1 Joseph Tuchmayer (SBN 72974)

Law Offices of Joseph D.

Tuchmayer
2 888 S. Figueroa Street, Suite 620
3 Los Angeles, California 90017
Telephone: (323) 806-22094
Facsimile:(323) 656-0911
Attorneys for Plaintiff Grant Beuchel
5
on behalf of himself and all others similarly situated
6

7
SUPERIOR COURT, STATE OF CALIFORNIA
8

9 COUNTY OF LOS ANGELES

10 GRANT BEUCHEL, on behalf of himself and Case No.:

all others similarly situated
11
Plaintiff,
12 COMPLAINT FOR DECLARATORY
13 vs. RELIEF AND BREACH OF FIDUCIARY
DUTIES
14 LITTLE TOKYO LOFTS HOMEOWNERS
ASSOCIATION, A CORPORATION;
AND
15 DOES 1 THROUGH 100
16 Defendants
17
COMES NOW PLAINTIFF, GRANT BEUCHEL, on behalf of himself
18
19 and all others similarly situated, and alleges against defendants, and each of them, as
20 follows:

21 GENERAL ALLEGATIONS

Deception and fraud perpetuated, intentionally extorting

exorbitant sums
22 1. Defendant, LITTLE TOKYO LOFTS HOMEOWNERS ASSOCIATION, A
23
CORPORATION (hereinafter referred to as the “Association”) is, and at all times mentioned
24
25 was a non-profit mutual benefit corporation organized and existing under and by virtue of the
26 laws of the State of California and United States Code Title 26 Section 501(c), and is composed
27
-1-
28
11
12 7. In accordance with the “Declarations of Covenants, Conditions & Restrictions” (the

13 “CC&Rs”) recorded with and on file with the Los Angeles County Recorder’s Office, and
14 pursuant to Civil Code Section 4000 et. seq., the Association has the sole and exclusive right and
15
duty to manage, operate and control the Property and has all the power necessary to carry out its
16
rights and obligations, including the right, duty and power to contract for legal services to
17

18 prosecute any action to enforce the CC&Rs and/or other governing documents.

19 8. A true and correct copy of the CC&Rs is attached hereto as Exhibit “A”, the contents of
20 which are incorporated herein, by this reference, as if set forth here, in full, verbatim.
21
9. The CC&R’s are enforceable equitable servitudes; are not unreasonable; and inure to the
22
benefit of and bind all owners of separate interests in the Association.
23
24 10. 26

27
28

1 e. The Association, through its representatives DOES I – 100 habitually

2 ignore the law and do not respond effectively to the government’s
3
attempts to enforce the law, and as such for all intents and purposes are
4
“scofflaw”
5
6 f. The Association through their actions and inactions have breached their

7 obligation to act in good faith as well as their fiduciary obligations to

8 the Plaintiff and other owners generally, and have also failed to deal
9
fairly with them, and among these failures is the Association’s use of
10
the law to thwart attempts by the Plaintiff and other owners to enforce
11
12 their rights under the law and the Association’s obligations pursuant to

13 the governing documents. Thus, the Association is not acting in the best
14 interests of the Plaintiff or the other owners. (See Exhibits “N” and “G”
15
the contents of which are incorporated herein by this reference.)
16
g. The Association violated Civil Code Section 5500 by failing to
17
18 reconciliate the Association’s operating accounts on a quarterly basis

19 and/or violated Civil Code Section 4935(e) by failing to generally note

20 the same in the minutes of the immediately following general meeting;
21
and violated Civil Code Section 4955.
22
h. The Association violated Civil Code Section 5235 by unlawfully
23

24 denying the Plaintiff the right to inspect documents that were not

25 privileged.
26

27
28

1 19. Plaintiff brings this action on his own behalf, and in a representative capacity on behalf
2 of all other owners of the Property, past and present, who have a similar interest in having the
3
CC&Rs and other governing documents enforced, and other declaratory relief prayed for herein.
4
20. The Association has legal standing and a legal duty to enforce the CC&Rs and other
5
6 governing documents, but upon any such failure by the Association, then any member, including

7 but not limited to the Plaintiff, has standing to litigate enforcement of the same. Likewise, both
8 the Association and any member, including but not limited to, the Plaintiff has standing to
9
litigate to compel the Association to obey all existing laws that apply to them, and disclose
10
material facts to all of the owners, which they have failed to disclose as of the filing of this
11
12 complaint and/or thereafter.

13 21. Prior to the institution of these proceedings, Plaintiff did comply with Civil Code Section
14 5935, (See Declaration of Grant Beuchel attached to this complaint as Exhibit “C”) and further
15
did attempt to engage in informal resolution procedures pursuant to Section 5910 of that same
16
code, and thus Plaintiff has made a prima facia showing of his good faith efforts to resolve the
17
18 issues complained of herein without the need for judicial intervention.

19 22. The Association failed to engage in resolution procedures in good faith as is further
20 detailed in the First Cause of Action herein, and more specifically did not comply with Civil
21
Code Sections 5905(a) & 5910(f).
22
23. Since approximately 2010 through the present, Plaintiff also engaged in many other pre-
23

24 litigation activities and requests seeking to informally obtain resolution of the issues raised
25 herein and to avoid this formal litigation and its incumbent costs and consequences, all which
26

27
28

1 29. In response to the request for an informal resolution procedure, an informal meeting was
2 scheduled for and did occur on February 22, 2018 in an area of the Property used by the Board
3
for various meetings, including executive sessions and general meetings, and as an office
4
generally, on the first floor of the Property adjacent to the passenger elevator lobby.
5
6 30. The term “office” is a misnomer in that this area is actually a room for storage illegally

7 built-out into an office without the required city permits to do so. This storage/office area
8 remains unpermitted as of the time of the filing of this complaint.
9
31. During the section 5910 meeting, Plaintiff was represented by attorney Joseph
10
Tuchmayer, and the Association was represented by David A Wankel of the law firm of Iger,
11
12 Wankel Bonkowski.

13 32. When the meeting began, it was suggested by attorney Tuchmayer that Plaintiff be
14 allowed to address the board directly so he could explain his position regarding various
15
grievances, many of which form the basis for the causes of action in this complaint. After being
16
allowed to speak for approximately 2 minutes, counsel for the Association, with the agreement of
17
18 the board, took the position that the Plaintiff was being “rude” and immediately ended the

19 meeting without giving the Plaintiff an opportunity to further or fully explain his positions and/or
20 answer questions from the board or its counsel. Such actions by the board and its counsel were
21
in violation of Civil Code Section 5910(f).
22
33. In truth, when the meeting was abruptly ended, Plaintiff was merely just starting to point
23

24 out the myriad of problems the owners were facing as a result of the Association’s failures,

25 including but not limited to the fact that the room used for the 5910 meeting was not a legally
26 occupiable space; the meeting itself was a serial communication since the owners were not
27
-9-
28 COMPLAINT FOR DECLARATORY RELIEF
 1

2
S ECOND CAUSE OF ACTION
3
( Declaratory Relief -- Failure to Enforce CC&R’s Including Sections 2.8.2 and 2.8.4)
4
37. Plaintiff incorporates hereat by this reference paragraphs 1 through 36, inclusive, as set
5
6 forth above.

7 38. The Board through their actions or inactions have failed to either reasonably interpret
8 and/or consistently enforce CC&R Sections 2.8.2 and 2.8.4, to the detriment of Plaintiff and
9
other owners.
10
39. CC&R 2.8.2 states an authorized vehicle is:
11
12 “an automobile, a passenger van designed to

13 accommodate ten (10) or fewer people, a motorcycle o r a

14 pickup truck having a manufacturer’s rating or payload
15
capacity of one ton or less” (Emphasis Added)
16

17
40. CC&R 2.8.4 section (a) Parking Restrictions states, in pertinent part:
18
Parking. All vehicles owned or operated by or under the
19
control of an Owner or a Resident of an Owner’s
20

21 Condominium and kept in the Community

ust be parked
m

22 in the Owner’s assigned parking space in the Parking

23 Garage. No vehicle may be parked in any manner that the
24
Association determines will restrict the normal passage of
25
pedestrians or vehicles in the parking areas………No
26

27
- 11 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 policies, rules and regulations with respect thereto. However, the Association almost never
2 enforced these CCR’s and Rules & Regulations regarding the parking of vehicles in the parking
3
garage, and to the extent they did, such enforcement was sporadic and inconsistent.
4
47. In approximately February of 2016 the Association attempted to sanction these CC&R
5
6 violations by purportedly amending its Rules & Regulations to allow for the parking of multiple

7 vehicles in the same parking spot. However, the Association has never enforced its purported
8 new rules, the same as it never enforced the original rules. As such, the Property has many
9
residents parking two or three motorcycles and/or an automobile with a motorcycle in the same
10
parking spot, or motorcycles, registered and unregistered, in areas that are not designated parking
11
12 spots, among other violations.

13 48. These purportedly new and revised Rules & Regulations are attached hereto as Exhibit
14 “E” the contents of which are incorporated herein by this reference, as if set forth, herein,
15
verbatim.
16
49. These CC&R violations complained of herein have the effect of lowering the value of the
17
18 Property; decrease the residents enjoyment of the property and more specifically result in less

19 habitable common areas; result in an increased risk of harm to residents and their guests; violate
20 the terms and conditions of the Association’s liability policy; and otherwise violate the law and
21
common practices in the industry.
22
50. The Association’s failures complained of herein are in violation of the CC&R’s, and
23

24 more specifically sections 2.8.2 and 2.8.4 constitute violations of the Association’s duty to

25 enforce the governing documents; are in conflict with their purportedly revised Rules &
26 Regulations; are contrary to the conditions required by the Ordinance; are contrary to what the
27
- 13 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 in the CC&Rs as well as the governing Rules and Regulations by among other things reporting
2 and/or bringing to the attention of the Board and its members such issues and violations;
3
however the Board generally and usually then failed to follow specified resolution and/or
4
enforcement procedures after Plaintiff’s reporting to them of such issues and violations.
5
6 56. Plaintiff prays for declaratory finding regarding the interpretation of these CC&R

7 sections as well as a finding that the board has failed to enforce CC&R Sections 2.8.2 and 2.8.4,
8 and other sections of the governing documents to the detriment of the owners, and further prays
9
for an order requiring that the Association to enforce the same, forthwith, and without hesitation,
10
to minimize any future damages to the Plaintiff and other owners.
11
12 T
HIRD CAUSE OF ACTION

13 ( Declaratory Relief -- Failure to Enforce Rules & Regulations –

14
O
riginal Version Dated April 27, 2006)
15
57. Plaintiff incorporates hereat by this reference paragraphs 1 through 56, inclusive, as set
16
forth above.
17

18 58. Plaintiff is informed and believes and thereupon alleges that the Association has

19 consistently failed to enforce the original version of the Rules & Regulations dated August 27,
20 2006 and attached hereto as Exhibit “D”
21
59. Plaintiff is informed and believes and thereupon alleges that the Association takes the
22
position that these Rules & Regulations are no longer in effect because they were superseded by
23
24 a new set of Rules & Regulations enacted on or about April of 2016, whereas Plaintiff alleges

25 that these revised and un-dated Rules & Regulations are void for the Association’s failure to
26

27
- 15 -
28 COMPLAINT FOR DECLARATORY RELIEF
1 (k) 9.7 – Working on vehicles in the performance of non-emergency repairs
2 (l) 9.9 - Unregistered vehicles
3
(m) Section 11 Generally – Failure to require that owners notify the Association if a unit is
4
being rented; contact information for the renters; leases in writing requiring that the
5
6 tenants be required to adhere to the Rules & Regulations as part of the written lease

7 agreement; and providing tenants with a copy of the Rules & Regulations;
8 (n) Section 12 Generally – Failure to require owners to notify the Association that a unit has
9
been listed for sale; providing the name, telephone number of the listing agents; lock
10
boxes in designated areas only; failure to provide the listing agent with a copy of the
11
12 rules & Regulations; and most importantly, failing to escort prospective buyers through

13 the common areas and instead allowing the owner or listing agent to simply “buzz” non-
14 owner and non-residents into the building;
15
(o) Section 13 Generally – Allowing owners to use service and trade people without
16
notifying the Association in advance; allowing said persons onto the premises to do
17
18 work; allowing said contractors to use hallways and the loading dock as a staging area;

19 not limiting said work to days and times specified in the Rules & Regulations, including
20 but not limiting to, allowing the performance of said work on Sunday; allowing
21
exclusive use of elevators; allowing work by unlicensed and uninsured trades persons;
22
allowing the use of noisy equipment such as jackhammers without notifying neighbors in
23

24 advance of the proposed work;

25 (p) 15.6 – No pets allowed in the pool area;

26 (q) 16.5 – Disposal of oversized articles;
27
- 17 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 66. In trying to resolve these and other issues and disputes as alleged herein with the Board
2 and Association, Plaintiff attempted to reasonably follow the policies and/or procedures set out
3
in the CC&Rs as well as the governing Rules and Regulations by among other things reporting
4
and/or bringing to the attention of the Board and its members such issues and violations;
5
6 however the Board generally and usually then failed to follow specified resolution and/or

7 enforcement procedures after Plaintiff’s reporting to them of such issues and violations.
8 67. Plaintiff seeks a finding by the court that the Association has not and is not enforcing its
9
governing documents, including its Rules & Regulations as is required by law and prays for an
10
order requiring said enforcement, without hesitation, to prevent future damages, to the Plaintiff
11

12 and other owners.

13

14
F OURTH CAUSE OF ACTION
15
( Declaratory Relief - Violation of Civil Code Section 4360 )
16
68. Plaintiff incorporates hereat by this reference paragraphs 1 through 68, inclusive, as set
17
18 forth above.

19 69. Plaintiff is informed and believes and thereupon alleges that on or about April, 2016, the
20 Association, according to them, amended the Rules & Regulations, which are attached to this
21
complaint as Exhibit “D” (original rules dated April 27, 2016) and Exhibit “E” (purported new
22
rules). Exhibit “E” is an undated document.
23

24 70. Plaintiff is informed and believes and thereupon alleges that that the Association did not

25 give at least 30 days’ notice of their proposed change in Rules & Regulations as is required by
26 Civil Code Section 4360.
27
- 19 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 76. Plaintiff alleges that these revised rules were not lawfully enacted for many reasons,
2 including but not limited to, lack of adequate and/or proper notice; they are in conflict with the
3
CC&R’s; they are contrary to the conditions required by the Adaptive Reuse Ordinance; they are
4
contrary to standards in the industry; they are not permissible by the Association’s liability
5
6 carrier; they result in actual damage to the owners; they have lowered the quality of life of the

7 owners and residents; and they result in the diminution of the pecuniary and commercial value of
8 the Property, its common areas, and the individual units therein. Notwithstanding, the
9
Association has failed to enforce these purportedly revised Rules & Regulations as is further
10
alleged in the Fifth Cause of Action herein, which failure has caused further and additional
11
12 issues, problems and damages to Plaintiff and other owners .

13 77. Plaintiff is informed and believes and thereupon alleges that the Association has failed to
14 disclose to its liability carrier that there was any revision or attempted revision in its Rules &
15
Regulations and has failed to provide a copy of the purported revised Rules & Regulations as is
16
required by the terms of its liability policy.
17
18 78. In trying to resolve these and other issues and disputes as alleged herein with the Board

19 and Association, Plaintiff attempted to reasonably follow the policies and/or procedures set out
20 in the CC&Rs as well as the governing Rules and Regulations by among other things reporting
21
and/or bringing to the attention of the Board and its members such issues and violations;
22
however the Board generally and usually then failed to follow specified resolution and/or
23

24 enforcement procedures after Plaintiff’s reporting to them of such issues and violations.

25 79. Plaintiff seeks a finding by this court that the Association failed to comply with Civil
26 Code Section 4360(a) and that the “revised” Rules & Regulations are void and not in effect
27
- 21 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 because they never legally took effect, and therefore the original set of Rules & Regulations
2 dated April 27, 2006 are still in effect; and for an order to the Association directing it to enforce
3
said original rules & regulations; and allowing the Association another opportunity to revise the
4
rules & regulations in a legal manner.
5
6 F IFTH CAUSE OF ACTION

7 ( Declaratory Relief - Failure to enforce “revised” and un-dated Rules & Regulations )
8 80. Plaintiff incorporates hereat by this reference paragraphs 1 through 79, inclusive, as set
9
forth above.
10
81. Notwithstanding the allegations made in the Fourth Cause of Action (above), Plaintiff
11
12 alleges in the alternative, that even if the revised and un-dated Rules & Regulations are found to

13 be in full force and effect, the Association is not enforcing these either to the detriment of
14 Plaintiff and other owners.
15
82. Plaintiff is informed and believes and thereupon alleges that of these revised and un-
16
dated Rules & Regulations, the Association is not enforcing:
17
18 a. Section 6.5- Door Mats at door entry;

19 b. Section 6.5 - Signage

20 c. Section 6.6 – Signs, symbols or door knockers or similar features……which can be seen
21
from the common area corridor and hallway;
22
d. 6.15 – Adornment
23

24 e. 7.5 – Increasing insurance rates

25 f. 10.1 – Parking blocks access of other parking and/or parking outside of parking spaces
26 g. 10.2 – Vehicles without registration or tags
27
- 22 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 not limiting to, allowing the performance of said work on Sunday; allowing exclusive use
2 of elevators; allowing work by unlicensed and uninsured trades persons; allowing the use
3
of noisy equipment such as jackhammers without notifying neighbors in advance of the
4
proposed work;
5
6 s. 16.5 – Dogs in the pool area

7 t. 17.5 – Oversized trash

8 u. 18.1 – Black Drapes and window coverings
9
v. Section 19 – Allowing decorative lights outside the units year round
10
w. 20.2 – Allowing non-residents access to the building
11
12 x. 20.6 – All packages are left with security who signs for them.

13 83. Photographs of some of the violations alleged are attached hereto collectively as Exhibit
14 “P”, the contents of which are incorporated herein by this reference. All of these images were
15
taken from August 1, 2018 through the present, although Plaintiff is in possession of additional
16
images which will be provided upon request during the discovery process, and these images pre-
17
18 date August 1, 2018.

19 84. Prior to the claimed enactment of these new and undated rules and regulations, the
20 Plaintiff objected to some of the proposed new rules for merit based reasons. For example, one
21
of the suggestions was to eliminate the name of the property management company by specific
22
name and to eliminate use of their specific telephone number on the grounds that if the
23

24 Association changed management companies, the rules & regulations would be immediately

25 outdated and would need to be changed, and re-printed, incurring unnecessary cost and
26 confusion. The Association decided to not make any such changes as suggested by Plaintiff, and
27
- 24 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 however the Board generally and usually then failed to follow specified resolution and/or
2 enforcement procedures after Plaintiff’s reporting to them of such issues and violations.
3
88. In the alternative to the Fourth Cause of Action, Plaintiff seeks a finding by the court that
4
the Association has not and is not enforcing its governing documents, including its Rules &
5
6 Regulations as is required by law and prays for an order requiring said enforcement, without

7 hesitation, to prevent future damages, to the Plaintiff and other owners.

8

9
S IXTH CAUSE OF ACTION
10
( Declaratory Relief - Violations of Various Civil Code Sections
11
12 a nd Accompanying Failures to Disclose)

13 89. Plaintiff incorporates hereat by this reference paragraphs 1 through 88, inclusive, as set
14 forth above.
15
90. Plaintiff is informed and believes and thereupon alleges that prior to May 30, 2012,
16
Johnathan Wiseman and his wife were renting a unit within the Property and had been doing so
17
18 for at least a couple of years.

19 91. Plaintiff is informed and believes and thereupon alleges that the Wisemans’ had 2 large
20 dogs in violation of the CC&R’s which only permit an owner or resident to have one dog.
21
Plaintiff is informed and believes and thereupon alleges that prior the Weismans frequently used
22
a dog run located on the Property.
23

24 92. Plaintiff is informed and believes and thereupon alleges that: Prior to May 30, 2012

25 Johnathan Wiseman was in the dog run with his 2 dogs along with another owner who had his
26 one dog. One of the Wiseman dogs began fighting with the other owners dog and Mr. Wiseman
27
- 26 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 unknown to the Plaintiff, leaving the Association as the only viable defendant in the case sued
2 by the Weisman’s.
3
98. Plaintiff is informed and believes and thereupon alleges that the failure of the
4
Association to enforce the one pet policy resulted in their lack of one legal defense the
5
6 Association would have otherwise had, but for the Association’s failure to enforce.

7 99. In September of 2012, Plaintiff believed, and continues to believe, that the board of
8 directors were responsible to reimburse the Association for any damages associated with the
9
Weisman case, and that those costs and expenses should not be borne by the owners in the form
10
of unnecessary attorney fees, increased insurance costs, or otherwise. In an attempt to protect
11
12 the Association, Plaintiff authored several letters to the Association’s then attorney, Lisa

13 Tashjian suggesting that it was her duty as the attorney for the Association to protect her client
14 [the Association] and make the liability carrier aware of the facts surrounding the
15
commencement of the Weisman case and the board of directors failures to enforce the rules
16
either causing or contributing to the Weisman case occurring in the first instance, and that her
17
18 fiduciary obligation to her client [the Association] should not be overlooked simply because

19 some of the responsible parties were members of the board of directors whom pay her a legal
20 fee with Association money. A copy of one of those letters dated September 14, 2012 is
21
attached hereto as Exhibit “I”, the contents of which are incorporated herein by this reference,
22
as if set forth herein, verbatim.
23

24 100. Plaintiff is informed and believes and thereupon alleges that Lisa Tashjian refused to

25 disclose the information alleged above to the Association’s liability carrier and thereby violated
26 her duties to the Association and the owners who would have benefitted from such advice.
27
- 28 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 and the failure to note any such settlement in the minutes of the general meetings creates a prima
2 facie case that section 4935(e) as well as was in fact violated. Civil Code Section 4955 was thus
3
also violated by the Association.
4
105. Plaintiff acknowledges that until the pending litigation has been finally adjudicated or
5
6 otherwise settled, documents pertaining to the case remain privileged. However, once the case is

7 final, the records regarding the terms of the settlement – how much was paid – how much
8 insurance costs would increase as a result – how much each owners HOA dues were affected -
9
should have been made available to the owners, if requested.
10
106. On or about August 3, 2013 Plaintiff made a written demand for records pertaining to
11
12 the Wiseman settlement. A copy of the Plaintiff’s demand is attached hereto as Exhibit “K”, the

13 contents of which are incorporated herein by this reference, as if set forth here, in full, verbatim.
14 107. In response to the Plaintiff’s request for records, the Association took the position that
15
the records were still privileged despite the fact that the case had been concluded 6 months
16
earlier, and through their counsel of record, David A. Wankel with the law firm of Hickey &
17
18 Petchul LLP denied the Plaintiff’ request for records on November 21, 2013. A copy of the

19 Association’s denial letter is attached hereto as Exhibit “L”, the contents of which are
20 incorporated herein by this reference, as if set forth here, in full, verbatim.
21
108. In November of 2013, the applicable Civil Code Section was 1363 and upon denial of
22
records for inspection, Plaintiff believed that he would have had to participate in “Alternative
23

24 Dispute Resolution” by way of mediation in which the Association had chosen to participate.

25

26

27
- 30 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 fiduciary duties to the owners. Plaintiff is informed and believes and thereupon alleges that
2 except for the board members involved, no owners knew or could have reasonably known what
3
information was being withheld from them.
4
113. Plaintiff seeks a court finding that the Association did not comply with Civil Code
5
6 Section 4935(e); did not enforce the “one pet policy” enumerated in CC&R 2.9; did not disclose

7 the amount and terms of the Weisman settlement agreement; obstructed any attempts by owners
8 to obtain records regarding the settlement of the Weisman case and that the owners were
9
damaged as a result of these failures. Plaintiff further prays that the Association be ordered to
10
disclose to the owners that the Weisman case is in fact settled; the terms of the settlement,
11
12 including the amounts paid to the plaintiff’s in that case; how said settlement affected the owners

13 in terms of increased costs for liability insurance; and how that settlement increased each
14 owner’s monthly HOA dues.
15
S EVENTH CAUSE OF ACTION
16
( Declaratory Relief and Breach of Fiduciary Duty – Failure to Disclose The Non-Permitted
17
18 B
BQ and Other Items)

19 114. Plaintiff incorporates hereat by this reference paragraphs 1 through 113, inclusive, as set
20 forth above.
21
115. Plaintiff is informed and believes and thereupon alleges that in 2014 the Association
22
approved in executive session plans to have a portable propane BBQ located in the pool area
23

24 “improved” by adding lights, a sink, a more sustainable source of fuel and a generally larger

25 work space for food preparation and serving and other items or work. Plaintiff is informed and
26 believes and thereupon alleges that this work was started and continued through 2016.
27
- 32 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 121. Plaintiff is also informed and believes and thereupon alleges that the City of Los
2 Angeles, through their department of building and safety, discovered these violations during
3
one of their regular inspections and issued written violations that resulted in fines payable by
4
the Association to the city of Los Angeles.
5
6 122. Plaintiff is also informed and believes and thereupon alleges that these fines were

7 approximately $7150, and that the Association has become liable for interest and further penalty
8 for reason that they did not pay the fines on time, which has increased the total amount due to
9
approximately $9000, not including the costs of building, and later destroying, the BBQ.
10
123. In aggravation, the Association has still not cured the outstanding issues with the City of
11
12 Los Angeles, and there is, at the time of the filing of this complaint, an open “order to comply”

13 which the Association has failed to address.

14 124. Plaintiff is also informed and believes and thereupon alleges that the Association never
15
disclosed to the owners the fines paid and the fines still owing although these were material
16
facts and as such, the Association was under a duty to disclose the same to the owners.
17
18 125. Plaintiff is also informed and believes and thereupon alleges that the reason that the

19 fines were not paid on time was because the Association decided to wait for a new budget so
20 that additional monies could be paid without the need for doing a special assessment, which
21
would have had the effect, of notifying the owners of the City fines, but this delay did result in
22
an increase in monies owed due the City by reason of penalties and interest.
23

24 126. Plaintiff is also informed and believes and thereupon alleges that the Association has

25 still not cured the violations with the City of Los Angeles because there is currently an active
26 “order to comply” on file with the department of building and safety which remains unsatisfied.
27
- 34 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 and/or bringing to the attention of the Board and its members and representatives of the Board
2 such issues however the Board generally and usually then failed to follow specified resolution
3
and/or enforcement procedures after Plaintiff’s reporting to them of such issues.
4
133. Plaintiff prays for an order requiring the Association to disclose to the owners the fines
5
6 paid to the city of Los Angeles; the amounts still due; and prays that the court issue an order to

7 the Association to cure the outstanding “order of compliance” which remains unresolved with
8 the department of building and safety and bring the Property into all aspects of legal code
9
compliance.
10

11

12 EIGHTH CAUSE OF ACTION

13 ( Declaratory Relief and Breach of Fiduciary Duty --- Failure to Disclose a Lack of FDIC
14 I nsurance on Reserve Funds)
15
134. Plaintiff incorporates hereat by this reference paragraphs 1 through 133, inclusive, as set
16
forth above.
17
18 135. Plaintiff is informed and believes and thereupon alleges that the Association maintains

19 and/or previously maintained several accounts in which they held or hold reserve funds
20 pursuant to Civil Code Section 4177, as well as operating expenses, generally.
21
136. The monies held in these various accounts are maintained in trust for the owners,
22
including Plaintiff, and the Association has a fiduciary obligation to keep the funds safe.
23

24 137. On January 7, 2018 Plaintiff wrote a letter the Association inquiring if the monies held

25 in trust were in fact FDIC insured or otherwise insured in some form suggesting that if this was
26 not the case then the board of directors of the Association had breached their fiduciary duty and
27
- 36 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 previously held and/or are now holding in trust for the owners is not FDIC insured, nor is the
2 principal amount guaranteed in any form, and that the monies held are in fact at risk, and to
3
provide to the owners a copy of all of the disclosures that the Association was required to
4
acknowledge and sign when the accounts were opened, up to and including the present.
5

6 144. Notwithstanding the above, Plaintiff was informed for the first time by the mediator on

7 October 17, 2018, that the subsequent to the Plaintiff’s letter of January 7, 2018 that the
8
Association did in fact transfer the monies to a federally insured certificate of deposit in
9
amounts not exceeding $250,000.00 per each account of deposit, but to date the Association has
10
not provided any proof of that transfer despite being requested to do so. In the event that the
11
12 funds have in fact been transferred to a safe account(s) Plaintiff demands proof of the same and

13 disclosure of where the monies were previously held; where they were transferred to; and the
14 relevant dates relating to the same.
15
145. Plaintiff, based upon information and belief, alleges that if in fact the Association moved
16
the above-described monies out of an unsecure investment vehicles on or after October 17, 2018
17

18 (the date of mandatory mediation in this case) such actions were as a direct and proximate result

19 of the Plaintiff’s actions described herein, and if this is the case, Plaintiff alleges that such
20 actions by the Association are material facts that must be disclosed to the owners.
21
P RAYER FOR RELIEF
22
O n the First Cause of Action:
23
24 1. Plaintiff prays that this court make a finding that the Association’s actions and inactions

25 were in violation of Civil Code Sections 5905(a) & 5910(f) for reason that the Association
26 failed to give to the Plaintiff an opportunity to explain his position regarding various issues,
27
- 38 -
28 COMPLAINT FOR DECLARATORY RELIEF
 1 8. Plaintiff seeks an order requiring the Association to disclose material facts to the owners
2 which, heretofore remain undisclosed, including but not limited to the fact that the monies they
3
are holding in trust for the owners are not FDIC insured, nor is the principal amount guaranteed
4
in any form, and that the monies held are in fact at risk, and to provide to the owners a copy of
5
6 all of the disclosures that the Association was required to acknowledge and sign when the

7 accounts were opened, up to and including the present. To the extent that by the time this
8 complaint is filed, the Association has in fact transferred monies held in trust to a federally
9
insured account, then for an order that the Association disclose to the owners when this
10
transferred did occur; the accounts transferred from and to; and the dates of the same.
11
12 O
n All Causes of Action:

13 9. Plaintiff further seeks that the court make a determination if all of the facts alleged and
14 proven in this case constitute a situation where the owners are in a continuing jeopardy such
15
that it would be appropriate to have the court appoint a third-party property manager to assist
16
the Association is curing the defects alleged and proven herein, and to the extent necessary
17

18 report to the court of said status.

19 10. To the extent the court determines that it is necessary and appropriate, ordering the
20 Association’s board of directors to participate in training and continuing education.
21
11. Plaintiff further seeks a declaration by this court of the items Plaintiff has alleged and
22
proven herein that the court deems are in fact breaches of fiduciary duties owed to the owners
23

24 and an order requiring the Association to disclose those breaches.

25

26

27
- 41 -
28 COMPLAINT FOR DECLARATORY RELIEF
 08/08/06

2.10.3 Review after Installation. The Committee may review the location
and installation of an Authorized Antenna after it is installed. After its review, the Committee
may require that the Authorized Antenna be moved to a preferred location (if one has been
designated) for safety reasons or to comply with reasonable restrictions subjecl to this Section
and applicable law.

2.10.4 Restatement or AppUcable Law. This Section is intended to be a

restatement of the authority granted to the Committee under the law. All amendments,
modifications, restatements and interpretations of the law applicable to the installation, use or
maintenance of an .antenna or over-the-air receiving device shall be interpreted to amend,
modify, restate or interpret this Section.

2. t t TRASH. Trash shall be disposed of in trash containers designated and

maintained by the Association. Storage of building materials, refuse or any other matenals in the
Community is prohibited. No trash may be kept or permitted in the Community or on any public
street abutting or visible from the Community except in the Association maintained trash
containers located in appropriate areas screened from view,

2.12 OWNER-INSTALLED IMPROVEMENTS.

2.12.1 Outdoors. No Person may install outdoors in sight of the Association

Property or other real properties any clotheslines, patio cover, wiring, air conditioning
equipment, heating units, water softeners, other similar hnprovements, or other exterior additions or
alterations to any Condominium. Outdoor patio or lounge furniture and plants may be kept in
an Exclusive Use Area patio in accordance with the Rules and Regulations. Outdoor display of the
flag of the United States is permitted pursuant to California Civil Code Section 1353.5, as long as
the flag and flag pole are located solely within, on and over the Owner's Exclusive Use Area patio.

2.12.2 Indoors. No Owner or other resident of the Community may apply

paint, foil, film, or other reflective material to the glass portion of any window in the Residence.

2.12.3 Structural Modification. Except as otherwise expressly provided in

this Declaration, no Person may modify any Condominium or any Association Propeny
(including walls, foundation, roof or fire sprinklers) if the modification will impair the structural
integrity or fire safetf of the Residence or neighbonng Residence. No Owner may pierce or
otherwise modify any fire wall assembly or other interior common wall separating attache-d
Condominiums.

2.12.4 Noise Mitigation. No Owner may take any actions that may
interfere with structural noise mitigation Improvements installed in the Condominium by
Declarant. Owners are further prohibited from (a) puncturing, piercing or otherwise altering
any walls
shared wit.h another Condominium, if any, (b) installing any sound system, loudspeakers,
entertainment system or other music-, sound- or noise-generating or amplifying device in any walls
or ceding of an attached Condominium, and {c) installing any tile or other hard surface flooring
... on the upper levels of a Building without the prior written approval of the Design Review
.c,er, Committee. Noise mitigating floor materials in upper floors or wall Improvements in
06 1756878
-22- 4934-37690\CCRS\ 586567 I J
7/6/06
 12. A finding that the Association·s failures to enforce the governing documents and comp!

'2 wit h applicable laws is chronic in nature and that as a result the owners have been damaged and
3
are in jeopardy of continuing to be damaged;
4
13. An order that the parties agree to a mutual third-party to oversee the Association's board
5

6 of directors, at the expense of the Association, until such time that the court deems lhe owners

7 are no longer in financial jeopardy. In the event the panres cannot mutual!y agree to a third

8 pany the court win assign a third party base.d upon the recommendations of me parties herein.
9
14. A finding that the Association did not act in good faith towards the Plaintiff in regard to
10
his legal rights as an OWf.lef and O!her matters generaHy aHeged herein.
ii

12 15. Any funher relief the court deems just under the circumstances, including but not

13 limited to. ordering the Association's board of directors to participate in training and continuing
14
education.
15
16. Plaintiff be awarded his costs of suit incurred heFein;
16
17. For such other relief and further relief, the Court deems just, reasonable and equitable t
17

18 be granted.

1"9
DATED: December l 9, 20t8
20
Attomeyes for Plainrifif Grant
21 Beuohd
On behalf of himself and all others similarly situated
22

23

24

25

26
27

2'.8 - 42 -
COMPLAINT FOR DECLARA TORY RELlEF
 08/08/06

2.17 RIGHTS OF DISABLED. Subject to Article 5. each Owner may modify his
Residence and the route over the Association Property leading to the front door of his Residence,
at his sole expense to facilitate access to his Residence by persons who are blind. visually
impaired, deaf or physically disabled or to alter conditions which could be hazardous to such
persons, in accordance with California Civil Code Section 1360 or any other applicable
law.

2.18 TEMPORARY BUILDINGS. No outbuilding, tent, shack, shed or other

temporary building or Improvement may be placed upon any portion of the Community either
temporarily or permanently, without the prior written consent of the Design Review
Committee. No garage, carport, trailer, camper, motor home, recreation. vehicle or other vehicle
may be used as a residence in the Commwuty, either temporarily or pennanently.

2.19 ASSOCIATION PROPERTY. The Association Property may not be a)tered

without the Board's prior written consent.

ARTICLEJ
DISCLOSURES

This Article discloses infonnation obtained from third-party sources such as consultants,
government and public records. No Person should rely on the ongoing accuracy or completeness
of the information discussed in this Article because many of the matters discussed below are
outside the control of Declarant and the Association. Accordingly, Declarant does not make any
guarantee as to the accuracy or completeness of the matters disclosed below. Furthermore,
Declarant is under no obligation to update or revise any matter disclosed in this Article. This
Article is intended to provide Owners with information known or provided to Declarant as of
the
date this Declaration was Recorded, to be used as a starting point for further independent
investigation.

3.1 NO REPRESENTATIONS OR WARRANTIES . No representations or

warranties, express or implied, have been given by Declarant, the Association or their agents, in
connection with the Community, its physical condition, zoning, compliance with law, fitness for
intended use, or in connection with the subdjvision, sale, operation, maintenance, cost of
maintenance, taxes or regulation of the Community as a condominium project. except as
expressly provided in this Declaration, as submitted by Declarant to the DRE and as provided by
Declarant to the first Owner of each Condominium. ·

3.2 CONDITION OF IMPROVEMENTS.

3.2.1 Generally. The Building and other Improvements in the Community

were originally built in 1922 as a manufacturing faciJity . This facility was converted by
Declarant's predecessor-in-interest in 2001 into a mixed use project including apanments and.
commercial uses pursuant to the then applicable Local Governmental Agency requirements and
the Adaptive Reuse Ordinance. The Community has been operated and maintained as a mixed use
.. project from that rime until 2005 when Declarant began converting the Community into a mixed
use condominium project. Various components of the Improvements in the Community
have been repaired or replaced over the years, and Declarant has made and will continue to make
0
er, certain additional repairs and replacemen.ts in connection with the conversion of the Community
06 1756878
-24- 4934-37690\CCRS\ 586567.13
7/6/06
 08/08/06

3.4 URBAN ENVIRONMENT. Living in the Building entails living in very close
proximity to other persons and businesses, with attendant limitations on solitude. Walls, floors
and ceilings have been designed to meet applicable building codes. However, Owners will hear
noise from adjacent Units in the Community, including noise from showers, bathtubs, sinks,
toilets or other sources of running water. Also, Owners may hear noise from items such as
vacuum cleane . stereos or televisions, or from people running, walking or exercising. Finally,
Owners can expect to hear noise from adjacent residential and commercial areas. Owners may
also experience light entering the Units from street lights located in close proximity to the
windows and doors of the Units.

3.5 SPECIAL CITY REQUIREMENTS.

3.5.1 Emergency Egress Ladders. The Community is subject to a

Recorded Covenant and Agreement Regarding Maintenance of Building under which the City
requires the floors above the first floor to be equipped with ship ladders attached to the exterior
walls of the Building with tamper resistant bolts. These ladders provide an emergency exit from
t.he Building. The Association will be required to maintain these ladders in a safe and secure
condition and to inspect them annually. Building residents are prohibited from obstructing
access to the ladders. with furniture or any other object that would impede their use in case of
emergency.

3.5.2 Ventless Washer/Dryers. The Community is also subject to a

Recorded Covenant and Agreement Regarding Maintenance of Building under which the City
requires that the Units be equipped with ventless washers and dryers (which heat with steam)
from a City approved manufactw-er. These washers and dryers must be maintained in
accordance with the manufacturer's recommendations that are included in the Maintenance
Recommendations. If an Owner replaces a ventless dryer with a standard vented dryer, that
Owner must install, at the Owner's expense, a 4 inch moisture exhaust duct as required by
Section 5043.1 of the City's Municipal Code.

3.6 PARKING GARAGE. Owners, the Commercial Owner, the Commercial

Tenants and the Commercial Permittees {as defined in the Mutual Benefit Agreement) will be
entitled to park in their respective assigned parking spaces in the Parking Garage. Declarant or the
Association may in the future pennit members of the public to use the unassigned parking spaces
in the Parking Garage on a short tenn and/or long tenn pay parking arrangement.

3.7 7 REDEVELOPMENT AREA. In 1975, the City adopted a Redevelopment

Plan for the Central Business Redevelopment Project Area (the "Redevelopment Area_,,.
The Community is m the Redevelopment Area. Its conversion from a manufacturing facility into
a mixed use apartment project was accomplished under the Redevelopment Plan.

3.8 ADAPTIVE REUSE/LIVE WORK. The City has approved the conversion of
C the Community into a mixed use project including 161 live/work Units, pursuant to the Adaptive
co Reuse Ordinance. Accordingly, the Community may have a variety of artists, artisans and others
'
CJ who use their Units for business purposes as well as living purposes, consistent with the
C">
restrictions in this Declaration and the requirements of applicable Local Government Agencies.

06 1756878
-26- 4934-37690\CCRS\ 586567 J J
116/0(,
 08/08/06

Power lines and transfonners produce extremely low-frequency electromagnetic fields

("ELF EMFj when operating. For some time, there has been speculation in the scientific
community about health risks associated with living near ELF-EMF sources. In 1992, the
United States Congress authorized the Electric and Magnetic Fields Research and Public
Information Dissemination Program (" EMF-RAPID Program,') to perform research on
these issues and to analyze the existing scientific evidence in order to clarify the potential for
health risks from exposure to ELF-EMF. In May of 1999, the National Institute of
Environmental Health Sciences
("NIEHS'1 issued a report to Congress summarizing its review of scientific data from over three
hundred (300) studies on ELF-EMF health risks. The ELF-EMF studies consist of both
epidemiological studies (studies of exposure m human populations) and controlled laboratory
experiments on animal and cell models. While some epidemiological studies suggested some
hnk between certain health effects and exposure to ELF-EMF, the laboratory experiments did
not support such a link. According to the NIEHS report, the scientific evidence shows no clear
pattern of health hazards from ELF-EMF exposure, and the NIEHS report did not find evidence
of any link sufficient to recommend widespread changes in the design or use of electncal
transmission equipment. However, because the evidence does not clearly rule out any effect,
NIEHS advocated. continuing inexpensive and safe reductions in exposure to ELF-EMF and
endorsed current utility practices regarding design and siting of new transmission and
distribution lines. Further information on this subject is available from the Regional EMF
Manager, Southern California Edison Company, 1851 West Valencia Drive, Fullerton. California
92833 (for LANentura: Regional EMF Manager, Southern California Edison, 1721 22nd Street,
Santa Monica, California 90404). Additional information on ELF-EMF and copies of the
NIEHS report are available from the EMF-RAPID website at http://www.niehs.nih.gov/
emfrapid/homc.htm.

3.14 MOLD. Molds are simple, microscopic organisms, present virtually everywhere,
indoors and outdoors. Mold can be any color, but is usualJy green, gray, brown or black. Mold
requires a food source (such as paper, wood, leaves or dirt), a source of moisture and a suitable
temperature {generally 40-100 degrees Fahrenheit) to grow.

Individuals are exposed to molds on a daily basis. and in most instances there are no
harmful effects. However, the buildup of molds in the indoor environment may contribute to
serious health problems for some individuals. Due to a variety of factors, including the fact that
sensitivities to various types of molds and other potential contaminants vary from person to
person, there are currently no state or federal standards concerning acceptable levels of exposure to
mold. Sources of indoor moisture that may lead to mold problems include, but are not bmited to
flooding, leaks, seepage, sprinkler spray hitting the residence, overflow from sinks or sewers, damp
basement or crawl space, steam from shower or cooking, humidifiers, wet clothes drying indoors,
watering house plants, and clothes dryers exhausting indoors.

Each Owner should take precautions to prevent the growth of mold in the Residence from
these and other sources. Preventative measures include, but are not limited to the following: (1}
regularly cleaning the Residence; (2) regularly checking for accumulated moisture in corners and
unventilated areas; (3) running fans, dehumidifiers and air conditioners to reduce mdoor humidity;
(4} stopping the source of any leak or flooding; (5) removing excess water with mops or a wet
vacuum; (6) moving wet items to a dry, welt ventilated area; (7) regularly cleaning and disinfecting
indoor and outdoor surfaces that may contain mold; (8) having major appliances,
 08/08/06

ARTICLE4
THE ASSOCIATION

4.1 GENERAL DUTIES AND POWERS. The Association has the duties and
powers enwnerated and described in the Governing Documents, in addition to the general and
implied powers of a nonprofit mutual benefit corporation. generally to do all things that a
corporation organized under California law may lawfully do which are necessary or proper in
operating for the general welfare of the Owners, subject only to the limits on the exercise of such
powers listed in the Governing Docwnents. Unless otherwise indicated in the Articles, Bylaws, this
Declaration, or the Supplemental Declarations? the powers of the Association may be exercised
by the Board.

4.2 SPECIFIC DUTIES AND POWERS. In addition to its general powers and
duties, the Association has the following specific powers and duties.

4.2.1 Association Property. The power and duty to accept, maintain and
manage the Association Property in accordance with the Governing Documents. The
Association may install or remove capital Improvements on the Association Property. The
Association may reconstructJ replace or refinish any Improvement on the Association Property.

4.2.2 Utilities. The power and duty to obtain, for the benefit of the
Community, all water, gas and electric services necessary for the Association Property. The power
and duty to obtain for the benefit of the Cornmuruty, all commonly metered residential utilities.

4.2.3 Graotiog Rights. The power to grant exclusive or nonexclusive

easements, licenses, rights of way or fee interests in the Association Property owned in fee
simple by the Association, to the extent any such grant is reasonably required (a) for Improvements
to serve the Community, (b) for purposes of conformity with the as-built location of Improvements
installed or authorized by Declarant or the Association, (c) in connection with any lawful lot line
adjustment, or (d) for other purposes consistent with the intended use of the Community. This
power includes the right to create and convey easements for one or more Owners over portions of
the Association Property. The Association may de-annex any portion of the Community from the
encumbrance of the Declaration in connection with any lawful lot line adjustment.

4.2.4 Employ Personnel. The power to employ Persons necessary for the
effective operation and maintenance of the Association Property, including legal, management
and accounting services.

4.2.5 Insurance. The power and duty to keep insurance for the Association
Property in accordance with this Declaration.

4.2.6 Sewers and Storm Drains. The power and duty to maintain any
private sewer systems. private storm drams, or private drainage facilities in the Association
Property in accordance with the Governing Documents.

06 1756878
-30. 4934-37690\CCRS\ 586567 1J
7/6/06
 08/08/06

discipline. including any schedule of monetary penalties for violation of the Governing Documents.
(4) any procedure for the imposition of penalties, (5) any standards for delinquent assessment
payment plans, and (6) an.y procedures adopted by the Association for resolution of assessment
disputes (each, a "Covered Rule'') may only be adopted, amended or repealed in accordance
with the following procedure:

(1) The Board must provide written notice ("Notice") of a

proposed change in a Covered Rule to the members at least thirty (30) days before making the
change, except for an Emergency Rule Change (defined below). The Notice must include the
text of the proposed change and a description of the purpose and effect of the proposed change
(Notice is not required if the Board determines that an immediate change is required to address
an imminent threat to public health or safety, or an imminent risk of substantial economic Joss to
the Association);

(2) The decision on a proposed change shall be made at a

Board meeting after consideration of comments made by the members of the Association;

(3) The Board shall deliver Notice of the adopted change to

every member of the Association within fifteen (15) days of adoption. If the change was an
Emergency Rule Change, the notice shall include the text of the Emergency Rule Change , and
the date on which the Emergency Rule Change expires;

(4) If the Board determines that an immediate Rule change

is required to address an imminent threat to public health or safety, or an imminent risk of
substantial economic loss to the Association, it may make the change on an emergency basis
(..Emergency Rule Change") and no Notice will be required. An Emergency Rule Change is
effective for one hundred-twenty ( 120) days, unless the adopted change provides for a shorter
effective period. AJ.ly change that is adopted as an Emergency Rule Change may not be re adopted
under authority of this subpart;

(5) A Notice required by this Section 4.2.8(d) is subject to

California Civil Code Section 1350.7;

(6) A Rule change made pursuant to this Section 4.2.8(d)

may be reversed as provided in California Civil Code Section 1357.140.

The foregoing procedure does not apply to Ru1es that do not meet the definition of Covered
Rules above, nor to decisions of the Board regarding maintenance of Association Property, a
decision on a specific matter that is not intended to apply generally, a decision setting the amount
of an Annual Assessment or a Special Assessment, a Rule change that is required by law if the
Board has no discretion as to the substantive effect of the changes, or isS11ance of a document that
merely repeats existing law or the Governing Documents.

(e) Use of Facilities. The Rules and Regulations may {l) specify a
maximum number of guests which an O wner, tenant or other Person may admit to the
Association Property recreational facilities at one time, (2) establish rules for allowing Owners,
... tenants or other Persons to use Association Property facilities for private functions, or

06 1756878
-32- 4934-37690\CCRS\ 586567 l 3
1/6/0f,
 08/08/06

(d) Installation of Telecommunications Facilities. Whether the

Service Provider is solely responsible for the installation, and the cost thereof, of all of the
Telecommunications facilities necessary to pr:ovide Telecommunications Services to each
Condominium.

(e) Removal of Telecommunications Facilities. Whether the

Service Provider has the right to remove the Telecorrununications Facilities upon expiration or
termination of the Telecommunications Contract.

4.2.12 Indemnification.

(a) For Assoclatwn Representam,es. To the fullest extent

authorized by law, the Association has the power and duty to indemnify Board members.
Association officers, Design Review Committee members, and all other Association committee
members for all damages, pay all expenses incurred, and satisfy any judgment or fine levied as
a result of any action or threatened action brought because of performance of an act or
omission within what suc·h person reasonably believed to be the scope of the Person's
Association duties ("Official Act"). Board members, Association officers. Design Review
Committee members, and all other Association committee members are deemed to be agents of
the Association when they are perfonnmg Official Acts for purposes of obtaming
indemnification from the Association pursuant to this Section. The entitlement to
indemnification under this Declaration inures to the ben.e fit of the estate, executor,
administrator and heirs of any person entitled to such indemnification.

(b) For Other Agents of the Association. To the fullest extent

authorized by law, the Association has the power, but not the duty, to indemnify any other
Person acting as an agent of the Association for damages incurred, pay expenses incurred, and
satisfy any judgment or fine levied as a result of any action or threatened action because of an
Official Act.

(c) Provided by Contract. The Association also has the power, but
not the duty, to contract with any Person to provide indemnification in addition to any
indemnification authorized by law on such terms and subject to such conditions as the
Association may impose.

4.2.13 Vehicle and Parking Restrictions. The power granled in Section 2.8
to identify Authonzed Vehicles or Restricted Vehicles and to modify the vehicle and parking
restrictions in the Governing Docwnents.

4.2.14 Landscaping. The Board has the power, but not the duty, to grant
Owners revocable licenses that allow Owners to replace and/or add landscaping Improvements
to any portion of the Association Property, subject to the prior written approval of the Board. any
reasonable restrictions or conditio s the Board may impose, and the right of the Board to revoke
such license, remove the Improvements and charge the Owner for the cost of such removal.

06 1756878
-34- 493•·37690\CCRS\ 586561 13
7/6/06
 08/08/06

fails or refuses to delegate his Membership rights to the contract purchaser before the Close of
Escrow, the Association may record the transfer to the contract purchaser in the Association's
records. However, no contract purchaser will be entitled to vote at Association meetings during
the term of a purchase contract without satisfactory evidence of the delegation of the contract
seller's Membership rights to the contract purchaser. The Association may levy a reasonable
transfer fee against a new Owner and such Owner's Condominiwn (which fee shall be paid
through escrow or added to the Annual Assessment chargeable to such new Owner) to
reimburse the Association for the administrative cost of transferring the Membership to the
new Owner on the Association's records. Such fee may not exceed the Association's actual cost
involved in changing its records.

4.4.3 Classes of Membership. The Association classes of voting

Membership are as follows:

(a) Class A. Class A members are all Owners except Declarant for
so long as a Class B Membership exists. Class A members are entitled to one (l) vote for each
Condominium owned by such Class A members which is subject to Assessment. Declarant shall
t· become a Class A member on conversion of Declarant's Class B Membership as provided
belo w. The vote for each Condominium shall be exercised in accordance with Section 4.5.1, but
no more than one (1) Class A vote may be cast for any Condominium.

(b) Class B. The Class B member is Declarant. The Class B member

is entitled to three (3) votes for each Condomnrium o\1/lled by Declarant which is subject to
Assessment. The Class B Membership shall convert to Class A Membership on the earlier t'o occur
of the following events:

( l) When the total votes outstanding in the Class A

Membership equals the total votes outstanding in the Class B membership; or

(2) The fifth anniversary of the first Close of Escrow in the

Community.

4.5 VOTING RIGH TS.

4.5.1 Limits Generally. A11 voting rights are subject to the Governing
Docwn ents . Except as provided in Sections 4.5.2 and 12.3 of this Declaration and Section 4.2.13
of the Bylaws, as long as there is a Class B Membership, any provision of the Governing
Documents which expressly requires the vote or written consent of a specified percentage (instead
of a majority of a quorum) of the Association's voting power before action may be undertaken
shall require the approval of such specified percentage of the voting power of both
the Class A and lhe Class B Membe rships. Except as ,provided in Section 12.3 of this
Declaration and Sect10n 4.2.13 of the Bylaws, on termination of the Class B Membership, any
provision of the Governing Documents which expressly requires the vote or written consent of
Owners representing a specified percentage (instead of a majority of a quorum) of the
Association's voting power before action may be undertaken shall then require the vote or
written consent of Owners representing such spec1fied percentage of both (a) the Association's

-38- 4934-37690\CCRS\ 586567.13

7/6/06
 11 I . The Associations annual report for years 2014. 2015. 2016 & 2017 are attached
2
hereto collectively as Exhibit ..M.. the contents of which arc incorporated herein by
3
this reference. as if forth in full, verbatim.
4
5 112 . The Associations financial statements. as that term is defined by Corporations
6 CoJe Sedion 5012. JiJ nol Jisclose tht.: monic::, paid in gove rnmental fines by the

1 owners and therefore was not in conformity with generally accepted accounting
8
principles which reasonably sets forth. among other things. the income and expenses of
9
the corporation and disdoscs the accounting hasis used in their preparation.
10
113. These failures to disclose constitute a breach of the Associations fiduciary duty
11

12 to the owners

13 114. Plaintiff prays for an order requiring the Association to disclose to the owners th

14 fines paid to the city of Los Angeles; the amounts still due; and prays that the court
15
issue an order to the Association to cure the outstanding "order of compliance " which
16
remains unresolved with the department of building and safety.
17

18

19 EIGHTH CAUSE OF ACTION

20 (Failure to disclose a lack of FDIC Insurance on reserve funds)
21
115. ll1e Assoc ia tio n maintains se" eral accounts ·which hold rese rve funds pursuant t

Civil Code Section 4177 as well as operating expenses , gene rally.

23

24 116.
The monies held in these various accounts are maintained in trust for the owners

25 and the Association has a fiduciary obligation to keep the funds safe.

26 117. On January 7, 2018 Plaintiff wrote a letter the Association inquiring if the
27
monies held in trust were in fact FDIC insured or otherwise insured in some form
28
DRAFT COMPLAINT
 122. TI1is material fact has not been disclosed by the Association to the owners.
2
123. This foilurc to disclose is a breach of the Associations fiduciary duty to the

owners.
4
5 124. Plaintiff seeks an order requiring the Association to disclose material facts to the
6 owners which, heretofore remain undisclosed, including but not limited lo the fact that

7 the monies they are holding in trust for the owners is not FDIC insured, nor is the

8 principal amount guaranteed in any form, and that the monies held are in fact at risk,
9
and to provide to the owners a copy of all of the disclosures that the Association was
IO
11 required to acknowledge and sign when the accounts were opened, up to and including
12 the present.

13 125. Notwithstanding the above, Plaintiff was informed by the mediator on October

14 17, 2018, that the subsequent to the Plaintiffs letter of January 7, 2018 that the
15
Association did in fact transfer the monies to a federally insured certificate of deposit
16
in amounts not exceeding$ I 50,000.00 per each account of deposit. but to date the
17

18 Association has not provided any proof of that transfer despite being requested lo do

19 so. In the event that the funds have in fact been transferred to a safe account(s)

20 Plaintiff demands proof of the same and disclosure of where the monies were
21
pre\'iously held: \\ here they were transferred to: and the relevant dates relating to the

same.
23

24

25
PRAYER FOR RELIEF
26
On the first cause of action:
27

28
DRAFT COMPLAINT
 On the fifth cause of action:
2
5. In the alternative to the Fourth Cause of Action. Plaintiff seeks a finding by the court
3
that the Association has not and is not enforcing its governing documents, including i
4
Rules & Regulations as is required by law and prays for an order requiring said
5

6 enforcement, without hesitation. lo pre ent future damages. to the Plaintiff and other

7 owners.
8

On the sixth cause of action:

10
6. Plaintiff seeks a coun finding that the Association did not comply with Civil Code
11

12 Section 4935(e); did not enforce the "one pet policy" enumerated in CCR 2.9; did not

13 disclose the amount and terms of the Weisman settlement agreement; obstructed any

14 attempts by owners to obtain records regarding the settlement of the Weisman easel
15
and that the owners were damaged as a result of these failures. Plaintiff further prays
16
that the Association be ordered to disclose to the owners that the Weisman case is in
17

18 fact settled; lhc 1cm1s of the settlement. including the amounts paid to the plaimitrs in

19 that case; how said settlement affected the owners in terms of increased costs for

20 liability insurance; and how that settlement increased each owners monthly HOA dues
21
On the seventh cause of action:
22
7. Plaintiff prays for an order requiring the Association to disclose to the owners the
23
24 fines paid to the city of Los Angeles; the amounts still due; and prays that the court

25 issue an order to the Association to cure the outstanding ..order of compliance" which

26 remains unresolved with the department of building and safety.

27
On the eighth cause of action:
28
DRAFT COMPLAINT
 12. Any further relief the court deems just under the circumstances. including but not
2
limited to, ordering the Associatfons board of directors to participate in training and
3
continuing education.
4

6 DATED: (DRAFT VERSION)

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28
DRAFT COMPLAINT