In the meantime, Spahi broke into the unit and illegally started renting it for thousands of dollars while he filed another false lawsuit against the bank who legally owned the unit. I would love to see the calculations by Raba-Kistner and by the structural engineer to find out the root cause of the flawed design (errors and omissions anyone). The lawsuit alleges that Spahi, who now owns a controlling interest and 40 units in the property, misappropriated $11 million out of $50 million FEMA paid Ocean Towers to make repairs after the 1994 Northridge earthquake. Thus, Spahi argues, the cases are necessarily related, and the concurrent jurisdiction rule applies. In June 2008, Domit filed a lawsuit to recover damages from the failed Ocean Tower develop-ment project in which one of his companies was involved. 0000314725 00000 n has not been finally disposed of . The second lawsuit, filed by 1 Source Towers, argues that the city's denial of a cell tower at 1800 Harden Blvd. Donald Trump has settled a lawsuit with more than 100 would-be condo buyers who lost millions of dollars when a Trump-branded luxury condominium project in Baja . DENIED. [2], Last edited on 30 November 2022, at 11:13, List of tallest voluntarily demolished buildings, "An Engineer's Nightmare Ocean Tower, South Padre Island | the blog of rio akasaka", "Zachry company building luxury high-rise on South Padre Island", "Leaning South Padre tower turned into 55,000 tons of debris", "Tallest Building Demolitions in the World", "No Second Shot: Saying Goodbye to the Leaning Tower of South Padre Island | Swamplot", "Ocean Tower Highrise Oceanfront Condominiums South Padre Island", "South Padre Leaning Highrise Tower to be demolished in December 13th", https://en.wikipedia.org/w/index.php?title=Ocean_Tower&oldid=1124767533, Padre Boulevard across SPI Convention Center, This page was last edited on 30 November 2022, at 11:13. This action involves plaintiffs contractual rights, while the 2015 action concerns plaintiffs right to be free from fraudulent/disloyal conduct by directors. at 788. GRANTED. [11][5] By this time more than 100 of the condominiums had been sold. The same panel also concluded that settlement had not changed Millennium Tower's capability of resisting major earthquakes and the upgrade will increase that capability. This caused increasing levels of damage to the structural system due to load redistribution and overload of structural elements. DALE S. FISCHER, District Judge.. Millennium Tower Litigation Settled, Engineering Upgrade of Building to 0000006486 00000 n Los Angeles County Superior Courts | Property | A posted article about Ocean towers contains a ton of false information, I'd love a chance to discuss with the author and set the record straight. An attorney who files papers violating these requirements is subject to sanctions, including dismissal. PDF EFORE THE STATE COMMISSION ON JUDICIAL CONDUCT - Texas Spahi concedes the primary right at issue in the 2015 action is the HOAs right to be governed by honest and faithful directors, who were duty-bound to act in good faith and in the best interests of the corporation. Opposition at pg. We tried buying other condo units there and kept getting rejected from the coop also. 'Leaning tower of South Padre' to be torn down - Chron It was designed as a 31-story luxury high-rise featuring 147 residences, a gym, swimming pools, spa, and a media room. 2022-03-17, Los Angeles County Superior Courts | Property | Proc. Omar Spahi, who owns units in Ocean Towers near the intersection of Ocean Avenue and San Vicente Boulevard filed a lawsuit in 2010 against Isen Investments, Inc., alleging the firm had manipulated the market of his luxury apartments by defaming him. 2021-06-22. However, on March 17, a three-judge panel in the California Court of Appeals Second Appellate District reversed the trial court dismissal, allowing Spahi to move forward with his claim. She continued the hearing to June 27 and recommended that the two parties, John Spahi and Michael Reach, attempt to settle their dispute. 0000211211 00000 n . hUQo0+=0N8RtHkhxHL!AI?M e]SYV;by@Q0?>xU RxL)PNp%pWJdynE)0Z0}r*:*yV(b E(0MP4-E^IvldN~ R-9;RMs~7_qZ*- %`o0l8or Motion to Strike Punitive Damages Allegations. "That $11 million has never been accounted for," one resident told us. Proc. In 2006 construction began on the 31-story condo building known at the "Ocean Tower" . ] Mycogen Corp. v. Monsanto Co. (2002) 28 Cal.4th 888, 891. According to filings in the Heyman Densmore,;Roger P. Heyman; James K.T. [6], The developers have filed a $125 million lawsuit against geotechnical engineering firm Raba-Kistner Engineering and Consulting of San Antonio and structural engineers Datum Engineers of Austin and Dallas. Falk v. Childrens Hospital Los Angeles (2015) 237 Cal.App.4th 1454, 1469 fn. Public Records Policy. The current action initially contained causes of action for (1) rescission of the purchase agreements, (2) breach of indemnification agreement and (3) judicial foreclosure. Code of Civ. will keep Verizon from solving a "significant gap in its coverage," triggering . The appeals court affirmed the ruling on essentially the same grounds. The two cases do involve different defendants, different causes of action and different primary rights. If you are interested, please contact us for more details. If you do not agree with these terms, then do not use our website and/or services. Did that happen? The hi-rise included a 4-level parking garage immediately adjacent and connected to it. Relief Based on Rescission; 2. Island Breeze. . Some Federal Courts Post Audio Recordings Online, Service and Research at the Frontier of Media Law, DMLP Announcement: Live Chat Session on Tax-Exempt Journalism (UPDATED), A New Approach to Helping Journalism Non-Profits at the IRS. Proc. Follow us on Twitter. In 2015 Ocean Towers Housing Corporation (HOA) shareholder Michael Reach filed a derivative complaint, case no. Plaintiff adequately alleges alter ego liability, allowing this cause of action to proceed against Spahi. https://www.smobserved.com/story/2018/06/24/news/judge-will-appoint-receiver-over-ocean-towers-co-op-apartments-in-santa-monica/3500.html. Proc. NOTE: The information and commentary contained in this database entry are based on court filings and other informational sources that may contain unproven allegations made by the parties. Ocean Towers has taken on 3 loan since that time and has passed all due diligence from all the lenders. Plaintiff argues the two actions involve different primary rights. Cause Of Action: 28 U.S.C. While the motion is not well taken, defendant has not shown it was brought to harass or unnecessarily delay. Plaintiff characterizes this as an improper third bite at the apple and argues exclusive concurrent jurisdiction cannot apply because both lawsuits were filed within the Los Angeles County Superior Court. As an alternative reason for dismissal, Stone argued that his statements were priviliged because they litigation or were protected communications between parties who share an "interest" in an (916 . [2], Construction was halted in the summer of 2008. [1][2], The Ocean Tower project was developed by Coastal Constructors Southwest Ventures, a subsidiary of Zachry Construction. HOPKINS v. Calvillo immediately took control of the Ocean Tower settlement proceeds and placed them in a "Receivership Account" at Inter National Bank. Paragraph 2 of the complaint does not violate ;128.7, even if plaintiff proved Bainbridge has no agents, employees, servants, officers, directors or shareholders. The court recognized that Stone might have qualified for the privilege if he had made his statements in a letter to another interested party, but it determined that posting a statement on the Internet does not prove the required intent to reach a specific interested party. Cancellation and Refund Policy, Privacy Policy, and ocean tower lawsuit outcome. 0000007695 00000 n Enjoy luxury amenities like valet parking, resort-style pool, doors man, 24/7 security and concierge. He argues a significant risk of contradictory rulings in the two actions and that a stay will not conflict with the courts prior demurrer ruling because the demurrer ruling was based on the primary right doctrine, whereas this motion seeks to apply the broader exclusive concurrent jurisdiction doctrine. ;128.7 (g). Under the transaction test from Plant Insulation, exclusive concurrent jurisdiction applies. Breach of Contract; and 3. Code of Civ. The HOA alleges it has paid millions of dollars in litigation initiated against it by US Bank because of these sales and seeks indemnification from Spahi and his alter egos. The court agrees that some (but not all) of the claims alleged here are based on the same primary right as the 2015 action. "We believe that he used the money to acquire more units for himself because he appointed himself CEO of the co-op corporation and could do whatever he wanted or felt he could. In November 2008. A primary right is the right to be free from a particular injury, regardless of the legal theory on which liability for the injury is based. Gillies v. J.P. Morgan Chase Bank NA (2017) 7 Cal.App.5th 907, 914. Id. The Pride LA If the conditions for exclusive concurrent jurisdiction exist, the issuance of a stay order is a matter of right. People ex rel Garamendi v. American Autoplan, Inc. (1993) 20 Cal.App.4th 760, 772. ] Cal. Code of Civ. HAPI FOUNDATION, ET AL. In 2019, Ocean Towers HOA became the sole plaintiff in the 2015 action. The matter at hand is whether or not Ocean Towers had the right to pay attorney fees to protect its board of directors. The Ocean Tower at South Padre Island has been dubbed the 'leaning tower of South Padre' because parts of it have sunk a foot or more into the sand. This man controlled who was able to buy and sell in his building. [5] Units were to retail for $2 million. UniCourt uses cookies to improve your online experience, for more information please see our Privacy Policy. Plaintiff argues the rule only applies when different superior courts have jurisdiction over the cases in question. CGC-16-553758 (Super. 0000002075 00000 n 2022-02-14, California Courts Of Appeal | Other | It is one of the most prominent structures visible on the Pacific Coast Highway as southbound drivers enter Santa Monica from Pacific Palisades. Once the columns had been fully braced, then garage beams would be cut away and the foundation would be repaired. And the best part of all, documents in their CrowdSourced Library are FREE! Due to popular demand the Berkman Klein Center is keeping the website online, but. Additionally, the 5AC contains new allegations regarding damages stemming from bank lawsuits that were not operative when the demurrer was decided. In 2008 construction was halted when large cracks were observed in parking garage walls and in beams in the hi-rise. of Forestry & Fire Protection v. Howell (2017) 18 Cal.App.5th 154, 191. Pursuant to California Rules of Court 9.40, an application for appearance pro hac vice must be served on all parties who have appeared in the cause and on the State Bar of California at its San Francisco Office. 0000002989 00000 n Courts determining whether a court has exclusive concurrent jurisdiction apply an expansive subject matter test which considers whether the two actions arise from the same transaction. Plant Insulation Co. v. Fireboard Corp. (1990) 224 Cal.App.3d 781, 789. ), TJPA reaches global settlement in Millennium Tower litigation. Ocean Towers Housing Corporation Vs Seif Ascar As the Trustee of The All to prevent us from getting approval for the original foreclosed unit. Both surviving causes of action arise out of an alleged contract breach. Although the facts of the case are not disclosed and difficult to obtain, the lawsuit does reveal that the exploratory borings were no deeper than 100 feet, and the design pile depth was 95 feet in the final construction drawings. 0000001976 00000 n ;128.7(b)(1), (4). At the time of its controlled implosion in December 2009 the building weighed 55,000 short tons (50,000t), and it was the tallest reinforced concrete structure to be demolished in that way. Services: Failure Analysis / Structural Assessment and Strengthening / Litigation Support. The lawsuit alleges that Spahi, who now owns a controlling interest and 40 units in the property, misappropriated $11 million out of $50 million FEMA paid Ocean Towers to make repairs after the 1994 Northridge earthquake.". According to the Spahis, the Isens intended to induce other parties, including prospective buyers and tenants, not to deal with the Spahis. When the agreements were executed, the units were subject to liens in favor of the HOAs lenders. In a hearing conducted on June 13, Los Angeles Superior Court Judge Marian Kohl said that she was inclined to appoint a receiver. ` Legal To Wear? - News of South Padre Subscribe to our newsletter to receive the latest news and events in Santa Monica and the surrounding areas! . By Zach Armstrong The Shore Hotel, a James Heaps Worked at the UCLA Student Health Center and UCLA Medical Center Where Women Have Alleged He Assaulted Them. Eric Uller Allegedly Abused Young Boys Over a Multi-Decade Period Starting in the Late 1980s. The Retro-style Diner Will Open Shop Back Up on Wilshire Boulevard and Expand Into the Old Vienna Bakery Space. 0000043094 00000 n . Cal. The current action alleges Spahi is responsible for paying any judgment that may be awarded against the HOA arising from his alter egos purchase of the units, due to the purchase agreements indemnification provisions. South Padre Island's Ocean Tower Highrise Condo To Be Imploded [5][6] The proposed fixes would have the garage beams separated from the tower, and new columns to be placed under the beams. Breach of Contract; and 3. 54 0 obj <>stream Additionally, Spahi argues the statute of limitations bars the first and third causes of action. Finally, plaintiff argues defendant wrongfully designated Omar Spahi as Windsors PMQ and made false representations in interrogatory responses. SC124263 (the original action) pending in Dept. Mr. Eggenberger fulfilled the requirements of CRC 9.40 and the application. 0000003246 00000 n It was nicknamed "Faulty Towers" and "The Leaning Tower of South Padre Island". 0000004747 00000 n Though the developers initially vowed to fix the problem, studies discovered that repairs would have been too expensive, and plans for its demolition were announced in September 2009. Pier supports in the shifting clay more than 100 feet (30m) underground began buckling, stressing beams and columns, causing cracking, spalling, and breaking, eventually causing the building to lean towards the northwest corner, cracking the wall of the adjacent garage, which abuts the tower. The nearby Texas Park Road 100 was closed on safety grounds just before the building was set to be razed. Construction was halted in May 2008 when cracks formed in the building's supporting columns, and investigations revealed that the core of the skyscraper had sunk by more than 14 inches (360mm). In a letter dated July 2, 2008 the developers informed buyers about the problems that they had encountered. Justia US Law Case Law Texas Case Law Texas Court of Appeals, Thirteenth District Decisions 2010 RABA-KISTNER CONSULTANTS, INC. v. OCEAN TOWER, L. P. AND ANTUN T. DOMIT--Appeal from 357th District. Case Number: *******0918 Hearing Date: November 13, 2019 Dept: P, SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANGELES, DEPT. Spahi argues the new allegations action overlap significantly with the current action, involve the same plaintiff, subject matter and primary defendant, requiring a stay. GRANTED, contingent on service on the State Bar. Ocean Tower accuses the firms of fraud and/or gross negligence and is seeking $125 million in damages. Celebrate Cinco de Mayo at Hotel Casa del Mar with your friends and Dos Hombres Mezcal! The hi-rise included a 4-level parking garage immediately adjacent and connected to it. In 2015 Ocean Towers Housing Corporation (HOA) shareholder Michael Reach filed a derivative complaint, case no. Defendant Spahi filed the motion to stay, which is granted, per the courts prior tentative. Ocean Towers Housing Corp., the owner of an apartment building in Santa Monica, California filed a defamation lawsuit against one of its tenants Richard Stone, who accused the company of breaching its fiduciary duty to its shareholders. http://texasgeotechnicalengineer.blogspot.com/2010/01/ocean-tower-implosion-photos.html, https://www.fiverr.com/seoservice35/make-390-dofollow-backlinks-manually-blog-comments-low-obl. The podium of the building was a large parking garage with the homes beginning at 55 feet (17m) above sea level. ;128.7. Filed: April 28, 2023 as 2:2019cv06106. Plaintiffs Motion for Sanctions against Windsor Housing, Inc. LA COURT CONNECT IS NOW AVAILABLE. Description. "The banks will not finance it and no one wants to buy into a lawsuit. Q8TVcqJpb8w`zE[k*F;7IeP$qE7MdvPbMnbfuIbR + d[ylmB*[$[$derXF- Traffic, ITS, and Transportation Planning. Tree of Life Memorial In Palisades Park Celebrates Life of Marissa Rubin, Wife of Jerry Rubin. I'm happy to meet with you in person to discuss all the relevant facts. ;128.7. Ocean Towers Housing Corporation v. Superior Court of Los Angeles County et al. Ocean Tower SPI was an unfinished, 31-story condominium in South Padre Island, Cameron County, Texas, United States, that was imploded when it was deemed unsafe to remain standing. Further, the court found that Stone may have had malice in publishing the disputed statement. The second and third causes of action seek to enforce plaintiffs alleged right to indemnification under the purchase agreement. endstream endobj 34 0 obj <> endobj 35 0 obj <> endobj 36 0 obj <>stream FAC at 47, 52. "there is sufficient evidence to show misappropriation of funds," she said. In 2019, Ocean Towers HOA became the sole plaintiff in the 2015 action. Plaintiffs sued the tower's developer and adjacent property owners, including Jones Day's client, TJPA. Additionally, even if the court accepted plaintiffs interpretation, plaintiff does not adequately justify imposition of such an extreme remedy as entry of default. A motion for sanctions brought for an improper purpose shall itself be subject to a motion for sanctions. Cal. A $125 million lawsuit over the failed . Laura S. Lehman v. Transbay Joint Powers Authority, et al., No. [W]hen two superior courts have concurrent jurisdiction over the subject matter and all parties involved in litigation, the first to assume jurisdiction has exclusive and continuing jurisdiction until such time as all necessarily related matters have been resolved., Plaintiff characterizes this as an improper third bite at the apple and argues exclusive concurrent jurisdiction cannot apply because both lawsuits were filed within the Los Angeles County Superior Court. Will E.U. I remember when I started blogging a few months ago; I would put in a lot of effort into writing good quality articles, post them on my blog and somehow expect the comments to start pouring in. Since section 128.7(g) explicitly exempts discovery responses from its scope, a request for sanctions for such conduct is not well taken. WHEREAS, U.S. Bank, N.A., as Trustee of the Thornburg Mortgage Securities Trust 2007-2 ("USB") and Ocean Towers Housing Corporation ("OTHC") entered into a Settlement Agreement and Release ("Agreement") dated January 8, 2020 for the purpose of resolving by compromise settlement all claims, liabilities, and disputes between them relating to . They are contractual and do not depend on any allegation of fraud or undue influence by HOA directors. The three-judge panel was made up of Court of Appeals Justices Dennis M. Perluss and Fred Woods as well as Los Angeles Superior Court Judge John L. Segal. Additionally, a notice of related cases does not have estoppel effect. 0000008359 00000 n 0000144111 00000 n Under the doctrine of exclusive concurrent jurisdiction, a court has jurisdiction over a case even if a prior ongoing case concerns the same subject matter until a party files a proper motion to stay the second action or a separate pleading requesting relief. 0000262322 00000 n In August 2019, the parties informed the court that a tentative and conditional global settlement was agreed upon. Island spokesman Dan Quandt described the event as "a very good short-term economic boost for South Padre Island". ;128.7(b)(1), (4). Proc. Case No. Id. The original action was converted to a direct action by the HOA in 2019. 1332 Diversity-Product Liability. . The fact that the parties in two actions are different does not preclude application of the rule if the two actions share a subject matter. We also share information about your use of our site with our social media, advertising and analytics partners. Other parties who were brought into this litigation include parties involved in the design and construction of the Millennium Tower, the Transit Center, and two other nearby projectsthe Sales Force Tower and a project at 350 Mission. The parties subsequently drafted, negotiated and executed a series of settlement documents. The HOA filed a fifth amended complaint (5AC) in the original action on October 16, 2019. ] Plaintiffs argument fails. Stone claimed that the company did this despite statements that it lacked sufficient funds to engage in "much needed building repairs.". In a hearing conducted on June 13, Los Angeles Superior Court Judge Lisa Hart Cole said that she was inclined to appoint a receiver. 0000002573 00000 n Hunter, Superior Court of Los Angeles County; California Court of Appeal, Second Appellate District, No. The language does not affirmatively state any of the identified categories exists but is a broad denial that neither defendant nor anyone associated with defendant harmed plaintiff. In 2015, an HOA shareholder filed a derivative complaint against Spahi and his alleged alter egos and co-conspirators. According to the buildings website, Spahis father, John, serves on the Ocean Towers board of directors as secretary. But those same statements also potentially disparaged the quality of the Spahis title to the Ocean Towers units and the nature of their leasing services, indicating the units were facing foreclosure or subject to assessments for unpaid homeowners association fees and suggesting tenants and prospective buyers would not be dealt with fairly by their landlord or would likely confront additional legal and financial issues when renting or purchasing the Spahis units, the ruling continued. 0000010694 00000 n Section 128.7 does not apply to disclosures and discovery requests, responses, objections, and motions. Cal. The court granted final approval of the proposed settlement in the class action on August 7, 2020. Code of Civ. The Domits' company received approximately $3.5 million from the settlement. VS JOHN SPAHI, ET AL. Enjoy luxury . They reassured them "Your unit will be delivered, and the building will be stronger and safer than ever", stating that completion of the construction would be delayed by "6 to 9 months". To read this as a knowing misrepresentation under ;128.7 would require a narrow, counterintuitive reading. Both surviving causes of action are based on an alleged breach of written purchase agreements subject to a four-year statute of limitations. "there is sufficient evidence to show misappropriation of funds," she said." if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[580,400],'smobserved_com-medrectangle-3','ezslot_5',155,'0','0'])};__ez_fad_position('div-gpt-ad-smobserved_com-medrectangle-3-0'); The lawsuit alleges that Spahi, who now owns a controlling interest and 40 units in the property, misappropriated $11 million out of $50 million FEMA paid Ocean Towers to make repairs after the 1994 Northridge earthquake. Ocean Tower Spi - Other Texas Places - Houston Architecture Contrary to plaintiffs argument, the courts prior denial of defendants notice of related cases and demurrer has no preclusive effect. C4D~5}5?&R o*@RA?CJ$^S[sn 1ka8Yg/{Q~=Lx(:s>M\7?W Kt Based on the investigation findings, the tower was imploded before construction completion. Omar Spahi, who owns units in Ocean Towers near the intersection of Ocean Avenue and San Vicente Boulevard filed a lawsuit in 2010 against Isen Investments, Inc., alleging the firm had manipulated the market of his luxury apartments by defaming him. Code of Civ. Judicial Foreclosure; Filed by Ocean Towers Housing Corporation (Plaintiff); Ocean Towers Housing Corporation (Plaintiff), DocketNotice of Case Reassignment and Order for Plaintiff to Give Notice; Filed by Clerk, DocketCivil Case Cover Sheet; Filed by Ocean Towers Housing Corporation (Plaintiff), DocketComplaint; Filed by Ocean Towers Housing Corporation (Plaintiff), DocketSummons (on Complaint); Filed by Ocean Towers Housing Corporation (Plaintiff), DocketNotice of Case Assignment - Unlimited Civil Case; Filed by Clerk, DocketNotice of Case Management Conference; Filed by Clerk, Case Number: *******0918 Hearing Date: August 07, 2020 Dept: P, Ocean Towers Housing Corporation v. Seif Ascar et al. Copyright 2023. Also alleged: the firm stated the units owned by Spahi and his family were about to be auctioned off in bankruptcy court. 0000006977 00000 n assigned for hearing and determination to one department of the superior court by the presiding judge . According to filings in the case, in a posting on his website The Ocean View, Stone accused . Defendant Spahi cites to Glade v. Glade, where an action was stayed pending the resolution of a prior action within the same superior court involving the same claims. The court also explicitly rejected the "interest" privilege, which Stone argued had not been addressed in the trial court.
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