2010/01/12 City Council Resolution 2010-05RESOLUTION NO. 2010-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING AND APPROVING SETTLEMENT AGREEMENTS RELATING TO
IONA SIME, ET AL. V. CITY OF ROHNERT PARK,
SONOMA COUNTY SUPERIOR COURT NO. SCV- 166309
WHEREAS, the City Council wishes to enter into settlement agreements
regarding Sime v. City of Rohnert Park, Sonoma County Superior Court Case No. SCV-
166309.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rohnert Park that the City Council authorizes and approves the Settlement Agreements
attached hereto as Exhibit "A."
BE IT FURTHER RESOLVED that the Mayor is authorized and directed to
execute same for and on behalf of the City of Rohnert Park.
DULY AND REGULARLY ADOPTED by the City Council of the City of
Rohnert Park this 12`h day of January, 2010.
CITY OF ROHNERT PARK
Mayor
10k p'.
ATTEST:
BELFORTE: AYE BREEZE: AYE CALLINAN: AYE NUCCKENZIE: AYE STAFFORD: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
SETTLEMENT AGREEMENT AND
MUTUAL RELEASE
This Settlement Agreement and Mutual Release ( "Agreement ") is made as of this
day of , 2010, by and between (i) CITY OF ROHNERT PARK, a California municipal
corporation (the "City "); and (ii) HILLSBORO PROPERTIES, a California limited partnership
( "Hillsboro'), and PAUL GOLDSTONE ENTERPRISES, INCORPORATED, a California corporation
( "Goldstone "), a joint venture, doing business as Rancho Grande Mobilehome Park (Hillsboro
and Goldstone, collectively, including as that joint venture, "Hillsboro /Goldstone "; and the City
and Hillsboro /Goldstone, collectively, the "Parties "), in consideration of and with reference to
the facts set forth in the following recital paragraphs (the "Recitals ").
RECITALS
A. State Court Action.
. 1. Action, JudgMent, and Attorney's Fees Awards. In May 1988,
Hillsboro /Goldstone (as to Hillsboro, under the name "Hillsboro Property, Inc. "), owner of a
mobile home park located within the City, along with the respective owners of four other mobile
home parks located within the City (those four other owners, collectively, the "Other Park
Owners "; and Hillsboro /Goldstone and the Other Park Owners, collectively, the "Park
Owners "), filed an action against the City in the Superior Court of the State of California for
Sonoma County (the "Superior Court ") entitled Iona Sime, et al. v. City of Rohnert Park, Case
No. SCV166309, claiming breach by the City of an agreement between it and the Park Owners
relating to rent control for the mobile home parks owned by them (those parks, the "Mobile
Home Parks "; that agreement, the "Green Book "; and that action, the "State Court Action"),
On July 12, 1995, upon remand from a successful appeal by the City, judgment that the Park
Owners take nothing by their complaint was entered in favor of the City and against the Park
Owners. On the same day, the City was awarded attorney's fees and costs in the State Court
Action in connection with the trial court proceedings and with its appeal in the amount of
$161,721.99 (the "First Award Order "). On October 24, 1997, the City was awarded further
attorney's fees and costs in connection with an appeal by the Park Owners in the State Court
Action in the amount of $22,827.18 (the "Second Award Order "; and the two award orders,
together, the "City Judgment ").
2. Intermediate Settlements. Two of the Other Park Owners (Rancho Feliz,
Ltd., and Iona Sime, respectively), in connection with their respective sales of their respective
Mobile Home Parks to the City or entities sponsored by the City, entered into respective
settlements with the City (the amount of those settlements, "Intermediate Settlement
Amounts "),
3. Renewal of Cit y figment and Objections Thereto. In October 2007, the
City filed an Application for and Renewal of Judgment in the State Court Action with respect to
the City Judgment (the "Renewal'). Hillsboro /Goldstone and Indian Springs Limited ( "Indian
Springs "), one of the Other Park Owners, filed motions to vacate the Renewal as untilnely
II83093v5A 80078/0057
EXHIBIT A
(together, the "Vacation Motions "). After briefings and hearings in the Superior Court, on
April 22, 2008 (the "Determination Date "), the Vacation Motions were sustained as to the First
Award Order but denied as to the Second Award Order. Thereafter, the City,
Hillsboro /Goldstone, and Indian Springs attempted unsuccessfully to agree on what was the
proper amount, including accrued but unpaid interest, that was due on the Second Award Order
as of the Determination Date. The City asserted that the Intermediate Settlement Amounts
should be deemed to have been applied to reduce only the First Award Order; and
Hillsboro /Goldstone and Indian Springs asserted that the Intermediate Settlement Amounts
should be deemed to have been applied rateably to reduce the City Judgment. The resolution of
this dispute appeared to require that the Parties and Indian Springs return to the Superior Court
for further hearings and briefings, which they have not done, and, accordingly, no order on the
Vacation Motions has yet been entered, and the time for the City to appeal the granting of the
Vacation Motions as to the First Award Order, and for Hillsboro /Goldstone and Indian Springs
to appeal the denial of the Vacation Motions as to the Second Award Order, have not yet
commenced to run.
4. No Pa -ments. Offset Ri ght Claim. Hillsboro /Goldstone has not made any
payments on any of the City Judgment. Hillsboro /Goldstone asserts that it is entitled to offset
against any liability it may have to the City on the City Judgment (or so much and to the proper
extent thereof that remains enforceable against it) the amounts owed by the City on the
Hillsboro /Goldstone Judgment (defined below).
5. Contribution Issues. Liability of the Park Owners to the City under the
City Judgment was provided to be joint and several thereunder in accordance with their joint and
several liability as co- obligors under the Green Book. Any Park Owner that settles with the City
may remain exposed in contribution under California Code of Civil Procedure section 882. In
this regard, the fifth of the Park Owners, a collection of individuals —Paul Heath, Barbara R.
Heath, John Heath, and Margaret D. Heath (collectively, the "Heaths "did not move to vacate
the Renewal and may remain liable for the full amount of the City Judgment after application of
all payments with respect thereto. Finally, the basis upon which any Park Owner's "due
proportion" of the City Judgment, if any, is to be calculated— number of parks, number of
spaces, number of individual or entity Park Owners -is unclear at law.
6. Other Settlements. The City and, respectively, Indian Springs and the
Heaths, have entered into settlement agreements with respect to the City Judgment (those
settlements, together, the "Other Settlements "); and the Other Settlements have become
effective according to their respective terms.
B. Federal Court Action.
1. Action:. Judgment, and Attorney's Fees Awards. In May 1993,
Hillsboro /Goldstone filed an action against the City in the United States District Court for the
Northern District of California entitled Hillsboro Properties and Paul Goldstone Enterprises,
Inc. v. City of Rohnert Park, Case No. C -93 -1723 FMS, challenging the City's Mobile Home
Ordinance 494 (that action, the "Federal Court Action "). On May 5, 1994, judgment was
entered in the Federal Court Action in favor of Hillsboro /Goldstone and against the City. On
September 19, 1996, Hillsboro /Goldstone was awarded attorney's fees in connection with the
1183093v5A 80078/0057
Federal Court Action in the amount of $41,987.82. On October 25, 1998, Hillsboro /Goldstone
was awarded flu-ther attorney's fees in connection with an appeal by the City in the Federal Court
Action in the amount of $23,523.00.
2. Settlement Agreement. Thereafter, Hillsboro /Goldstone and the City
entered into a Settlement Agreement dated as of May 30, 2000 (the "Settlement Agreement "),
(which was signed by Hillsboro /Goldstone on June 21, 2000 (the "Acceptance Date") pursuant
to which the City agreed to pay additional attorney's fees to Hillsboro /Goldstone in connection
with a second appeal by the City in the Federal Court Action in the amount of $23,950.00. In the
Settlement Agreement, the Parties stipulated and agreed that the total principal amount of
attorney's fees due Hillsboro /Goldstone in connection with the Federal Court Action was
$89,460.82 and that interest would accrue thereon as provided by federal law from the respective
dates of the two orders as to the respective amounts thereunder and from 30 days after the
Acceptance Date for the last amount thereof (the "Hillsboro /Goldstone Judgment ").
3. No Payments: Offset Right Claim. The City has not made any payments
on the Hillsboro /Goldstone Judgment. The City asserts that it is entitled to offset against any
liability it may have to Hillsboro /Goldstone on the Hillsboro /Goldstone Judgment the amounts
owed by Hillsboro /Goldstone on the City Judgment.
C. Desire to Agree. The Parties recognize that there is significant time, expense, and
risk involved in continuing to litigate as to the City Judgment, the Renewal, and the Vacation
Motions, and in collecting on, respectively, the City Judgment (however much may be
determined to be due thereunder) and the Hillsboro /Goldstone Judgment. Further, with the
effectiveness of the Other Settlements, Hillsboro /Goldstone can achieve finality in any
settlement with the City with respect to the City Judgment. Thus, the City and
Hillsboro /Goldstone desire to settle and resolve between them all aspects of potential claims that
involve the Hillsboro /Goldstone Judgment and the City Judgment as provided herein.
AGREEMENT
1. Recitals. The Recitals are incorporated herein and the Parties agree that they are
true and correct.
2. Consideration. As consideration for this Agreement, the Parties agree that, on the
date this Agreement has been signed by each Party and delivered to the other (the "Effective
Date "), all the Settled Matters (defined below) shall be settled as provided below.
3. Acknowledgements of Satisfactions of Judgment.
a. Hillsboro /Goldstone Acknowledo ent. Within 10 days after the Effective
Date, Hillsboro /Goldstone shall fully execute an Acknowledgment of Satisfaction of Judgment in
the full amount of the Hillsboro /Goldstone Judgment (including all interest that has accrued and
continued to accrue thereon) as of the date executed for the Federal Court Action, in substantially
the form attached hereto as Exhibit A (the "Hillsboro /Goldstone Acknowledgment "), and
transmit the original thereof to counsel for the City, Leah Castella, McDonough Holland &
Allen, PC, 1901 Harrison Street, 9th Floor, Oakland, California 94612 (the "City's Counsel "),
who will, without further act of Hillsboro /Goldstone, be authorized to file, and who the City shall
1183093v5A 80078/0057
cause promptly to file, that original (or. an Electronic Case Filing version thereof) in the Federal
Court Action, and who further shall, promptly upon the filing thereof therein, provide an
endorsed -filed stamped copy thereof (or Electronic Case Filing copy thereof with the equivalent
stamp thereon) to counsel for Hillsboro /Goldstone, Nicolas De Lancie, Jeffer, Mangels, Butler &
Marmaro LLP, Two Embarcadero Center, Fifth Floor, San Francisco, California 94111 -3824;
and
b. City Acknowled ment. Within 10 days after the Effective Date, the City
shall fully execute an Acknowledgment of Satisfaction of Judgment in the full amount of the
City Judgment (including all interest that has accrued and continued to accrue thereon) as of the
date executed for the State Court Action, in substantially the form attached hereto as Exhibit B
(the "City Acknowledgment "), and, as soon as is practicable after receiving the original of the
Hillsboro /Goldstone Acknowledgment, but in no event later than 5 court days thereafter, the City
shall cause the City's Counsel to file the original of the City Acknowledgment in the State Court
Action.
4. Mutual Release. Effective, if at all, on the Effective Date, (i) Hillsboro/
Goldstone, on behalf of itself and its co- venturers and each of their respective associations,
co- partners, co- venturers, subsidiaries, parents, affiliates, or corporations, and the officers,
stockholders, members, partners, trustees, directors, managers, employees, and agents of each of
them; and (ii) the City hereby release and forever discharge each other, together with their
respective employees, officers, managers, agents, representatives, trustees, directors, partners,
stockholders, members, attorneys, successors, assigns, heirs, personal representatives, and
executors, and all persons, firms, associations, co- partners, co- venturers, insurers, contractors,
engineers, subcontractors, subsidiaries, parents, affiliates, or corporations connected therewith,
and each of them, from any and all claims, debts, liabilities, demands, obligations, costs,
expenses, attorney's fees, actions, and causes of actions of every nature, character, and
description, whether known or unknown, directly or indirectly arising out of any matter, fact, or
allegation that are the subject of this Agreement and related to the State Court Action, the
Federal Court Action, the Hillsboro /Goldstone Judgment, the City Judgment, the Renewal, or the
Vacation Motions (all those matters, the "Settled Matters ").
5. Waiver of California Civil Code Section 1542. The Parties hereby acknowledge
that they are aware of the provisions of section 1542 of the California Civil Code, which
provides as follows:
A general release does not extend to claims which the creditor does not
know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or
her settlement with the debtor.
Having been so informed, the Parties hereby elect to and do waive the provisions and
benefits of Civil Code section 1542, effective, if at all, upon the Effective Date.
6. No Admission of Liability. Nothing herein shall be construed as an admission on
,. ,
the part of any of the Parties of any claims, demands, causes of action, obligations, damages, or
liabilities asserted by any other Party.
1183093v5A 80078 10057
7. Attorney's Fees and Costs. Each Party will bear its own attorney's fees and costs
incurred in the negotiation, review, and execution of this Agreement. In the event that any legal
action is necessary to enforce this Agreement, once fully executed, the prevailing Party in any
such action shall be entitled to an award of reasonable attorney's fees and costs.
8. Authorization to Execute. Each Party represents that the individual signing this
Agreement is authorized to bind the Party on whose behalf he or she signs.
9. Entire Agreement. As to the matters set forth herein, this Agreement is the entire,
integrated agreement and understanding of the Parties.
10. Modification. This Agreement and any provision hereof may be modified or
waived only by a writing signed by the Parties.
11. Drafting of Agreement. The drafting and the negotiation of this Agreement has
been participated in by each of the Parties or their respective counsel and, for all purposes, this
Agreement shall be deemed to have been drafted jointly by all the Parties and, accordingly, it is
not to be construed against either Party as being the drafter or causing the drafting of the same,
or strictly for or against either Party, but rather, shall be construed as a whole according to its fair
meaning.
12. Successors and Representatives. This Agreement shall be binding on and shall
inure to the benefit of the successors and assigns of each Party. This Agreement is not made,
however, for the benefit of any other person or entity except as expressly provided in
Paragraph 4 above.
13. Informed Consent. Each Party declares that prior to the execution of this
Agreement, it or its duly authorized representatives have apprised themselves of sufficient
relevant data, either through attorneys, experts, or other sources of their own selection, in order
intelligently to exercise their judgment in deciding whether to execute, and in deciding the
contents of, this Agreement. Each Party states that this Agreement is entered into freely and
voluntarily, upon the advice and with the approval of its respective counsel.
14. Joint and Several. This Agreement shall be the joint and several obligation of
Hillsboro and Goldstone.
15. Applicable Law. This Agreement shall be interpreted in accordance with
California law.
16. Construction. When used herein, (i) "including" and the like are not limiting;
(ii) "or" is not exclusive; (iii) each gender includes the other genders; the singular form of
definitions includes the plural form, and vice versa; (iv) "hereof', "herein ", and the like refer to
this Agreement as a whole and not to any paragraph or section hereof unless expressly stated;
and (v) the title and the headings of paragraphs hereof are for reference only and shall not affect
the interpretation or meaning of any provision hereof.
II83093v5A 80078/0057
17. Execution in Counte arts. This Agreement may be executed in counterparts, and
fax or other electronic transmittal of signature copies shall constitute good evidence of such
execution.
This Agreement is made as of the day and date first set forth above.
[Signatures follow on next page)
6
1 183043v5A 80078/0057
CITY OF ROHNERT PARK, a California
municipal corporation
Dan Schwarz
Interim City Manager
APPROVED AS TO FORM:
Michelle Marchetta Kenyon
City Attorney
[Signatures continued on next page]
7
1183093v5A 80078/0057
HILLSBORO PROPERTIES AND PAUL
GOLDSTONE, INC., a,joint venture, dba
Rancho Grande Mobilehome Park
HILLSBORO PROPERTIES, a California
limited partnership
By _�
Names . f�.�
Ifs: _,&uA t'2-"* i � i'�' lu �i' .t# ,d;�l«
PAUL GOLDSTONE ENT4RPRISES,
INC.,
By:
Name:
APPROVED AS TO FORM:
Jeffer, Mangels, Butler & Marmaro LLP
Nerve:
Attorneys for Hillsboro Properties and
Paul Goldstone Enterprises, Inc,
8
1183093x5 80078/0037
EXHIBIT A
Hillsboro /Goldstone Satisfaction of Judgment
[See Following Page]
Exhibit A
1183093v5A 80078/0057
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JEFFER, MANGELS, BUTLER & MARMARO LLP
NICOLAS DE LANCIE (Bar No. 84934)
Two Embarcadero Center, Fifth Floor
San Francisco, California 94111 -3824
Telephone: 415) 398 -8080
Facsimile: '415) 398 -5584
e -mail: nde@jmbm.com
Attorneys for Judgment Creditors
HILLSBORO PROPERTIES and
PAUL GOLDSTONE ENTERPRISES
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION.
HILLSBORO PROPERTIES, et al.,
Judgment Creditors,
vs.
CITY OF ROHNERT PARK,
Judgment Debtor.
CASE NO. C -93 -1723 FMS
Judge: Hon. Fern M Smith
ACKNOWLEDGMENT OF FULL
SATISFACTION OF JUDGMENT
ACKNOWLEDGMENT OF FULL SATISFACTION OF JUDGMENT
1. Satisfaction of judgment is acknowledged as follows:
Full satisfaction. The judgment creditors have accepted payment or
performance other than that specified in the judgment in full satisfaction of the
judgment.
Error! Unknown
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Acknowledgment of Full
Satisfaction of Judgment
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2. Name and address of judgment creditors:
Hillsboro Properties and Paul Goldstone Enterprises
800 Airport Boulevard, Suite 510
Burlingame, California 94010
Attention: Stanford Green
3. Full name and address of assignee of record, if any: None.
4. Full names and addresses of judgment debtors being fully released:
City of Rohnert Park
[to be supplied]
Rohnert Park, California [zip code]
Attention: Michelle Marchetta Kenyon
City Attorney
5. Judgment entered on:
a. Original judgment entered on May 5, 1994.
b. Award of attorneys fees entered on September 19, 1996.
C. Second award of attorneys fees entered on October 25, 1998.
6. Abstracts of judgment, if any, have been recorded as follows: None.
7. Notices of judgment lien, if any, have been filed in the Office of the
Secretary of State as follows: None.
Notice to Judgment Debtor: If this is an acknowledgment of full satisfaction
of judgment, it will have to be recorded in each county shown in item 6 above, if any,
in order to release the judgment lien, and will have to be filed in the Office of the
Secretary of State to terminate any judgment lien on personal property show in item 7
above, if any.
Dated: July , 2009 JEFFER, MANGELS, BUTLER & MARMARO LLP
Error! Unknown
By:
I
Attorneys for Judgment Creditors
HILLSBORO PROPERTIES and
PAUL GOLDSTONE ENTERPRISES
-2-
Acknowledgment of Full
Satisfaction of Judgment
EXHIBIT B
City Satisfaction of Judgment
[See Following Pages]
Exhibit B
1183093v5A 80078/0057
EJ -100
ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address);.
After recording return to:
_Michelle Marchetta Kenyon (SBN 127969)
J. Leah Castella (SBN 205990)
1901 Harrison Street, 9th Floor
Oakland, CA 94612
TELEPHONE NO.: (510) 273-8780
FAX No. (optionap: (510) 839 -9104
E -MAIL ADDRESS (Optional): Icastella@mhalaw.com
UPERIOR COURT OF CALIFORNIA, COUNTY OF Sonoma
STREET ADDRESS: 600 Administrative Drive
MAILING ADDRESS:
CITY AND ZIP CODE: Santa Rosa, CA 95403
BRANCH NAME:
PLAINTIFF: Iona Sime, et al.
DEFENDANT` City of Rohnert Park
ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT
FULL ❑ PARTIAL ❑ MATURED INSTALLMENT
Satisfaction of the judgment is acknowledged as follows:
a. ® Full satisfaction
(1) ❑ Judgment is satisfied in full.
(2) 0 The judgment creditor has accepted payment or performance other
than that specified in the judgment in full satisfaction of the
judgment.
b. ❑ Partial satisfaction
The amount received in partial satisfaction of the judgment is $
c. ❑ Matured installment
All matured installments under the installment judgment have been
satisfied as of (date):
2. Full name and address of judgment creditor:'
City of Rohnert Park, 130 Avram Avenue, Rohnert Park, CA 94928
3. Full name and address of assignee of record, if any:
4. Full name and address of judgment debtor being fully or partially released:'
See Attachment "A ".
5. a. Judgment entered on (date): July 12, 1995 and October 24, 1997
b. ® Renewal entered on (date): October 2, 2007
CASE NUMBER:
SCV 166309
FOR COURT USE ONLY
6. ® An ❑ abstract of judgment ® certified copy of the judgment has been recorded as follows (complete all
infomlation for each county where recorded):
COUNTY DATE OF RECORDING INSTRUMENT NUMBER
Sonoma February 2, 1998 1998 0010103
Sonoma February 2, 1998 1998 0010104
Sonoma February 2, 1998 1998 0010105
7. ❑ A notice of judgment lien has been filed in the office of the Secretary of State as file number (specify):
NOTICE TO JUDGMENT DEBTOR: If this is an acknowledgment of full satisfaction of judgment, it will have to be recorded in each
county shown in item 6 above, if any, in order to release the judgment lien, and will have to be filed in the office of the Secretary of
Sate to terminate any judgment lien on personal property.
Date: (SIGNATURE OF JUDGMENT CREDITOR OR ASSIGNEE OF CREDITOR OR ATTORNEY -7
Pane 1 of 1
"The names of the judgment creditor and judgment debtor must be stated as shown in any Abstract of Judgment which was recorded and is being released by this satisfaction. " A separate notary
acknowledgment must be attached for each signature.
Form Approved for Optional Use
Judicial Council of California ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT Code of Civil Procedure,20724,251,
EJ -100 [Rev.. January 1, 20051 724.alNe 724,250
American LegalNet, Inc.
www.FormsWorkt/owcom
ATTACHMENT TO
ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT
Names and addresses of Judgment Debtors:
Iona Sime, dba Las Casitas de Sonoma
7545 Bridgit Drive
Rohnert Park, CA 94928
2. Hillsboro Property, Inc. [sic] and Paul Goldstone Enterprises, a Joint Venture, dba
Rancho Grande Mobilehome Park
5099 Snyder Lane
Rohnert Park, CA 94928
3. Indian Springs Limited, a California limited partnership,
dba Rancho Verde Mobile Estate
c/o James & Associates
255 N. El Cielo Road, Suite 140 -286
Palm Springs, CA 92262
4. Rancho Feliz, Ltd., a California limited partnership,
dba Rancho Feliz Mobilehome Park
6607 Redwood Drive
Rohnert Park, CA 94928
5. Paul S. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
6. Barbara R. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
7. John Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
8. Margaret D. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
11836700 80078/0057
SETTLEMENT AGREEMENT AND
MUTUAL RELEASE
This Settlement Agreement and Mutual Release ( "Agreement ") is made this day of
January, 2010 ( "Effective Date "), by and between the City of Rohnert Park, a California
municipal corporation ( "City ") and Margaret D. Heath, an individual ( "Ms. Heath "). The City
and the Heaths are sometimes referred to collectively as the "Parties."
RECITALS
A. In May 1988, Paul Heath, Barbara R. Heath, John Heath, and Ms. Heath
(collectively, the "Heaths "), owners of Valley Village Mobile Home Estates, a mobile home park
located within the City, along with the owners of four other mobile home parks located within
the City (the Heaths and those four other owners, collectively, "Park Owners "), filed an action
against the City in the Superior Court of the State of California for Sonoma County entitled Iona
Sime, et al. v. City of Rohnert Park, Case No. SCV 166309, claiming breach by the City of an
agreement between it and the Park Owners relating to rent control for the mobile home parks
owned by them ( "State Court Action "). On July 12, 1995, upon remand from a successful appeal
by the City, judgment that the Park Owners take nothing by their complaint was entered in favor
of the City and against the Park Owners. On the same day, the City was awarded attorney's fees
and costs in the State Court Action in connection with the trial court proceedings and with its
appeal in the amount of $161,721.99 ( "First Award Order "). On October 24, 1997, the City was
awarded further attorney's fees and costs in connection with an appeal by the Park Owners in the
State Court Action in the amount of $22,827.18 ( "Second Award Order "); the First Award Order
and the Second Award Order, together, "City Judgment ").
B. The Heaths have not made any payments on any of the City Judgment. Liability
of the Park Owners to the City under the City Judgment is believed to be joint and several, and it
is unclear what a Park Owner's "due proportion" of the City Judgment is.
C. The Parties recognize that there is significant time, expense, and risk involved in
collecting on the City Judgment. Thus, the City and the Heaths desire to settle and resolve
between them all aspects of potential claims that involve the City Judgment as provided herein.
AGREEMENT
1. Settlement Amount. Ms. Heath agrees to pay and the City agrees to accept the
sum of Six Thousand Dollars ($6,000.00) as full, final and complete settlement of the Heaths'
portion of the City Judgment ( "Payment "). Within 1 week following the Effective Date, Ms.
Heath shall remit Payment to counsel for the City, McDonough Holland.& Allen, PC, 1901
Harrison Street, 9th Floor, Oakland, California 94612, Attention: Leah Castella.
2. Acknowled -ement of Satisfactions of Lud a ment. Within 10 days following
receipt of the Payment, the City shall fully execute an Acknowledgment of Satisfaction of
Judgment in the full amount of the City Judgment (including all interest that has accrued and
continued to accrue thereon) as of the date executed, in substantially the form attached hereto as
1211155x2 80078/0057
Exhibit A ( "City Acknowledgment "), and, as soon as is practicable, the City shall cause the
City's Counsel to file the original of the Acknowledgment of Satisfaction of Judgment.
3. Mutual Release. Except for the obligations specified, the City and the Heaths
hereby release and forever discharge each other, together with. their employees, officers, agents,
representatives, trustees, directors, partners, stockholders, attorneys, successors, assigns, heirs,
personal representatives and executors, and all persons, firms, associations, co- partners,
co- venturers, insurers, contractors, engineers, subcontractors, subsidiaries, parents, affiliates, or
corporations connected therewith, and each of them from any and all claims, debts, liabilities,
demands, obligations, costs, expenses, attorneys' fees, actions, and causes of actions of every
nature, character, and description whether known or unknown, directly or indirectly arising out
of any matter, fact, and /or allegation related to the State Court Action and the City Judgment.
4. Waiver of California Civil Code Section 1542. The Parties hereby acknowledge
that they are aware of the provisions of section 1542 of the California Civil Code, which
provides as follows:
A general release does not extend to claims which the creditor does not
know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or
her settlement with the debtor.
Having been so informed, the parties to the releases in paragraph 3 above hereby elect to
and do waive the provisions and benefits of Civil Code section 1542, effective upon the
execution of this Agreement.
5. No Admission of Liability. Nothing herein shall be construed as an admission on
the part of any of the Parties of any claims, demands, causes of action, obligations, damages, or
liabilities asserted by any other Party.
6. Attorney's Fees and Costs. Each Party will bear its own attorney's fees and costs
incurred in the negotiation, review, and execution of this Agreement. In the event that any legal
action is necessary to enforce this Agreement, once fully executed, the prevailing Party in any
.such action shall be entitled to an award of reasonable attorney's fees and costs.
7. Authorization to Execute. Each Party represents that the individual signing this
Agreement is authorized to bind the Party on whose behalf he or she signs.
8. Entire Agreement. As to the matters set forth herein, this Agreement is the entire,
integrated agreement and understanding of the Parties.
9. Modification. This Agreement and any provision hereof may be modified or
waived only by a writing signed by the Parties.
10. Draftina— of Agreement. The drafting and the negotiation of this Agreement has
been participated in by each of the Parties or their respective counsel and, for all purposes, this
Agreement shall be deemed to have been drafted jointly by all the Parties and, accordingly, it is
not to be construed against either Party as being the drafter or causing the drafting of the same,
1211155x2 80078/0057 2
or strictly for or against either Parry, but rather, shall be construed as a whole according to its fair
meaning.
11. Successors and Representatives. This Agreement shall be binding on and shall
inure to the benefit of the successors and assigns of each Party. This Agreement is not made,
however, for the benefit of any other person or entity except as expressly provided in
Paragraph 3 above.
12. Informed Consent. Each Party declares that prior to the execution of this
Agreement, it or its duly authorized representatives have apprised themselves of sufficient
relevant data, either through attorneys, experts, or other sources of their own selection, in order
to intelligently exercise their judgment in deciding whether to execute, and in deciding the
contents of, this Agreement. Each Party states that this Agreement is entered into freely and
voluntarily, upon the advice and with the approval of its respective counsel.
13. Joint and Several. This Agreement shall be the joint and several obligation of the
Heaths.
14. Applicable Law. This Agreement shall be interpreted in accordance with
California law.
15. Construction. When used herein, (i) "including" and the like are not limiting;
(ii) "or" is not exclusive; (iii) each gender includes the other gender; the singular form of
definitions includes the plural form, and vice versa; (iv) "hereof', "herein ", and the like refer to
this Agreement as a whole and not to any paragraph or section hereof unless expressly stated;
and (v) the title and the headings of paragraphs hereof are for reference only and shall not affect
the interpretation or meaning of any provision hereof.
16. Execution in_Counterparts. This Agreement may be executed in counterparts, and
fax or other electronic transmittal of signature copies shall constitute good evidence of such
execution.
1211155x2 80078/0057
CITY:
CITY OF ROHNERT PARK, a California
municipal corporation,
Dan Schwarz
Interim City Manager
APPROVED AS TO FORM:.
Michelle Marchetta Kenyon
City Attorney
Error! No property name supplied, 4
HEATHS:
EXHIBIT A
Acknowledgement of Satisfaction of Judgment
(On next page)
1211155x2 80078/0057 Exhibit A
EJ -100
ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, State Bar number, and address):
After recording return to: -
Michelle Marchetta Kenyon (SBN 127969)
J. Leah Castella (SBN 205990)
1901 Harrison Street, 9th Floor
Oakland, CA 94612
TELEPHONE NO.: (510) 273 -8780
FAX No. (Optional): (510) 839 -9104
E -MAIL ADDRESS (Optional): Castella@mhalaw.com
SUPERIOR COURT OF CALIFORNIA, COUNTY OF Sonoma
STREET ADDRESS: 600 Administrative Drive
MAILING ADDRESS:
CITY AND ZIP CODE: Santa Rosa, CA 95403
BRANCH NAME:
PLAINTIFF: Iona Sime, et al.
DEFENDANT: City Of Rohnert Park
ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT
FULL ❑ PARTIAL ❑ MATURED INSTALLMENT
Satisfaction of the judgment is acknowledged as follows:
a. E Full satisfaction
(1) ❑ Judgment is satisfied in full.
(2) E The judgment creditor has accepted payment or performance other
than that specified in the judgment in full satisfaction of the
judgment.
b. ❑ Partial satisfaction
The amount received in partial satisfaction of the judgment is $
c. ❑ Matured installment
All matured installments under the installment judgment have been
satisfied as of (date):
2. Full name and address of judgment creditor:*
City of Rohnert Park, 130 Avram Avenue, Rohnert Park, CA 94928
3. Full name and address of assignee of record, if any:
4. Full name and address of judgment debtor being fully or partially released:*
See Attachment "A ".
5. a. Judgment entered on (date): July 12, 1995 and October 24, 1997
b. ® Renewal entered on (date): October 2, 2007
CASE NUMBER:
SCV 166309
FOR COURT USE ONLY
6. ® An ❑ abstract of judgment ® certified copy of the judgment has been recorded as follows (complete all
information for each county where recorded):
COUNTY DATE OF RECORDING INSTRUMENT NUMBER
Sonoma February 2, 1998 1998 0010103
Sonoma February 2, 1998 1998 0010104
Sonoma February 2, 1998 1998 0010105
7. ❑ A notice of judgment lien has been filed in the office of the Secretary of State as file number (specify):
NOTICE TO JUDGMENT DEBTOR: If this is an acknowledgment of full satisfaction of judgment, it will have to be recorded in each
county shown in item 6 above, if any, in order to release the judgment lien, and will have to be filed in the office of the Secretary of
ate to terminate any judgment lien on personal property..
Date: (SIGNATURE OF JUDGMENT CREDITOR OR ASSIGNEE OF CREDITOR OR ATTORNEY-)
'The names of the judgment creditor and judgment debtor must be stated as shown in any Abstract of Judgment which was recorded and is being released by this satisfaction. - A separate notary
acknowledgment must be attached for each signature.
Form Approved for Optional Use
Judicial Council of California ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT Code of Civil Procedure, §§724 DSO,
EJ -100 [Rev. January 1, 20051 724.120, 724.250
American LegalNet, Inc.
www.FormsWorktlow.com
ATTACHMENT TO
ACKNOWLEDGMENT OF SATISFACTION OF JUDGMENT
Names and addresses of Jud ent Debtors:
1. Iona Sime, dba Las Casitas de Sonoma
7545 Bridgit Drive
Rohnert Park, CA 94928
2. Hillsboro Property, Inc. [sic] and Paul Goldstone Enterprises, a Joint Venture, dba
Rancho Grande Mobilehome Park
5099 Snyder Lane.
Rohnert Park, CA 94928
3. Indian Springs Limited, a California limited partnership,
dba Rancho Verde Mobile Estate
c/o James & Associates
255 N. El Cielo Road, Suite 140 -286
Palm Springs, CA 92262
4. Rancho Feliz, Ltd., a California limited partnership,
dba Rancho Feliz Mobilehome Park
6607 Redwood Drive
Rohnert Park, CA 94928
5. Paul S. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928.
6. Barbara R. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
7. John Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
8. Margaret D. Heath, dba Valley Village Mobilehome Estates
Valley Village Mobilehome Estates
6404 Country Club Drive
Rohnert Park, CA 94928
1183670x3 8007 8/005 7