Background part2

Signed by: Stephen M. Blanchard, individual
Also see:
Certificate of Amendment of Articles of Incorporation
Filing Date: May 27, 1997
Bill Jones, Secretary of State
Instrument No. A492543
Filing Date: Aug 31, 1998
Instrument No. A-513347
State of California - Bill Jones, Secretary of State
Statement by Domestic Stock Corporation
Filing Date: June 28, 1999
Instrument No. 99-308012
State of California - Kevin Shelley, Secretary of State
Statement of Information (Domestic Stock Corporation)
1983

California Contractors State License Board, Dept of Consumer Affairs
Name: Avalon Sunset, A California Corporation
Doing Business As: Avalon Development Corp
Type: Corporation
License Class: General Building Contractor
License Number: 00443723
License Issue Date: 7/27/1983
License Expiration Date: 7/31/2003
Date License Renewed Late: 11/5/2001
Status: Clear
Standing: In good standing
Business and Principals:
Stephen Michael Gaggero
Title: Responsible Managing Officer/President/Secretary/Treasurer
Association date: 7/27/1983
Class: General Building Contractor
Last update to Business/Principal Information: 5/24/1991
Address: PO Box 2960 Ventura, Ca 93002
1984
Los Angeles County Superior Court
Case Name: Stephen M. Blanchard v. Brandy Percell, et al
Civil Case Number: WEC 084593
Filing Date: 01/10/1984
Plaintiff: Stephen M. Blanchard
Defendant: Brandy Percell
Richard Percell

Case Name: Jon Chambers, et al v. Stephen M. Blanchard
District: West (Santa Monica)
Plaintiff: Jon Chambers
Alex Clerke
Defendant: Stephen M. Blanchard
Civil Case Number: SOC 074159
District: South (Long Beach)
Plaintiff: Michael A. Chotkowski
California Secretary of State
Company Name: Clipper Development Corp.
Mailing Address: PO Box 2960
Ventura, Ca 93002
Type: Articles of Incorporation (Domestic)
Status: Active
Date of Incorporation: 10/29/1984
Registered Agent: Joseph J. Praske
Corporation Number: 1322462
Statement of Officers File Number: 0463176
Statement of Officers File Date: 10/12/1999
Officers, Directors: Stephen M. Gaggero
1985

Case Name: Stephen M. Blanchard, et al v. Anant Koomthong, et al
Civil Case Number: C 534031
District: Central (Los Angeles)
Kim Jackson
Defendant: Anant Koomthong
Ead Koomthong
Len Travis
Case Name: American City BK, et al v. Blanchard Construction Co., Inc.
Case Number: C 551321
Plaintiff: American City BK
Fed Dep Ins Corp
Defendant: Blanchard Construction Co., Inc.
Stephen M. Blanchard
1986
Multiple Advance Note
(Fluctuating with Prime)
January 7th, 1986
Mitsui Manufacturer's Bank
William P. Koffler
Title: Assistant Cashier

Amount: $110,000
Signing for Blanchard Construction Co. Inc.:
Also Exhibit for:
CORPORATE FRANCHISE AND PERSONAL INCOME TAX HEARING
APPEAL OF AVALON SUNSET (No. 283190)
REPORTER'S TRANSCRIPT
SEPTEMBER 20, 2005
ITEM B-10
.
Promissory Note
Fixed Rate Mortgage Loan
Interest Only
September 12, 1986
Between:
Hawthorne Savings and:
Stephen Gaggero, individually
Stephen Gaggero, Manager of
Sulpher Mountain Land and Livestock Co. LLC, a limited liability company
Stephen Gaggero, President of
Blanchard Construction Co. Inc., a California corporation, DBA Avalon
Development Corp.
Also Exhibit for:

CORPORATE FRANCHISE AND PERSONAL INCOME TAX HEARING
APPEAL OF AVALON SUNSET (No. 283190)
REPORTER'S TRANSCRIPT
SEPTEMBER 20, 2005
ITEM B-10
.
1987
Case Name: People of California v. Stephen M. Blanchard, et al
Plaintiff: People of California
Howard Gabe
Antonio Rendon
Case Name: Stephen M. Blanchard v. Cory Titus
Defendant: Cory Titus

Case Name: Stephen M. Blanchard v. Dale Evans
Defendant: Dale Evans
Case Name: Stephen M. Blanchard v. Leonard Phillips
Defendant: Leonard Phillips
Case Name: Stephen M. Blanchard v. Joel Kaith, et al
Defendant: Joel Kaith
Tanya Lapinski Kaith
Tanya Lapinksi
1988

Case Name: Stephen M. Blanchard v. Richard Krutosik, et al
Defendant: Richard Krutosik
Robert Krutosik
Case Name: Stephen M. Blanchard v. City of Los Angeles
Defendant: City of Los Angeles
Case Name: Stephen M. Blanchard v. Yadollah Salarvand
Defendant: Yadollah Salarvand
Case Name: California Coastal Commission, et al v. Stephen M. Blanchard

Plaintiff: California Coastal Commission
California State Lands Commission
Case Name: Stephen M. Blanchard v. American Savings & Loan Assn, et al
Defendant: American Savings & Loan Assn
Glendale Fed Escrow
World Title Co.
Case Name: Stephen M. Blanchard v. Jano, Inc., et al
Defendant: Jano, Inc.
Marina Coachworks
Robert Turnage
1989
State of California, California Coastal Commission

Deed Restriction:
1. Whereas, Stephen M. Blanchard (“Owner”), is the owner of the real
property located at 511, 517, 523, and 601 Ocean Front Walk, Venice,
City of Los Angeles, County of Los Angeles, State of California.
Signatory:
Date Signed: July 10, 1989
Recorded in Official Records: July 11, 1989
California Secretary of State
Company Name: Animal Art Gallery, Inc.
Mailing Address: PO Box 1109
Venice, Ca 90294
Type: Articles of Incorporation (Domestic)
Status: Dissolved
Date of Incorporation/Qualification: 7/25/1989
Registered Agent: Stephen M. Blanchard
Corporation Number: 1465705
Statement of Officers File Number: 0255207
Statement of Officers File Date: 06/04/1990
Officers, Directors: Stephen M. Blanchard
1990
Case Name: Stephen M. Blanchard v. GBS Construction, Inc.

Defendant: GBS Construction, Inc.
California Secretary of State, UCC Record
Debtor: Stephen M. Blanchard
33222 Pacific Coast Hwy
Malibu, Ca
Secured Parties: First Federal Savings Bank of California
Filing Number: 90165663
Status: Active
Type: Financing Statement
Case Name: Venice North Beach Coalition Inc. v. Stephen M. Blanchard
Civil Case Number: BC 008732
Plaintiff: Venice North Beach Coalition, Inc.
City of Los Angeles
PO Box 1109
Venice, Ca
Secured Parties: First Federal Savings Bank of California
Status: Active
Type: Financing Statement

Case Name: Stephen M. Blanchard v. American International Bank, et al
Defendant: American International Bank
David Mandich
Case Name: Stephen M. Blanchard v. California Fair Plan Assn
Defendant: California Fair Plan Assn
1991
Case Name: Stephen M. Blanchard v. City of Los Angeles
Civil Case Number: BS 005293
Case Type: Special Procedure
Defendant: City of Los Angeles

1992
Los Angeles County / Recorder of Deeds
Address: 1422 Washington Blvd
Venice, Ca 90294
Creditor: County of Los Angeles
Amount: $1,573
Number: 9324358
Type: County Tax Lien Release
Entered: 03/30/1992
Released: 01/06/1993
Address: 1422 Washington Blvd
Venice, Ca 90294
Amount: $3,109
Number: 9324359
Type: County Tax Lien Release
Entered: 3/30/1992
Los Angeles Municipal – Los Angeles County
Debtor: Laura Maldonado
Address: 517 Ocean Front Walk #1 & 2
Creditor: Stephen M. Blanchard
Amount: $5,006
Number: 92U27049
Type: Civil Judgment

Entered: 04/19/1992
Case Name: Stephen M. Blanchard v. Giorgette, et al
Civil Case Number: SC 019204
Defendant: Giorgette
Antonio Rendon
1993
Case Name: City National Bank v. Blanchard Construction Co., Inc., et al
Plaintiff: City National Bank
Defendant: Blanchard Construction Co., Inc.
Case Name: Stephen Michael Blanchard, et al v. Name Change
Civil Case Number: SS 005142

Case Type: Special Procedure
Plaintiff: Stephen Michael Blanchard
Stephen Michael Gaggero
Defendant: Name Change
1994
Case Name: Stephen M. Blanchard v. Emmanuelle, et al
Defendant: Emmanuelle
Genko
Viallant Pierre
Case Name: First Federal Bank of California v. Stephen M. Blanchard, et al
Plaintiff: First Federal Bank of California
Seymour L. Block
Sylvia Block
Max Candiotty
Lynn Finkel
Dave Finkel

Case Name: Seymour L. Block, et al v. Stephen M. Blanchard
Plaintiff: Seymour L. Block
Sylvia Block
Max Candiotty
Dave Finkel
Lynn Finkel
Case Name: Sidney Beck v. Stephen M. Blanchard
Plaintiff: Sidney Beck
Jack Brauns
Jack Brauns MD, Inc.
Donel H Elshire
Donel H Elshire MD, Inc.
Oscar Jackson
Matcha Family Trust
Morrie Matcha
Bernard Rothman
Richard Schoenen
Etema Shilyanski
Shilyanski MD, Inc

Case Name: Charlotte Zitnick, et al v. Stephen M. Blanchard
Plaintiff: Charlotte Zitnick
Zitnick Family Trust
Mary Zitnick Living Trust
California Civil Case Filings
Plaintiff: GeoScience Analytical Inc
Defendant: Steven Blanchard
L. M. Schulner & Associates
Lawrence M. Schulner
Case Number: 012094
County: Ventura
Property Transfer Record for Los Angeles County, California
Buyer: Stephen M. Gaggero (Married man as his sole and separate property)
Buyer Mailing Address: PO Box 1109, Venice, Ca 90294
Seller: Sherry Wolfenbarger Gaggero (Married woman as her sole and
separate property)
Seller Mailing Address: PO Box 1109, Venice, Ca 90294
Sale Date: 05/13/1994
Recorded Date: 12/30/1994
Document Number: 94-2293779
Deed-Type: Intra-Family Transaction
Legal Description: City: Multiple lots, including a portion of one or more
lots; Lot: 287, 289; Block: 6; City: Los Angeles; Subdivision: Golden Bay
Tract; Recorder’s Map Reference: MB2 PG15
Brief Description: Lot287 EXC NELY35 Ft Thereof LOT291 & NWLY 2-
1/2 Ft LOT293 Blk6

separate property)
Sale Date: 05/13/1994
Legal Description: Lot 79 & 80; City: Los Angeles; Tract Number: 9408;
Recorder’s Map Reference: MB137 PG70-80
separate property)
Sale Date: 05/13/1994
Assessor’s Parcel Number: 4473-18-12 (Multiple APNs appear on the
conveying instrument)
Legal Description: City: Malibu; Recorder’s Map Reference: PAT1 PG407
Brief Description: Portion of the Rancho Topanga Malibu Sequit

separate property)
Sale Date: 05/13/1994
Legal Description: Lot: 271; Block: 5; City: Los Angeles; Subdivision:
Golden Bay Tract; Recorder’s Map Reference: MB2 PG15
Property Transfer Record for Ventura County, California
separate property)
Sale Date: 05/13/1994
Assessor’s Parcel Number: 035-0-110-015, (Multiple APNs appear on the
Legal Description: City: Unincorporated; Subdivision; Subdivision O
Rancho Ex Mission; Tract Number: 1; Recorder’s Map Reference: MR2
PG103
Case Name: Stephen M. Blanchard, et al v. Steven Schlein, et al
Stephen M. Gaggero
Defendant: Steven Schlein

John Stein
Venice North Beach Coalition
West Los Angeles Municipal – Los Angeles County
Debtor: Sung Sun Chun
Address: 511 Ocean Front Walk #1
Venice, Ca 90291
Creditor: Stephen M. Gaggero
Number: 94X06307
Type: Forcible Entry/Detainer
Entered: 12/13/1994
Debtor: Steve Mirsch
Venice, Ca 90291
Number: 94X06382
Type: Forcible Entry/Detainer
Entered: 12/23/1994
1995
Ventura County Court (RD)
Address: PO Box 1109
Venice, Ca 90291

Creditor: State of California
Amount: $56,605
Number: 95020658
Entered: 2/21/1995
Ventura County Court (RD)
Venice, Ca 90291
Creditor: State of California
Amount: $56,605
Number: 95042007
Certificate Number: 95046008354
Entered: 02/21/1995
Venice, Ca 90291
Number: 95366197
Type: State Tax Lien Release
Entered: 03/09/1995
Venice, Ca 90291
Number: 95873162
Type: State Tax Lien Release

Entered: 03/09/1995
Property Transfer Record For Los Angeles County, California
Buyer Mailing Address: 33222 Pacific Coast Hwy, Malibu, Ca 90265
Seller: Stephen M. Gaggero (Married man as his sole and separate property);
Stephen M. Blanchard f/k/a
Property Address: 33222 Pacific Coast Hwy, Malibu, Ca 90265
Sale Date: 3/13/1995
Deed Type: Intra-Family Transaction
Assessor’s Parcel Number: 4473-019-023
Legal Description: City: Malibu; Recorder’s Map Reference: Pat1 PG407
Brief Description: Portion of Rancho Topanga Malibu Sequit
Title Company: Old Republic Title Company
Buyer: Clipper Development Corp (Company/Corporation)
Seller: Stephen M. Gaggero (Married man as his sole and separate property)
Property Address: 2222-2224 Mara Villa Dr, Hollywood, Ca
Sale Date: 04/19/1995
Deed Type: Quit Claim Deed

Legal Description: Multiple Lots, Including a portion of one or more lots;
Lot: 79 & 80; City: Los Angeles; Tract Number: 9408; Recorder’s Map
Reference: MB137 PG70-80
Brief Description: Except FR SD LOT80 E10 Ft Thereof
Lender: Stephen M. Gaggero
Type of Mortgage: Seller Take-Back
Loan Amount: $243,687
Los Angeles Superior Court – Los Angeles County
Debtor: Stephen M. Blanchard (aka)
Creditor: Barry A. Fisher
Address: 3963 Patrick Henry Place
Agoura Hills, Ca 91301
Amount: $43,891
Number: BC109521
Entered: 07/10/1995
Los Angeles Superior Court – Los Angeles County
Debtor: Stephen M. Blanchard (aka)
Address: 33222 Pacific Coast Hwy
Malibu, Ca 98265
Creditor: Zitnick Family Trust
Amount: $563,402
Entered: 08/17/1995
Case Name: Stephen M. Gaggero v. First Federal Bank of California

Plaintiff: Stephen M. Gaggero
Defendant: First Federal Bank of California
John Alexander Co., et al v. Steve Gaggero, et al
Plaintiff: John Alexander Co.
John W. Park
Defendant: Steve Gaggero
Avalon Development Corp
Blanchard Construction Co., Inc.
Buyer: Stephen M. Gaggero (Married man), Married man as his sole and
separate property
Buyer Mailing Address: 33218 Pacific Coast Hwy, Malibu, Ca 90265
Seller: Stephen M. Gaggero (Married man); Stephen M. Blanchard f/k/a
Property Address: 33218 Pacific Coast Hwy, Malibu, Ca 90265
Sale Date: 12/18/1995
Deed Type: Intra-Family Transaction
Legal Description: Recorder’s Map Reference: PAT1 PG407
Brief Description: Portion of Rancho Topanga Malibu Sequit
Lender: Keros Mozilo Mtg
Type of Mortgage: Variable / Adjustable Rate
Loan Amount: $3,500,000
Rate: 9.25%

1996
California Civil Case Filings
Petitioner: Stephen M. Gaggero
Mark W. Mooring
Defendant: County of Ventura
Case Number: 161731
County: Ventura
Also see:
Mark Mooring
From the May 26-June 1, 2004 issue of Metro, Silicon Valley's Weekly
Newspaper.
State of California County of Los Angeles Verification Form
I have read the foregoing Petition for Writ of Mandate and know its
contents.
I am the attorney for the Plaintiff in this action. Such party is absent from
the county of aforesaid where such attorneys have their offices, and I make
this verification for and on behalf of that party for that reason. I am informed
and believe and on that ground allege that the matters stated in the foregoing
document are true.

I declare under penalty of perjury under the laws of the State of California
that the foregoing is true and correct and that this verification was executed
on January 12, 1996, at Santa Monica, California.
Signed:
Stephen M. Gaggero
(emphasis added)
California Secretary of State, LTP/LLC Record
Company Name: Sulphur Mountain Land and Livestock Co., LLC
Business Address: 1437F S Victoria Avenue #201
Ventura, Ca 93003
Mailing Address: 1437F S Victoria Avenue #201
Ventura, Ca 93003
Type: Domestic Filing
Status: Active
State or Country of Incorporation: California
Registered Agent: Joseph J Praske
Also see:
Limited Liability Company Statement of Information
Filing Date: January 24, 1997
Received: October 9, 1996
Filing Date: April 15, 1998

Limited Liability Company Statement of Information Renewal
Filing Date: March 04, 2002
Filing Date: December 08, 2003
Property Transfer Record For Ventura County, California
Buyer: Sulphur Mountain Land & Livestock Co., LLC
(Company/Corporation)
Seller: Stephen M. Gaggero (Married man); Mark W Mooring (Single or
unmarried man)
Sale Date: 01/22/1996
Deed Type: Quit Claim Deed
Assessor’s Parcel Number: 035-110-01-5 (Multiple APNs appear on the
Legal Description: Subdivision: Subdivision O Rancho Ex Mission San
BuenaVentura: Recorder’s Map Reference: MB2 PG103
Case Name: First Federal Bank of California v. Stephen M. Blanchard

Stephen M. Gaggero
Case Name: Stephen M. Gaggero, et al v. Charlotte Zitnick, et al
S. L. Stacey
Defendant: Charlotte Zitnick
Mary Zitnick Living Trust
Natalie Zitnick
Stanley Zitnick
Venice, CA 90294
Amount: $424
Number: 96539964
Type: County Tax Lien
Entered: 04/04/1996

Venice, CA 90294
Amount: $424
Number: 971110965
Type: Filed in Error – County Tax Lien
Entered: 04/04/1996
Case Name: Stephen M. Gaggero v. Dovenmeuhle Mtg, et al
Defendant: Dovenmeuhle Mtg
Independent National Mtg
Keros Mozilo Mtg Bank
Case Name: American International Bank v. Stephen M. Blanchard, et al
Plaintiff: American International Bank
Stephen M. Gaggero
Buyer: Stephen M. Gaggero

Seller: Clipper Development Corp (Company/Corporation)
Sale Date: 06/03/1996
Deed Type: Deed in Lieu of Foreclosure
Legal Description: Lot: 80; City: Los Angeles; Tract Number: 9408;
Title Company: Investors Title Co
Buyer: Charlotte Zitnick (Trustee/Conservator); Mary Zitnick Living Trust;
Stanley Zitnick (Trustee/Conservator); Natalie Zitnick
(Trustee/Conservator), Living Trust
Buyer Mailing Address: 1900 Avenue of the Stars 28th
Floor, Los Angeles,
CA 90067
Seller: Stephen M. Gaggero (Married man)
Sale Date: 06/03/1996
Sale Price: $150,000 (Full amount computed from Transfer Tax)
County Transfer Tax: $165.00
City Transfer Tax: $675.00
Deed Type: Grant Deed
Legal Description: Lot: 80; City: Los Angeles; Tract Number: 9408;
Title Company: Investors Title Company
Case Name: Stephen M. Gaggero v. Seymour Block, et al

Defendant: Seymour L Block
Sylvia Block
Max Candiotty
Dave Finkle
Lynn Finkle
Case Name: S.L. Wolfenbarger Gaggero v. Stephen M. Gaggero
Civil Case Number: BD 239674
Case Type: Domestic
Plaintiff: S.L. Wolfenbarger Gaggero
Defendant: Stephen M. Gaggero
Los Angeles County of California Recorder’s Office
Recorded November 18th
, 1996
Subordination Agreement relating to Deed of Trust dated November 15,
1996, securing a Note in the sum of $7,300,000, dated September 12, 1996,
in favor of Hawthorne Savings:
Agreement Date: November 15th
, 1996
Agreement Between:
Blanchard Construction Co., Inc., a California corporation, dba Avalon
Development Corp.,

Stephen M. Gaggero, a married man as his sole and separate property,
Sulphur Mountain Land and Livestock, LLC, a limited liability company,
and subordinating Lienholder (all the foregoing “Borrower”),
Hawthorne Savings, F.S.B. (“Hawthorne”), and
Development Corp. (“Subordinating Lienholder”)
Signing for:
Stephen M. Gaggero, a married man as his sole and separate property:
Stephen M. Gaggero
Development Corp:
Stephen M. Gaggero
Its: President
Sulphur Mountain Land and Livestock, LLC, a limited liability company:
Stephen M. Gaggero, Manager
Hawthorne Savings, F.S.B.
William R. Brown, Sr. Vice President
Debtor: Alexander C Sanchez
Venice, Ca 90291
Amount: $13,750
Number: 96X02382
Entered: 11/27/1996
State of California – Certificate of Title
Automobile:
Vehicle: 81 Jeep

Issue Date: 12/26/1996
Plate Number: 3JCK629
Date: 9/27/2002
Registered Owner: Avalon Development Corp, PO Box 1109, Venice Ca
90294
Signatory: Stephen M. Gaggero, President of Avalon Development
1997
Received: October 9, 1996
1. Sulphur Mountain Land and Livestock Co.
PO Box 1109, Venice, Ca, 90291
2. File No. 101996022059
4. Agent for Service of Process: Jennifer E. Kilpatrick
517 Ocean Front Walk, Suite 10, Venice, Ca
90291
5. Street Address of the principal executive office:
517 Ocean Front Walk, Suite 10, Venice, Ca
90291
7. List the name and complete address of any manager or mangers, and chief
executive officer, if any, or if none have been appointed or elected, provide
the name and address of each member:
Name and Title:
Stephen M. Gaggero Member
517 Ocean Front Walk, Suite 10, Venice, Ca 90291

Mark W. Mooring Member
P.O. Box 6102, Malibu, Ca, 90264
8. Real Estate Investment
10. Signed By: Gerard N. Casale - Attorney in Fact
Date Signed: January 21, 1997
Due Date: 01/22/1997
Buyer: Monticello Properties SA (Company/Corporation)
Buyer Mailing Address: 777 S Figueroa St, Unit 34, Los Angeles, Ca
90017-5418
Seller: Stephen M. Gaggero (Seller name extracted from Assessment date)
Property Address: 33222 Pacific Coast Hwy, Malibu, Ca
Sale Date: 03/26/1997
Legal Description: City: Malibu
Brief Description: Land of Matthew Keller in the Rancho Topanga Malibu
Sequit Lot EX of ST Com S 9 14’30 W 40 Ft From
Title Company: Chicago Title Co
Fictitious Business Name Statement
Recording Date: May 22, 1997
2. Avalon Development Corp
6. The registrant commenced to transact business under the fictitious
business name or names listed above on (Date): 5/11/1992
8: Corporation Name: Blanchard Construction Co., Inc.

President: Stephen M. Gaggero
Signed: Stephen M. Gaggero
Secretary of State of California
Blu House, LLC
Number: 199714310057
Date Filed: 5/23/1997
Status: Active
Agent for Service of Process: Joseph Praske
Filing Date: May 27, 1997
Instrument No. A492543
Stephen M. Gaggero certifies that:
1. He is the President and the Secretary of BLANCHARD
CONSTRUCTION CO., INC., a California corporation.
2. Article One of the Articles of Incorporation of this Corporation are
amended to read as follows:
"The name of the Corporation shall be: AVALON SUNSET, A
CALIFORNIA CORPORATION."
3. The foregoing amendment of Articles of Incorporation has been duly
approved by the Board of Directors.
4. The foregoing amendment of Articles of Incorporation has been duly
approved by the required vote of shareholders in accordance with Section
902 of the Corporations Code. The total number of outstanding shares of the
corporation is Ten Thousand. The number of shares voting in favor of the
amendment equals or exceeds the vote required. The percentage vote
required was more than 50%.

Signed By: Stephen M. Gaggero, President
Signed By: Stephen M. Gaggero, Secretary
The undersigned declares under penalty of perjury that the matters set forth
in the foregoing certificate are true of his own knowledge. Executed at
Venice, California on May 21, 1997.
Signed By: Stephen M. Gaggero, and individual
Corporation #: 0932407
Buyer: Blu House LLC (Company/Corporation)
Seller: Stephen M. Gaggero (Seller name extracted from Assessment date);
Property Address: 523 Ocean Front Walk, Venice, Ca
Sale Date: 06/02/1997
Legal Description: City: Los Angeles
Brief Description: Golden Bay Tract Lot Com at Most S Cor of Lot 277
BLK 5 Th N 51 12’ E 70.9 Ft Th N 38 48’ W 65 Ft Th
Title Company: Chicago Title
Fictitious Business Name Statement
1. Avalon Corporation

2. Avalon Farms
7a: Corporation Name: Avalon Sunset, a California corporation
President: Stephen M. Gaggero
Signed: Stephen M. Gaggero
Mortgage Record for Los Angeles County, California
Borrower: Stephen M. Gaggero (Single or unmarried man); Stephen M.
Blanchard a/k/a
Recording Date: 06/13/1997
Legal Description: LOT: 277; Block 5; City: Los Angeles; Subdivision:
Golden Bay Tract
Mortgage Type: Non-Purchase Money
Lender: Avalon Sunset
Lender Type: Other (Company or Corp)
Loan Type: Undetermined
Geographical Information:
MSA: Los Angeles-Riverside-Orange County, Ca CMSA (49)
Los Angeles-Long Beach, CA PMSA (4480)
Los Angeles County, California (FIPS=06037)
(49448006037)
Blanchard f/k/a

Legal Description: LOT: 277; Block 5; City: Los Angeles; Subdivision:
Golden Bay Tract
Brief Description: Except therefrom E72.30 Ft Thereof MEA AL NLY LN
Sunset Avenue
Lender: Hawthorne SVFS FSB
Lender Type: Bank
Type of Financing: Fixed Rate
(49448006037)
Debtor: Kimberley McKibbin
Venice, Ca 90291
Amount: $2,650
Number: 97X01671
Entered: 08/25/1997
Buyer: Stephen M. Gaggero (Single or unmarried man)
Seller: Stephanie Ray Boren (Married woman)

Property Address: 31012 Broad Beach Road, Malibu, Ca 90265
Sale Date: 09/11/1997
Brief Description: Tract No 12314 VAC St ADJ NE and that Part NE of
Mean High Tide Line of Pacific Ocean of Lot 39
Lender: Home Savings of America
Type of Mortgage: Adjustable Rate
Term: 10/10/2027
Title Company: Chicago Title Co
Plaintiff: Avalon Sunset, A California corporation, fka Blanchard
Construction Company, Inc., Stephen M. Gaggero, an individual
Defendant: Lurie & Zepeda, a professional corporation, Bruce J. Lurie, an
individual, and DOES 1 through 10, inclusive
Case Name: Avalon Sunset, et al v. Bruce J. Lurie, et al
Plaintiff: Avalon Sunset
Blanchard Construction Co., Inc.
Stephen M. Gaggero
Defendant: Bruce J. Lurie
Lurie & Zepeda
1.
Introduction.

Gaggero's opposition raises a whole host of attacks on the arbitration award,
including a mean spirited and unsupported attack on the integrity of the
arbitrator who Gaggero maliciously and without any factual basis accuses of
having "developed an intense personal dislike of plaintiff." Gaggero's
unrestrained attacks on the arbitrator and the arbitration award amount to
nothing more than sour grapes for having lost an arbitration which Gaggero
started by suing L&Z in this court and at most amount to assertions of legal
or factual error which are not reviewable in this court.
To the extent that Gaggero contends the arbitration award exceeded the
arbitrator's powers, he merely rehashes old arguments that he
unsuccessfully made previously in this court in opposition to L&Z's motion
to compel arbitration -- which this court granted -- and then later in support
of his motion to stay the arbitration -- which this court denied. For the same
reasons Gaggero's arguments were rejected before, they should be rejected
again. The arbitrator did not exceed his powers by issuing a binding
arbitration award because the arbitrator -- and this court before him --
rationally concluded that under the arbitration agreement Gaggero had
agreed to binding arbitration before the American Arbitration Association in
accordance with its rules and that any right to jury trial did not apply to the
arbitration
Buyer: Stephen M. Gaggero (Single or unmarried man)
Seller: James Walters; Debra Walters (Husband and Wife); Mark R
Friedland (Married man)
Seller Mailing Address: 14724 Ventura Blvd 2nd
Floor, Sherman Oaks, Ca
91403
Property Address: 4108 Glencoe Ave, Los Angeles, Ca 90292
Sale Date: 09/17/1997
Sale Price: $475,000 (Full amount computed from Transfer Tax)
County Transfer Tax: $522.50
City Transfer Tax: $2,137.50

Assessor’s Parcel Number: 97-1447432
Legal Description: City: Los Angeles; Subdivision: Wrights Addition of
Ocean Park
Brief Description: M B 5-174*SE 94.96 Ft (Ex of St) of LOT 77 and (Ex of
St) LOT 78
Lender: James Walters
Blanchard f/k/a
Mailing Address: PO Box 1109, Venice, Ca 90294
Grant Deed/Document Number: 97-1447430
Brief Description: Tract No 12314 VAC St ADJ on NE and that Part NE of
Mean High Tide Line of Pacific Ocean of LOT 39
Mortgage Type: Purchase Money
Lender: Home Savings of America
Lender Type: Bank
Type of Financing: Adjustable Rate
Due Date: 10/10/2027
(49448006037)
Blanchard f/k/a

Mailing Address: PO Box 1109, Venice, Ca 90294
Grant Deed/Document Number: 97-1447432
Ocean Park
Brief Description: M B 5 – 174*SE 94.96 Ft (Ex of St) of LOT 77 and (Ex
of St) LOT 78
Mortgage Type: Purchase Money
Lender: James Walters
Lender Type: Seller
Loan Type: Seller Take-Back
(49448006037)
Secretary of the State of California
Avalon Farms LLC
Number: 199726510021
Date Filed: 9/22/1997
Status: Active
Jurisdiction: California
Agent for service of process: Richard Taubman 1132 Prospect St, La Jolla,
Ca 92037
1998
Buyer: Malibu BroadBeach LP (Partnership)
Seller: Stephen M. Gaggero (Single or unmarried)

Property Address: 31012 Broad Beach Road, Malibu, Ca 90265
Sale Date: 02/05/1998
Brief Description: Tract No. 12314 VAC ST ADJ on NE and that Part NE of
Mean High Tide Line of Pacific Ocean of Lot 39
Secretary of the State of Nevada
Genova Holdings LLC
Corp Number: LLC1487-1998
File Date: 3/18/1998
Expiration Date: 3/18/2498
Registered Agent: Joseph Praske
Officers: Manager - Joseph Praske
Avalon Holdings LLC
File Date: 4/9/1998
GWENHYFAR LLC
Status: Default
File Date: 4/9/1998

Buyer: Marina Glencoe LP (Partnership)
Seller: Stephen M. Gaggero (Single or unmarried)
Sale Date: 02/05/1998
Ocean Park
Brief Description: M B 5-174*SE 94.96 Ft (Ex of St) of LOT 77 and (Ex of
St) LOT 78
Company Name: Gingerbread Court L.P.
Business Address: 2802 Santa Monica Blvd
Santa Monica, Ca 90404
Status: Active
Members, Managers, Partners: Stephen M. Gaggero
Company Name: 511 OFW L.P.
Business Address: 2802 Santa Monica Blvd

Status: Active
Members, Managers, Partners: Stephen M. Gaggero
Buyer: 511 OFW LP (Company/Corporation)
Seller: Stephen M. Gaggero (Seller is owner on current Assessment File);
Stephen M. Blanchard a/k/a
Sale Date: 03/19/1998
Legal Description: City: Los Angeles; Subdivision: Golden Bay Tract
Brief Description: Golden Bay Tract LOT 271 BLK 5
Buyer: Gingerbread Court LP (Company/Corporation)
Seller: Stephen M. Gaggero (Seller is owner on current Assessment File);
Stephen M. Blanchard a/k/a
Sale Date: 03/19/1998
Legal Description: City: Los Angeles; Subdivision: Golden Bay Tract
Brief Description: Golden Bay Tract LOTS 273 and LOT 275 BLK 5

Secretary of State of Nevada
Excalibur Holdings LLC
Status: Active
File Date: 4/9/1998
Managed By: Managers
Officers: Joseph Praske
Filing Date: April 15, 1998
1. Sulphur Mountain Land and Livestock Co. LLC
2. Secretary of State File No. 101996022059
3. Jurisdiction of Formation: Venice, Ca 90291
4. Street address of principal office: 801 Garden Street, Suite 301, Santa
Barbara, Ca 93101
5. Street address in California of office where records are maintained (for
domestic only):
801 Garden Street, Suite 301, Santa Barbara, Ca 93101
7. Avalon Corporation
PO Box 389
Santa Barbara, Ca 93102
8. Name of Agent for Service of Process:
Joseph J. Praske, an individual residing in California
9. Street address for the Agent for Service of Process in California

2802 Santa Monica Blvd., Santa Monica, Ca 90404
10. Describe type of business of the Limited Liability Company:
Investments
12. Signed of Individual Authorized to Sign: Amanda McPherson, Vice-
President and Manager of Avalon Corporation
Date Signed: 04/01/1998
Case Name: Avalon Development Corp, et al v. State Farm Fire & Casual
Co, et al
Plaintiff: Avalon Development Corp
Stephen M. Gaggero
Defendant: State Farm Fire & Casual Co
Darv Howell
Pendragon Holdings LLC
Corporate Number LLC3391-1998
Managed by: Managers

Debtor (s): Stephen M. Gaggero
3963 Patrick Place
3963 Patrick Place
Secured Parties: Fleishman, Fisher & Moest and Barry A. Fisher
2049 Century Pk E 28th
Floor
% Cox, Castle & Nicholson LLP
Los Angeles, Ca 90067
Status: Active
Type: Judgment Lien
Filing Date: Aug 31, 1998
Instrument No. A-513347
Stephen B. Gaggero, the Chief Executive Officer, and Stephen M. Gaggero,
the Secretary of Avalon Sunset, a California Corporation, certify that:
1. Article Five shall be added to the articles to read as follows:
"The liability of the directors of the corporation for monetary damages
shall be eliminated to the fullest extent permissible under California Law."
2. Article Six shall be added to the articles to read as follows:
"The corporation shall have the power to indemnify agents of the
corporation to the fullest extent permissible under California law."
3. The foregoing amendments of the articles of incorporation have been duly
approved by the required vote of shareholders in accordance with Section

902 of the Corporation Code. The total number of outstanding shares of the
corporation is Ten Thousand. The number of shares voting in favor of each
of the amendments equals of exceeds the vote required. The percentage
required was more than 50%. Also, the amendment has been approved by
the board of directors.
4. The undersigned declare under penalty of perjury under the laws of
California that the foregoing is true and correct.
Executed at Santa Monica, California, on May 14, 1998
Signed By: Stephen B. Gaggero, CEO
Signed By: Stephen M. Gaggero, Secretary
Avalon Sunset, a California Corporation
Corporation #: 0932407
Case Name: Stephen M. Gaggero v. Darv Howell, et al
Defendant: Darv Howell
State Farm Fire & Casual
Case Name: Stephen M. Gaggero v. Sherman L Stacey

Defendant: Sherman L Stacey
Debtor: Stephen M. Gaggero aka Stephen M. Blanchard (Business)
3963 Patrick Henry Pl
Secured Parties: Jacob Tuck Mulligan
1611 Telegraph Ave Ste 1200
% Mark Goldowitz
Oakland, CA 94612
Steven Schlein
% Mark Goldowitz
Oakland, CA 94612
% Mark Goldowitz
Oakland, CA 94612
Status: Active
Type: Judgment Lien
Debtor: Stephen M. Gaggero aka Stephen M. Blanchard (Business)
Secured Parties: Jacob Tuck Mulligan

% Mark Goldowitz
Oakland, CA 94612
Steven Schlein
% Mark Goldowitz
Oakland, CA 94612
Jacob Tuck Mulligan
% Mark Goldowitz
Oakland, CA 94612
Status: Active
Type: Judgment Lien
Debtor: Stephen M. Gaggero A/K/A Stephen M. Blanchard (Business)
Secured Parties: John Picard Stein
1999 Avenue of the Stars, #1850
% Oberstein Donnirger Fetter Kibre & Horwitz
Status: Active
Type: Judgment Lien
Debtor: Stephen M. Gaggero A/K/A Stephen M. Blanchard (Business)

Secured Parties: John Picard Stein
1999 Avenue of the Stars, #1850
% Oberstein Donnirger Fetter Kibre & Horwitz
Status: Active
Type: Judgment Lien
1999
American Arbitration Association - Los Angeles Regional Office - Edward
J. Costello, Jr. Arbitrator
Interim Award
Case No. 72 1940047798
Date Signed: February 10, 1999
Claimants: Avalon Sunset, a California corporation, fka Blanchard
Construction Company, Inc., Stephen M. Gaggero, an individual.
Respondents: Lurie & Zepeda, a professional corporation; Bruce J. Lurie, an
individual, and DOES 1 through 50, inclusive.
And Related Cross-Claim: Case No. SC047267
The Arbitrator, having heard and considered the evidence over the course
of three days of hearings held on October 28-30, 1998, and one day of
hearing held on January 22, 1999, and having considered the arbitration
exhibits, entertained argument, read the arbitration briefs submitted by the
parties, now makes thie Interim Award. Claimants Avalon Sunset appeared
through its representative, Stephen Gaggero, and through its attorneys of
record Laura Slocumb and Peter Bezek, and Stephen Gaggero appeared
personally as well as through his attorneys Laura Slocumb and Peter Bezek

at the hearings held on October 28-30, 1998. Claimants were given due
notice of the hearing held on January 22, 1999, but failed to appear or send a
representative. Respondents Lurie & Zepeda and Bruce J. Lurie appeared
through their attorney Robert W. Denton at all four days of hearings.
In issuing this Interim Award, I have considered each and every
"controverted issue" and now set forth the factual and legal basis for my
decision as to the principal controverted issues.
[footnote - The AAA case administrator called counsel for Claimants before
proceeding with the hearing on January 22, 1999, and was advised that
neither Claimants nor their counsel intended to appear at the hearing. The
January 22, 1999 hearing was therefore conducted in the absence of
Claimant in accordance with Rule 31 of the Commercial Arbitration Rules
of the American Arbitration Association and evidence was taken from
Respondents. A draft Interim Award was circulated by Lurie & Zepeda.
Claimants' comments were solicited, but none was made. - and footnote]
I,
The CNB Lawsuit and the December 27, 1994 Settlement.
On or about April 20, 1998, Gaggero initiated the instant arbitration in
which he requests adjudication of the claims in his First Amended
Complaint. Hearings were held on October 28-30, 1998, during which
witnesses were heard and evidence was submitted.
The testimony and evidence adduced at the October, 1998, hearings
established that Gaggero was a sophisticated real estate investor and
developer who got in financial trouble during the early 1990's as a result of
the real estate recession in California. One of Gaggero's creditors during this
period was City National Bank ("CNB"). In June, 1993, CNB sued Gaggero
for defaulting on five promissory notes totaling $500,000. In addition,
Gaggero was indebted to CNB for about $30,000 in overdrafts which the
bank had covered for him. Gaggero claimed that he had overdraft protection
on his accounts at CNB which he contended was the equivalent of an
additional line of credit. Gaggero did not dispute, however, that he owed the
bank in excess of $530,000 in principal alone at the time CNB sued him.
Gaggero was initially represented in the CNB case by the firm of Rus,
Miliband & Smith ("Rus, Miliband"). Gaggero replaced Rus, Miliband with
Lurie & Zepeda ("L&Z"), and L&Z thereafter took over Gaggero's
representation in the CNB case. By December 1994, Gaggero's indebtedness

to CNB was approximately $800,000, including principal, accrued interest
costs, and attorney's fees claimed by CNB. Trial in the CNB case
commenced in Los Angeles Superior Court on December 22, 1994. On
December 27, 1994, after two days of trial, the parties reached a settlement
that was negotiated in the jury room of the courthouse. The parties
documented the principal settlement terms by interlineating by hand a
typewritten settlement offer that had been delivered by the bank of
Gaggero's attorney's the day before. (Arb. Exh. 225) The five-page
agreement dated December 27, 1994, was signed and initialed by the parties.
The agreement contained the following provision:
"Finally, Judge Huss, or if he is unavailable any other judge of the
superior court, shall retain jurisdiction over this matter to resolve any
material disputes that may arise during the drafting phase of the settlement.
The settlement set forth herein contemplates the execution of further
appropriate settlement documentation. The parties will cooperate in good
faith to complete the settlement documentation on or before January 6, 1995.
Any disputes concerning such further settlement documentation will be
resolved by the court as set forth above." Id.
The basic terms of the December 27, 1994 agreement were that Gaggero
would pay CNB a compromise amount of $400,000 payable over three
years, with a principal reduction of $35,000 due on or before July 1, 1995,
and another principal reduction of $40,000 dure on or before January 1,
1996. The December 27, 1994 agreement further provided that Gaggero did
not have to make any payments before July 1, 1995, and no interest was to
accrue for the intervening five months. Thereafter, interest was to accrue at
CNB's prime rate plus one percent (1%) until February 1, 1996, when
interest would begin to accrue at CNB's prime rate plue three percent (3%).
The remaining principal plus accrued interest was to be paid by January 1,
1998. In other words, the settlement provided that Gaggero could satisfy the
$800,000 he owed the bank by paying only $400,000, plus interest on the
$400,000, after five months.
The December, 1994, agreement further provided that the obligation was
to be secured by a stipulation of entry of judgment in the amount of
$800,000, which could be replaced by a second deed of trust on Gaggero's
real property interest in 517 Ocean Front Walk upon Gaggero's payment of
the $35,000 principal reduction payment due on or before July 1, 1995. The
obligation to pay $400,000 plus interest was to be evidenced by a
promissory note on the amount of $800,000, which would by payable in full

upon any default by Gaggero. The agreement contained the following
provision:
11. The Bank will consider in good faith any request by a third party
purchaser of the 517 Ocean Front Property to assume the obligations of Mr.
Blanchard (a.k.a. Mr. Gaggero) under the deed of trust. However, the deed
of trust will contain a due on sale clause. Therefore the Bank makes no
commitment as part of this settlement that it will actually permit such an
assumption. It's only commmitment is to consider in good faith the request
of a third party purchaser to assume the obligations of Mr. Blanchard under
the deed of trust. (Arb. Exh.225 1. (emphasis added).)
The settlement still had to be finalized through the drafting of a more
definitive agreement, and the parties had to agree on the terms of the note,
the stipulation for entry of judgment, and a deed of trust.
The terms of the December, 1994 agreement were read into the record in
open court, and the court entered a minute order the same day, which stated
as follows:
"Based on the representations of counsel, the court finds that this case has
settled, a copy of the handwritten settlement agreement is entered in
evidence as exhibit A and is attached to this minute order as though fully set
forth on the record. The court shall retain jurisdiction to resolve any disputes
to the settlement until the judgment is signed." (Arb. Exh. 226)
Counsel for CNB assumed responsibility for preparing the final
settlement documentation which was contemplated by the December, 1994
agreement. In late January 1995, CNB's attorneys forwarded a draft of the
settlement documentation to L&Z. On February 14, 1995, L&Z forwarded a
draft of the settlement documentation to L&Z. On February 14, 1995, L&Z
forwarded back to CNB's counsel a marked-up copy of the documents
containing numerous changes made by Gaggero himself. CNB's counsel met
with L&Z and Gaggero on February 28, 1995, for over three hours, in an
attempt to resolve differences in the settlement documentation. No
agreement was reached. On March 3, 1995, CNB's counselsent a thirty-one
page letter to L&Z responding to each and every one of Gaggero's proposed
changes. In mid-March 1995, CNB's counsel spoke directly to Gaggero in an
effort to resolve the differences over the final documentation, without
success. After further negotiations in late March, and early April, 1995,
failed to produce agreement, CNB filed a motion to enforce the December

27, 1994 agreement. (Arb Exh. 238) The post-December, 1994, negotiations
and motion papers indicated that approximately six issues were unresolved.
1. What were Gaggero's cure rights in the event of default? Gaggero
insisted on the right to reinstate the obligation at the compromise amount of
$400,000 by paying all past due amounts anytime up to five days before any
foreclosure sale.
2. What method would be required for giving Gaggero notice of default?
Gaggero insisted on personal delivery to him of any notice of default, even if
he was on safari in Africa.
3. Whether a buyer of the encumbered property could assume Gaggero's
obligation at the compromise amount, or whether the buyer had to assume
all of Gaggero's obligations, including the penalty for default that provided
that the obligation reverted to the $800,000 level? Gaggero contended that a
buyer should be able to assume the obligation at the compromise amount of
$400,000, less payments previously made, without assuming the obligation
to pay $800,000 upon a default.
4. Whether the deed of trust should include an assignment of rents
provision? Gaggero opposed such a provision.
5. Whether CNB would be required to give Gaggero monthly statements?
Gaggero demanded such statements.
6. Whether CNB should subordinate its security interest to existing
permit entitlements and future coastal permits? Gaggero insisted that CNB
agree to such a subordination. Id.
Gaggero wanted the final settlement documentation to reflect his position
on all the above issues. CNB argued that it never agreed to Gaggero's
position on the above issues and that Gaggero's position was inconsistent
with the December, 1994 agreement.
Gaggero, through L&Z, opposed CNB's motion and asked Judge Huss to
enforce Gaggero's version of the December, 1994 settlement. (Arb. Exh.
239.) At the May 22, 1995, hearing, Judge Huss took CNB's motion to
enforce under submission. While the motion to enforce was under
submission with Judge Huss, L&Z continued to attempt to reach a
negotiated solution with CNB, attending numerous meetings and settlement
conferences, with Judge Huss acting as settlement judge. These efforts
continued through early December, 1995, when CNB terminated the
negotiations and called upon Judge Huss to decide the bank's pending
motion to enforce. On February 20, 1996, Judge Huss, accordingly denied
CNB's motion. Specifically, Judge Huss after reviewing the declarations and

documentation of the parties concluded that CNB's motion should be denied
"because the agreement is incomplete and there are too many items which
were not resolved." (Arb. Exh. 266 (emphasis added).)
Following Judge Huss' decision refusing enforcement of the December,
1994 agreement, Gaggero again changed lawyers. On May 30, 1996,
Gaggero substituted the firm of Foley, Bezek & Komoroske (the "Foley
Firm") for L&Z. Subsequently, Gaggero and CNB entered into another
settlement agreement (the "September 1996 Settlement") which states that it
was "made and entered into as of this 11th day of September 1996." (Arb.
Exh. 33.) Under the September 1996 Settlement, Gaggero was to pay CNB a
lump sum payment of $460,000 in full settlement of the CNB Case.
II.
At the arbitration, Gaggero contended that L&Z committed malpractice
in connection with the preparation of the December 27, 1994 settlement.
Gaggero testified that the "key issue" for him in any settlement with CNB
was that the Bank agree to make the $400,000 obligation in the form of an
assumable loan so that any third-party purchases of 517 Ocean Front Walk
could assume the obligation free of any penalty in the event of default.
Gaggero testified that Sol Lopez of CNB orally agreed to make the $400,000
assumable when Gaggero agreed to make the second principal reduction
payment of $35,000 due on or before July 1, 1995, in addition to another
reduction payment of $40,000 due on or before January 1996. Gaggero
testified that this oral agreement was made in the jury room on the morning
of December 27, 1994, in the presence of the Bank's two lawyers, Tom
Robins and Robb Strom, and his own lawyers. Bruce Lurie and Amanda
McPherson. Gaggero contended that L&Z failed to draft the December 27,
1994 letter agreement so that the $400,000 obligation could be assumed by a
third-party purchaser free of the default penalty.
Gaggero sought to prove a breach of the standard of care by offering the
expert testimony of Gary Bostwick. Mr. Bostwick, however, conceded that
the standard of care would not require L&Z to prepare a settlement
agreement to which CNB never agreed, and he acknowledged that his
opinion was based on the assumption provision, or that Gaggero was misled.
It follows, therefore, that in order for Gaggero to prevail on his malpractice
and breack of fiduciary duty claims, he had to prove, at a minimum, either
that he was misled or that CNB agreed to permit assumption of Gaggero's

obligations -- without requiring the buyer also to assume Gaggero's
obligation to pay a penalty in the event of default.
The only evidence offered by Gaggero in support of such an agreement
was his own testimony that Mr. Lopez orally agreed to an assumption at the
meeting in the jury room on the morning of December 27, 1994, when the
letter agreement was crafted. In addition, Gaggero contended that certain
declarations submitted by Mr. Lurie in the CNB case constituted an
admission by Mr. Lurie that such an agreement by Mr. Lurie in the CNB
case constituted an admission by Mr. Lurie that such an agreement had been
made. Gaggero offered no evidence indicating that he was misled.
I did not find Gaggero's testimony credible, for several reasons. First,
although Gaggero testified that Mr. Lopez's oral agreement was made in
front of the Bank's two lawyers and his own two lawyers, the only witness
called by Gaggero, other than himself, was Mr. Lurie. Mr. Lurie testified
that, while the general issue of assumability was discussed, the parties'
discussions that day did not specifically address the issue of what would
happen upon a default by a buyer. Gaggero did not call any of the other four
persons he contended were witnesses to the oral agreement. Gaggero's
failure to call Ms. Amanda McPherson is particularly significant because she
was employed by Gaggero beginning in January, 1995, as an in-house
attorney. Second, Gaggero's own version of his conversation with Mr. Lopez
does not support Gaggero's conclusion that the bank agreed to an assumption
without the so-called default penalty to which Gaggero would be subject.
Gaggero's testimony was to the effect that he told Mr. Lopez that the bank
would have to give Gaggero a way to pay the loan off. Gaggero therefore
suggested that the Bank make it an assumable loan. According to Gaggero,
Mr. Lopez then told Gaggero that he would have to offer the bank something
in return in order for it to agree to make it assumable. Gaggero testified that
he responded by agreeing to give the bank an additional principal reduction
payment of $35,000 if the bank made the loan assumable and secured by 517
Ocean Front Walk. Gaggero testified that Mr. Lopez replied "okay."
Although this testimony suggests that the bank agreed to make the obligation
assumable, on which there is no dispute, the purported conversation between
Gaggero and Mr. Lopez did not address the issue of default, and whether the
penalty for default (owing $800,000 not $400,000) would apply to a third-
party purchaser in the same way that it applied to Gaggero. Third, the
language of the December 17, 1994, settlement agreement itself does not
make the obligation assumable without the default penalty. Indeed, the
emphasized language in paragraph 11 (quoted above) provides that the
bank's only obligation was to consider such a request in good faith.

Significantly, the request to which the bank was committed to consider was
"the request of a third party purchaser to assume the obligations of Mr.
Blanchard (a.k.a. Gaggero) under the deed of trust." Gaggero contradicted
himself with respect to whether he read the December 27, 1994, letter
agreement prior to signing it. He testified that he probably told Judge Huss
that he had read the December 27, 1994, letter agreement, that he
represented to Judge Huss that he understood it, and that he represented that
he agreed to its terms. At the same time, Gaggero testified (both
inconsistently and variously) that he either had not read the December 27,
1994, letter agreement before signing it, or that read it only cursorily, and
relied completely on his lawyer to advise him with respect to whether it
accurately reflected the terms of his supposed oral agreement with Mr.
Lopez.
Fourth, Gaggero throughout most of his testimony, presented himself as a
sophisticated businessman who buys, sells and develops real estate and has
entered into and negotiated many complex real estate financial contracts on
his own behalf. Mr. Lurie testified that Gaggero was actively involved in the
drafting process of the December 27, 1997 letter (which Gaggero did not
deny). Moreover, Mr. Bostwick, Gaggero's own expert witness (and former
counsel), agreed that a client who, like Gaggero, had had a previous bad
experience with the bank could not possibly think that paragraph 11 (quoted
above) meant that the loan could be assumed at the $400,000 level without
being subject to the default penalty. Despite this background and previous
bad experience with what he perceived to be CNB's failure to honor its past
oral promises. Gaggero sought to portray himself as a naive client who
placed his affairs completely in the hands of his lawyer and did not pay
attention to the document which memorialized the settlement. That
testimony was entirely incredible.
Gaggero also testified at length that statements made by Mr. Lurie in the
CNB case constitute admissions that CNB agreed to Gaggero's proposed
assumption provision, or that Mr. Lurie committed perjury in the CNB case.
Gaggero contended that principles of judicial estoppel preclude L&Z from
taking a different position in this litigation. I disagree for several reasons.
The statements of Mr. Lurie on which Gaggero relies constituted an
argument or opinion, not a representation as to past or existing fact, that
CNB implicitly agreed to such a provision, or that the Court should impose
such a term under the power to resolve disputes given to the Court by the
parties. In short, Mr. Lurie was advocating the best possible outcome for his
client. Moreover, the principles of judicial estoppel do not apply here. The
doctrine of judicial estoppel precludes a party from taking one position in

one action and an inconsistent position in another. Loube v. Loube, 64 Cal.
App. 4th 421, 428 (1998) (emphasis on original). Neither L&Z nor Mr.
Lurie was a party in the CNB case. They participated in the CNB case only
as Mr. Gaggero's lawyers. No authority has shown to me for the proposition
that the position taken by an attorney on behalf of his or her client in one
matter is binding on the attorney when later sued by that same client.
For all the reasons set forth above, I granted L&Z and Lurie's motion
(equivalent to a C.C.P. 631.8 motion) at the close of Claimant's case, on the
professional negligence and fiduciary duty claims only. Gaggero failed to
prove a breach of the professional standard of care because he did not prove
the existence of an agreement between him and CNB to make the obligation
of the December 27, 1994, settlement assumable by a third-party purchaser
without the default penalty, or to establish the element of proximate cause.
[footnote - I do not perceive any substantive difference between Gaggero's
claim for professional negligence and his claim for breach of ficuciary duty.
Rather, the latter claim appears to be based upon the same conduct as the
professional negligence claim and is therefore defective for the same
reasons. - end footnote] It is axiomatic that an action for professional
malpractice requires proof of actual loss or damage and a proximate causal
connection between the allegedly negligent conduct and the resulting
damage. Budd v. Nixen, 6 Cal 3d 195, 200 (1971). Indeed, proof of
proximate causation is an "indispensible element" in an attorney malpractice
claim and the Claimant bears the burden of establishing it. Brown v.
Critchfield, 100 Cal. App 3d 858, 866, (1980). Moreover, the fact of damage
must be proved with certainty "Uncertainty of the fact whether damages
were sustained is fatal to recovery." Bruckman v. Parliament Escrow Co.,
190 Cal. App. 3d 1051, 1061 (1989).
In a malpractice case alleging the mishandling of litigation: "The element
of causation demands proof by the Claimant that the Respondent's negligent
conduct resulted in damages, this burden involving, usually, the difficult task
of demonstrating that, but for the negligence complained of, the client would
have been successful in the prosecution or defense in the action in question."
Williams v. Wraxall, 33 Cal. App. 4th 120, 131 (1995). This standard -- the
case within a case -- essentially requires a malpractice Claimant to retry his
case and establish that he would have prevailed in the absence of
Respondent's alleged negligence. Id. at 132.
In this case, Claimant's expert, Mr. Bostwick, testified that the "case
within the case" analog in the settlement context required Gaggero to prove
that the settlement he agreed to on December 27, 1994, contained Gaggero's
version of the assumption provision. In order to prevail on his inadequate

documentation theory, Gaggero must therefore prove that there was an
agreement between CNB and Gaggero consistent with Gaggero's version of
the assumption agreement. In other words, L&Z cannot be guilty of
inadequate preparation of the December 27, 1994 settlement agreement
unless CNB did in fact agree to Gaggero's version and L&Z failed to draft
the December 27, 1994 settlement and obtain concessions from the bank that
he did not get earlier. Accordingly, there is no causal connection between
the alleged wrongful acts and omissions of L&Z and the injury alleged -- the
loss of the December 27, 1994 settlement.
III.
The Breach of Contract and Quantum Meruit Claims
After granting respondents' motion regarding the professional negligence
and breach of fiduciary duty claims, there remained Gaggero's breach of
contract claim against L&Z and L&Z's cross-claim against Gaggero for
breach of contract and quantum meruit. Gaggero's breach of contract claim
is based on L&Z's alleged failure to complete the CNB settlement and to see
the case through to completion. Gaggero's claim relies on a handwritten note
attached to a check which was allegedly made at a meeting on April 14,
1995, which Gaggero claims obligated L&Z to represent him through the
end the CNB case. The fundamental problem with this claim is that Gaggero
and L&Z entered into a typewritten agreement eleven days later (April 25,
1995) which provides otherwise. Under the April 25, 1995 written
agreement, the scope of L&Z's "Future Services" in the CNB case were
limited to specifically defined tasks, and L&Z's involvement would end after
the specifically enumerated activities were completed. It also provided that
Gaggero would pay L&Z the sum of $25,000 which "shall be due and
payable on or before September 1, 1995" and further provides that said sum
"shall accrue finance charges from September 1, 1995." The April 25, 1995
agreement did not require L&Z to represent Gaggero through the completion
of the CNB case.
I find that the April 25, 1995 agreement typewritten agreement was
intended by the parties to be a final expression of their agreement with
respect to such terms as are included therein, and that the April 14, 1995
note constitutes a prior agreement that is inconsistent with the April 25, 1995
written agreement. The April 14, 1995, note cannot under the parol evidence

rule in C.C.P. 1856 contradict the express terms of the April 25, 1995
typewritten agreement.
The evidence offered at the hearing established that L&Z performed all
of the "Future Services" required of it to be performed under the April 25,
1995, typewritten agreement, and indeed performed services over and above
the specifically defined services which had the value of $46,676.40.
Moreover, Gaggero admitted, in his earlier testimony, that he has not paid
L&Z the $25,000 which was required to pay on or before September 1,
1995. I therefore find that L&Z performed all of the "Future Services"
required by the April 25, 1995 typewritten agreement. In the alternative,
L&Z was excused from performing any further "Future Services" from and
after Septemeber 1, 1995, on account of Gaggero's failure to pay L&Z
$25,000 on or before September 1, 1995.
IV.
The Interim Award
Based on the foregoing, I make the following interim award.
1. Claimants take nothing on their claim for professional negligence.
2. Claimants take nothing on their claim for breach of fiduciary duty.
3. Claimants take nothing on their claim for breach of contract.
4. Respondent Lurie & Zepeda recovers the following sums on its
crossclaim against Avalon Sunset and Stephen Gaggero, jointly and
severally.
a. The sum of $25,000 as damages for breach of the April 25, 1995
written agreement.
b. The additional sum of $20,411.30 as contractual prejudgment interest
on the $25,000 through the date of this Interim Award, and
c. The additional sum of $46,676.40 for the reasonable value of L&Z's
services which exceeded the "Future Services" required by the April 25,
1995 agreement,
for a total reward of $92,087.70.
5. Respondents Lurie & Zepeda and Bruce J. Lurie are the prevailing parties
in this arbitration. Pursuant to stipulation, Respondents may file and serve a
documentary request for an award of their attorny's fees and costs of the
arbitration within ten (10) days of this Interim Award. Claimants will have

ten (10) days from receipt of Respondents' request to file and serve their
documentary opposition to said request. Upon receipt of Claimants'
opposition (or the passage of the date by which it must be filed and served),
these hearings will close and a final reward will be rendered within thirty
(30) days.
Dated: February 10, 1999
Signed By: Edward J. Costello, Jr., Arbitrator
Uniform Residential Loan Application, Loan no. 0906021-1:
Application date March 16, 1999:
Borrower: Joseph J. Praske, Trustee of the Giganin Trust dated 12/1/98
Subject Property Address: 3501 Canada Larga Road, Ventura, Ca 93001
Social Security Number: xxx-xx-5388 (Stephen M. Gaggero – added)
Age: 37 (not Gaggero’s age in 1999, but rather, Praske’s, born 5-1-61 -
added)
Property will be: Primary Residence
Borrower’s Signature: Joseph Praske
Date Signed: 3/24/99
Mortgage Record for Ventura County, California
Borrower: Sulphur Mountain Land & Livestock Co LLC
(Company/Corporation)
Assessor’s Parcel Number: 035-160-01-5
Legal Description: TRACT 1
Brief Description: Portion Sub O Rancho Ex Mission
Lender: Capital Investments LLC
Lender Type: Other (Company or Corp)

Ventura, Ca PMSA (8735)
Ventura County, California (FIPS=06111)
(49873506111)
Statement by Domestic Stock Corporation
1. Avalon Sunset, a California Corporation
2. 2802 Santa Monica Blvd.
Mailing Address: PO Box 2960, Ventura, Ca, 93002
Officers:
5. Chief Executive Officer: Stephen M. Gaggero
6. Secretary: Joseph J. Praske
7. Chief Financial Officer: Stephen M. Gaggero
Directors, including Directors who are also Officers:
8. Peter J. Bezek
9. James F. Walters
10. Joseph J. Praske
Designated Agent for Service of Process:
12. Joseph J. Praske
Describe the type of business of the corporation in Item 1.
14. Property Management
15. Signed by: Joseph J. Praske, Secretary, 06/25/1999

Debtor (s): Stephen M. Gaggero
POB 389
Santa Barbara, Ca 93102
Avalon Sunset, A California Corporation (Business)
2802 Santa Monica Blvd
Secured Parties: Lurie & Zepeda
9107 Wilshire Blvd Ste 800
Beverly Hills, Ca 90210
Status: Active
Type: Judgment Lien
Secretary of the State of California
Pacific Coast Management
File Date: 8/9/1999
Corp No. C19581-1999
4790 Caughlin Pkwy Suite 236, Reno, Nv.
Officers:
Treaurer: Gordon Freitas - PO Box 25070, Ventura, Ca 93002
President: Joseph J. Praske - 4790 Caughlin Pwky Ste 236, Reno, Nv, 89509
Secretary: Joseph J. Praske - 4790 Caughlin Pwky Ste 236, Reno, Nv, 89509
Director: Joseph J. Praske - 4552 Belita Lane, La Canada, Ca 91011
Merlin Equipment, Inc
Status: Default

Corporate Number: C19579-1999
File Date: 8/9/1999
President, Secretary, Treasurer, Director: Joseph Praske
2000
3. Jurisdiction of Formation: Ca
4. Street address of principal office: 1437F S. Victoria Ave. #201, Ventura,
Ca 93003
domestic only):
1437F S. Victoria Ave. #201, Ventura, Ca 93003
Investments

Manager:
Pacific Coast Management, Inc.
PO Box 25070
Ventura, Ca, 93002
12. Signed By: Joseph J. Praske, Secretary 01-14-2000
Due Date: 01/22/2000
Case Name: Foley Bezek & Komoroske, et al v. Stephen M. Gaggero
Plaintiff: Foley Bezek & Komoroske
Foley & Bezek LLP
Defendant: Stephen M. Gaggero
California Jury Verdicts Weekly
Stephen M. Gaggero v. Sherman L. Stacey; No. BC 199 640
Topic: Malpractice – Legal – Failure to Advise; Failure to Advise of
Possible Exposure to Attorney Fees
Verdict Date: 10/23/2000
Result: Settlement talks:
Demand: $191,000
Offer: $50,000
Result: $332,177. 12-0
Note: Plaintiff reports the case was filed in Los Angeles Superior Court-
Central District and transferred to Norwalk.
Injury: Damages: $260,000 for payment of attorney fees, payments for his
own attorney fees, etc.
Plaintiff Attorney: Andre E. Jardini; Knapp, Petersen & Clark; Glendale, Ca
(Stephen M. Gaggero)

Greta Hutton; Knapp, Petersen & Clark; Glendale, Ca (Stephen M. Gaggero)
Case Name: Stephen M. Gaggero v. Harris 2nd
1995 Trust F E, et al
Defendant: Harris 2nd
1995 Trust F E
Anna Marie Yura
2001
[X] - If there has been no change in the information contained in the last
statement of information on file with the California Secretary of State, check
the box and proceed to Item 12.
12. Signed By: Joseph J. Praske, Secretary 01-12-01
Due Date: 01/22/2001
Junebug LLC
Status: Revoked

Manager: Patrick Walters
Case Name: Stephen M. Gaggero Vs. Anna Marie Yura
Case No: BC239810
Declaration of Stephen Gaggero Dated September 16th, 2001, signed at
Fallbrook, California:
I, Stephen Gaggero declare:
1. I am the father of Stephen M. Gaggero, who is the plaintiff in the above
entitled action.
5. My wife and I personally have and, at all times have had, assets in
sufficient amount to fund the purchase for our son. We have committed to
him to fund the purchase.
6. In addition, the Gaggero Family Trust has funds sufficient and available
to it to fund the escrow concerning the purchase of the 938 property.
Declaration of Joseph J. Praske Dated September 17, 2001, signed at Santa
Monica, Ca:
I, Joseph J. Praske declare:
1. I am an attorney licensed to practice in the State of California. I represent
Stephen M. Gaggero with regard to estate planning matters. The facts set
forth herein are true of my own personal knowledge, and if called upon to
testify thereto, I could and would competently do so under oath.
2. I am trustee over a portion of Mr. Gaggero's personal estate. As trustee, I
have agreed to authorize funds from Mr. Gaggero's personal estate in the
amount of $1,100,000 for purchase of the real property located at 938
Palisades Beach Road. The portion of Mr. Gaggero's estate over which I am
trustee has well in excess of $1,100,000 readily available.

Declaration of Stephen Dated September 18, 2001, signed at Rome, Italy:
6. The thought that there would be any difficulty whatsoever in funding the
escrow concerning this purchase is absurd. No requirements were made in
any of the extensive purchase and sale documents by Mr. Harris concerning
any requirement regarding my financial qualifications, because Mr. Harris
and his wife were well aware of my financial ability and my family's
financial ability, as Mr. and Mrs. Harris knew my family very well even
before the purchase agreement date of August 10, 1998. In fact, my mother
and father attended the Harris's intimate wedding ceremony. Nowhere in the
extensive purchase and sale documents was there any loan contingency,
simply because I did not then, nor do I now, need a loan to the purchase the
property.
8. Nonetheless, so there is no mistake, I personally have the funds available
to close escrow, without the necessity of a mortgage or a "third party loan."
9. In addition, the Gaggero family trust has assets well in excess of the
amount necessary to close the escrow concerning 938 Pacific Coast
Highway which are committed and available for this purchase. The Gaggero
family trust is managed and controlled by my parents for the benefit of the
trust beneficiaries, of which I am one.
10. In addition, I manage certain entities which have sufficient assets to
close the escrow on the 938 property. These entities are ready, willing and
able to commit and have committed the funds necessary to close escrow on
the 938 property which is worth at least $1,650,000 by payment of
$1,100,000 into escrow.
11. In addition, my parents Stephen Gaggero and Billie Sue Gaggero are
independently financially able to fund the purchase of the 938 property by
payment of $1,100,000 and on my behalf, have committed to do so.
12. Lastly, the trustee and attorney of my personal estate, Joseph J. Praske,
has agreed to authorize the necessary funds ($1,100,000) from my personal
estate to purchase the 938 property. My estate has well in excess of
$1,100,000 at its disposal.”

[footnote - added - General commercial airflight was not resumed in the
United States until September 18th, 2001, due to the September 11th attacks,
yet one of Gaggero's own exhibits that he dated himself on September 19th,
2001, created in the United States, indicates that there is no chance that
Stephen Gaggero somehow signed a legal declaration under penalty of
perjury in Rome, Italy on September 18th, 2001, and made it home the very
next day in order to create what he subsequently entered into the record as
his own exhibit in Sulpher Mountain L&L, LLC. v. John Redmond, et al. -
end added footnote]
Case Name: First Federal Bank of California v. Stephen M. Blanchard, et al
Stephen M. Gaggero
Tuck Mulligan
Steve Schlein
Laura A Slocumb
John Stein
Case Name: Stephen M. Gaggero v. First Federal Bank of California
Defendant: First Federal Bank of California

Dedicated Entertainment Company LLC
Status: Permanently Revoked
File Date: 10/29/2001
Managed By: Managers
Agent Type: Noncommercial Agent
Officers: James Walters
2002
Case Name: Stephen M. Gaggero v. Harris 2nd
1995 Trust Frederick, et al
Defendant: Harris 2nd
1995 Trust Frederick
Anna Marie Yura
Filing Date: March 04, 2002
[X] - If there has been no change in the information contained in the last
statement of information on file with the California Secretary of State, check
the box and proceed to Item 12.

12. Signed By: Joseph J. Praske, President, Pacific Coast Management,
Manager, 02-28-02
Case Name: Stephen M. Gaggero v. Sherman L Stacey
Defendant: Sherman L Stacey
Standard Form of Design-Build Agreement and General Conditions
Between Owner and Design-Builder - April 1, 2002:
Owner's Representative: PCM (Pacific Coast Management), hereby referred
to as ‘Owner’.
Owner: PCM
Print Name: Joseph Praske
Print Title: President”
Cause of Action - Intentional Tort
Cause of Action to Trespass to Chattel:
Defendant: Martin Schwartz
on: July 5th, 2002
at: Santa Barbara
On July 5th, 2002 at Meeker Field in Santa Barbara, California, Schwartz
intentionally guided his horse in a reckless and deliberated manner toward

Gaggero and Gaggero's horse, Ceruelo, causing his horse to collide with
Gaggero and Ceruelo. In particular, Schwartz guided his horse to collide
with and cut in front of Ceruelo in a manner deliberately calculated to cause
an intentional, unlawful and harmful contact to Gaggero and Ceruelo.
Schwartz's harmful and offensive contacts, which ultimately caused
Ceruelo's front legs to become entangled in the rear legs of Schwartz's horse,
resulted in Ceruelo breaking one of it's front legs. As a result of this
deliberate conduct by Schwartz, Gaggero will never again be able to use
Ceruelo for it's indended use as a polo pony whereas Ceruelo's condiction,
quality and value have all been diminished. Furthermore, Gaggero, at no
time, consented to this conduct, and Schwartz's conduct was the sole factor
in causing Gaggero's harm, whereas Schwartz acted intentionally and
recklessly increasing the risks over and above those inherent in the activity.
Schwartz intentionally and wrongfully trespassed upon Gaggero's personal
property because of a personal grudge against Gaggero arising from a prior
business dispute. Accordingly, Gaggero seeks an award of general and
special compensatory damages including damages for loss of use, the cost of
repair, veterinariran expenses and/or diminished market value of Ceruelo as
a result of the acts of Schwartz. In addition, given that Schwartz acted
willfully, wantonly, and maliciously with a conscious disregard for the
safety of Gaggero and his property interests in Ceruelo, Gaggero also seeks
an award of punitive damages to punish Schwartz for his reprehensible
misconduct.
Filing Date: December 08, 2003
3. Jurisdiction of Formation: Ca
4. Street address of principal office: 1746F S. Victoria Ave. #201, Ventura,
Ca 93003
domestic only):

Investments
Pacific Coast Management, Inc.
PO Box 25070
Ventura, Ca, 93002
12. Signed By: Joseph J. Praske, Secretary, 12-04-2003
Case Name: Stephen M. Gaggero v. Steven Ray Garcia, et al
Defendant: Steven Ray Garcia
Stephen M Harris
Andre Jardini
Knapp Petersen & Clarke

Case Name: Stephen M. Gaggero v. Steven Ray Garcia, et al
Defendant: Steven Ray Garcia
Stephen M Harris
Andre Jardini
Knapp Petersen & Clarke
California Civil Case Filings – Santa Barbara County
Stanley W Mileski vs. Mark Maravelas, et al
Plaintiff: Stanley W Mileski
Defendant: Stephen Gaggero
Mark Maravelas
Sulphur Mountain Land & Livestock
Case Number: 1098823
Court: Santa Barbara County Superior Court
Case Type: Small Claims
- Exhibits from within above Case -
Automobile:
Vehicle: 81 Jeep
Date: 9/27/2002
Registered Owner: Avalon Development Corp, PO Box 1109, Venice Ca
90294
Signatory: Stephen M. Gaggero, President of Avalon Development
Notice of Release of Liability:
Date: 09/27/2002

Seller’s True Name: Avalon Development Corp, PO Box 2960, Ventura, Ca
93002
Signatory: Stephen M. Gaggero
Vehicle: 81 Jeep
Letter from Avalon Development Corporatoin – dated September 27th
, 2002:
“Sold to Stan Mileski, one (1) 1984 Jeep Scrambler, VIN
1JCCM88E6BT052880 for the sum of $2,500.00 in as is condition.”
Signatory:
Stephen Gaggero
For Avalon Development Corp.
Automobile:
Vehicle: 84 Jeep
Plate Number: 1KJK091
Date: 9/27/2002
Registered Owner: Sulphur Mtn Land Livestock, PO Box 25070, Ventura,
Ca 93002
Signatory: Mark Maravelas, for Pacific Coast Management, Manager
Notice of Release of Liability:
Date: 09/27/02
Seller’s True Name: Sulphur Mountain Land & Li, PO Box 25070, Ventura,
Ca 93002
Signatory: Mark Maravelas, for Pacific Coast Management, Manager
Vehicle: 84 Jeep
Letter from Sulphur Mountain Land & Livestock Co., LLC – dated
September 27th
, 2002:
“Sold to Stan Mileski, one (1) 1984 Jeep Scrambler, VIN
1JCCF88E8ET115508 for the sum of $2,500.00 in as is condition.”
Signatory:

Mark Maravelas
For Pacific Coast Management, Inc., Manager Sulphur Mountain Land &
Livestock Co., LLC
Letter from Pacific Coast Management, Inc – dated October 21st
, 2002
“Mr. Gaggero is out of the country until the end of the week. I will give him
your letter and discuss the matter with him on Thursday or Friday when he
gets in.
Signatory:
Mark Maravelas, for Pacific Coast Management, Inc., Manger Sulphur
Mountain Land & Livestock Co., LLC
Letter from Pacific Coast Management, Inc – dated October 24th
, 2002, to
Mr. Stan Mileski:
“As to any reimbursements for your folly, you can simply forget it, or
litigate.
Signatory:
Stephen M. Gaggero
Letter from David Blake Chatfield, dated October 31, 2002, to Stan Mileski:
“This office represents Sulphur Mountain Land and Livestock Co. LLC and
Avalon Corporation who are in receipt of your letter dated October 25, 2002.
…Our clients apologize if Mr. Gaggero’s letter of October 24th
, 2002 is not
clear.
Signatory:
David Blake Chatfield
2003

Avalon Farms LLC
Corporate Number LLC 1243-2003
File Date: 01/30/2003
Managed by: Managers
Officers: Pacific Coast Management Inc
Superior Court of the State of California, County of Santa Barbara
Defendant, Sulphur Mountain Land and Livestock Co., LLC’s Trial Brief:
Date: April 10, 2003 – David Blake Chatfield, Counsel for Defendant:
On September 27th
, 2002, plaintiff, Stanley Mileski, purchased two jeeps
that were registered with the California Department of Motor Vehicles as
non-operating vehicles and sold on an “as-is” basis. Plaintiff purchased the
two vehicles from their registered owners, defendant, Sulphur Mountain
Land and Livestock., LLC, and non-defendant, Avalon Development
Corporation.
Steven Gaggero, who works for Avalon Development Corporation signed
the bill of Sale for the 1981 Jeep owned by Avalon. Mark Maravelas, who
works for Sulphur Mountain Land and Livestock Co., LLC, signed the bill
of sale for the 1984 Jeep owned by SMLLC. Neither individual is a member
or owner of the companies that owned the vehicles. Plaintiff cannot prove
that Avalon Development Corporation is the alter ego of Stephen Gaggero.
Plaintiff cannot prove that Sulphur Mountain Land and Livestock Co., LLC,
is the alter ego of Mark Maravelas. Plaintiff cannot, therefore, establish that
either of the individuals would be personally liable for the sale of the
vehicles by their employers.
More importantly, although plaintiff had notice of the true name and
capacity of the owner of the 1981 Jeep, Avalon Development Corporation,
plaintiff chose not to sue Avalon and Avalon is not a party to this litigation.

Avalon is a separate company and is not an owner or member of SMLLC.
As Avalon was the registered owner of the 1981 Jeep and the party who sold
the vehicle to plaintiff, plaintiff is not entitled to proceed against the other
defendants for any damages he may claim for the sale of the 1981 Jeep by
Avalon.”
“SMLLC was the registered owner and sold the 1984 Jeep to plaintiff.
Neither Mr. Gaggero nor Mr. Maravelas are members of the LLC. Plaintiff
cannot prove that SMLLC is the alter ego of either Mr. Gaggero or Mr.
Maravelas. There is no basis for individual liability on the part of these
representatives of SMLLC.”
Signed: April 9, 2003
Signatory:
David Blake Chatfield
--
United States District Court – Central District of California
Stephen M. Gaggero v. First Federal Bank of California, et al
Plaintiff: Stephen M. Gaggero, an individual
Defendant: First Federal Bank of California, A Federal Savings Bank; Does,
1 through 25, Inclusive
Docket Case Number: 2:03cv3313
Other Docket Case Number: Dkt # in Los Angeles County Superior Court: is
BC257767
Jurisdiction: Federal Question
Judge: Florence-Marie Cooper
Referred To: Discovery Fernando M Olguin
Nature of Suit: 430 Banking
Cause: Notice of Removal <=1> 28 USC 1441
Plaintiff Attorney (s): David Blake Chatfield
Peter J Bezek

Robert Allen Curtis
Foley & Bezek
Ulysses Associates, LLC
2004
The Saltair Limited
Officers: Pacific Coast Management Inc
Statement of Information (Domestic Stock Corporation)
1. Avalon Sunset, a California Corporation
3. No Change Statement:
[X} - If there has been no change in any of the information contained in the
last statement of information filed with the Secretary of State, including any
information contained in form S-PTSUPP check the box and proceed to Item
17.

17. Signed By: Joseph J. Praske, Secretary, 06-24-04
Gabby Holdings LLC
Status: Revoked
Case Name: Malibu BroadBeach L.P. v. State Farm General Insurance
Company; John A. Forbing; Barry Bartholomew and Associates and Does 1
through 50, inclusive
Case No. SC80563
Filed: February 2, 2004
Assigned for all purposes to: Hon. Allen J. Goodman
Dept. H
David Blake Chatfield, State Bar No. 88991
Westlake Law Group
Peter J. Bezek, State Bar No. 102310
Foley & Bezek
Attorneys for Plaintiff
Malibu BroadBeach L.P.
Second Amended Complaint:
1. Breach of Contract
2. Breach of the Implied Covenant of Good Faith and Fair Dealing
3. Negligence
4. Breach of Ficuciary Duty
5. Constructive Fraud
6. Professional Negligence
Trial: December 6, 2005

Background part2

Recommended

Recommended

More Related Content

Similar to Background part2

Similar to Background part2 (20)

Recently uploaded

Recently uploaded (20)

Background part2