the fake, nonexistent, dummy
3 plaintiff Hope Street Llc to bring an action for interpleader in this court in action no.
4 BC466413, in which this court lacked jurisdiction because the plaintiff did not exist and
5 did not have standing to bring the action. Defendants caused the fake, nonexistent,
6 dummy plaintiff Hope Street Llc which did not have standing to bring the action, to
7 voluntarily dismiss all defendants from the action. When Defendants voluntarily
8 dismissed the action, the court had not acquired jurisdiction of action no. BC466413.
9 198. Because the court did not have jurisdiction of action no. BC466413, the court
10 lacked authority to approve the distribution of the funds in the registry in court to the
11 Defendants, and the Defendants’ order of distribution of funds dated May 22, 2013 was
12 a fraud on the court, as was the action no. BC466413 itself, and Defendants knowingly
13 and intentionally deceived this court to obtain its approval of the order distributing the
14 fund in court to themselves
15 199. Defendants’ fake interpleader action no. BC466413 was a fraud on the court
16 intentionally done to injure Plaintiff.
17 200. Defendants willfully and maliciously converted Plaintiff’s membership interest in
18 SOUTH HOPE STREET LLC to themselves, with conscious disregard for the continued
19 safety and integrity of the Plaintiff’s assets and its finances of its public purpose as a
20 nonprofit public benefit corporation and registered public charity, as prohibited by Civil
21 Code §3294.
22 201. Plaintiff has been damaged by Defendants’ conversion of nonprofit assets to
23 private use in the amount of at least Two Million Dollars ($2,000,000) in compensatory
24 damages, and punitive damages as described in the Statement of Damages.
26 §1021.5.
p. 43
1 XV. NINTH CAUSE OF ACTION
RECEIPT OF STOLEN PROPERTY – PENAL CODE SECTION 496(c)
2 (AGAINST DEFENDANTS ROSARIO PERRY, LAW OFFICES OF ROSARIO PERRY,
3
NORMAN SOLOMON, HOPE PARK LLC, and SOUTH HOPE STREET LLC etc.)
4
5
205. As Plaintiff is a nonprofit public benefit corporation, the title to the Property was
6
vested in Plaintiff as a trustee of a charitable trust for the benefit of the general
7
population.
8
206. Defendant SOUTH HOPE STREET LLC obtained title to the Property on
9
February 18, 2009 knowing that the transfer of title to it had not been approved by the
10
Attorney General or the Attorney General had not delivered a “no action” letter, nor had
11
the court approved it under Corp. Code §5913, in violation of the charitable trust of
12
Plaintiff for the general population as the beneficiaries and in violation of Penal Code
13
§496(c).
14
207. Defendant SOUTH HOPE STREET LLC transferred title to the Property on July
15
12, 2011 to BIHMF, LLC knowing that the transfer of title to Defendant BIHMF, LLC
16
violated the cease and desist order of the Attorney General under Corp. Code §5913.
17
208. Defendants PERRY. LORP, SOLOMON and HOPE PARK LOFTS, LLC conspired
18
with Defendant SOUTH HOPE STREET LLC to violate the charitable trust for the
19
Property and Penal Code §496(c), and are jointly and severally liable to Plaintiff for
20
three times the actual damages as measured by the value of the Property. The current
21
market value of the Property is Five Million Five Hundred Thousand Dollars
22
($5,500,000), and Defendants are liable in damages to Plaintiff for Sixteen Million, Five
23
Hundred Thousand Dollars ($16,500,000).
24
209. Defendants willfully and maliciously violated Penal Code §496(c).
25
210. Plaintiff is entitled to public interest attorneys’ fees under Code Civ. Proc.
26
§1021.5.
27
///
28
p. 44
3 XVI. TENTH CAUSE OF ACTION
IMPLIED RIGHT OF ACTION UNDER THE NONPROFIT INTEGRITY ACT S.B. 1262
4 (AGAINST DEFENDANTS ROSARIO PERRY, LAW OFFICES OF ROSARIO PERRY,
5
NORMAN SOLOMON, HOPE PARK LOFTS 2001-02910056 LLC, and SOUTH HOPE
STREET LLC etc.)
6
7
8
213. Defendants PERRY and LORP failed to register with the Attorney General as
9
commercial co-venturers, commercial fund raising counselors and commercial
10
fundraisers for nonprofit corporations, as required by Government Code §§12599(a),
11
12599.1(a), and 12599.2(a), despite that they represented to the court under oath in
12
2004 that they intended to raise the maximum possible funds for Plaintiff in selling the
13
Property
14
214. The intent of the legislature was to afford nonprofit corporations as much relief
15
as possible from unscrupulous and unconscionable practices of fundraisers, and it
16
prohibited deception in fundraising for nonprofit corporations and established the right
17
of nonprofit corporations to a refund of fundraising expenses.
18
215. The so-called settlement agreement is illegal under the Nonprofit Integrity Act to
19
the extent that Defendants did not register as commercial co-venturers, commercial
20
fund raising counselors or commercial fundraisers. Furthermore, they failed to register
21
as fundraisers under Article 44 of the Los Angeles Municipal Code. The Defendants
22
deceived Plaintiff as to their purpose to take the Property from Plaintiff without
23
compensation, which is also prohibited by the Nonprofit Integrity Act of 2004.
24
216. The right of refund created by the Nonprofit Integrity Act of 2004.is inadequate
25
to compensate Plaintiff for Defendants’ violation of the Act as Plaintiff did not pay any
26
expenses directly to Defendants. The court must imply a right of action in Plaintiff to
27
compensate it for the theft of the Property.
28
p. 45
1 217. As a proximate result of Defendants’ violations of the Act, Plaintiff has been
2 damaged by the loss of the current market value of the Property, which is Five Million
3 Five Hundred Thousand Dollars.
4 218. Defendants willfully and maliciously violated the Act as alleged herein with
5 conscious disregard for the continued security and integrity of the Plaintiff’s assets and
6 its finances as a nonprofit public benefit corporation and registered public charity, in
7 violation of by Civil Code §3294. Plaintiff is entitled to exemplary damages as set forth
8 in the Statement of Damages.
10 §1021.5.
13 PRAYER FOR RELIEF
14 WHEREFORE, the Plaintiff prays for damages and other relief as follows:
15 ON THE FIRST CAUSE OF ACTION, against all Defendants:
16 1. A Permanent Injunction setting aside or vacating the judgment dated July 9,
17 2008 and the order dated December 15, 2008 in action no. BC244718, and setting aside
18 or vacating the judgments entered on June 3, 2009 and April 22, 2010 in action no.
19 BC385560;
20 2. Such further and other permanent equitable relief that the court has power to
21 grant, including the cancellation of the clerks’ deeds to the Property recorded on
22 February 18, 2009; and an injunction pendente lite restraining Defendants from
23 transferring record title to the Property to anyone until the court enters judgment
24 herein;
25 3. A constructive trust, and disgorgement and/or restitution of monies received
26 relating to transactions in the Property according to proof, and a constructive trust;
27 4. Public Interest Attorneys’ fees;
28 5. Costs, and prejudgment interest under Civil Code §3289; and
p. 46
1 6. Such further and other relief as the court may deem necessary in the
2 circumstances.
3 ON THE SECOND CAUSE OF ACTION, against all Defendants:
4 1. A Permanent Injunction setting aside or vacating the judgment dated July 9,
5 2008 and the order dated December 15, 2008 in action no. BC244718, and setting aside
6 or vacating the judgment entered on April 22, 2010 in action no. BC385560;
7 2. Such further and other permanent equitable relief that the court has power to
8 grant, including the cancellation of the clerks’ deeds to the Property recorded on
9 February 18, 2009, and an injunction pendente lite requiring Defendants to transfer
10 legal title to the Property back to the Plaintiff;
11 3. A constructive trust, and disgorgement and/or restitution of monies received
12 relating to transactions in the Property according to proof, and a constructive trust;
16 circumstances.
17 ON THE THIRD CAUSE OF ACTION, against all Defendants:
18 1. Cancellation of the clerks’ deeds to the Property recorded on February 18, 2009;
19 2. Cancellation of the deeds from SOUTH HOPE STREET LLC to Manshoory, and
20 from Manshoory to BIHMF, LLC;
21 3. A Permanent Injunction requiring Defendants to transfer record legal title to the
22 Property back to the Plaintiff, and an injunction pendente lite restraining Defendants
23 from transferring record title to the Property to anyone until the court enters judgment
24 herein;
25 4. Disgorgement and/or restitution of monies received relating to transactions in
26 the Property according to proof, and a constructive trust;
p. 47
2 circumstances.
3 ON THE FOURTH CAUSE OF ACTION, against all Defendants:
4 1. Cancellation of the clerks’ deeds to the Property recorded on February 18, 2009;
5 2. Cancellation of the deeds from SOUTH HOPE STREET LLC to Manshoory, and
6 from Manshoory to BIHMF, LLC;
7 5. An injunction pendente lite restraining Defendants from transferring record title
8 to the Property to anyone until the court enters judgment herein;
10 the Property, according to proof, and a constructive trust;
14 circumstances.
15 ON THE FIFTH CAUSE OF ACTION, against DEFENDANTS PERRY, LORP,
16 SOLOMON, HOPE PARK LLC, and SOUTH HOPE STREET LLC:
17 1. Compensatory money damages of no less than Five Million Dollars
18 ($5,000,000);
19 2. Exemplary money damages as described in the Statement of Damages;
20 3. Public interest attorneys’ fees of no less than One Million Dollars ($1,000,000);
21 4. Costs of this suit;
23 circumstances.
24 ON THE SIXTH CAUSE OF ACTION, against Defendants:
26 Property back to the Plaintiff;
27 2. An injunction pendente lite restraining Defendants from transferring record title
28 to the Property to any person until the court enters judgment herein, and an injunction
p. 48
1 pendente lite and permanent injunction enforcing majority in interest control of
2 Defendant SOUTH HOPE STREET LLC in Plaintiff;
4 the Property, according to proof, and a constructive trust on monies received;
8 circumstances.
9 ON THE SEVENTH CAUSE OF ACTION, against all Defendants:
10 1. Compensatory Damages of no less than One Million Five Hundred Thousand
11 Dollars ($1,500,000);
14 Property back to the Plaintiff, and/or impressing a lien on the Property to secure the
15 damages owed to Plaintiff , and an injunction pendente lite restraining Defendants from
16 transferring record title to the Property to anyone until the court enters judgment
17 herein;
18 4. Public interest attorneys’ fees;
19 5. Costs; and
21 circumstances,
22 ON THE EIGHTH CAUSE OF ACTION, against DEFENDANTS PERRY, LORP,
24 1. Compensatory money damages of no less than Two Million Dollars
25 ($2,000,000);
p. 49
2 circumstances.
3 ON THE NINTH CAUSE OF ACTION, against DEFENDANTS PERRY, LORP,
5 1. Treble Damages of no less than Sixteen Million, Five Hundred Thousand Dollars
6 ($16,500,000);
11 circumstances.
12 ON THE TENTH CAUSE OF ACTION, against DEFENDANTS PERRY, LORP,
14 1. Compensatory money damages of no less than Five Million Five Hundred
15 Thousand Dollars ($5,500,000);
20 circumstances.
21 DEMAND FOR JURY TRIAL
22 Plaintiffs demand a trial by jury.
23 27 2017
DATED: November ___, JEFFREY G. THOMAS
24
/s/ Jeffrey G. Thomas
__________________________
25
Attorney at law for Plaintiff
26 TRUE HARMONY
27
28
p. 50
EXHIBIT 1
LTC 001014
Exhibit 1 to Third Amended Complaint page 1 - 1
LTC 001015
LTC 001016
EXHIBIT 2
. ._._... - _. •_ . - _0_... _ ---.--_e-
.. ~.
-) • ") 4 L
" ,( ,Wi", It1~HI- ,......
stff/t,41fJ• rd ll\ U
'The partie$ stipulate to~nt of the Plaintiff's quiet title action as follows:
Title to the property commonly known as J130 South Hope StJeet· is qui,eted in the Dame
of 1130 South Hope street Investment Associates. lLC. (the "new LLCU)
The property shall be minimall)' prepared for sale by Hope Park Lofts, UC.
Effective immediately the property abaU be exclusively listed for sale with Metro
Resoorces~ LLC) at a S% comInission. The liating price shan be $I.4m. For the first 7)JaYS after
(\l1roN.· r~·..t. L,~
the first offer is submitted it dlall not be accepted without ~'e IbRRQ~pCnnisslon. The
Jiatina price shaD n:duee to $1.3m if the ~perty is DOt under a contract of sale within 30 days
A { ~ljt~ '1 IWiSIl1~1t I-
Iv I"..,., from ~8nd dllaIl reduce SOk every 20 days thereafter. except that the listing price shall
rem~ frozen at any lime the ~ is under a contract of sale" Excluded from commission
are any buyers whose name Rosario Perry forwards to Norm Solomon befOIt that buyer submits
an off~ and Lance Robbins and Asnchutz Entettainmcnt Group.
H Davis or Hollar sues ~ new lLC Rosario Perry Will defend the new LLC for free and
Hope Park Lofts. llC shall bave no responsibility Cor fees or any judgment
Except as stated above the manager of the new lie shall have authority to sign a sale
njraCl and deed. Rosario PeJ!Y shall be the manager. The membets of the new LLC are True
ila ,1- (JJ"o~ ~ fit:'
annony~~d Hope Pad: Lof(8. So,. ~ Il ~\".. "
~~~ .J ~(,
The proceeds of sale shall divided as follows, and in the folJowing order:
~ 1. Payment of real estate commissions ~d all <:losing costs; ~

j fl- t ;:). f~~ ~ ti~ 11- -+
\L"" ~ (~S;".).
~ rl \..,.;. The next 4SOk to Hope Park Lotts. LLC plus such costs, to a maximum of
~k. it determineJ arc ~nab'y necessary to prepare the property for sale inclUding, without
fmiration. installation of tights, ammgement and payment of in$Urance, management of
itroperty. clean up of interior debris, securing and boarding the building. roof repairs. and A
II . floP
.p
,S
t~
003767
C~u~T

-_._ .• -._-
•
~,. :-: :. ~
i ntafacing with rbe Cjty" bul shall not include extraordinary costs including without limitation
Ciry Code compliance or other gowmmentaJ requirements. .
The next 800k to True Harmony.
'The next 75k to Hope..
A/v'1- I
'The next 2jk to True.
f...{., ,. ... . Any funds, remaining shall be divided SOi50. <&

Any d:IiPutes hereunder shall be first mediated and then arbi~~njH'n~y;y
~\
Retired
~
-e
Judge William Schoettler and if he is not aVaila1?lc. by Retired JUdg~s at JAMS. (C'/
Any payments to HMH and Kote shaD be pro~ based on net cuh to each part}j and
shaD be pai~off the top~ ~$ S.:tJf ~ I ~ ~K4 t fS"4.cw £o~'h.. ®
a. ~s- .. "4,,
At Hope Park Loft's election, ownership to the lLC shall transfer to Hope after escrow
cJoses~ ~).-l '-U-. ~~ . j;)
'/-'v
Each sigDatory below represents that he bas authority to bind the entity for which he
signs, and that all necessary approvals ~uisite to iris signature being effective have been
reccived.
{)Il luI.·# to/Cito3
,
.
;;if ~-----.... ~..
......
( ~ /,..,,1 i,; J t-Z(.
~tJ 5""·(1
r()/l ... ~,( .11 p,,,.:"Yi"RJ
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... .fn ryv t..
84C&~ H4"I"'J~r
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;
fliJ.tJy b-. , I ~(5 rG&'''/~''(
~jI\ J fI" j., t (....
..s--' 0\)3768
.... - .----------- - - ~----.--- _.--..---' ....--_.- ,-

EXHIBIT 3
• •
PROGRESSIVE TITLE COMPANY
425 W. BROADWAY SUITE 300
GLENDALE, CA 91204
PHONE; (800) 311-4549
FAX.; (818) 291-4481
DATED AS OF SEPTEMBER 4,2015 AT 7:30 A.M.
TRUE HARMONY YOUR NO.: 1130 SOUTH HOPE 5T

1204 SOUTH WHITEMARSH AVENUE PROPERTY ADDRESS: 1130 HOPE STREET, LOS
COMPTON, CA 90220 ANGELES, CA 90015
ATTENTION: MARY WATTS ORDER NO.: PR1582157
TITLE OFFICER: ELLA M. CUMMINGS

EMAIL:
GLENDALEUNITBO@PROGRESSIVETITLE.COM
"PRELIMINARY REPORT"
IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, PROGRESSIVE TITLE
COMPANY HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A
POLICY OR POLICIES OF TITLE INSURANCE DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN
HEREINAFTER SET FORTH. INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT LIEN
OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE
PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORMS.
THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN
EXHIBIT B ATTACHED. THE POLICY TO BE ISSUED MAY CONTAIN AN ARBITRATION CLAUSE. WHEN THE AMOUNT OF
INSURANCE IS LESS THAN THAT SET FORTH IN THE ARBITRATION CLAUSE. ALL ARBITRABLE MAnERS SHALL BE
ARBITRATED AT THE OPTION OF EITHER THE COMPANY OR THE INSURED AS THE EXCLUSIVE REMEDY OF THE
PARTIES. LIMITATIONS ON COVERED RISKS APPLICABLE TO THE CLTA AND AL TA HOMEOWNER'S POliCIES OF TITLE
INSURANCE WHICH ESTABLISH A DEDUCTIBLE AMOUNT AND A MAXIMUM DOLLAR LIMIT OF liABILITY FOR CERTAIN
COVERAGES ARE SET FORTH IN THE POLICY. COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE
AVAILABLE FROM THE OFFICE THAT ISSUED THIS REPORT.
PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET
FORTH IN EXHIBIT B OF THIS REPORT CAREFULLY. mE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE
YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY
AND SHOULD BE CAREFULLY CONSIDERED.
IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE
CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS AND ENCUMBRANCES AFFECTING TITLE TO THE
LAND.
THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF
FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS
DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE. A BINDER OR
COMMITMENT SHOULD BE REQUESTED.
THE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS:
[1 CALIFORNIA LAND TITLE ASSOCIATION/AMERICAN LAND TITLE ASSOCIATION

HOMEOWNERS POLICY
[ ] AMERICAN LAND TilLE ASSOCIATION LOAN POLICY
[X] CALIFORNIA LAND TITLE ASSOCIATION STANDARD POLICY
AL
------------_ _.--_ .... ....

•
ORDER NO. PR1582157
SCHEDULE A
THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED

BY THIS REPORT IS:
AFEE
TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:
BIMHF. LLC. A CALIFORNIA LIMITED LIABILITY COMPANY
THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE
OF CALJFORNIA AND IS DESCRIBED AS FOLLOWS:
SEE EXHIBIT "AU ATTACHED HERETO

•
•
ORDER NO. PR1582157
SCHEDULE B
AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS
AND EXCLUSIONS IN SAID POLICY FORM D,ESIGNATED ON THE FACE PAGE OF THIS REPORT
WOULD BE AS FOLLOWS:
J
A. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 2015-2016, A LIEN NOT YET DUE OR
PAYABLE.
B. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 2014-2015
TOTAL: $27,588.13
FIRST lNSTALLMENT: $13,794.07 PAID
PENALTY: $0.00
SECOND INSTALLMENT: $13,794.06 PAID
PENALTY: $0.00
ASSESSED VALUATION:
LAND VALUE: $1,967,291.00
IMPROVEMENTS: $2,049.00
EXEMPTION: $0.00
CODE AREA: 13264

A. P.NO.: 5139-021-004
c. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING

WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE.
D. A NUISANCE ABATEMENT IN THE ORIGINAL AMOUNT OF $27,523.02 IN FAVOR OF THE CITY OF

LOS ANGELES, BUILDING AND SAFETY FINANCES.
E. THE LIEN OF SPECIAL TAX ASSESSED PURSUANT TO CHAPTER 2.5 COMMENCING WITH
SECTION 53311 OF THE CALIFORNIA GOVERNMENT CODE FOR COMMUNITY FACILITIES
DISTRICT NO.9, AS DISCLOSED BY NOTICE OF SPECIAL TAX LIEN RECORDED JANUARY 29,
2013 AS INSTRUMENT NO. 20130143515, OFFICIAL RECORDS.
1. WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC
RECORDS.
2. THE FACT THAT THE LAND LIES WITHIN THE BOUNDARIES OF THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT AREA, AS DISCLOSED BY THE DOCUMENT RECORDED JULY 22,
1975 AS INSTRUMENT NO. 3675, OFFICIAL RECORDS.
AND RE-RECORDED JULY 30, 1975 AS INSTRUMENT NO. 3868, OFFICIAL RECORDS
3. THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "NOTICE OF BUILDINGS
WITHIN THE SCOPE OF DIVISION 68 -EARTHQUAKE HAZARD REDUCTION IN EXISTING
BUILDINGS" RECORDED JUNE 30, 1986 AS INSTRUMENT NO. 86-820277, OFFICIAL RECORDS.
AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN
4. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DJSCLOSED BY A DOCUMENT

RECORDED DECEMBER 10,1993 AS INSTRUMENT NO. 93-2421728, OFFICIAL RECORDS.
AFFECTS: AS MORE PARTJCULARL Y DESCRIBED THEREIN

•
•
ORDER NO. PR1582157
5. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELL'NG AS DISCLOSED BY A DOCUMENT

RECORDED NOVEMBER 23. 1994 AS INSTRUMENT NO. 94-2113931, OFFICIAL RECORDS.
6. THE EFFECT OF A NOTJCE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

RECORDED OCTOBER 24,1996 AS INSTRUMENT NO. 96-1730356, OFFICIAL RECORDS.
A NOTICE OF PENDING ASSESSMENT RECORDED APRIL 19,2002 AS INSTRUMENT NO. 02

0926449 OF OFFICIAL RECORDS.
7. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

RECORDED JUNE 20, 1997 AS INSTRUMENT NO. 97-924292. OFFICIAL RECORDS.
8. THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "AMENDED AND
RESTATED DECLARATION OF OPERATING AND EASEMENT AGREEMENTS" RECORDED APRIL 3.
2006 AS INSTRUMENT NO. 06-0704038. OFFICIAL RECORDS.
9. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

RECORDED NOVEMBER 30. 2007 AS INSTRUMENT NO. 20072636449. OFFICIAL RECORDS.
10. THE FOLLOWING MAnERS DISCLOSED BY AN ALTAJACSM SURVEY MADE BY M & M & co.
(GREGORY M. AMOROSO L.S. 8771) ON MARCH 22, 2011. DESIGNATED JOB NO. A.L.T.A./A.C.S.M.
LAND TITLE SURVEY:
A. THE NORTHWEST CORNER AND THE SOUTHWEST CORNER OF THE BUILDING EXTEND
INTO THE LrMITS OF THE STREET ADJACENT TO THE WEST BY 0.08 AND 0.03 FEET
RESPECTIVE
B. THE NORTHEAST CORNER OF THE BUILDING EXTENDS INTO THE LIMITS OF THE ALLEY
ADJACENT TO THE NORTH BY 0,02 FEET
C. A BUILDING CORNER AT AN ANGLE POINT IN THE BUILDING ALONG THE SOUTHERLY LINE
EXTENDS ONTO LAND ADJACENT TO THE SOUTH BY 0.08 FEET.
D. FIRE ESCAPES ON THE WESTERLY AND EASTERLY FACES OF THE BUILDING INTO THE
LIMITS OF THE ADJACENT STREET AND ALLEY

• •
ORDER NO. PR1582157
11. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS AND ANY OlliER

AMOUNTS OR OBLIGATIONS SECURED THEREBY
AMOUNT: $115,000.00
DATED: JANUARY 9,2004
TRUSTOR: CLEARVIEW INVESTMENT CORPORATION, A NEVADA
CORPORATION C9939 DEBBIE NASH, A SINGLE WOMAN
TRUSTEE: CHICAGO TITLE COMPANY, A CALIFORNIA CORPORATION
BENEFICIARY: PACIFIC LAKEVIEW TRUST FAMILY LIMITED PARTNERSHIP A
NEVADA CORPORATION
RECORDED: MARCH 30,2004 AS INSTRUMENT NO. 04-0747681, OFFICIAL
RECORDS
LOAN NO.: NOT SHOWN
PLEASE NOTE: IF THIS LOAN IS TO BE PAID AS A SHORT PAY, PLEASE CONTACT

THIS OFFICE FOR ADDITIONAL REQUIREMENTS AT LEAST TEN DAYS PRIOR TO
CLOSING.
12. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS AND ANY OTHER

AMOUNT: $115,000.00
DATED: JANUARY 9, 2004
TRUSTOR: CLEARVIEW INVESTMENT CORPORATION, A NEVADA
CORPORATION; DEBBIE NASH, A SINGLE WOMAN
TRUSTEE: CHICAGO TITLE COMPANY, A CALIFORNIA CORPORATION
BENEFICIARY: PACIFIC LAKEVIEW TRUST FAMILY LIMITED PARTNERSHIP, A
NEVADA LIMITED PARTNERSHIP
RECORDED: JULY 19, 2005 AS INSTRUMENT NO. 05-1701131. OFFICIAL
RECORDS
LOAN NO.: NOT SHOWN
SAID DEED OF TRUST RECITES.
THIS DEED 15 BEING RERECORDED TO CORRECT THE BENEIFICIARY VESTING.

CLOSING.
ACCORDING TO THE PUBLJC RECORDS, THE BENEFICIAL INTEREST UNDER THE DEED
OF TRUST WAS ASSIGNED TO JAYSON MUHAMMAD DBA 501 (C) (3) OUTSOURCING L TO
BY ASSIGNMENT RECORDED JULY 19,2005 AS INSTRUMENT NO. 05-1704543, OFFICIAL
RECORDS.
ACCORDING TO THE PUBLIC RECORDS, THE BENEFICIAL INTEREST UNDER THE DEED
OF TRUST WAS ASSIGNED TO TITLE 11 USC 301 DEBTOR TOM BURTON CASE NO. 05
2498668 INTO BY ASSIGNMENT RECORDED JULY 20. 2005 AS INSTRUMENT NO. 05
1713119, OFFICIAL RECORDS.

• •
ORDER NO. PR1582157
13. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS AND ANY OTHER

AMOUNT: $120,000.00
DATED: AUGUST 27, 2007
TRUSTOR: FARZAD NEDIATHAJEM, A MARRIED MAN AS HIS SOLE AND
SEPARATE PROPERTY
TRUSTEE: ALLIANCE TITLE, A CALIFORNIA CORPORATION
BENEFICIARY: TRUE HARMONY INC.
RECORDED: AUGUST 28, 2007 AS INSTRUMENT NO. 20072012442, OFFICIAL
RECORDS
LOAN NO.: NOT SHOWN

CLOSING.
14. THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "NOTICE OF
TEMPORARY VACANT AND SECURED RENTAL UNITS" RECORDED JANUARY 7,2005 AS
INSTRUMENT NO. 20150017931, OFFICIAL RECORDS.

• •
ORDER NO. PR1582157
REQUIREMENTS:
15. PRIOR TO THE ISSUANCE OF ANY POLICY OF TITLE INSURANCE, THE COMPANY WILL
REQUIRE:
A. WITH RESPECT TO BIMHF. LLC, A CALIFORNIA LIMITED LIABILITY COMPANY:
A. A COpy OF ITS OPERATING AGREEMENT AND ANY AMENDMENTS THERETO;
B. IF IT IS A CALIFORNIA LIMITED LIABILITY COMPANY, THAT A CERTIFIED COpy OF

ITS ARTICLES OF ORGANIZATION (LLC-1) AND ANY CERTIFICATE OF CORRECTION
(LLC-11), CERTIFICATE OF AMENDMENT (LLC-2), OR RESTATEMENT OF ARTICLES OF
ORGANIZATION (LLC-10) BE RECORDED IN THE PUBLIC RECORDS;
C. IF IT IS A FOREIGN LIMITED LIABILITY COMPANY, THAT A CERTIFIED COpy OF ITS

APPLICATION FOR REGISTRATION (LLC-5) BE RECORDED IN THE PUBLIC RECORDS;
D. WITH RESPECT TO ANY DEED, DEED OF TRUST, LEASE. SUBORDINATION

AGREEMENT OR OTHER DOCUMENT OR INSTRUMENT EXECUTED BY SUCH LIMITED
LIABILITY COMPANY AND PRESENTED FOR RECORDATION BY THE COMPANY OR
UPON WHICH THE COMPANY IS ASKED TO RELY. THAT SUCH DOCUMENT OR
JNSTRUMENT BE EXECUTED IN ACCORDANCE WITH ONE OF THE FOLLOWING, AS
APPROPRIATE:
(I) IF THE LIMITED LIABILITY COMPANY PROPERLY OPERATES THROUGH OFFICERS

APPOINTED OR ELECTED PURSUANT TO THE TERMS OF A WRITTEN OPERATING
AGREEMENT, SUCH DOCUMENT MUST BE EXECUTED BY AT LEAST TWO DULY
ELECTED OR APPOINTED OFFICERS, AS FOLLOWS: THE CHAIRMAN OF THE BOARD,
THE PRESIDENT OR ANY VICE PRESIDENT, AND ANY SECRETARY, ASSISTANT
SECRETARY, THE CHIEF FINANCIAL OFFICER OR ANY ASSISTANT TREASURER;
(II) IF THE LIMITED LIABILITY COMPANY PROPERLY OPERATES THROUGH A

MANAGER OR MANAGERS IDENTIFIED IN THE ARTICLES OF ORGANIZATION ANDIOR
DULY ELECTED PURSUANT TO THE TERMS OF A WRITTEN OPERATING AGREEMENT,
SUCH DOCUMENT MUST BE EXECUTED BY AT LEAST lWO SUCH MANAGERS OR BY
ONE MANAGER IF THE LIMITED LIABILITY COMPANY PROPERLY OPERATES WITH
THE EXISTENCE OF ONLY ONE MANAGER.
E. OTHER REQUIREMENTS WHICH THE COMPANY MAY IMPOSE FOLLOWING ITS

REVIEW OF THE MATERIAL REQUIRED HEREIN AND OTHER INFORMATION WHICH
THE COMPANY MAY REQUIRE.
......END OF SCHEDULE B ....

• •
ORDER NO. PR1582157
NOTES:
WE DEPOSIT FUNDS RECEIVED ON YOUR BEHALF IN STATE OR FEDERALLY-CHARTERED
BANKS THAT ARE INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
("FDIC"). THE ACCOUNT IS CURRENTLY HELD AT COMERICA BANK.
FDIC DEPOSIT INSURANCE COVERAGE APPLIES TO A MAXIMUM AMOUNT OF $250,000 PER

DEPOSITOR FOR DEPOSITS HELD IN THE SAME LEGAL OWNERSHIP CATEGORY AT EACH
BANK. FOR EXAMPLE, FUNDS HELD ON YOUR BEHALF IN AN ACCOUNT MAINTAINED BY US
WILL BE COMBINED WITH ANY INDIVIDUAL ACCOUNTS HELD DIRECTLY BY YOU AT THE SAME
BANK. YOU ARE RESPONSIBLE FOR MONITORING THE TOTAL AMOUNT OF DEPOSITS THAT
ARE OWNED DIRECTLY OR INDIRECTLY BY YOU IN ANY ONE BANK.
IF YOU HAVE QUESTIONS ABOUT FDIC DEPOSIT INSURANCE. CONTACT YOUR FINANCIAL OR
LEGAL ADVISORS OR GO TO HTTP;/IWVVW.FDIC.GOV/DEPOSIT/DEPOSITS/INDEX.HTMl. WE DO
NOT GUARANTEE THE SOLVENCY OF ANY BANK INTO WHICH FUNDS ARE DEPOSITED AND WE
ASSUME NO LIABILITY FOR ANY LOSS YOU INCUR DUE TO THE FAiLURE,INSOLVENCY OR
SUSPENSION OF OPERATIONS OF ANY BANK OR THE $250,000 FDIC DEPOSIT INSURANCE
LIMIT.
UNLESS OTHERWISE AGREED IN WRITING. EACH OF THE PRINCIPALS AGREES, UNDERSTANDS

AND ACKNOWLEDGES THAT: THE ESCROW ACCOUNT IS NON-INTEREST-BEARING: NO
FINANCIAL OR OTHER BENEFITS WILL BE EARNED BY OR PROVIDED TO ANY OF THE
PRINCIPALS WITH RESPECT TO SUCH FUNDS' AND PROGRESSIVE TITLE COMPANY AND ITS
AFFILIATES MAY INSTEAD RECEIVE DIRECT AND INDIRECT FINANCIAL AND OTHER BENEFITS
FROM THE DEPOSITORY WITH RESPECT TO SUCH FUNDS THESE BENEFITS SHALL BE TREATED
AS ADDITIONAL COMPENSATION TO PROGRESSIVE TlTlE COMPANY FOR ITS SERVICES AS AN
ESCROW HOLDER IN THIS TRANSACTION.
NOTE: UNLESS OTHERWISE DIRECTED IN WRITING, PROGRESSIVE TITLE COMPANY

AUTOMATICALLY ISSUES THE ALTA HOME OWNER'S POLICY ON ALL QUALIFYING RESIDENTIAL
PROPERTY SALE TRANSACTIONS.
NOTE: THIS COMPANY REQUIRES CURRENT BENEFICIARY DEMANDS PRIOR TO CLOSING, NO

PAYOFFS WILL BE MADE USING IlVERBAL" FIGURES
NOTE: EFFECTIVE JANUARY 1, 1990, ASSEMBLY BILL 512, ENACTED AS CHAPTER 598, WILL ADD
SECTION 12413.1 TO THE CALIFORNIA INSURANCE CODE DEALING WITH THE "GOOD FUNDS"
ISSUE, FUNDS DEPOSITED BY:
o CASH AND BY ELECTRONIC TRANSFER (WIRED FUNDS) WILL BE AVAILABLE FOR SAME
DAY DISBURSEMENTS.
o CASHIER'S CHECKS, CERTIFIED CHECKS AND TELLER'S CHECKS WILL BE AVAILABLE FOR
NEXT DAY DISBURSEMENTS.
D ALL OTHER TYPES OF CHECKS WILL NOT BE AVAILABLE FOR DISBURSEMENT UNTIL THE
DAY PROVIDED IN REGULATION CC ADOPTED BY THE FEDERAL RESERVE BOARD OF
GOVERNORS.
a A DRAFT WILL NOT BE AVAILABLE FOR DISBURSEMENT UNTIL THE DRAFT HAS BEEN
SUBMITTED FOR COLLECTION AND PAYMENT RECEIVED BY OUR BANK.
PLEASE NOTE: THIS COMPANY WILL MAKE DISBURSEMENTS ONLY IN THE SAME MANNER AS
WHICH FUNDS ARE RECEIVED. SHOULD THIS COMPANY BE REQUESTED TO MAKE ANY
DISBURSEMENTS BY ELECTRONIC TRANSFER (WIRED FUNDS), THIS COMPANY WILL REQUIRE
FUNDS TO BE DEPOSITED TO OUR ACCOUNT BY ELECTRONIC TRANSFER.

• •
ORDER NO. PR1582157

425 W. BROADWAY SUITE 300
GLENDALE, CA 91204
PHONE: (800) 311-4549
FAX: (818) 291-4481
WIRE TRANSFER INSTRUCTIONS

PR1582157
COMERICA BANK
2321 ROSECRANS AVENUE,# 5000
EL SEGUNDO,CA 90245
ABA# 121137522
CREDIT: PROGRESSIVE TITLE COMPANY - (PR1582157, ELLA M. CUMMINGS)
ACCOUNT # 1892380336
SHOULD YOUR WIRE INSTRUCTION BE INCOMPLETE OR INCORRECT, IT WILL BE RETURNED

WITHOUT NOTICE.
IF YOU HAVE ANY QUESTIONS IN THIS REGARD PLEASE CONTACT YOUR TITLE OFFICER
IMMEDIATELY.
10

Branch :ETQ,User :T002 • •
Order: PR1582157 Title Officer: 80 Comment: Station Id :WUND
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LOS ANGELES,CA Page 1 of9 Printed on 9/2/2015 1:27:54 PM

Document: ASSESSOR_MAP 5139.021

• Statement of Information
•
PROGRESSIVE TITLE COMPANY maintains procedural safeguards that comply with federal standards to protect the confK1enliality and security of non-public
personal information. This statement will serve to establish identily, eliminate matters affecting persons of similar name, protect you against forgeries, and
speed the completion of your title and escrow services. PLEASE BE SURE YOU HAVE FILLED THIS FORM OUT COMPLETELY; INCLUDING SIGNAlURES AND DATE.
NOT PROVIDING REQUESTED INFORMATION MAY CAUSE A DELAY IN THE CLOSE OF YOUR TRANSACTION •• THANK YOU.
FOR ONLINE YERSION OF THIS FORM CLICK HERE fOR MORE INFORMATION ON THIS FORM CLICK HERE
ESCROW NO. TITLE ORDER: PR1582157

SOC.SEC.
NAME--F'-R-ST--------F-U-LL-M-ID-:-D-L~E-N-A-M-E----------:LA:-:-::S~T:---------~~~~~~S:-L-I~CE
.....N - S - E - - - - - - - - - - - -
NUMBER _
CATE OF
BIRTH BIRTHPLACE_ _~ HOME PHONE ~ _
YOURBU~NESSPHONE,_~~~~~~~~~~_YOURCEliPHONE,_~ ~_~-_ _YOURFAX~_ _~ ~_~_
YOUR E-MAIL SPOUSE/DOMESTIC PARTNER E-MAIL'-- ~ _
UVED~USASINCE UVEDIN~LIFORNIA~NCE ~ ~
(CIRCLE ONE) NAME OF SPOUSEI SOC. SEC.

DOMESTIC PARTNER--F-IR-S::-"T-----~F~U'"":"L-l-M-I-DO--L....E~NA-M~E------l.A":""':S:-::T~-----~'~~~S:-:L-IC~E-=-:N-S'"'""':E::.---~---------
NUMBER _
DATE OF
BIRTH_ .BIRTHPLACE, ,MAIOEN NAME _
SPOUSE/DOMESTIC PARTNER BUSINESS PHONE CELL PHONE ~~ _ _FAX, _
LIVED IN USA SSNCE _ U~D~~I~RN~S~CE ~ ~~ _

IFM~R~D,ORINADOMESTICP~TNERSHIP. D~: ~ ~~~~~~AT~_ _~~~~~~~------------
CITY AND STATE
PREVIOUS MARRIAGE(S) OR DOMESTIC PARTNERSHIP(S) (if no previous marriage or dome.lIe partnershIp. write ·~ONE·):
(CIRCLE ONE) NAME OF FORMER OECEASED DATE, _

~OUsErooM~ncPARTNER.~~~~~~~_~_~~~~~~rnVORCEO WHERE,~~~_~~~~~ ~~~~
(CIRCLE ONE) NAME OF FORMER DECEASED DATE, _
SPOUSEJDOMESTIC PARTNER DIVORCED WHERE _
(ATTACH ADDITIONAL PAGE, IF NECESSARY)
CHILDREN:
NAME DATE OF BIRTH NAME DATE OF BIRTH _
NAME DATE OF BIRTH NAME ~ DATE OF BIRTH _

(ATTACH ADDITIONAL PAGE. IF NECESSARY)
INFORM~TION COVERING PAST 10 YEARS.
Re.ldene.:
NUMBER AND STREET CITY ZIP CODE FROM TO
NUMBER AND STREET CITY ZIP CODE FROM TO
Your NUMBER AND STREET CITY ZIP CODe FROM TO

Employment:
FIRM NAME AND ADDRESS CITY ZIP CODE FROM TO

Spouse/Domestic: P ~rtn.,
Employment:
FIRM NAME M 0 ADDRESS CITY ZIP CODE FROM TO

HAVE YOU OR YOUR SPOUSE/DOMESTIC PARTNER OWNED OR OPERATED A BUSINESS?
DYES :::J NO IF SO, PLEASE LIST NAMES ~ _
, HAVE NEVER BEEN ADJUDGED BANKRUPT, NOR ARE THERE ANY UNSATISFJED JUDGMENTS OR OTHER MATIERS PENDING AGAINST ME WHICH MIGHT AFFECT
MY TJTLE TO THIS PROPERTY E.XCEPT AS FOLLOWS:
THE STREET ADDRESS OF THE PROPERTY IN THIS TRANSACTION IS: 1130 HOPE STREET
The und....lgned declare, under penalty of perjury. that tho foregoing Is true and correct.
DiJte: _ x'- _
Oate: ~ _ X (SIGNATURE) _
(SPOUSE/DOMESTIC PARTNER SIGNATURE)

• • PRIVACY POl.JCY Rev 5/12'15
.·FAc.t:s;·.:,~~::· WHAT DOES PROGRESSIVE TITLE COMPANY DO

WITH YOUR PERSONAL INFORMATION?
.... .. ~ ~ '.;. '.. .""'. ,~"".
Finan cia I com panie's''choo'se'

·t·;o·~'···lh·ey· ~h a'~e' yo~'r- perso·na·i·"i~ fo~m a·tion. F edera I Ia w 9 iv as·····
consumers the right to limit some but not all sharing. Federal Jaw also requires us to tell you
_ how we collect. share, and protect your personal information. P'ease read this notiCB carefully to
understand wnat we do.
The types of personal information we collect and share depend on the product or service you
have with us. This Information can include:
• Social Security number and account balances
• payment history and credit card or other debt
• checking account Information and wire transfer instructions
When you are no longer our customer, we continua to share your information as described in this
.. _ _
..notice._-------. __
._---_.- .•. .. _.-..- -._ .. _....-. ..-----
~- .. --.-._- _ _- _-_
__ ._- - - - _ ---_._-_-..:
All financial companies need to share customers' personal information to run their everyday
business. In the section below, we list the reasons financial companies can share their
customers' personal Information: the reasons PROGRESSIVE TITLE COMPANY chooses to
share; and whether you can limit this sharing.
For our everyday business purposes

such as to process your transactions. malntain
your aCCQunt(s), respond to court orders and legal
Yes No
i investigations, or report to credit bureaus 1
f---····--···----.· . --.. ·--.. ·--· ..-.--- -.. --- -..- -------r-~--.- . ----- -. ···--- ·-··----i·-··..· - --~--------- . _
! For our marketIng purposes- Yes
! to offer our products and services to you r No
/.. .. ~.~.. . -." '''~-'''-.''''''''-'-'''''''-''''.. ~!.._._ _.-.. - - ".
Ii For joint marketing with other financial companies
---- - - .----- _ _ ---.
I No We don't share
-.. -_._ __. . e.-;
i
·-··~_ -·---~-r-·-e··_-_----~_···-~~·-------·I--------_
j For our affiliates' everyday business purposes- Yes • No

ir---"---"'-'"
information about your transactions and experiences
__._ '-- ---- _.__
!
--..., _ .-~."'-.' ~. '--' --_
I
-----.---:- - '. . , -..-----.---.-

I For our atnliates' everyday business purposes- I No :
Ir-.- information :about your creditworthiness
e--- ..--...•.. ·..e -.,
~ ._........
i
.. .•
I For our affiliates to market to you i No We don't share
I
I .. _ _ - -.-----~ .. ~. '" __ .. - .....---- _ . _ _~ _. . ~ .. ·.• __ ~ ..··.·. __ .e _ .e ...
For I10naffillates to market to you ! No We don't share
~ ~~1I-{~88) ~.8~~~9-<_-·-_··~-· _.. ..- _ .

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_ .'~~Jm!g
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Who is providing this notice?
_ _ ._ _ .. ~ ,.. __ • .••• _.
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_ _ _ •.. _ __ . __ _.__. . __ .. _. __ _ •
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. How does PROGRESSIVE TITLE ; To protect your personal information from unauthorized access i
COMPANY protect my personal and use. we use security measures that comply with federal law.
information? . These measures include computer safeguards and secured files
: and buildings.
.~-How does'PR"OG"RESSIVii"ffTLE-- ._." I··wec·o·lieci·y~-c-r·pe;sonalinfo~ati-;;~:foi o~~mpie',-whenyo~··
I
COMPANY collect my personal ! • apply for insurance or pay insurance premiums
information? i • provide your mortgage information or show your driver's license
; • give us your conlact information
i We also collect your personal information from olhers. such as credit
! bureaus, affiliates. or other companies.
rI
Fede;a-ilawgives you the righi to limit only
i • sharing for affiliates' everyday business purposes-information
I about your creditworthiness
• affiliates from using your information to market to you
• sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to
limit sharing .
. .•.• _j
What happens whon I limit sharing

for an account I hold Jointly with Your choices will apply 10 everyone on your account-unless you tell us
someone else? otherwise. I
.!
Affiliates Companies related by common ownership or control. They can be

financial and nonfinancial companies.
• OUf affiliates include companies that fire owned in whole or in part
by Realogy Holdings Corp., s~lch as Beller Homes and GardenS®
Real Estale, CENTURY 21®, Coldwell Banker®. Coldwell Banker
Commercial®, The Corcoran GrOLJP®. ERA®. Sotheby's
, International Rea/ly®, ZipRealty®. NRT LLC. Cartus and nl/e
i
......., ..
Resource Group.
,~
i
i NonClffiliates I Companies not relaled by common ownership or conlrol. They can be
i financial and nonfinancial companies.
I • PROGRESSIVE TITLE COMPANY does not share with nonaffiliates I
!
I
so they can.~~r~e~.t.~.~~~ " ". .. . i
Joint marketing A formal agreement between nonaffiliated finanCial companies that I
together market financial products or slHvices to you. !
• PROGRESSIVE TITLE COMPANY does not share with nonaffiliated!
financial companies for joint marketing purposes i
J

•
Available Discounts
PROGRESSIVE TITLE COMPANY is pleased to inform you that upon proper QualifICation, there are premium djscounts available upon the purchase of
tille insurance covering 1mproved property with a one to four family residential dwelling.
Such discounts could apply to:
Property located within an area proclaimed a stale or federal disaster area
Property pUrl;hased from a foreclosIng beneficiary or successful bidder at a foreclosure sale
Property being refinanced
Please talk with your title officer to determine your qualification for any of these discounts
EXHIBIT B (Revised 11-01 ..2014)
LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (By Policy Type)
1. CALIFORNIA LAND TrrLE ASSOCIAnoN STANDARD COVERACE POLICY - '91D (Reve.ed 04101/14)
EXCLUSIONS FROM COVERAGE

The fallowing mettels .re expressly Ixcluded from the cover age or this pdlcy and the Company wi.not pay lOll or dam~e. eDit., anomey$' fees 01 expen... 'll'hld't ,riee by,. non of:
1. (a) Any law. ordiNnce or govemment.al reg~a1lOn (indudng b\,A not IlmiLed to building and ~onlng la~, ord'n~es, 01 regula.onl) reslticlillij, n:gulittlng, p'oN~drog or I'8laUng tu (1) ltle cx:a;Piney,
use or enjoyment of the land: (') the character, chmenslonl or location of any Improvemem now or hereafter .rected on the land; (ii) a separation in owne"hlp or a change in tho dlmons4ons or
a,., at &he 'and or any P~Ioe' at wtIlch t"eland Is or wa& a part; or (iv) envtronmontal protection. or "e effect of any vlolafign of \he.e'lwa, orcinanc:e. or govommental reguladons, except to the
extent that • notice d enforcemenc eneleof or a noVce 01 a deflct, lien or encurrbranou resUlting from II violation ()( e1laged "'alation .tfec1ing the land I\U been "corded in the public records at
Dale of Poley.
(b) Any govem",ent.1 police POWOf' not .xcluded by (I) above, eJlcept to the eJ(l8nt that a nolco of the exercise theleof or 8 noUce of. defect, lien 01 oocumbrance rc.J~ulUng from a violation or
IIIleged vlolallon aHeclinQ Ihe land has been recorded In (he pubtlc records at 0 . . of Poley.
2. Rights oI.minent domain unless notice of thl eX8ICise theleof has been recorded n the ~Ic records ort Oate of Policy, but not axcluding hom c:ovofage any liking which has occurred priol '" Date
of Polk:y which would be blndi~ on the righb or I plXoiaser tnr value wI!hou\ knOWledge.
3. Oefeds,IIM'. encumbranceS. adve~. claims, or Othel matters:
(a) wtlether or no' recorded In tho pub'ier.oords at Oate of Pallq, butc:rNted, 3uftored. assumed or .greed to by the In~ed clalm.InC
(b) not known to the C0fT1)8Ily. not lecorded In the public recorda ;It Data 01 PoKey, but known to ttlelnsured daimant and not dlsdosed In writing to \t\. C~ny by the Insuled claimant prfa' to
the date thelnsu-.c5 daimant became an Insured und,r 1hIs poley;
(c) lesLming In no 10$$ or damage La the insured cl.-manli
(d) attaching or creaUtd subsequer( to Oate of POley; 01
(e) re~tin9 n loa. or damage whidt would not MY'8 been sUS1alned if tho lIuured cl.irnwlt had peh' value for the 'oaLnd InOr'tgage or tor the e5"" or Inttrest In$urcd by ttlfs policy.
4. ~~~~:~~ ~::nb~5J~~~I~.r:: ~~as~:':~~=~~~;:bi~~~:::~' of .... I,..urad.l Olte of Poh;y, 01 the inabiUty or f,U\le of any ~ub5equent owner d Ihe Indebtednass, \0 l;Qmply
5. Invalidity 0' unenforoe.bIlily of the lien 01 the Insured mor1gage. 01 claim It'tereof, YttlJch arlsu out of the t,..nsKtlon evldenc»d by the Insured mor1gage and II based upon tJsury 01 any consumor
credt pl'OteaJon or INth In Ierdtng law.
e. My claim. which .rtsa out of Che "a1saL'1ion Vtl5tlng In the insun~d the .slate or Inlerest Insured by Ihelr policy or h tr.nsaC1lon Cleating the Inl.r.lt of h Insured lender. by re.;.on of the opera1IOtl
of federel banlc.luptcy.....e In30l~ncy or simil.-, creditDr-,' rights Jaws.
EXCEPTK>NS FROM COVERAGE· SCHEDULE 8 PART 1
Thia pol6cy dotS not Insure ageln.t lOll or damag. (and the Company will not pay (Qlt., ,"omeYI''''a or expenses) which anse by reil$On of:
1. TalliS or asaeum.nb which are not lhown e5 exl$tJng liens by !he record' of any \.I)dng alJChority tn.t levies t.xca or IUes$menlJ on real pt'operty or by the pUblic lecords. Proceodings by ~ public;
.~ency which may rnut In ~ or asuII ment's, or nolec d such proceedln~s, v.f1other or not shown by lt10 records of such agency or by lhe ~ublic reCOfds.
2. Any facts. I1ghta, int.-Ita or daimt whieh era not shown by the pub~c ~rd$ b\A which could be asoeoained by In Inspection of the land or which may be asserted by pe($ons In po&.Sc.ss;on
thereot.
3. EBse,"eru. lena or enwmblat'lCes. or claims theroof. which . . not shown by the public ,.;lOrda.
4. Dtsc:repandel, confletlln bour'ldary Hoe... ,honage in .rea, encroachments. or .ny o"er facts which • COrT~ .UNO)' would dildos., ~ which ar. not lhown by the public (ecords.
5. (.) UnpatenleO mlnh~ claims; (b) reservaDons 01 e.ceptionlln pMaru or In Acts aUlhorizJng the iUU8n08 thefeol; (e) water rights, d8lmc or IUSe to Wlte" whether or no( the matters excepted under
(a), (b). 01 (c) .re shooM1 by the pLbic records.
6. Any II", or right to a lien lot servlces,labor or matbrial not $hown by the public reoorda.
Z. CLTA HOMEOWNER'S POLICY OF TrTl.E INSURANCE 20131 ALTA HOMEOWNER'S POUCY OF TITLE INSURANCE 2013 (Re"'.ed 12102113)
Cuvered RIsks 16 (Subdivision LAw Vlol.llon), 18 (Building Permlt), 19 (Zoring) and 21 (Encroachment of boundary wah or fenoes) are
subjec1 to Oeduefbl. Amounts and MaJdmum Doll. Umlts of Liability
DelUSIONS fROM COVfRAGE

In addition to tne e-=-ptionlln Schedule 9. you a,.. not in.urcd against losa, ooata. altomey,' fe." end expenacs ro.Lllting from:
1. Governmental po~oe pow.l, .nd the existence 01 ";oIa1ion of any law or government regulation. Thi. indudes building and zoning ordinances and also I~~ and revv1ations concerning:
(a) bulktlng
(b) zoning
(c) land use:
(d) IrnprovemenLS on ttle ~nd
(e) land division
(f) envw-onmentat prot8cUon.
TN. eJlCIusJon does nOC Umlt "8coverage desaiboc:lln Cov.red RiSk aa.
14, 15. 16,18, 19.:lO, 23. or 27.
2. The '''I"a of YOUI' ••ldng S"UClures, or any part of "em, to be constructed In aCCOI'dlnc:e wIth appUc;a'otl buidirlg codes. lhls ExciUSoion d:)es not l\mlt coverage desCl1bcd In Covered RI,k \4 or 15.
3. The right to tat, tht lind by condemning i1 This Exclusion does nollmlt the coverage described In Covered RJsk 17.
~. Ri,ks:
(I) aMt are crcall:d •• Iowed, or agreed to by You. -netn., or not !hey .ppeaJ In the Pubftc Reco",s; .
(b) thal ~re Known to Yw .t lhe Pgf\ey D.c., but not to UI. unlul they .ppear In the Pubjlc Records at the PoticV Date;
(c) th.t result In no loula You; Of
(d) that t"t ocx:ur aft., the PoNey Dele - till. tioe, not limit lhe coverage desa\Ocd k1 Cov~rc:d RI$k 7, a.e, 26, 26, 27. or 28.
5. f8llure ~ p,y value for Yoor Tille.
6. uck oA a right:
(a) to any Land ou~ld8 the ..... 5~i'caIly d.lcrl~ and ref.".d lo I., paragrapn 3 of Sctledule A; and
(b) In sveets•• I.. ys. 01 waterways that \OuCh Ihe La~.
I hiS E)lClusia\ does nOI ~mit the coverage desaibed II'l Covored Rllk 11 or 21. .
7. The transfer Df !he Title to You is invalid as a prefentntial transfer or as 8 fr'uOulent transfa' or tonveyance under federal bankruptcy, siate Insolvency. 0( IImlar aedltcr. right.lawc.
8. Contar'Nnatlal, ~ploslon. ftre. flooding. vlbl'1ltlon. fr.eturtng. a~uak.e, or lubsldonce.
Q. Neglgence by • person or .n Entity ex.rcl,lng a right to extract or de~lop ""ner.ls. willer. a' any oller substances.
3. AI.TA EXPAND£D COVERAGE RESIDENTIAL LOAN POLICY (12/D2/13}
EXCLUSIONS fROM COVERAGE

The foIlowtnglNltlera .,. e.pressly el(C\uded rrom the colie"ge of this policy and the COf1l)any
1. (a) Any law. ordiOllf\Oe, permit, 01 govenwnental reguletion (lnduding "OM wi.not pay 101$ or d.m~e, costs, attornof~ !~s Q( uPer:'SC$ whidl arb~ by n:.son ot.
relallng to bulcing and zoning) ~lt1cting. reg~.'ng, prohibitjng. 0( relaling to
(I) the occup"cy, use. or enjoyment of the L.nd;
(II) the charactel, dimensions, or location of any improvem.nl erectltd on fle Land;
(~I) the subdIvision of land; or
(Iv) enworvnantal pr~ecOon;
or tt...lfect at any vtoltuJon 0' CheM I.~s. ordnances. or goyemmental regul81ions.
T~I EICCIUSlan 1(1) does not mOdify or limit \he coverage provided unde' Coyeled Risk 5,6. 13(c), 13(d). 14 or 16. .
(b) Any 'jIowmmental pOUce power. This Exclusion 1(b) d0e5 not modify or limit ttle coverage pro'lldad ~deI' Covered Risk 5. 6. 13(c). 13(d). , .. or 18.
2. Rights ofemneN domain. This ~slon does not modify or "mil the coywage pro'Wtded under Covered Risk 7 a' 6.
3. Defects, ~enl, enwmbranc••• adverse claims. or other matlers
~:J ~a::~::~,t:=~:~tl~=~d~~ : : ~~:~~=iData of Polcy. but Known to the Insured Cl81rnantand not d1~closed In writing to the Company by the Insur.(2 Claimant pOol 10
lhe ct.,. thl 1n.ured Chliment became an Insured under tN. pol\c:y;
(c) r.. ulll"'i in no lOll 0' damago to the Insured Clltiment; . .
(d) aUcNng 01 cr....d lubsequent '0 Oate of Policy (ho\WV1JJ, thi~ does not modify or Imlt the covelage prov)ded lMlder Covered Risk 11, 16. 17, 18,19,20,21,22,23. 24. 27 or 28),01

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ir
(e) resulting in loss Of damage that would nol h.... been sustained the Insured Chimant hid pitld Yilvi 10f the Insur.~ Mortgage.
~. Unenforc:eabitity d the lien of the Ins\¥ed ~ortgage bec.use c1 tie lnabitity or failure 01 an Insured to comply wiU'l .ppllcable doing-buslneu taws of th. state whet. the Land Is situ.ted.
5. InYalidity Of lAlttmorceabiily In whole 01 In part althe lien d the Insured Mortgage that an$es out of tho Iransaction evidenced by the Insun!d Mlrtgage and I~ bned upon U'iUr'1, or any consumer
credit prolection or tnJth~~endingI_w. lhlS Exclusion does not modify or limit the coverage prcMded in Covered Risk 26.
e. Any claim of II\v.ftdHy. unenforceablllY tr' lack of pr10rity of the lien of tle Inslftd Mortgage 15 to Ad\lances Of modtflcaUon5 made after tlltt Insured has Knowledge thiilt lhe ve3tee shown In Schedule
A Is no longer "e own.r of Itle esta18 at interest covMed by thlJ polley. This Exclusion does not modIfy or limit ttlo coverage pro\lided In Covered RIsk 11.
7. My len on the Title 'QI U eslale \ues or nsessmenl. Imposed by governmental authcully end <;:relted or MlIIchrlg subsequent to Daca of Poky. This Exctuslon does 'loC modify or limit the
8. The 'ail".
coverage prOYlde4ln Covered Risk 11(b) or 25.
01 the rosidon~ ..1structlle, or eny portion of It. to have been cons~ed before. on or .fler Date of Policy In eecordanc.e with I'pplicable building codes. This ucluslon does no( mOdIfy or
limit 8'le c:o.... g. provided In Covered Risl!. 5 or 6.
9. Any c~"" by reason of fl. operation of federal bankNptcy, at.te in.oIvlnCY, or simill' cndtore' rights I.w., ".t "'. tranuetion e:::reating Ihe lien of the Insu~ Mot1gage, is
(a) a fraudulent ccoveyance or fraudulent Cfall5fer, or
(b) a pfefeten'''' transfer'Of '''y reason nol stated In COY8~ Risk 27(b) of this polley.
10. Conlalril\8tion, explosion. fire. "ooding. vibration, friletur1ng. e.rthq'-8ke. or 5ubsidlf1C1e.
, 1. Neglgenee by II ~r$on or an Entity e.erOslng a r1ghl to extract or deyeJop miner"', water, or 8/'1'1 other substances.
4.2006 AJ.TA LOAN POLICY (01·17..06)
EXCLUSIONS fROM COVERAGE

The following matl!f'S are ••prluly 8xduded from the coverage 01 tns poltcy, and the Company wi. not pay loss Of damage. co~ts, attorneys' fees. 01' axper\5oel that arise by reason at:
1. (a) Any law. ordinance, permit, or goverMlenul regulalicn (lnduding lhose rel.dng to bulding lind zoning) reslricting, ,egulatng, prohlbiUng. or relating to
(i) the occupancy, use, Of enjoymenl of the Land;
(il) ttle eh..aeter, dimensions, (Y location of any Improvement erected on the Land:
(iii) 0'
the .ubd'-'!sion land; Of environmo~' prolectlon;
or the efted 01 any 'ito/ation oIlhese laws, orclnances. or governmental regulallons, Thls E~ullon 1(a) doe. not modify or limit tho coverage ptovlded under CO\lered Risk 5.
(b) Any governmental police power. l..-s ExclvsiOt"l 1(b) does not modify or limit Ihe coYefage prOVided under Covered Risk 6.
2. Rights 01 eminent donulin. Thls E.dvsion doe' nol modify or limit the oo~l'1I"e pro'f'lded under CovU'8d Risk 7 or 8.
3. Oelee.ts. liens, eoc:unbr~noa. adve,.e clalm5, or other m8tle"
(a) cre.\ed. $ulered. assumed, or _greed to by ttlelnsured Clamant;
(b) nat Known to the Company, not reQ)f'ded In the Public ReoorUS lilt Date of PoUcy. but Known to «he Insured Cl.1iman\ and not dl~dosed in writing to the Company by the tns"'od Cleimant prior to
the date .... InsUf1t(j Clem.n« becarne an Insured under f');s policy;
(c) retulting In no loss or d~mage to \hoe In$ured Claiman\;
(d) attaching m' anted subsequenc lO Date of Policy (however, this does not modify Of ~mt the coverage provided under Covered Risk 11, 13, or 14); or
(8)rlSuI~no In Ion ~ damage tnlt would not ha.... been sustained if thelnsurtd Claimant had paid value for the Insured Mortgag ••
4. UnenfcrceabMftyof ltIe len cA rhe Insured ~ngage bec:au$e of the InlbUlry or failure of a1lnsured to compfy w/lh applicable dolnQ-b,lsiness laws of the s~ whera the land is situated.
5. \n"a\ility or unenforceabl~tyIn whole or in part of the lien of the IncureCf Mortgage that attsM out of the transaction evidenced by the Insu,.d Mortgage and i$ baSied upon usury or any COOiumcr
Cl'8dt J)n:)tecUon or tNlh1n~Bndinglaw.
6. My dalm, by reuOt"l of the opetatton of (ederal bankNplcy, .t.te 1n5Olvency, or simlar aedilon' rights laws, \hat the transaction cnaling the lien r:A the InsLAd Mortoage. i$
(al a fraudulent COO\IIWYilnoe or fraudulent transfer. or
(b) • prer.renti• •.,51., for any reason not swted In Covered Risk 13(b) d thl. polley.
1. A,.,., len on the Tite for r.aI esl,te taxes 01 asseS$I'f\entl Imposed by governmental author1ty and Created 01 attaching betNeen Date 01 Policy and the d~te of recordIng of lhe Ins~d Mor19~9' In tho
Public: Reoords. This Exclusion doe. not medII)' or IIm1C the coverage provIded under Coverl'd Rlik 11(b).
The _boy. policy form mey be I~~ued to afford either Stanct.rd Coverage Dr ulended Coverage. In addition 10 lho ~bove Exduslons from Coverage, ttl. ~oap"ona 'rom Covarege in • St.1derd
Cove~. policy will also Indude tie follOWing Exceptions from COYBfage:
EXCEPTIONS FROM COVEIU.Gi
Thia policy does not inaxe _ganst loll or damage (and the Company will not pay colta. artomey.' 'eel or expense.) that arise by reoson of:
1. (I) T8Xe$ Of assessments lh.l are not shown as existing liens by the records of -,y taxing authority thet 1000es ~ea Of aS3essmenlS on real property fX by the Public Records; (b) proceedings by a
public agency that may re"ult In taxes or IISseS3menU. or notices of such proceedings. whether or not shown by Ihe re<X)lds of luch agency or by the Pub"c Reeords,
2. Any 'acts. Iig"ts. Imeres"', 01 dalms that are not shown by the Public Records but that (;Ould be ascertained by an Inspdon of ttle Land 0' that may bl asserted by penons In pos5M$ion of the
land.
3. eesementJ. liens or encumbrances. or dalrJ1$ thereof. n01 shown by Che Public RecorCfs.
4. Any encroachment. encumb,~nc;e, 'Wioli:l tion, variation, Of adverse dreumstance .ffeet.ng Che 1 It Ie lhal would be disclosed by an accurate and oomplete land SUNey of the land ~d not shown by 1he
PubliC Rtlcords.
5. (a) Unj)3tenled mining claims: [bl reservaUons or exceptions in pabentl or In Acta authorizing the i~suance thereof; (c;) water rlgt'U, claims or tiUe to water. whether or not the matters excepted under
(I). (b). 01' (c) at. lhown by the Public Record•.
6. Any Vln or right 10 • lien 'or •• ,.....oes. labor or matori-' not st-.own by tho Pubic Records.
5,2008 ALTA OWNER'S POUCY (05-17-4)6)
EXCLUS'ONS fROM COVERAGE

The folowtng l'Ntlers arw .JCPf1I$SIy flXduded from the coverage 01 this poley, and the Company will not pay loss Oft damage, costs. anorney,' 'ees, or expenses IIlat arise by teil~on at:
1. (a) Any law, ordln~. pemit, or govemmenlal regulaUon (indudir"9 It'\ose relating to blAlding and zoning) restricting, ,egula~ng, prohibiting. or relating to
(i) the o~upancy, use. Of e"lOyment of the Ltwld;
(il) the d'\ar-aer. dimensions, or lee-lion or any Improvement erected on the Land;
(ill) ttle sLbdivfsion of land; or
(iY) entJmnmen~1 protection:
Of en••fte"t 0' 0'

any vlotation choa.e taws, ordl".n~. or goYernmental regulnons. 1hi$ EAcluslon 1(.) does not I'TX)dily or 'I mil I". rover"Qe provided under COVGt'8(j Risk 5.
(b) Ally govemmencal police power. Tris Exclusion 1(b) does not modify or /irTit the cove rag. provided under Covered Risk 6.
2. Rights of emtnont dom.'n. Thl, Exclusion docs not modify or IImt the Clovorego provtded lrIder CO't'Cf"Cd RIsk 7 or 8.
3. Defecn.liens. encumbrances, adverse claims. or other matters
(e) created, suff.ted••uum.d, or agreed to by the In$ur.d Clatmillnt;
(b) not Known to Ihe Company. not recorded In !he Public Recol'ds at Data of Polley, but Known t.o the 100Ufod Claimant and nO( dlsct06ed In wnUng to the Company by the Insured Qaimant prtor to
the date Itle Insured Claimant became an Insured under this policy;
(c) resulting In no Ion or d8t'ftage to the Insured CI.imant;
(d) euac:nng Of aeMed subsequent to DaCe or Polcy (~, this does not modify Oft lImll the coverage pro'f'ided under Covered Risk 9 and 10): or
<e) I1Is""lng I" loss 01 damage that woutd not h.ve be.n sustained If the Insured Claimant had peid value for tte Title.
.c. My c1~Ir1. by ".10" d Itte operation or fDder.1 benkNptcy. ltate in.elvency. 01 II mI I_ cndlto,.' rights lews, that the tr~C1Ion vesting ltle TIlle 81 $hOwn In Schedule A, is
<a> a frau<Uert OOf"M!yana! Qt fraudulent tJansfft'; Of
(b). prelet'enlial "'ansrc, b' eny ...ason not sUiled in Covered Alak 9 r::J tNI polIcy.
6. Any lien on the Tide for rell eslBle taxes or assessments Imposed by governmental authol1ty and created Of attllCt"ng between Dale of PoWcy and the date of recording of Che deed or other
InslNment d "an:sfer In the Public Records ~l vests Title as shown In Schedule A..
Th•• bove poIlc} form may be Issued to afford either StJlnd.-d Cover.ge or Extended Co~r.ge. In addition 10 the .bow ExcJustons from Coyerage. the Excep\tot\$ from Coverage In a S~ndard
Covera;e pdicy wi. aso Indude fle fonowing EJtoepClons from Coverage;
EXCEPTIONS fROM COVERAGE
ThD policy does nollnkoB _g8in.t Ion or damage (.nd 1M COff'1)any will not p.y COlt., anorn.ys· fees or expenses) that acise by reason of:
1. (.) TUII Of assessments that ... not shown as oxJsting liens by the records of any tax.ln; authority that levle. taxes or useumenls on real property or by the Public Records; (b) proceedings by a
pubic agenc)' th.t may result In taxes or anes:sments, (Y notices of such proceeetngs, whethof ~ not shown by Ihe records of such agency or by ~e PubI-c Records.
2. It.rry taas, ~htS. Inl.,.,r5, or cla'ms tholt are not shown In the Public Records but
land.
"at
could be aseertaJ,..d by.n inspec~on of the Land or that may be aner1ed by persons In pouesaion Ul. 0'
3. ~emCII\$.II.n. or .nQullbr.n~ea. Of C1alm~ \hereal'. not shown by the PubIlc Records.
4. My enaoac::hrnent. tlnc::umbra'lClO. violation. wriston. 01 ad"e~e orcumstance .Iecting tle Ttue Chat would be disdosed by an ac::curale and cOf1l)lele land Sun/ey d the Land and !hat are nor
ahawn by the Public Rea»rdl.
5. (al Unpltenlod mining daiml; (b) leservitUQr\$ or uceptlonsln patents or In Act:li 8ulhortz1ng the lasuanoe tttereof; (c) water rig"ts. dams or ne to waler. whether or not ttle ma1tefa Uatplad under
(al. (bl, or (e) are shown by the Publ1c Recorda.
6. Any lien at right to • len for .ervlcol, labor or m.terlal not shown by Itle Publlo Records.

EXHIBIT 4
_ e
CHICArO TITLE INSURANC: COMPANY
LITIGATION GUARANTEE
SUBJECT TO THE UMITATlONS CONTAINED HEREIN, THE EXCLUSIONS FROM COVERAGE, THE UM1TS OF
UABIUlY AND OTHER PROVISIONS OF THE CONDIT10NS AND STlPULATlONS HERETO ANNEXED AND MADE A
PART OF THIS GUARANTEE,
CHICAGO TITLE INSURANCE CO.Nfl> ANY
a Missouri corporation, herein called the Company
GUARANTEES
the Assured named in Schedule A against.leP not exceeding the liability amount stated in Schedule A which the
Assured shall sustain by reason of any incolTectness in the assurance which the Company hereby gives that
according to the public records. as of Date of Guarantee shown in Schedule A:
1.. The title to the herein described estate or interest is vested in the vestee named in Schedule A.
2. Except for the matters shown in Schedule B there are no defects, liens, encumbrances or
t
other matters affecting tiUe to the estate or interest in the land shovm in Schedule ~ which
matters are not necessarily shO'Nn in the order of their priority.
Q..Spm~SCK:'llQltl'or interest by reason of the matters

3. e vestee named in Schedule A and
JfWI''':''~ by of the rnatter5 shown in Part It of
lImenclrdnt in an action. the nature of which is referred
b) The current interest holders ctaiming some right.. title or interest by r~n of the .matters
shown in Part t of Schedule B may atso be necessary parties defendant In an action. the
nature of which is referred to in Schedule A. However, no assurance is given hereby as to
those current interest holders.
The return addresses for mailing after recording, if any, as shown on each and every
4.. document refen'ed to in Part \I of Schedule B by specific recording i~on. ~ as shown
on the document(s) vesting title as shown in Schedule A are as shown In Scheduie ·
E PURPOSe OF FACtUTATlNG THE F\UNG OF THE

THIS UTlGATlON GUARANTEE IS FURN'SHESDHAU.SO~~ ~~~~D OR REUED UPON FOR ANY OTHER PURPOSE.
ACTION REFERRED TO IN SCHEOULE A. IT
onCAGO Tf11-E INSURANCE COMPANY
/
IssUed by: A
CHICAGO TITLE CO~ANY
700 S. FLOWER ST. ~900 <-:/ ~.//,.
~~~~~, .~ ~ ~~
LOS ANGELES, CA 900~7 "'--" .'
{2~3)4a8-4300 Bv:
UTIGAnON GUARAl'tTEE FACE PAGE
01.:1.0401.84 Xii
Guar311tee No:
000303

SCHEIJULE l~
Litigation Guarantee:
Your Referencc: CLIENT NO. 3068.010

Ord~' !\fo:
Fee: $ ~.~ , :) \.J 0 . 0 0
Liability: .5 ~ 2.2 . GOO. J 0

1. l'l"amc of Assured:
HOPE PARK LOFT, LLC AND PACIFIC CON"I'INENTAL INv""EST~[ENT PARTNERS.. :,~C,. AND T:--fE
LAW OFFICES OF GILCHRIST & RUTTER PROFESSIONAL CORI~RATION
2. Date of Guarantee: September 6, 2001. at ""/ :30 AM
3.. This Litigation Guarantee is furnished solely for the purpose of facifulting the filing of an action to
TO VOID A TRANSFER OF INTEREST
.. ~-
4. The estate or interest in the Land which is covered by this Guarant.e e is.:
A FEE
5. Title to the estate or interest in the Land is vested in:
TU'RN'ER' S TECHNICAL INSTITUTE, INC A.' SUBJEcr '1'0 :''iIE EFFECT OF ITEl'1S 13, 1.S ANL'
~8
6. The Land referred to in this Guarantee is described as tallows:
LOT 6 IN BLOCK 79 OF ORD'S SURVEY I IN THE CITY OF lJOS ANGELES, COUN1.:l OF 1:.,05
ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED :,:N BOOK 31 PAGE 90 OF MAPS f
ill THE OFFICE OF THE COUNTY RECORDER. OF SAID COUNTY ..
TITLE OF VESTEES ACQUIRED BY INSTRU~.EN'!·:
DATED DECEMBER 1, 1993
TYPE OF INSTRUMENT TRUSTEE'S DEED UPON ~;.~
- D.T.T.. -0
RECORDED DECEMBER 4, 1998 AS ::~STRmmNT NO.. 98 ... 2209:'i 90
MAILING ADDRESS
.... ....... .... . . . . ._ .. - . .. . . . .IMInlI .... _
CLTA GUA.RANTEE FORM NO. 1

Issued by
CIllCAGO TITLE INSURANCE C~OMPAL\NY

SCHEDULE B
Litigation Guarantee
Your Ref: CLIENT NO. 3068. 010
Order No: 11040184
Defects, lie~ encumbrances or other matters affecting tide:

Part I
~. PROPER'!Y TAXES. INCLUDING ANY ASSESSMENTS COLLECTED WITH TAXES
A
TO BE
LEVIED FOR THE FISCAL YEAR 2001-2002 mAT ARE A LIEN NOT YET D~.
B
2. PROPER'!Y TAXES, INCLUDING ANY PERSOwu, PROPERTY '!AXES AND ANY ASSESSMENTS
COLLECTED WITH TAXES, FOR THE FISCAL YEAR 2000-2001.
1ST INSTALLMENT: $2,068.G3
PENALTY: $206.86 (DUE AFTER DECEMBER 10)
2ND mSTALLMENT: $1. 988.90
PENALTY Am) COST:
HOMEOWNERS
$2~89 (DUE AFTER APRIL 10)
EXEMPTION: $NONE
CODE AREA: 0000211.
ASSESSMENT NO: 5139-021-004
3. SAID PROPERTY HAS BEEN DECLARED TAX-DEFAULTED FOR NON-PAYMENT OF

DELINQUENT TAXES FOR FISCAL YEAR 1994-1995 (AND SUBSEQUENT YEARS, IF ANY)
AMOUNT TO REDEEM: $59,792.48

IF PAID BY: SEPTEMBER 30, 2001
AMOUNT TO REDEEM; $60,293.42

IF PAID BY: OCTOBER 31, 2001
D 4. NOTICE OF POWER TO SELL TAX-DEFAULTED PROPERTY FOR NON-PAYMENT OF

DELINQUENT TAXES FOR nm FISCAL YEAR 1994-1995.
DEFAULT NUMBER: 5139 021 004

ORIGINAL AMOmrI': $8,151.03
RECORDED: JULy 24, 2000 AS ~UMENT NO. OO-1137l~6
• S. THE LIEN OF SUPPLEMENTAL OR ESCAPED ASSESSMENTS OP PROPERTY TAXES, IF

ANY , MADE PtJRSUAN'1' TO '!'BE PROVISIONS OF PART O. 5 , CHAPTER 3. 5 OR PART 2,
CRAPTER 3, ARTICLES 3 AND 4 RESPBCTIVELY (COMMENCING WITH SECTION 75) OF
THE REVEND'B AND TAXATION CODE OF nm STATE OP CALIFORNIA AS A RESULT OF
TBE TRANSFER OF TITLE TO nIB VBSTD NAMED IN SCBlBDOLB A; OR AS A RESULT
OF CHANGES IN OWNERSHIP OR NEW CONSTRUCTION' OCCORRING PRIOR TO DATE OF
POLICY.
6. THE FACT THAT SAID LAND IS INCLUDED W1:nnN A PROJECT AREA OF THE
REDEVELOPMENT AGENCY SHOWN BELOW, AND ~ PROCEEDINGS FOR THE
REDEVELOPMENT OF SAID PROJECT HAVE BEEN ms'lIl01ED ONDER THE
REDEVELOPMENT LAW (SOCH REDEVELOPMENT TO PROCEED ONLY AFTER THE ADOPTION
OF THE REDEVELOPMENT PLAN) AS DISCLOSED BY A DOCOMENT.
U'nG&-10/SGoHe Q.TA GUARANTEE FORM NO. 1

Issued by
CIDCAGO TITI...E INSURANCE COMPANY
0(;0305

SCHEDULE B
Page 2 Litigation Guarantee

(Continued)
Your Ref: CLIENT NO. 3068.010
Order No: 11040184 X77
REDEVELOPMENT
AGENCY: CENTRAI.. BUSINESS DISTRICT REDEVELOPMENT PROJECT
RECORDED: JULy 22, 19975 AS INSTRUMENT NO. 3675 AND
RE-RECORDED JULy 30, 1975 AS INSTRUMENT NO. 38GB
a 7. ~CUMENT ENTITLED -NOTICE OF B11ILDINGS W1:'I'HIN '!BE SCOPE OF DIVIS1:0N 68

EXETHQUAXB HAZARD REDUCTION IN EXISTING BtJILDINGS", DATED NOVEMBER 18, 1981
CTJTED BY SUPERINTENDENT OF BUILDING EARTRQUAlCE SAFETY DIVISION SUBJECT
TO ALL THE TERMS, PROVISIONS AND CONDITIONS TBEREZN CONTAINED, RE~ORDED
JUNE 30, 1986 AS ~STR~ NO. 86-820277.
• FOR INFORMATION'. REGARDING DIVISION 68 REQUIREMENTS, OR THE STATUS OF THE

STRUCTURAL ALTERATIONS FOR THE DESCRIBED BUILDnlG, CONTACT:
EARTHQUAKE SAFETY DIVISION

OF THE DEPARTMENT OF BUILDING AND SAFETY
200 NORTH SPRING STREET, ROOM 960
LOS ANGELES, CALIFORNIA 90012.
r 8. A NOTICE OF SUBSTANDARD PROPERTY
EXECUTED BY: SUPERINTENDENT OF BUILDING BY ART JOHNSON, CHIEF

BUREAU OF COMMUNITY SAFETY
RECORDED: DECEMBER 10, 1993 AS ~STRUMENT NO. 93-2421728
9. A DOCUMENT ENTITLED "NOTICE OF NONCOMPLIANCE", DATED OCTOBER 31, 1994

BXEC'OTED BY e I n OF LOS ANGELES - DEPARTMENT OF BUJ:LDING k SAFP:I:Y BUREAU OF
COMMCNITY SAFETY, StrBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS
TBEREIN CONTAINED, RECORDED NOVEMBER 23, 1.994 AS INSTRUMENT NO. 94-2~~3931.
10. A NOTICE OF BUILDING(S), STRUCTURES (S) OR PREMISES CLASSIFIED AS A ABATE

~U1WT TO THE l?ROVISIONS OF DIVISION 89 OP ARTICLE 1 OF CBAPTER IX OF THE
LOS ANGELES MUNICIPAL CODE, BY THE DEPARTMENT OF BU'ILDING AND SAFETY.
OCTOBER 24, 1996 AS ~OMENT NO. 96-1730356

RECORDED:
1. 1~. A NOTICE OF BUILDING (S), STRUC'l'tJRES (S) OR PREMJ:SBS CI.J'SSIFl:ED AS A ABA'IE

l'UR.St1ANT TO THE PROVISIONS OF DIVISION 89 OF ARTICLE 1 OF CBAJ?TER IX OF THE
LOS ANGELES MUN'ICJ:PAL COOS p BY THE DEPARTMENT OF BUILDING AND SMETY.
JUNE 20, 1997 AS D&STRUMENT NO. 97-924292

RECORDED:
~2. A NOTICE OF B11ILDING (S), S'!"RUC'l'ORES (S) OR PREMISES CLASSIFIED AS EI'l'RER

liAZARDOUS, SOBSTJUIDARI) OR A NtnSANCE-ABATBMENT PROCEEDINGS PURSUANT TO THE
CLTA GUARANTEE FORM NO. 1

Issued by
CHICAGO TITI..E INSURANCE CQ:MPANY
000306

SCHEDULE B
Pa~ 3 Litigation Guarantee

:7- (Coatinued)
Order No: 1J.040184 X77
PROVISIONS OF DIVISION 89 OF ARTICLE 1 OF CHAPTER IX OF THE LOS ANGELES

MUNICIPAL CODE, BY THE DEPARTMENT OF BUILDING AND SAFETY.
RECORDED: APRIL 2, 1999 AS INSTRUMENT NO. 99-0573270
B 13. THE EFFECT OF A DEED
TRANSFER TAX: $BONAFIDE GIFT

DATED: MARCH 29, 1999
GRANTOR: TURNER TECHNICAL INSTlTOTE, A CALIFOIUnA CORPORATl:ON
GRANTEE: ~NE HOLLAR, A SmGLE MAN
RECORDED: ~L 26, 1999 AS rNSTRUMENT NO. 99-0731~3~
DEFECT: AT THE TIME OF RECORDING THE GRANTOR HAD NO RECORD
INTEREST IN SAm PROPERTY NOR RAVE THEY sma
ACQUIRED ANY.
o 14. A PENDING COURT ACTION AS DISCLOSED BY A RECORDED NOTICE.
PLAINTIFF: !COKE AHANKOOB, LOAN LINES, INC ·

DEFENDANT : T'CJRNER S TECHNICAL INST~TOTE, me., JOSEPH DAVIS
I
SOIBERN, JOEL ALLEN HENDRIX, MARIO ROSS, ET AL

COUNTY': LOS ANGELES
COURT: SOPERIOR
CASE NO:
Be 209951
NATURE OF ACTION: NOT SHOWN
RECORDED: DECEMBER 10, 1999 AS INSTRUMENT NO. 99-2283086
1.5. THE EFFECT OF A DEED
TRANSFER TAX: $-0

DATED: APRIL 22, 1.999
GRANTOR: GLADSTONE HOLLAR, A smGLE MAN

CLBARVIBW INVESTMENT CORPORATION, A NEVADA
GRANTEE:
CORPORATION
J1WOARY 25, 2001 AS ms'XRlJMENT NO. 01-0136882
RECORDED:
AT TBB TIME OP RECORDING THB GRANTOR BAD NO RECORD
DEFEc:r:
INTEREST IN SAID PROPERTY NOR HAVE THEY SniCE
ACQmRED ANY.
Q 1.6. A CLAIM OF MECHANl:C'S LIEN
AMOUNT: $35,000.00
CLAIMANT: BMH CONSTRUCTION GROUP
JANUARy 25, 2001 AS mSTROMENT NO. 01.-0140:1-00
RECORDED:

unGBC-10/SI3-M:
Issued by
CInCAGO TITLE INSURANCE COMPANY

Page 4
SCHEDULE B
(Continued)
Your Ref: CLIENT
Order No.. NO. 3068.010

11040184 X77
oR 17. A PENDING COURT ACTION AS DISCLOSED BY A RECORDED NOTICE.
PLAINTIFF:
HOPE PARK LOFrS, LLC, A CALIFORNIA LIMITED LIABILITY
COMPANY AND PACIFIC CONTINENTAL INVESTMENT PARnlERS,
LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
DEFEND~: GLADSTONE HOLLAR, AN INDIVIDUAL; ET AL
COUNTY: LOS ANGELES
COURT: SUPERIOR
CASE NO:
B044718
NATURE OF ACTION:
TEtE ACTION ALLEGES THAT A DEED m FAVOR OF CLEARVIEW
INVESTMENTS COltPORATION, OA'I'EO APRIL ~2, ~999, AND
MLeXmDED JANUARY 25, 2001, LOS ANGELES COUNTY
RECORDER'S NO. 01.-013&882 IS vom
RECORDED: FEBRUARY 7, 20001 AS'~STROMENT NO. 01-0209375
s 18. THE EFFECT OF A DEED
TRANSFER TAX: $GIFT
DATED: FEBRUARY 8, 2001
GRANTOR:
CLEARVIEW INVESTMENT CORPORATION, A NEVADA
CORPORATION
GRANTEE: DEBBIE NASH
RECORDED: FEBRUARY 9, 2001 AS mSTRUMENT NO. 01-0224412
DEFECT; SAID DOCUMENT WAS EXECOTED BY DEBBIE NASH AS AN
INDIVIDUAL AND NOT AS A REPRESENTATIVE OF '!'HE NAMED
GRANTOR OF SAID DOCUMENT. AT THE TIME OF RECORDING
DEBBIE NASH HAD NO RECORD INTEREST m SAID PROPERTY
NOR. BAS SHE SINCE ACQtrIRED .~.
~9. AN ABSTRACT OF JODGMENT FOR 'tHE AMOUNT SHOWN' BELOW AND ANY OTHER AMOUNTS
DUE
DEBTOR: TtJ'RNER I S TECHNICAL INSTITOTE, INC., A CAL:IFORN:tA

NOB- PR.OFIT CORPORATION
CR.EDXTOR: LOAN LINES, INC.
DATE ENTERED: OCTOBER 28, 1998
COtJ'NT'Y: LOS ANGELES
COURT: MONXCIPAL
CASE NO: COM 9800207~
AMOUNT: $4,170.00
RECORDED: DECEMBER 10, 1998 AS ~UMENT NO. 98-2246322
ATrORNEY: HAL D. LONG, ESQ. SBN 49883
HAL D. LONG I A LAW CORPORATION
ADDRESS: ~6830 VENTURA BOlJLEVlUW, SUITE 35J.
ENCINO, CA 91436-1796
TELEPHONE NO.: 818-986-1025
CLTA GUAR.ANTEE FO~ NO. 1

Issued by
ClnCAGO TITLE INSURANCE CO.MPANY
000308

SCHEDULE B
Page 5 litigation Guarantee

(Continued)
Order No: 11040184 X77
a 20. AN ABSTRACT OF JUDGMENT FOR THE .~OUNT SHOWN BELOW AND ANY OTHER AMOUNTS
DUE
DEBTOR: TURNER' S TECHNICAL INSTITtTrE, INC.

CREDITOR: KOD AHANKOOB, LOAN LINES, me.
DATE ENTERED: APRIL 22, 1999
COUNTY: LOS ANGELES
COURT: SUPERIOR
CASE NO: BC 179442
AMOUNT: $66,830.73
RECORDED: MAY 4, 1999 AS INSTRUMENT NO. 99-0797498
ATTORNEY: ~ RtJCXER. (BAR *82754)
LAW OFFICES OF FRED ROCKER
ADDRESS: 1900 AVENUE OF THE sTARS, smTE 2600
LOS ANGELES, CALIFORNIA 90067
TELEPHONE NO. : (310) 203-9330
v 21.. A LIEN FOR UNSECURED PROPERTY TAXES FILED BY THE TAX COLLECTOR OF THE
COUNTY SHOWN, FOR THE AMOUNT SET FORTH, AND ANY OTHER AMOUNTS DUE
COUNTY: LOS ANGELES

F~SCAL YEAR: 1998-1999
TAXPAYER: TURNERS TECHNICAL mSTITUTE
COUNTY IDENTIFICATION
NUMBER: 98/40451464
AMOUNT: $426.33
RECORDED: MAY 9, 2000 AS INSTRUMENT NO. 00-0700189
22. A LIEN FOR UNSECURED PROPERTY TAXES FILED BY THE TAX COLLECTOR OF THE
COUNTY SHOWN I FOR TBE AMOUNT SET FORTH, AND ANY OTHER AMOUNTS DUE.
COtJNT.{ : LOS ANGELES

F~SCAL YEAR: 1999-2000
TAXPAYER: TtJRNER.S TECHNICAL INSTlTOTB INC.
COUNTY IDENTIFICATION
NUMBER: 99/40190696
AMOUNT: $44.61
RECORDED: APRIL 11, 200J. AS msntUMENT NO. 01.-0603826
lJ1"G8C.,O/93-We
CLTA GUA.RANTEE FORM NO. 1
Issued bv
CIDCAGO TITLE INSuRANCE COMPANY
000309

SCHEDULE B PART IT
litigation Guarantee

Order No: 11040184 X77
Part n
z SHOtJIJ) DEBBIB NASH BB POUND TO HAVE ACQtJ:IlUm AN nrrBImST m SAD) PROPBJa'Y
TB:B POLLOwmG ITEHS MAY ATTAOI
r ~. AN ABSTRACT OF JUDGMENT FOR THE AMOUNT SHOWN BEI,OW AND ANY OTHER AMOUNTS
DUE
DEBTOR: DEBRA AMZDZICH AKA "ONE" DEBRA NASH

CREDITOR: ADEL NASRALLAH AKA EDDIE NASH
DATE ENTERED: DECEMBER 30, 1986
COUNTY: I2JrANGELES
COURT: SUPERIOR
CASE NO: C460 180
AMOUNT: $1,414,000.00
RECORDED: OCTOBER 14, 1993 AS INSTRUMENT NO. 93-1999356
ATTORNEY: H. DAVID SCHMERIN, ESQ. STATE BAR #031.847
LAW OFFICES OF H. DAVID SCHMERIN
ADDRESS: 2222 S. BROADWAY
LOS ANGELES, CA 90007
TELEPHONE NO.: (213) 746-2091
SAID JUDGMENT LIEN HAS BEEN EXTENDED 10 YEARS FROM THE FILED DATE SHOWN
BELOW AS EVIDENCED BY A CERnFIED COPY OF APPLICATION FOR RENEWAL:
FILED DATE: JUNE 5, 1996
AMOUNT:
$2,747,654.14
RECORDED: DECEMBER 26, 1996 AS INSTRUMENT NO. 96-2085094
2. A TAX LIEN FOR THE AMOUNT SHOWN AND ANY OTHER AMOUNTS DOE, m FAVOR OF
THE IDnTED STATES OF AMERICA, ASSESSED BY THE DISTRICT DIRECTOR OF
INTERNAL REVENUE.
FEDERAL
SERIAL NO. :
9595121.70
TAXPAYER:
NASH &: CO, A PARTNERSHZP
J V &: "ONE" 0 NASH - PTRS
AMOUNT: $13,223.44
APRZL 25, 1995 AS ~STRUMENT NO. 95-6790~7
RECORDED:
3. A COURT ORDER FOR INS'tALLMENT PAYMENTS OF SPOUSAL AND/OR ClULD suPPORT,

TO BE MADE BY:
DEBTOR: DSBORN! NASH

COURT: supERIOR

Issued by
CHICAGO TITLE INSURANCE COMPANY
00031.0

e
SC'HEDULE B PART n (con'-;nued)
YourRcf: CLIENT NO. 3068.010
Order No: 11040184 X77
CASE NO: BYOI08148

RECORDED: JULy 11, 1996 AS ~STRUMENT NO. 96-1107596
AC 4. A TAX LIEN FOR THE AMOUNT SHOWN AND ANY OTBER AMOUNTS DUE, m FAVOR OF THE
STATE OF CALIFORNIA.
AMOUNT: $0,369.77
FI.LED BY: STATE OF CALIFORNIA
FRANCHISE TAX BOARD
TAXPAYER: "ONE" DEBORAH A NASH
CERTl:FICATE -~.
NO: 99019-000217
RECORDED: JANUARy 27, 1999 AS ~STRUMENT NO. 99-0134794

Issued by
cmCAGO TITLE INSURANCE COMPANY
OGO~1.1.

•
SCHEDULE C
YOW' Ref: CLIENT NO. 3068.010

Order No: 11040184
Addresses
AD 1. THE MATTERS REFERRED TO IN THE FOLLOWING NUMBERED EXCEPTIONS WILL NOT BE
AFFECTED BY SAID ACTION EXCEPTIONS 1 THROUGH 12. THE NECESSARY PARTIES TO
BE MADE DEFENDANTS IN THE ACTION TO BE BROUGHT BY THE PLAINTIFF
HOPE PARK LOFT, LLC, AND PACIFIC CONTINENTAL INVESTMENT PARTNERS, LLC
AS PLAINTIFF, ARE AS FOLLOWS:
1. TURNER'S TECHNICAL DlSTlnrrE, INC .. , AS OWNER

P.O. BOX 49311
LOS ANGELES, CA 900it
2. TURNER' S TECHNICAL INSTITUTE, me., AS OWNER
1130 S. HOPE STREET
LOS ANGELES, CA 9001.5
3. TURNER S TECHNICAL INSTITUTE,

I INC., AS OWNER
121.1 W. BENNETI'
COMPTON, CA 90220
4.. GLADSTONE HOLLAR, AS POSSIBLE INTEREST HOLDER. ONDER. ITEM NO. 13

P.o. BOX 781~91
LOS ANGELES, CA 900~6
s. GLADSTONE HOLLAR, AS POSSIBLE INTEREST HOLDER UNDER ITEM NO. ~3

1~30 s. HOPE STREET
6 .. CLEARVIEW INVESTMENT CORPORATION, A NEVADA CORPORATION, AS POSSIBLE

INTEREST HOLDER UNDER ITEM NO. lS
2701. RAINBOW
LAS VEGAS, NV 89108
7. CLEARVIEW INVESTMENT CORPORATION, A NEVADA CORPORATION, AS POSSIBLE

:INTEREST BOLDER ONDER. ITEM NO. 1.S
1230 s. HOPE STREET
8. BMH CONSTRUCTION GROUP, AS LIENOR ONDER ITEM NO.. 16
c/o BOSSE~ JOHN
12595 CRENSHAW BLVD ..
HAWTHORNE, CA 90250
9. DEBBIE NASH, AS POSSIBLE INTEREST HOLDER. ONDER ITEM NO.. ~8

1801. W7LTON PL.
. Issued by
cmCAGO TITI..E INSURANCE COMPANY

OG031.2

SCHEDLTLE C
(Continued)
Order No: 11040184 Xii
10. LOAN LINES, INC., AS LIENOR UNDER ITEM NO. 19

C/O HAL D. LONG, A LAW CORPORATION
16830 VENTURA BLVD., SUITE 351
ENCINO, CA 91436-1796
11. KOKE AHANXOOB, LOAN LINES INC., AS LIENORS ONDER ITEM NO. 20 AND 14
C/O LAW OFFICES OF FRED ROCKER
1900 AVENUE OF THE STARS, SUITE 2600
~
12. LOS ANGELES COUNTY ~ COLLECTOR, AS LIENOR :JNDER ITEMS 2J. AND 22
225 NORTH HILL ST. I RM 160
LOS ANGELES, CALIFORlfIA 90012
SHOULD DEBBIE NASH BS POUND TO HAVE ACQt1nUm AN Drl'UBST IN SAD) PR.OPERTY

TEE FOLLOwnn; PARTZBS DB!'BNDAN'l' MAY HBB1) TO BB HAMBD.
13. ADEL NASRALLAH AKA EDDIE NASH, AS POSSIBLE LIENOR ONDER ITEM NO. 1. OF
SCHEDULE "B" PART II
C/O LAW OFFICES OF H. DAVID SCHMERIN
2222 S. BROADWAY
14. ADEL NASRALLAH AKA EDDIE NASH, AS POSSIBLE LIENOR UNDER ITEM NO. l OF
SCHEDULE rtB", PART II
c/o HARRY S. BERMAN AND H. DAVID SCBMBRIN, AXTORNEYS
~0448 CHEVIOT DRIVE
15. DEPARTMENT OF THE TREASURY-INTERNAL REVENUE SERViCE, AS POSSIBLE

LIENOR UNDER ITEM NO.. 2 OF SCHEDULE "B" PART I I
NO ADDRESS SHOWN
16. DISTRICT ATI'ORNEYS OFFICE, COUNTY OF LOS ANGELES, AS POSSIBLE LIENOR

UNDER. ITEM NO. 3 OF SCHEDULE ItB", PART II
BUREAU OF FAMILY SUPPOR.T OPERATIONS
5770 S. EASTERN AVE.
COMMERCE, CA 90040
1. 7. STATE OF CALIFORNIA FRANCHISE TAX BOARD, AS POSSIBLE LIENOR ONDER ITEM

NO. 4 OF SCHEDULE nB" PART II
LIEN DESK
P.o. BOX 2952
SACRAMENTO, CA 9S8~2-2952
unGCC-10/8G4C CLTA GUARANTEE FORM NO. 1

Issued by
C1fiCAGO TITLE INSURANCE COMPANY
000313

SCHEDULE C
P:lmo 3 Litigation Guarantee

~- (Continued)
Your Ref: CLIENT NO. 3068. 010
Order No: 11040184 X77
2. ANY AND ALL PERSONS UNmOWN, CLAIMING AllY RIGHT, TITLE, ESTATE, LIEN OR
INTEREST m THE REAL PROPERTY OESOUBED IN THE COMPLA.nrr, ADVERSE TO
PLAIN"rIFF'S OWNERSHIP OR AllY CLOUD UPON PLAINTIFF'S TITLE THERETO.
3. ANY AND ALL PERSONS 1CNOWH TO HAVB OR CLAIM AllY INTEREST IN SAID LAND, OR
WHOSE INT'EREST WOULD BB DISCLOSED BY AN INSPECTION OF SAID LAND OR nlQU"rRY
OF PARTIES m POSSESSION THEREOF, SHOULD ALSO BE NAMED AS PART:IES
DEFENDANT. --0-
.,

Issued by
CHICAGO TITI.£ INSURANCE COMPANY
0003~4

. Your Ref: CLIENT NO. 30 "'. 010
Order No: 1104 ,4
•
X77
SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE

. .~. Except to the extent that specific assurances are provided in ScheduJe A of this Guarantee. the Company assumes
no liability for loss or damage by reason of the foUowing:
(a). Defect~ liens. encumbrances, adverse daims or other matters against the title, whether or not shown by
the public records.
(b) (1) .Taxes or ass~ments of ar:'y taxing authority that levies taxes or assessments on real property; or,
(2) Proceedings by a publIC agency which may result in taxes or assessments. or notices of such proceedings.
whether or not the matters exduded under (1) or (2) are shown by the records of the taxing authority or by the
pubUc records.
(c) (1) Unpatented mining cairns; (2) reservations or exceptions in patents or in Acts authorizing the issuance
thereof: (3) vvater rights, daims or tilts to water. whether or not the matters exduded under (1), (2) or (3) are shown by the
public records. ~
2. Notwithstanding any specific assurances which are provided in SchedLie A of this Guarantee. the Company
assumes no liability for loss or damage by reason of the fotlowing:
(a) Defects, liens. encumbrances. adverse ctaims or other matters affecting the title to any property beyond
the lines of the land expressly described in the description set forth in Schedule (A), (C) or in Part 2 of this
Guarantee, or title to streets. roads, avenues. lanes, ways or waterways to which such land abuts. or the right to
maintain therein vaults, tunnels, ramps or any structure or improvements; or any rights or easements therein,
unfess such property. rights or easements are expressiy and specificaJly set forth in said description.
(b) Defects, liens, encumbrances. adverse daims or other matters, whether or not shown by the public
records; (1) which are created, suffered. assumed or agreed to by one or more of the Assureds; (2) ;which result
in no loss to the Assured: or (3) which do not resUt in the invalidity or potential inVaJidity of any judiciaf or
non-judiciaJ proceeding which is within the scope and purpose of the assurances provided.
(c) The identity of any party shown or referred to in Schedule A.
(d) The validity, legaf effect or priority of any mater shown or referred to in this Guarantee.
GUARANTEE CONDITIONS AND STIPULATIONS

1. Definition of Terms.
The following terms when used in the Guarantee mean:

(a) the •Assured-: the party or parties named as the Assured in this Guarantee. or on a supplemental writing executed
by the Company.
(b) "Iand-: the land described or referred to in Schedule (A)(C) or in Part 2. and improvements affixed ~o whefich~
law COl tStibJte real property. The term ,ancr
does not include anyproperty beyond. the Ii~ at the area descnbed or r~
to in SChedule (A)(C) or in Part 2. nor any right, t1Ue. interest, estate or easement 111 abutting streets. roads. avenues. alleys,
lanes, ways or waterways.
(c) -mortgage-: mortgage, deed of trust. trust deed. or other security Instn.ImenL
(d) ·public records·: records established under state statutes at Date at. Guarantee for the purpose of imparting
construdlve notice of matters retating to real property to purchasers for vatue and without knowtedge.
(e) -date-: the effective date.
2. Notice of Claim to be Given by Assured Oaimant.

An Assured shall notify the Company promptly in writing in case knowtedge shad come to an Assured hereunder of any
000315

Your Ref: CLIENT NO.3' "'.010
Order No: 110~
84 X77
GU~ECONDrnONSANDSTIPULATIONS
. . (continued)
claim of title or interest which is adverse to the title to the estat .
damage for which the Company may be liable by virtue of tho Ge or Int~ as stated ~erein. and which might cause loss or
then. all liability of the Company shall tenninate with : t ~ntee. prompt notICe ~ not be given to the Company.
provided. however. that failure to notify the Compan ~~n not e ~er. or ~ers for whIch prompt notice is required:
unless the Company shaH be prejudiced by the fallu~ and th 0 calse Ptheretud•ce the nghts of any Assured under this Guarantee
en on y to extent of the prejudice.
3. No Duty to Defend or Prosecute.
The Company shaJi have no duty to defend .

notwithstanding the nature of any allegation in such a~~~n~d1onor proceeding to which the Assured is a party,
4. Company's Option to Detenct or P~e Actions; Duty of Assured Claimant to Cooperate.
Even though the Company has no duty to defend or prosecute as set.forth in Paragraph 3 above:
. (a) The Company shall have the right, at its sole option and cost. to institute and . .
I~erpose a defense, as limited in (b). or to do any other ad which in its 0 inion rna be prosecute any ~etion or ~Ing,
title to the estate or interest as stated herein, or to establish .the lien ':hts of th~ Assu~~~~~::~~blo;~~:s~;
damage ~o the Assured. The Company may take any appropnate action under the terms of this Guarantee whether or not it
shall ~e '!8bl~ hereUnder, ~nd shall not ~ereby concede liabUity or waive any provision of this Guarantee. If the Company shall
exerCISe its nghts under thiS paragraph. it shall do so dDigentiy.
(b) I~ the C~mpany.elects to ~ercise its options as stated in Paragraph 4(a) the Company shaU have the right to sefect
counsel of its chOice (~ubJect to the nght of such Assured to object tor reasonable cause) to represent the Assured and shaJi
not be liabte fo~ and will not pay the fees of any other counsel. nor will the Company pay any fees, costs or expenses incurred
by an Assured In the defense of those causes of action Which atlege matters not covered by this Guarantee.
(c) Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of this
Guarantee, t~e C~mpany may pu~ue any litigation to final detennination by a coun of competent jurisdiction and expressjy
reserves the nght, In Its sofe discretIon. to appeal from an adverse judgment or order.
(~) In aU cases where this Guarantee pennits the Company to prosecute or provide for the defense of any action or
proceeding, an Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or
proceeding, and all appeals therein. and permit the Company to use, at its aptjon, tt)e.name of such Assured for !his .pe..upose.
Whenever requested by the Company, an Assured. at the Company's expense, shaft give the Company at! reasonable ajd in
any action or proceeding, securing eviden~ obtaining witnesses. prosecuting or deterGing the action or lawful ad which in
the opinion of the Company may be necessary or desirable to establish the tide to the estate or interest as stated herein, or to
~ish the lien rights of the Assured. If the Company is prejudiced by the faiure of the Assured to furnish the required
cooperation, the Company's obligations to the Assured under the Guarantee sh8A terminate.
5. Proof of Loss or Damage.
In addition to and after the notices required under Section 2 of these Conditions and Stipulations have been provided
to the Company, a proof of loss or damage signed and sworn to by the Assured shaM be fumished to the Company within
ninetY (90) days after the Assured shall ascertain the facts giving rise to the loss or damage. The proof of toss or damage shall
describe the matters covered by this Guarantee which constitute the basis of loss or damage and shall state. to the extent
possible. the basis of cajcuJating the amount of the loss or damage. If the Company is preiudiced by the failure of the Assured
to provide the required proof of foss or damage. the Company's obiigation to such assured under the Guarantee shaH
terminate. In addition, the Assured may reasonably be required to submit to examination under oath by any authorized
representative of the Company and shall produce for examination. inspecJjon and copying. at such reasonable times and
places as may be designated by any authoriZed representative of the Company" aD records, books. ledgers. checks.
correspondence and memoranda, whether bearing a date before or after Date of G ~ which reasonabAy pertain to the
loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant its permission.
in writing, for any authorized representative of the Company to exami~ inspect and COf1Y ad record& books. ledgers. ~
correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All
information designated as confidentiaJ by the Assured provided to the Company pursuant to this Section shaft not be
GCAS2 -03/' '/98bIC
000316

.. Yow-Ref: CLIENT NO. 30 010
Order No: 1104\ .4 X77
GUARANTEE CONDmONS AND STIPULATIONS

(continued)
di~osed to others unless, in the reasonable jUdgment of the Company, it is necessary in the administration of the daim
Assured to submit tor exami~tion ~er oath. P':'Jduce other reasonably requested information or grant
e
Failw: ?' the
~I~on to secure reasonably nec~ry InformatiOn from thIrd parties as required in the above paragraph. unless
prohibited .by law or governmental regulatiOn, shall terminate any liability of the Company under this Guarantee to the Assured
for that da,m.
6. Options to Pay' or Otherwise Settfe Oairns:
Termination of Liability.
In case of a daim under this Guarantee, the Company shaJi have the foJJowing additional options:
(a) To Payor Tender Payment of the ArnOftm of Liability or to Purchase the Indebtedness.
The Company shall have the option to pay or setUe or compromise for or in the name of the Assured any daim which
coufd resul! i,:, loss to the Assured within the coverage at this Guarantee. or to pay the fuLl amount of this Guarantee or. if this
Gua.rantee IS ISSUed for the ben~ of a holder at a mortgage or a lienholder, the Company shall have the option to purchase
the Indebtedness secured by said mortgage or said lien for the amount owing thereon, together with any costs, reasonable
attorneys' fees and expenses incurred by the Assured daimant which were authorized by the Company up to the time of
purchase.
Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate aj' liability of the
Company hereunder. In the event after notice of daim has been given to the Company by the Assured the Company offers to
purchase said indebtedness. the owner of such indebtedness shall transfer and assign said indebtedness. together with any
.collateral security, to the Company upon payment of the purchase price.
Upon the exercise by the Company at the option provided for in Paragraph (a) the Company's obligation to the
Assured under this Guarantee for the daimed foss or damage, other than to make the payment required in that paragraph,
shall terminate, induding any obligation to continue the defense or prosecution of anylitigaDon tor which the Company has
exercised its options under Paragraph 4, and the Guarantee shan be surrendered to the Company for canceflation.
(b) To Payor Otherwise SetUe Wrth Parties Other Than the Assured or With the Assured ClaimanL
To payor otherwise setUe with other parties for or in the name at an Assured daimant any ,ctaim a~ against w:'d er
this Guarantee" together with any costs, attorneys' fees and _ by the Assured dalmant which were authonzed
by the Company up to the time of payment and which the Company is obligated to pay.
Upon the exercise by the Company of the option pn:Mded for in Paragraph (b) the Com~y's. obligation to the
Assured under this Guarantee for the daimed loss or damage. other than tc:' make the .~~ reqUI~ In that paragraph,
shad terminate. induding any obligation to continue the defense or prosectiOn of any litigatIOn for which the Company has
exercised its options under Paragraph 4.
7. Determination and Extent of Liability.
- This Guarantee is a contract of Indemnity against aetuaf monetary loss or damage sustai~ or. incurred by the
Assured daimant who has suffered loss or damage by reason of reliance upon the ~ces set forth In this Guarantee and
onty to the extent herein described, and subject to the Exdusions From Covenlge of ThIS Guanmtee.
The liability of the Company under this Guarantee to the Assured shaJl not exceed the (east of:
(a) the amount of liability stated in Schedute A or in Pan 2:
(b) the amount of the unpaid principat indebtedness secured by the mortgage at an ~ mortgagee. as. limited ~
provided under Section 6 of these Conditions and Stipulations or as reduced under Seeuor:' 9. of these ~~~ a
StipuJations. at the time the loss or damage assured against by this Guarantee occurs. together with .merest thereo ,
(c) the difference bet\Yeen the vaJue of the estate or interest covered hereby as stated herein and the vafue of the estate
GCAS3 -Q3/11/98t*
0003:17

. Your Ref: CLIENT NO. 3 r ',.010
Order No: 1104 34 X77
. (continued)
or Interest SUbject to any defect lien or encumbrance assured against by this Guarantee.
8. Umitation of Uability.
(a) If the Company estabUshes the tide, or removes the all ed d~

assured against by this Guarantee in a .· eg ~~ lien or encumbrance. or cures any other matter
any appeals therefrom, it shall have tuI~d:i:I~ner~any method. inctuding litigation and the ~pletlon of
loss or damage caused thereby. ga ns w respect to that matter and shall not be liable for any
(b) In the event of any litigation by the Company or with the Com~"'''
loss or damage until there has been a finaJ determination by of~'J s ~ ~ ~y ~ha" have no liability for
theI •• ~ adverse to the tide. as staled herein. a court competent JurisdletJon, and dISpOsition of all appeaJs
~
. •(e) The ~mpany.s~1 not be lia~e for loss or damage to any Assur.ed for liability votuntaJily assumed by th Assured
III settlIng any daJm or suit without the pnor written consent of the Company. e
9. Reduction of UabiJity or Termination of Liability.
All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to
Paragraph 4 shall reduce the amount of liability pro tanto.
10. Payment of Loss.
(a) No payment shan be made without prodUcing this Guarantee for endorsement of the payment un'ess the Guarantee
has been Jost or destroyed, in which case proof of Joss or destnJetjon shaU be furnished to the satisfaction of the Company.
. ~b) When liability and the extent of loss or damage has been definiteiy fixed in accordance with these Conditions and
, Stiputation~ the loss or damage shaJi be payable within thirty (30) days thereafter.
11. Subrogation Upon Payment or SetUement.
Whenever the Company shall have setUed and paid a daim under this Guarantee. aJl right of subrogation shall vest in
the Company unaffected by any ad of the Assured daimant.
The Company shall be subrogated to and be entided to ail rights and remedies which the Assured wouJQ -Rave had
against any person or property in respect to the daim had this Guarantee not been issued. If requested by the Company, the
Assured shall transfer to the Company 811 rights and remedies against any person or property necessary in order to perfect
this right of subrogation. The Assured shall permit the Company to sue. compromise or seale in the name of the Assured and
to use the name of the Assured in any transaction or litigation involving these rights or remedies.
If a payment on account at a claim does not futly caver the loss of the Assured the Company shail be subrogated to aU
rights and remedies of the Assured after the Assured shall have recovered its principal, interest. and costs of collection.
12. Arbitration.
Unless prohibited by applicable law" either the Company or the Assured may demand arbitrcmon pursuant to the ride
Insurance Arbftration Rules of the American Arbitration Association. Arbitrable matters may indude, but are not limited to. any
controversy or daim between the Company and the Assured arising out of or relating to this Guarantee, any service of the
Company in connectiOn with its issuance or the breach of a Guarantee provision or other obtqation. All arbitrable matters
when the Amount of LiabUity is $1,000,,000 t:K less shaJI be arbitrated at the option of either the Company or the Assured. All
arbitrable matters when the amount of liability is in excess of $1.000,,000 shaJi be arbitrated orVy when agreed to bY.bott1 the
Company and the Assured. The RUles in effect at Date of Guarantee shaD be binding upon the parties. The award may .ndude
00031.8

Your RcC: CLIENT NO. 3r .010
Order No: 1104 J4 X77

(continued)
attorneys' fees only if the laws of the state in which the land is located permits a court to award attorneys' fees to a prevailing
party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof.
The Jaw of the situs of the land shall apply to an arbibation under the rltle Insurance Arbitration Rlies.
A copy of the Rules may be obtained from the Company upon request.
13. Uability Umited to This Guarantee; Guarantee Entire Contract.
(a) This Guarantee together with all endorsements. if any, attached hereto by the Company is the entire Guarantee and
contract between the Assured and the Company. In interpreting any provision of this Guarantee. this Gucuantee shaJl be
construed as a whole.
(b) Any cfaim of loss or damage, whether or not based on negligence. or any action asserting such daim, shall be
restrided to this Guarantee. .
(c) No amendment of or endorsement to this Guarantee can be made except by a writing endorsed hereon or attached
hereto signed by either the President, a VIce President, the Secretary, an Assistant Secretary, or validating officer or
authorized signatory of the Company.
14. Notices,. Where Sent
All notices required to be given the Company and any statement in writing required to be fumished the Company shaJi
indude the number of this Guarantee and shaD be addressed to the Company at Oaims D~ 171 N. Oart< Street,
Chicago, IL 60601--3294
GCAS5 -O3/"/-=
OG0319

~
I 5139 I I · " . , '. .. . . ::>::' .J. ;': '. - - _ . , •. I •
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i-'·~I
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CAMPBELL TRACT 16/',~
~o h
~ GFi-'tND •• •• •• •• •• "tll~'n""
M. B. 6- 173
GADDEN TRACT
- - ..
M. B. 15- 75
..
1'1 V '
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( .e
~
Exhibit 4 to Third Amended Complaint

.Q
BLOCK 79 ORD'~
'. ~ SURVEY
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page 4 - 18
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0(( ,llItll\t II\' "· .. ~.(HI 01 ttl•.• I , \III';~,J' ..
1 PROOF OF SERVICE BY EMAIL; SERVICE LIST
CCP §§1013(a), 2015.5
2
3 SUPERIOR COURT OF THE STATE OF CALIFORNIA )

LOS ANGELES COUNTY )
4
5
I am a member of the State Bar of California with offices in said county, and I am
6 Plaintiff True Harmony’s counselor at law in this action; my business address is 201
Wilshire Blvd. Second Floor, Santa Monica, California 90401. I make it a practice to
7 collect and to dispatch correspondence by email before 5 p.m. on the day that the proof
of service states that it is transmitted by email from my email address to the recipient’s
8
email address. I know that on motion of the party served, the service is presumed to be
9 invalid if the date of the email is more than one day after date of transmission by
emailing in proof of service.
10
I declare that on November 27, 2017, I served these documents from
11 jgthomas128@gmail.com:
12 THIRD AMENDED COMPLAINT FOR MONEY DAMAGES, RESTITUTION AND
INJUNCTION, and STATEMENT OF DAMAGES
13
To:
14
1. Hugh John Gibson, Esq., Law Offices of Hugh John Gibson, Esq., 9107 Wilshire
15 Blvd., Suite 700, Beverly Hills, California 90210; representing NORMAN SOLOMON,
ESQ., HOPE PARK LOFTS 2001-02910056 LLC etc. (to: hjgibson@aol.com);
16
2. Steven Coard, Esq., 312 Pico Blvd., Law Offices of Rosario Perry, Santa Monica,
17
California 90405., representing LAW OFFICES OF ROSARIO PERRY, a professional
18 law corporation, and ROSARIO PERRY, Esq. (to: steven@oceanlaw.com); and
19 3. Andrew Pongracz, Esq., The Pongracz Law Firm, 2029 Century Park East, Fourth
Floor, Los Angeles, California 90067, representing BIMHF, LLC (to:
20
andrew@pongraczlaw.com); and
21
Victoria Tsoong, Esq. Chuck & Tsoong LLP, 700 N. Brand Blvd., Suite 440,
22 Glendale, California 91203 representing Shawn Manshoory (vtsoong@vbtlegal.com).
23
Executed under penalty of perjury on November 27, 2017 at Los Angeles,
24 California.
25 JEFFREY G. THOMAS
26
27 /s/ Jeffrey G. Thomas

_________________________
28
p. 1
Proof of Service of Third Amended Complaint – True Harmony Inc. v. Rosario Perry et al. – LASC #BC546574

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• •

1 JEFFREY G. THOMAS CA SBN 83076

8 IN THE SUPERIOR COURT OF CALIFORNIA UNLIMITED JURISDICTION

10 TRUE HARMONY, a California nonprofit Case No.: BC546574 ·C~f1:\

26 Hope Street Investment Associates LLC,

18 135. Plaintiff realleges and incorporates by reference the allegations made in

25 154. Plaintiff realleges and incorporates by reference the allegations made in

A { ~ljt~ '1 IWiSIl1~1t I-

~ 1. Payment of real estate commissions ~d all <:losing costs; ~

Exhibit 2 to Third Amended Complaint page 2 - 1

The next 800k to True Harmony.

'The next 75k to Hope..

f...{., ,. ... . Any funds, remaining shall be divided SOi50. <&

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Exhibit 2 to Third Amended Complaint page 2 - 2

PHONE; (800) 311-4549

FAX.; (818) 291-4481

DATED AS OF SEPTEMBER 4,2015 AT 7:30 A.M.

TRUE HARMONY YOUR NO.: 1130 SOUTH HOPE 5T

ATTENTION: MARY WATTS ORDER NO.: PR1582157

TITLE OFFICER: ELLA M. CUMMINGS

THE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS:

[1 CALIFORNIA LAND TITLE ASSOCIATION/AMERICAN LAND TITLE ASSOCIATION

[ ] AMERICAN LAND TilLE ASSOCIATION LOAN POLICY

[X] CALIFORNIA LAND TITLE ASSOCIATION STANDARD POLICY

------------_ _.--_ .... ....

ORDER NO. PR1582157

THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED

TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:

BIMHF. LLC. A CALIFORNIA LIMITED LIABILITY COMPANY

SEE EXHIBIT "AU ATTACHED HERETO

Exhibit 3 to Third Amended Complaint page 3 - 2

ORDER NO. PR1582157

AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS

B. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 2014-2015

FIRST lNSTALLMENT: $13,794.07 PAID

SECOND INSTALLMENT: $13,794.06 PAID

CODE AREA: 13264

c. THE LIEN OF SUPPLEMENTAL TAXES ASSESSED PURSUANT TO CHAPTER 3.5 COMMENCING

D. A NUISANCE ABATEMENT IN THE ORIGINAL AMOUNT OF $27,523.02 IN FAVOR OF THE CITY OF

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

4. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DJSCLOSED BY A DOCUMENT

AFFECTS: AS MORE PARTJCULARL Y DESCRIBED THEREIN

Exhibit 3 to Third Amended Complaint page 3 - 3

ORDER NO. PR1582157

5. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELL'NG AS DISCLOSED BY A DOCUMENT

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

6. THE EFFECT OF A NOTJCE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

A NOTICE OF PENDING ASSESSMENT RECORDED APRIL 19,2002 AS INSTRUMENT NO. 02­

7. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

9. THE EFFECT OF A NOTICE OF SUBSTANDARD DWELLING AS DISCLOSED BY A DOCUMENT

AFFECTS: AS MORE PARTICULARLY DESCRIBED THEREIN

Exhibit 3 to Third Amended Complaint page 3 - 4

11. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS AND ANY OlliER

PLEASE NOTE: IF THIS LOAN IS TO BE PAID AS A SHORT PAY, PLEASE CONTACT

12. A DEED OF TRUST TO SECURE AN ORIGINAL INDEBTEDNESS AND ANY OTHER

RECORDED: JULY 19, 2005 AS INSTRUMENT NO. 05-1701131. OFFICIAL

LOAN NO.: NOT SHOWN

SAID DEED OF TRUST RECITES.

THIS DEED 15 BEING RERECORDED TO CORRECT THE BENEIFICIARY VESTING.

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A NOTICE OF PENDING ASSESSMENT RECORDED APRIL 19,2002 AS INSTRUMENT NO. 02

For our everyday business purposes

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