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1 2 3 4 5 6 7 8 9 10 11 12 •*> M > <1 l_ m *> in *- < '•s- » *' o o Wl M O O c ~o "" « -u 3 *n" ~z 00 a < 0 13 14 15 16 17 18 19 20 21 22 23 24 25 s 26 > 27 28 % Daniel J. Bramzon, State Bar No. 214324 R. Paul Katrinak, State Bar No. 164057 BASTA, Inc.1 2500 Wilshire Blvd., Suite 1111 Los Angeles, California 90057 Telephone: (213) 736-5050 Facsimile: (213) 736-5055 Attorneys for Plaintiffs -e"> y IILED iOS ANGELES SUPERIOR COURT MAY.1 1 2011 JahnAXlarku, j-^c^uuve Officer/Clerk (r 8y. .Deputy SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT SERGIO GONZALEZ, an individual, and ALL OTHERS SIMILARLY SITUATED, Plaintiffs, v. JP MORGAN CHASE BANK, NATIONAL ASSOCIATION, and DOES 1 through 10,000, Defendants. LASCCaseN|C4 6l4 04 CLASS ACTION COMPLAINT FOR: 1. FAILURE TO PAY RELOCATION; 2. VIOLATION OF BUSINESS AND PROFESSIONS CODE, §17200; AND 3. NEGLIGENCE [JURY TRIAL DEMANDED] Plaintiff, on behalf of himself and all others similarly situated (collectively, "Tenants" or 'Plaintiffs"), alleges as follows: NATURE OF THE A<ITTON 1. 5P T This case arises from a clash between the rent control laws established to protect p? tenants in the City of Los Angeles and Defendant JP Morgan Chase Bank, National AssgciatroijTsS .t §£ g "* (hereinafter "JP Morgan Chase Bank") "evict and sell" business model being applied to its? P> * - -^ £? S '* 2 o >•> £ foreclosed properties. Incredibly, every bank that obtains rental property through foreclosure -o en BASTA, Inc., is a California public benefit corporation and federally registered non-profit organization tha^g advocates for tenants' rights and fights to eliminate substandard housing. Q^ COMPLAINT

Gonzalez v. JPMorgan Chase Bank

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JPMorgan Chase accused of running roughshod over the rights of Loa Angeles tenants in foreclosed properties.

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Page 1: Gonzalez v. JPMorgan Chase Bank

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%Daniel J. Bramzon, State Bar No. 214324R. Paul Katrinak, State Bar No. 164057BASTA, Inc.12500 Wilshire Blvd., Suite 1111Los Angeles, California 90057Telephone: (213) 736-5050Facsimile: (213) 736-5055

Attorneys for Plaintiffs

-e">y

IILEDiOS ANGELES SUPERIOR COURT

MAY.1 1 2011JahnAXlarku, j-^c^uuve Officer/Clerk

(r

8y. .Deputy

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT

SERGIO GONZALEZ, an individual,and ALL OTHERS SIMILARLYSITUATED,

Plaintiffs,

v.

JP MORGAN CHASE BANK, NATIONALASSOCIATION, and DOES 1 through10,000,

Defendants.

LASCCaseN|C4 6l4 04CLASS ACTION

COMPLAINT FOR:

1. FAILURE TO PAY RELOCATION;2. VIOLATION OF BUSINESS AND

PROFESSIONS CODE, §17200; AND3. NEGLIGENCE

[JURY TRIAL DEMANDED]

Plaintiff, on behalfof himself and all others similarly situated (collectively, "Tenants" or

'Plaintiffs"), alleges as follows:

NATURE OF THE A<ITTON

1.5P TThis case arises from a clash between the rent control laws established to protect p?

tenants in the City of Los Angeles and Defendant JP Morgan Chase Bank, National AssgciatroijTsS .tS £ §£ g "*

(hereinafter "JP Morgan Chase Bank") "evict and sell" business model being applied to its? "°P> *

- -^ £?S '* 2o >•> £foreclosed properties. Incredibly, every bank that obtains rental property through foreclosure -o

en

BASTA, Inc., is a California public benefit corporation and federally registered non-profit organization tha^gadvocates fortenants' rights and fights to eliminate substandard housing. Q ^

COMPLAINT

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employs the same illegal tactics in violation of the Los Angeles Rent Stabilization Ordinance

("LARSO") as set forth in this Complaint and as evidenced in the multiple Complaints against other

banksthat have beenconcurrently filed with this Complaint.

2. JP Morgan Chase Bank's "evict and sell" business model, insummary, goes as

follows: When JP Morgan Chase Bank becomes the owner of a foreclosed property, JP Morgan

Chase Bankchoosesto evict whatever tenantsresideat the property in order to enhance the

property's sale prospects. JP Morgan Chase Bank has no intent in becoming a landlord ofthe

property or tocomply with the law as it concerns the innocent tenants residing onthe property.

3. In furtherance of JP Morgan Chase Bank's scheme, JP Morgan Chase Bank uses

realtors to sell the properties and "handle" the tenants prior to eviction. The realtors only get paid if

the property is sold, so the realtors do everything possible to force the tenants offthe property. They

have no incentiveor desire to complywith LARSOand help the respective foreclosing bank manage

the rental property as a landlord.

4. When JP Morgan Chase Bank cannot force tenants to vacate properties bydeception

and intimidation, JP Morgan Chase Bank resorts to high volume, "evictionmill" attorneys to handle

the preparation and service of eviction notices andthe filing of Unlawful Detainer complaints. The

attorneys' job is not difficult and is to illegally force the tenantoff the property in violation of

LARSO by serving a notice to quit, wait the notice period (whether 30, 60, or 90 days), and then file

a Judicial Council form unlawful detainer lawsuit. Under general State law, no reason is required

for an eviction as long as the bank provides the proper notice period. As far as JP Morgan Chase

Bank is concerned, the "evict and sell" business model is efficient, quick, and cheap.

5. The "evict and sell" business model, though, is not legal in the City of Los Angeles,

where an entire body of rent control laws protecting tenants - LARSO, protects tenants and

promotes stable communities. Evictions must be supported by "good cause," rather than at the

owner's whim. Moreover, landlords are required to pay tenants fixed relocation assistance when

they intend on taking the rental unit off the market, which is the intent of all the banks, including JP

Morgan Chase Bank, when foreclosing upon the subject properties, especially when the tenant

resides in an "illegal unit."

COMPLAINT

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1| 6. Previously, LARSO applied only to multi-family dwellings, but in 2008, in the face

2 || of this continuing foreclosure crisis impacting innocent tenants, the Los Angeles City Council3 || expanded the applicability of the "good cause" eviction requirements to basically all rental4| properties, including single family homes. LAMC, §49.90, et sea, Abank foreclosure ofa5 landlord's property is not listed by LARSO as a"good cause" ground for eviction. The City Council6 attempted to address the problem of tenants being victimized by foreclosing banks by bringing

7 virtually all tenants in Los Angeles within the protections ofLARSO. Notwithstanding the "good

8Icause" eviction requirement of LARSO or its expansion by the Los Angeles City Council, the banks,9 Iincluding JP Morgan Chase Bank, have continued business as usual. The Defendants continue

10 1applying the "evict and sell" business model while ignoring the tenant protections under the City of11 | Los Angeles' rent control laws.12 7. Many ofthese tenants that are being subjected to JP Morgan Chase Bank's "evict and

13 sell" model are the poorest ofthe poor and live in intolerable conditions. Also, they do not know

14 their rights or cannot defend themselves against these multi-billion dollar institutions bent on

15 throwing them out of their homes.

16 8. When the banks, including JP Morgan Chase Bank, become the landlords, they

17 continue to further neglect the tenants residing on their properties in order to pursue their "evict and

18 sell" business model. The banksnever intended to be a landlord and the bank does become a

19 Ilandlord through aforeclosure, the banks want to rid themselves of the obligation as soon as20 1possible. However, in order to facilitate the sale of the property, the property must be empty of the21 rent controlled tenants that this lawsuit is indeed to protect. The banks employ various illegal means

22 Ito force the tenants from their homes. Some ofthe illegal tactics employed by banks including

23 Ipeppering the tenants with illegal notices, threatening the tenants to force them from their homes,24 threatening to pursue eviction actions inorder to force tenants from their homes and employing

25 eviction actions in violation of LARSO to evict tenants from theirhomes. To further expedite the

26 vacating ofthe units, JP Morgan Chase Bank generally refuses to undertake the necessary repairs or

27 Hcuts the tenant's utilities.

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COMPLAINT

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9. Within the broader group ofLos Angeles tenants falling victim to the JP Morgan

Chase Bank's "evict and sell" model, there is asubset ofthe poorest, often minority residents ofLos

Angeles living in basements, attics, garages, storage rooms, in corners ofahouse that have been

haphazardly separated by drywall - all ofwhich have been illegally converted into living quarters

with varied levels ofbathroom, kitchen, and entrance. These converted spaces share the same basis

ofillegality in that these now-dwelling units have been constructed without permits, without the

watchful eye oflocal regulatory agencies, and not in conformity with the laws intended to protect the

illegal unit's human habitants. Thus, these illegal units have not been granted a Certificate of

Occupancy issued by the City ofLos Angeles Department ofBuilding and Safety ("LADBS").

10. Because of the inherent danger of these illegal units, the City of Los Angeles deems

them "unapproved" for occupancy. Inother words, their existence for thepurpose of human

habitation is illegal. In such situations, landlords are required to either (a) sufficiently remediate the

illegal unit soas to obtain a Certificate of Occupancy and make it habitable, which the banks

steadfastly refuse to do, or (b) relocate thetenant and pay thetenant a relocation fee fixed by

LARSO.

11. Notwithstanding JP Morgan Chase Bank's legal obligations as landlords under rent

control, JP Morgan Chase Bank has instead chosen to steadfastly continue with its "evictandsell"

model without paying the tenants relocation fees as mandated by LARSO. In addition, in order to

force the tenants from their homes, the banks, including JP Morgan Chase Bank, "abandon" the

tenants and all responsibility for the property. The banks, includingJP Morgan Chase Bank, neither

repair dilapidations or payutilities thereby leaving the tenants to fend for themselves and live in

inhumane conditions.

12. The tenantsbeing subjected to the banks' blatant LARSO violations are, as one may

guess, the poorest ofthe poor and most disenfranchised residents ofthe community - persons who

are in most need of protection. Banks, such as JP Morgan Chase Bank, however, treat these tenants

that are protectedby LARSO like any other normal foreclosure and apply their "evict and sell"

business model as usual, which they cannot do. This lawsuit hopes to bring JP Morgan Chase Bank

into compliance with its legal obligations under LARSO.

COMPLAINT

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JURISDICTION

13. The Court has jurisdiction of this matter as the property at issue iswithin the City of

Los Angeles, State ofCalifornia. In addition, JP Morgan Chase Bank waived any right toremove

thisaction to Federal Court, in among otherways, by proceeding withmultiple Unlawful Detainer

actions in StateCourt against members ofthe class, including Plaintiffherein.

THE PARTIES

A. Plaintiffs and the Class Members' Standing

14. The Plaintiffandevery member ofthe classhas standing because they livein a rental

unit subject to LARSO that was obtained by JP Morgan Chase Bank through foreclosure. JP

Morgan Chase Bank is violating its legal obligations as a landlord under LARSO. JP Morgan Chase

Bankhas attempted and is attempting to evict tenants based solelyon obtaining the property through

foreclosure (e.g., 3/60/90 day notices to quit), which is not a legal basis to evict tenants in Los

Angeles. Finally, if the banks, includingJP Bank, desire to evict the tenants for purposes of taking

the rental units off the market, which appears to be the bank's motivation, then the banks are

required to pay the tenants relocation under LARSO, which the banks also refuse to do.

15. Among other things, the Court should enjoin JP Morgan Chase Bank from its

continuing pattern and practice of violating LARSO, by among other things, (a) evicting tenants

based solely on the fact that JP Morgan Chase Bank obtained possession ofthe property through

foreclosure, (b) giving improper notices to "trick" the tenants into vacating the property in violation

of LARSO, (c) failing to pay relocation to tenants entitled to relocation, (d) filing and pursuing

Unlawful Detainer actions without paying relocation, (e) illegally intimidating and harassing tenants,

and (f) failing to comply with local laws and ordinances.

16. Plaintiffs' proposed injunction will force JP Morgan Chase Bank to comply with its

legal obligations under LARSO.

B. Plaintiff Class Representative

17. Sergio Gonzalez resides at 3608 Vi Adair Street, Los Angeles, CA 90011. Sergio

Gonzalez is a male tenant living in a dwelling unit that is owned, managed, and/or otherwise

administered or operated by Defendant JP Morgan Chase Bank in the City of Los Angeles. Plaintiff

COMPLAINT

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is aresident ofthe City and County ofLos Angeles. The residence Sergio Gonzalez lives in was

constructed before October 1,1978. Therefore, the unit is subject to LARSO.

18. Sergio Gonzalez's unit is also an illegal unit that has been cited by the City ofLos

Angeles as an illegal unit. The illegal units involved in this matter concern dwelling units that are

unapproved for occupancy. Basically, the issue is one ofwhat the current use ofa multi-family

dwelling structure is and what the authorized use is. Many ofthe units involved concern structures

thatwere builtbefore Certificates of Occupancy were required; however, there areother documents

maintained by the City, which are a matter ofpublic record and which establish what the authorized

useofthe dwelling structure is and how many dwelling units areauthorized to be within the

structure.

19. Among other documents, the permits associated with a structure would establish

what the authorizeduse of a structureis. There were buildingpermits required, and saved by the

City, going back decades before the Certificates of Occupancy were required. These old building

permits describe the number of dwelling units authorized in a structure and ona particular piece of

property. In addition, they also reveal when additional dwelling units areadded andauthorized and

which are not.

20. The documentation maintained by the City, Certificatesof Occupancy and building

permits will establish the number of dwelling unitsauthorized on a particularproperty.

Additionally, JP Morgan Chase Bank's own records would establish the number dwelling units on

20 Jthe foreclosed property when JP Morgan Chase Bank gained possession. The practice and

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procedure employed by all Banks universally is to have a realtor inspect the Property being

foreclosed upon both pre- and post-foreclosure. The realtor then reports back to the Bank. This

information is then entered in the Bank's computer system. Also, sometimes the Banks send

24 "Surveys" or "Questionnaires" to the tenants on the Property owned by the Bank and many tenants

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fill out the surveys and return them to the Banks and the information is imputed into the Bank's

computer system. Once a Bank determines that there are tenants living on a Property obtained by

the Bank, the Bank then refers the Property to an eviction attorney to remove the tenants from the

Property.

COMPLAINT

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C. Defendant Financial Institution

21. Defendant JP Morgan Chase Bank National TrustCompany ("JP Morgan Chase

Bank") is a National Banking Association, that, based upon information and belief, conducts

substantial business in the Cityand County of Los Angeles, including purchasing, owning,

managing, and/or otherwise administering or operating real property in theCity of Los Angeles. JP

Morgan Chase Bank, through the foreclosure , has become the ownerand, in turn, the landlord of

PlaintiffSergioGonzalez, as wellas all class members who are tenants livingin rent controlled

dwelling units and "illegal units" owned and/or managed by JP Morgan Chase Bank. JP Morgan

Chase Bank is legally authorized to act, and required to act, as the landlord ofthe property. JP

Morgan Chase Bank is responsible for repairs and maintenance ofthe property and is the entity

named as the Plaintiff in legal proceedings as the property owner with the right to evict a given

tenant.

22. The true names and capacities of Defendants sued as Does 1 through 1000 are

unknown to the Plaintiffs at this time. Plaintiffs therefore sue said Defendants by such fictitious

names. Plaintiffs will amend this action to allege the true names and capacities of Does 1 through

10,000 when ascertained. Nevertheless, the Plaintiffs are informed and believe, and based thereon

allege, that each ofthe Doe Defendants, jointly and severally, are in some manner responsible for the

wrongdoing and damages alleged herein. Defendants JP Morgan Chase Bank and Does 1 through

10,000 will sometimes be collectively referred to herein as. "JP Morgan Chase Bank" or

"Defendants."

23. Plaintiffs are informed and believe, and based thereon allege, that each Defendant

was the employee, agent, servant, partner, beneficiary, executor, fictitious business name,

administrator, member, and/or joint venturer of each ofthe remaining Defendants and was acting

within the scope of said employment, agency, trust relationship, beneficiary status, service,

partnership, membership, fictitious business name, and/or joint venture. Plaintiffs are further

informed and believe that each act on the part of each defendant was substantially ratified by each of

the remaining Defendants.

COMPLAINT

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24. JP Morgan Chase Bank employs the same tactics and strategies employed by all the

Banks concerning attempting to remove tenants from rent controlled properties. Counsel for the

Plaintiffs have been involved in hundreds of Unlawful Detainer actions andevery single financial

institution employs the sametactics in removing tenants.

25. The first step in the process isthat the Bank sends acomputer notification to a realtor

assigning the foreclosed property to the realtor. Many Banks use the same nationwide realtors, such

asColdwell Banker. This notice isgenerated by a shared computer system. Some ofthe Banks'

foreclosure programs and computer systems have been set up by anationwide foreclosure processing

company and foreclosure company called First Services Corporation, with most ofits operations and

related entitiesout of Dallas, Texas. There are no oral communications, just electronic

communications.

26. The next step in the process isthat it is the policy ofevery Bank that the realtor visit

the property and determine if the property isoccupied. Normally, there isno contact with the

occupants by the realtor, justa determination is tobe made that the property is occupied.

27. The realtor is then required to report backto the Bank, byentering comments into the

shared computer system that the property isoccupied. Ifthe realtor does obtain information ofthe

occupants ofthe property, then that information is also entered into the shared computer system to

the Bank. No communications are oral. All communications are by e-mail or by way of typing

comments into a shared computer system. Substantial testimony hasbeen provided of many realtors

and not one has ever testified about speaking to a live person at any Bank.

28. Afterthe realtor reports backto the Bank that the property is occupied, oneof a

handful of eviction firms are assigned to remove the tenants fromthe property. The first

communication that most tenants receive, if any, is a three-day notice to the former owner, who does

not reside on the property.

29. There are no communications with the tenants about their tenancies, if any

maintenance is needed, or to collect the rent. In fact, as the realtor only gets paid if the propertyis

sold, the realtors normally refuse to accept any rent and employ various tactics to remove the tenants

from the property. Someof those tactics include, but are not limited to, refusing to perform any

8COMPLAINT

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maintenance, refusing to pay the utilities that the former owner was paying which was included in

rent.

30. Subsequent to the filing of this class action, last year, a new entity appeared

concerning tenants in the City ofLos Angeles called Tenant Access. Another shell company ofFirst

Services Corporation outof Dallas, Texas. This company allegedly provides services to tenants on

properties concerning maintenance issues in Los Angeles out of Dallas, Texas. Thecompany

appears to be yet another subterfuge by the Banks to feign compliance with local laws and

ordinances while attempting to remove tenants from properties so that theycan be sold.

31. All ofthe Banks, includingJP MorganChase Bank, employ the same realtors, same

computer programs, same policies and procedures concerning attempting to remove tenants from

properties. They also employ the same handful of eviction firms as well. Thecoordination of

tactics occurs due to the fact that all the Banks employthe same entities for purposes of disposing of

tenants on properties, so the properties can be sold bythe realtors and the realtors can getpaid.

FACTUAL BACKGROUND

32. Plaintiff SergioGonzalez lives at 3608 V* Adair Street, Los Angeles, CA 90011. He

rented the property from September2008 until today, and paid rent until June 2009. However, the

unit does not have a door covering the front entrance to the residence, and is currently covered by a

sheet of plastic. The unit does not have functioning heat or hot water, there are vermin on the

premises. These conditions continue to today. Sergio Gonzalez lives in a rental unit subject to

LARSO, which has been cited by the City of Los Angeles as an illegal unit.

33. On or about April 28,2009, JP Morgan Chase Bank obtained the property where

Sergio Gonzalez resides through a foreclosure. JP Morgan Chase Bank became Sergio Gonzalez's

landlord. When JP Morgan Chase Bank took over as Sergio Gonzalez's landlord, JP Morgan Chase

Bank ceased maintaining the property.

34. JP Morgan Chase Bank began demanding increased rent from Sergio Gonzalez

starting June 15, 2009. Defendant refused to pay this increased rent. JP Morgan Chase Bank was

not, and is not, legally entitled to collect rent from Sergio Gonzalez, because Sergio Gonzalez lives

in an illegal unit.

COMPLAINT

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35. Shortly afterward, JP Morgan Chase Bank initiated Unlawful Detainer proceedings to

remove Sergio Gonzalez from his home. Attached hereto as Exhibit "A" isa true and correct copy

of JP Morgan Chase Bank National Association v. Mr. Gonzalez et. al„ LASC Case No. 09U09308

Complaint filed onJuly 2,2009,against Sergio Gonzalez.

36. JP Morgan Chase Bank did not have a permitted cause for eviction under LAMC.

Attached hereto as Exhibit "B" is a trueandcorrect copy of Sergio Gonzalez'sAnswer in JP

Morgan Chase BankNational Associationv. Mr. Gonzalezet. al., LASC Case No. 09U09308 filed

on July 9,2009.

37. Throughout the entire time since JP Morgan Chase Bank took over as the landlord of

Sergio Gonzalez, JPMorgan Chase Bank has repeatedly continued to harass and intimidate Sergio

Gonzalez to vacate his home. JP Morgan Chase Bank hassubjected Sergio Gonzalez and his family

to notices which made no senseor had no legal basis, threats,-as opposed to either bringing his

"illegal unit" to Code or paying Sergio Gonzalez to relocate from his home as required by LARSO.

38. Theconduct of JP Morgan Chase Bank toward Sergio Gonzalez is typical ofthe

conductof JP Morgan Chase Bank toward tenants in propertiessubject to LARSO throughout Los

Angeles.

CLASS ACTION ALLEGATIONS

A. Class Allegations for the Class Generally

39. Pursuant to Section 382 ofthe Code of Civil Procedure, Plaintiff brings this action on

behalfof himself and a similarly situated class definedas: any person who is, or within the last

three years has been, a tenant in any dwelling unit or residential dwelling structure in the City

of Los Angeles that is/was owned, managed, or otherwise administered or operated by the

Defendants (the "Class"). Excluded from the Class are the Defendants and their officers, affiliates,

directors, members, employees, shareholders, independent contractors, onsite managers and

supervisors, offsite managersand supervisors, real estate agents and brokers, other agentshowever

denominated, and the immediate family members of any ofthe above.

40. The members of the Class are sufficiently numerous that joinder of all members

would be unfeasible and not practicable. Although the Plaintiffs are presently unaware ofthe exact

10COMPLAINT

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number of Classmembers, the Defendants, basedon infonnationand belief, eitherown,manage, or

otherwise administer oroperate at least hundreds of relevant foreclosed properties inthe City of Los

Angeles. Based onlocal demographics and residential statistics, each foreclosed property shelters,

onaverage, approximately four persons. Thus, the Class contains hundreds, if not thousands, of

people.

41. The Class is ascertainable and shares a well-defined community of interest in

questions of law and fact. Defendants infringed upon and violated, in similar fashion, the rights of

each Class member based upon Defendants' uniform conduct in the regularly practiced, unfair, and

unlawful circumvention ofthe rights intended to protect tenants underLARSO. Such questions of

law and fact include, but are not limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties rented to tenants

who are protected by LARSO;

(b) Whether Defendants have, as policy and regular operating procedure,

undertaken unfair and unlawful business practices in circumventing the rights granted to

tenants under LARSO;

(c) Whether Defendants have, as policy and regular operating procedure,

generally abused the judicial process to vacate foreclosed properties and rid themselves of

tenants protected by LARSO (without proper payment of relocation fees);

(d) Whether Defendants have, as policy and regular operating procedure,

undertaken illicit tactics and business practices for the purpose of, in part, facilitating the sale

ofthe foreclosed properties and selling the rent-controlled, foreclosed properties at a higher

sale price;2 and

(e) Whether Defendants' conduct was undertaken intentionally or negligently.

The Plaintiff suffered from the same general illicit tactics and "evict and sell" business model used

by Defendants to circumvent the same rights applicable to the entire Class.

2 Plaintiff has divided the broader victimized Class into Subclasses that correlate with the most commonmeans used by Defendants to circumvent LARSO and avoid their obligation to pay required relocation feesto the displaced tenants. The relocation fees are required and fixed by municipal ordinance.

COMPLAINT

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42. Theclaims of the named Plaintiff are typical of theclaims of all members ofthe

Class becausethe named Plaintiff is a tenant in a dwelling unit or residential dwelling structurein

the City of Los Angeles that is owned, managed, or otherwise administered or operated by the

Defendants and which wasobtained by Defendants through a foreclosure. The Plaintiffhasbeen

victimized by thesame illegal and unfair business practices uniformly applied byDefendants

throughout Los Angeles. Inaddition, thePlaintiff resides in a dwelling unit or residential dwelling

structure thatdoesnot havea Certificate of Occupancy (commonly known as an "illegal unit").

43. Plaintiff, as representative party, will fairly andadequately protect the interests of the

Class byvigorously pursuing the lawsuit through the Plaintiff's attorneys who are sufficiently skilled

and experienced. The individually named Plaintiffhas no interest antagonistic to those interests of

other Class members.

44. Defendants have acted or refused to act on grounds that apply generally to the Class

by systematically and as a business practice refusing to comply with local ordinances, such as

LARSO. More specifically, Defendants have abused process to vacate tenants protected by LARSO

in order to remove these dwelling units from the rental market (in order to enhance a foreclosed

property's marketability and value), but Defendants have clone so without first paying the displaced

tenants the relocation fees as required and fixed by LARSO. The Defendants' common practice of

ignoring local housing ordinances designed to ensure the safety ofthe general public applies, by

definition, to all members ofthe Class. This common practice of ignoring local housing ordinances

is appropriate for injunctive and declaratory relief that, among other things, prohibits the Defendants

from removing members ofthe Class from their homes altogether without a "good cause" as

required by LARSO, or at a minimum, without paying relocation benefits to the displaced tenants as

fixed by LARSO.

45. Common questions of law and fact applicable to the Class predominate over

questions affecting only individual Class members. Those questions include, but are not limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties rented to tenants

who are protected by LARSO;

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(b) Whether Defendants have, as policy and regular operating procedure,

undertaken unfair and unlawful business practices in circumventing the rights granted to

tenants under LARSO;

(c) Whether Defendants have, as policy and regular operating procedure,

generally abused the judicial process to vacate foreclosed properties and rid themselves of

tenants protected by LARSO (without proper payment of relocation fees);

(d) Whether Defendants have, as policy and regular operating procedure,

undertaken illicit tactics and business practices for the purpose of, in part, facilitating

the sale ofthe foreclosed properties and selling the rent-controlled, foreclosed properties at a

higher sale price; and

(e) Whether, as a common and regular practice, Defendants have, through illicit

means (including Unlawful Detainer actions based on unauthorized and invalid notices),

generally avoided their obligation to pay relocation, fees to displaced tenants as required by

LARSO;

(f) Whether Defendants' conduct was undertaken intentionally or negligently;

(g) Whether Defendants should cease prosecuting all Unlawful Detainer actions

in the City of Los Angelespendingthe outcomeof this litigation so as to prevent the

piecemeal litigationcurrentlyhappening in the form of Unlawful Detaineractions that allow

the Defendants to take advantage of those members ofthe Class who cannot individually

obtain counsel; and

(h) Whether a Special Master should be appointed to approve - prior to service

thereof- any notices that Defendants wish to serveon a tenant in the Cityof Los Angeles.

46. This case can and should be concentrated in a single forum because all ofthe claims

arise fromthe laws of a single municipality, the Cityof Los Angeles. Further, the Federal court has

already issued instructions to file this action in State court.

47. There are no difficulties that will arise in managing this case as a class action. Notice

to membersofthe Class can be provided through Defendants' records, distributionof notices posted

13COMPLAINT

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at the properties that the Defendants own, manage, or otherwise administer oroperate, and by

targeted publication (the cost of whichshould be properly imposed on Defendants).

48. A class action is superior to other available methods for the fair and efficient

adjudication of this controversy for at least the following reasons:

(a) Based upon information and belief, the case will require substantial

management and oversight by the Courtdue to the potential for an excessively large number

of Class members;

(b) Based upon information and belief, the case will require substantial

management and ongoing oversight by the Court due to the necessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal business practices;

(c) Based upon information and belief, the case will require substantial

management and oversight by the Court due to a multiplicity of inter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which the Defendants use as

"fronts" and cover in an effort to avoid liability;

(d) Based upon information and belief, this action will promote an orderly and

expeditious administration and adjudication ofthe claims herein, foster economies of time,

effort, and resources, and ensure uniformity ofdecisions, especially with respect to

Defendants' uniform business practices that violate local laws;

(e) Based upon information and belief, the equitable relief sought should be

imposed on the Defendants consistently, and a class action is superior to individual actions

because a series of individual lawsuits would risk compelling the Defendants to meet

inconsistent standards of conduct;

(f) Based upon information and belief, handling this case as a class action will

potentially alleviate the heavy burden currently being imposed on the judicial districts where

City of Los Angeles Unlawful Detainers are being filed that should never have been filed in

the first place except for Defendants' illicit business practices; and

(g) Based upon information and belief, the unnamed members ofthe Class are

frightened of retribution from the Defendantsfor invokingtheir rights to seek the judicial

14COMPLAINT

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reliefcontained herein, so proceeding in unity as a group will alleviate such fears and

concerns as well as protect the rights of those victimized Class members who arenot

individually named herein.

B. Class Allegations for the Notice to Quit Subclass

49. The Class includes a subclass defined as: any Class member who has received an

illegal or unauthorized Notice to Quit suchasa 3/60/90-day notice to quit/vacate (the "Notice to

Quit Subclass").

50. The number of Class members within the Notice to Quit Subclass are sufficiently

numerous that joinder of all members would be unfeasible and notpracticable. Although the

Plaintiffs are presently unaware ofthe exact number of Subclass members, the Defendants, based on

information and belief, either own, manage, or otherwise administer or operate at least hundreds of

relevant foreclosed properties in the Cityof LosAngeles where a Notice to Quithas been issued that

was not authorized by statute or ordinance. Based on local demographics and residential statistics,

each relevant property provides shelter to at least an estimated four persons. Thus, the Notice to

Quit Subclass contains hundreds, if not thousands, of people.

51. The Subclass is ascertainable and shares a well-defined community of interest in

questions of law and fact, because Defendants infringed and violated, in similar fashion, the rights of

each Subclass member based upon Defendants' uniform conduct in the regularly practiced, unfair,

and unlawful circumvention ofthe rights intended to protect tenants under LARSO. Such questions

of law and fact include but are not limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) Whether Defendants, as a common practice and regular policy, issued notices

to tenants commanding them to "quit" and vacate their homes when such notices were per se

not supported by the "good cause" eviction requirements of LARSO (e.g., 3/60/90-day

notices to quit);

(c) Whether Defendants, as a common practice and regular policy, issued such

15COMPLAINT

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per se unauthorized Notices to Quit for purposes ofvacating the tenants from their rent-

controlled homes inorder to permanently remove the property from the rental market,

thereby facilitating the sale ofthe foreclosed properties and selling such properties ata

higher sale price;

(d) Whether Defendants, asa common practice and regular policy, failed topay

relocation fees to the displaced tenants in the amounts fixed byLARSO, notwithstanding

Defendants' demand that the tenants vacate the foreclosed properties (i.e., through the

Notices to Quit) with the intent of permanently removing the foreclosed properties from the

rental market to improve the properties' marketability and sale price;

(e) Whether Defendants, as a common practice and regular policy, abused

process by issuing theseper se unauthorized Notices to Quit upon tenants who were

otherwise protected by LARSO's "goodcause"eviction requirements and thenproceeding to

file Unlawful Detainer actions based upon these unauthorized Notices to Quit (e.g., 3/60/90-

day notices to quit); and

(f) Whether Defendants' conduct was undertaken intentionally or negligently.

The Plaintiff suffered from the same general illicit tactics and "evict and sell" business model used

by Defendants to circumvent the same rights applicable to the entire Subclass.

52. The claims ofthe named Plaintiff are typical ofthe claims of all members ofthe

Subclass because the named Plaintiff is a tenant in a dwelling unit or residential dwelling structure

in the City of Los Angeles that is owned, managed, or otherwise administered or operated by

Defendants and obtained by Defendants through a foreclosure. The Plaintiff has been victimized by

Defendants' illegal and unfair business practices uniformly practiced by Defendants throughout Los

Angeles. In addition, the Plaintiff lives in a rent-controlled property but nevertheless received a

Notice to Quit from Defendants commanding Plaintiff to vacate the property without a "good cause"

as required by LARSO.

53. Plaintiff, as representative party, will fairly and adequately protect the interests ofthe

Notice to Quit Subclass by vigorously pursuing the lawsuit through the Plaintiff's attorneys, who are

16COMPLAINT

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Isufficiently skilled and experienced. The individually named Plaintiffhas no interest antagonistic tothose interests of other Subclass members.

54. Defendants have acted or refused to act on grounds that apply generallyto the

Subclass by systematically and as a business practice refusing to generally comply with local

ordinances, such as LARSO. More specifically, Defendants have abused process to vacate rent-

controlled tenants from foreclosed properties in order to remove dwelling units from the rental

market but without first paying the displaced tenants relocation fees as required and fixed by

LARSO. The Defendants' common practice of ignoring local housing ordinances designed to

ensure the safety ofthe general public applies, by definition, toallmembers ofthe Subclass. This

common practice of ignoring local housing ordinances is appropriate for injunctive and declaratory

reliefthat, among other things, prohibits the Defendants from removing members ofthe Subclass

from their rent-controlled homes without payingrelocation benefits as required and fixed by

LARSO.

55. The common questions of lawand fact as to the Notice to QuitSubclass predominate

overquestions affecting only individual Subclass members. Thosequestions include, butare not

limited to:

(a) WhetherDefendantsown, manage,or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) WhetherDefendants, as policyand regular operating procedure,have

undertaken unlawful and unfair business practices intended to circumvent LARSO,

specifically by issuing Notices to Quitcommanding the tenants to "quit" and vacate their

rent controlled homes without a "good cause" as listed in, and required by, LARSO (e.g.,

3/60/90-day notices to quit);

(c) Whether Defendants, as common practice and regular policy, vacated tenants

from rent controlledproperties in order to remove the properties from the rental market to,

in turn, facilitate the sale ofthe rent-controlled investments and increase the sale price;

(d) Whether Defendants - when intending to remove a property from the rental

17COMPLAINT

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market for sale purposes - initiated eviction proceedings based onNotices to Quit that were

per se invalid under LARSO rather than pay the tenants the required relocation fees as fixed

by LARSO;

(e) Whether Defendants' conduct was undertaken intentionally or negligently;

(f) Whether Defendants should cease prosecuting all Unlawful Detainer actions

in the Cityof Los Angeles pending the outcome of this litigation so as to prevent the current

piecemeal litigation happening in the form of Unlawful Detainer actions that allow the

Defendants to take advantage of Subclass members who cannot individually obtain counsel;

and

(g) Whether a Special Master should be appointed to approve - prior to service

thereof- any noticesthat Defendants wish to serve on a tenant in the Cityof Los Angeles.

56. The extent and nature of any litigation concerning the controversy already begun by

or against Subclass members should not preclude thecertification ofthe Subclass because a certified

Subclass would end the piecemeal litigation in the form ofUnlawful Detaineractions that allowthe

Defendants to take advantage of those members ofthe Subclass who cannot individually obtain

counsel.

57. There are no difficulties that will arise in managing this case with the proposed

Subclass. Notice to members ofthe Subclass can be provided through Defendants' records,

distribution of notices posted at the properties that the Defendants own, manage, or otherwise

administer or operate, and by targeted publication (the cost of which should be properly imposed on

Defendants).

58. A class action, with the proposedSubclass, is superior to other available methods for

the fair and efficient adjudication of this controversy for at least the following reasons:

(a) Based upon information and belief, the case will require substantial

management and oversight by the Court due to the potential for an excessively large number

of Subclass members;

(b) Based upon information and belief, the case will require substantial

18COMPLAINT

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management and ongoing oversight bytheCourt due to thenecessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal businesspractices;

(c) Based upon information and belief, the case will require substantial

management and oversightby the Court due to a multiplicityof inter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which the Defendants use as

"fronts" and cover in an effort to avoid liability;

(d) Based upon information and belief, this action will promote an orderlyand

expeditiousadministration and adjudication ofthe claims herein, foster economiesof time,

effort, and resources, and ensure uniformity ofdecisions, especially with respect to

Defendants' uniform business practices that violate local laws;

(e) Based upon information and belief, the equitable relief sought should be

imposed on the Defendants consistently, and a class action, with the proposed Subclass, is

superior to individual actions because a series of individual lawsuits would risk compelling

the Defendants to meet inconsistent standards of conduct;

(f) Based upon information and belief, handling this case as a class action, with

the proposed Subclass, will potentially alleviate the heavy burden being imposed on the

judicial districts where City of Los Angeles Unlawful Detainers are being filed that should

never have been filed in the first place except for Defendants' illicit business practices; and

(g) Based upon information and belief, the unnamed members ofthe Subclass are

frightened of retribution from the Defendants for invoking their rights to seek the judicial

relief contained herein, so proceeding in unity as a group will alleviate such fears and

concerns as well as protect the rights of those victimized Subclass members not individually

named herein.

C. Class Allegations for the Non-Payment of Rent Subclass

59. The Class also includes a subclass defined as: any Class member who has received

a Notice to Pay Rent or Quit (the "Notice to Pay Subclass").

60. The number ofClass members within the Notice to Pay Subclass are sufficiently

numerous that joinder ofall members would be unfeasible and not practicable. Although the

19COMPLAINT

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Plaintiffs are presently unaware ofthe exact number ofSubclass members, the Defendants, based on

information and belief, either own, manage, orotherwise administer oroperate at least hundreds of

relevant foreclosed properties in the City ofLos Angeles where a Notice to Pay Rent orQuit has

been issued. Based on local demographics and residential statistics, each relevant property provides

shelter to at least an estimated four persons. Thus, the Notice to Pay Subclass contains hundreds, if

not thousands, of people.

61. The Subclass is ascertainable and shares a well-definedcommunityof interest in

questions oflaw and fact, because Defendants infringed and violated, in similar fashion, the rights of

each Subclass member based upon Defendants' uniform conduct in the regularly practiced, unfair,

and unlawful circumvention ofthe rights intended to protect tenants under LARSO. Such questions

of law and fact include but are not limited to:

(a) Whether Defendants own, manage, orotherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties thatare being

rented to tenants protected by LARSO;

(b) Whether Defendants, as a common practice and regular policy, issued notices

to tenants for alleged non-payment of rent as a subterfuge to intimidate tenants into vacating

their rent-controlled properties in order for Defendants to permanently remove the properties

from the rental market - without paying relocation fees as required and fixed by LARSO -

for the purpose of facilitating the saleand increasing the priceofthe foreclosed properties;

(c) Whether Defendants, as a common practice and regular policy, issued notices

to tenantscommanding them to pay rentor quit, when Defendants did not have any intention

to collect rent and indeed refused to accept rent parents, in order to proceed with

Unlawful Detaineractions and evict tenants without paying relocationfees per LARSO;

(d) Whether Defendants' conductwas undertaken intentionally or negligently.

The Plaintiff suffered from the same general illicit tactics and "evict and sell" business model used

by Defendants to circumvent the same rights applicable to the entire Subclass.

62. The claims of the named Plaintiff are typical of the claims of all members of the

Subclass because the named Plaintiff is a tenant in a dwelling unit or residential dwelling structure

20COMPLAINT

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in the City ofLos Angeles that isowned, managed, orotherwise administered or operated by

Defendants and obtained by Defendants through a foreclosure. The Plaintiff has been victimized by

Defendants' illegal and unfair business practices uniformly practiced by Defendants throughout Los

Angeles. In addition, the Defendants refused to accept Plaintiff's rent after issuing aNotice to Pay

Rent orQuit and instead initiated anUnlawful Detainer action against Plaintiff in order to

implement Defendants' "evictand sell" business model.

63. Plaintiff, as representative party, will fairly and adequately protect the interests ofthe

Notice to Quit Subclass byvigorously pursuing the lawsuit through the Plaintiff's attorneys, who are

sufficiently skilled and experienced. The individually named Plaintiff hasno interest antagonistic to

those interests of other Subclass members.

64. Defendants have acted or refusedto act on grounds that apply generally to the

Subclass bysystematically and as a business practice refusing to generally comply with local

ordinances, such as LARSO. More specifically, Defendants have abused process to vacate rent-

controlled tenants from foreclosed propertiesin order to removedwelling units from the rental

market but without first paying the displacedtenants relocation fees as required and fixed by

LARSO. The Defendants' common practice of ignoring local housing ordinances designed to

ensure the safety ofthe general public applies, by definition, to all members ofthe Subclass. This

common practice of ignoring local housing ordinances is expropriate for injunctive and declaratory

relief that, among other things, prohibits the Defendants from removing members ofthe Subclass

from their rent-controlled homes without paying relocation benefits as required and fixed by

LARSO.

65. The common questions of law and fact as to the Notice to Quit Subclass predominate

over questions affecting only individual Subclass members. Those questions include, but are not

limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) Whether Defendants, as a common practice and regular policy, issued notices

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to tenants for alleged non-payment ofrent as a subterfuge to intimidate tenants into vacating

their rent-controlled properties in order for Defendants to permanently remove the properties

from the rental market - without paying relocation fees as required and fixed by LARSO -

for the purpose offacilitating the sale and increasing the price ofthe foreclosed properties;

(c) Whether Defendants, as acommon practice and regular policy, issued notices

to tenants for alleged non-payment ofrent when Defendants did not have any intention

or a procedural mechanism to collect rents;

(d) Whether Defendants, as a common practice and regular policy, issued notices

to tenants for alleged non-payment ofrent yet refused to accept rent payments in order to

proceed with Unlawful Detainer actions for purposes of, inpart, removing the rent

controlled properties from therental market without paying relocation fees perLARSO;

(e) Whether Defendants, as policy andregular operating procedure, through

illicit tactics and unfair business practices, vacated tenants from rentcontrolled properties in

order to remove theproperties from the rental market to, in turn, facilitate the sale ofthe

rent-controlled investments and increase the sale price;

(f) Whether Defendants - when intending to remove a property from the rental

market for salepurposes - initiated eviction proceedings based on notices of non-payment of

rent when Defendants had no intention or mechanism of collecting the demanded rents (and

indeed often refused such demanded rents) for the purpose of, in part, circumventing the

relocation fees requirement fixed by LARSO;

(g) Whether Defendants' conduct was undertaken intentionally or negligently;

(h) WhetherDefendants should cease prosecuting all Unlawful Detaineractions

in the Cityof LosAngeles pending the outcomeof this litigation so as to prevent the current

piecemeal litigationhappening in the form of Unlawful Detainer actions that allow the

Defendants to take advantage of Subclass members who cannot individually obtain counsel;

and

(i) Whether a Special Mastershouldbe appointed to approve - prior to service

thereof- any notices that Defendants wish to serve on a tenant in the City of Los Angeles

22COMPLAINT

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66. The extent and nature ofany litigation concerning the controversy already begun by

or against Subclass members should not preclude the certification ofthe Subclass because acertified

Subclass would end the piecemeal litigation in the form ofUnlawful Detainer actions that allow the

Defendants to take advantage ofthose members ofthe Subclass who cannot individually obtain

counsel.

67. There are no difficulties that will arise in managing this case withthe proposed

Subclass. Notice to members ofthe Subclass can be provided through Defendants' records,

distribution ofnotices posted at the properties that the Defendants own, manage, orotherwise

administer oroperate, and by targeted publication (the cost ofwhich should be properly imposed on

Defendants).

68. A class action, with the proposed Subclass, is superior to other available methods for

the fair and efficient adjudication of this controversy for at least the following reasons:

(a) Based upon information and belief, the case will require substantial

management and oversight by the Court due to the potential for anexcessively large number

of Subclass members;

(b) Based upon information and belief, the casewill require substantial

management andongoing oversight bytheCourt due to the necessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal businesspractices;

(c) Based upon information and belief, the casewill require substantial

management and oversight bytheCourt due to a multiplicity of inter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which the Defendants use as

"fronts" and cover in an effort to avoid liability;

(d) Based upon information and belief, this action will promote an orderly and

expeditious administration andadjudication ofthe claims herein, foster economies of time,

effort, and resources, and ensure uniformity ofdecisions, especially with respect to

Defendants' uniform business practices that violate local laws;

(e) Based upon information and belief, the equitable relief sought should be

imposed on the Defendants consistently, and a class action, with the proposed Subclass, is

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superior to individual actions because a series of individual lawsuits would risk compelling

the Defendants to meet inconsistent standards of conduct;

(f) Based upon information and belief, handling this case as a class action, with

theproposed Subclass, will potentially alleviate the heavy burden being imposed on the

judicial districts where City of Los Angeles Unlawful Detainers arebeing filed that should

neverhave been filed in the first placeexcept for Defendants' illicit business practices; and

(g) Based upon information and belief, the unnamed members ofthe Subclass are

frightened of retribution from the Defendants for invoking their rights to seek the judicial

relief contained herein, so proceeding in unityas a groupwill alleviate such fears and

concerns as well as protect the rights of those victimized Subclass members not individually

named herein.

D. Class Allegations for the Illegal Unit Subclass

69. The Class also includes a subclass defined as: any Class member whose dwelling

unit or residential dwelling structure is unapproved for its current residential use or

occupancy (the "Illegal Unit Subclass").

70. The number of Class members within the Illegal Unit Subclass are sufficiently

numerous that joinder of all members would be unfeasible and not practicable. Although the

Plaintiffs are presently unaware of the exact number of Subclass members, the Defendants, based on

information and belief, either own, manage, or otherwise administer or operate at least hundreds of

relevant foreclosed properties in the City of Los Angeles where a Class member resides in a

dwelling unit or residential dwelling structure that is unapproved for its current use (commonly

known as an "illegal unit"). Based on local demographics and residential statistics, each relevant

property provides shelter to at least an estimated four persons. Thus, the Illegal Unit Subclass

contains hundreds, if not thousands, of people.

71. The Subclass is ascertainable and shares a well-defined community of interest in

questionsof law and fact, because Defendants infringed and violated, in similar fashion, the rightsof

each Subclass member based upon Defendants' uniform conduct in the regularly practiced, unfair,

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1 and unlawful circumvention ofthe rights intended toprotect tenants under LARSO. Such questions

2 of law and fact include but are not limited to:

3 (a) Whether Defendants own, manage, orotherwise administer oroperate

4 dwelling units or residential dwelling structures on foreclosed properties that are being

5 rented to tenants protectedby LARSO;

6 (b) Whether such properties include a unit unapproved for itscurrent use or

7 occupancy (e.g., as a dwelling or structure where humans canlive);

8 (c) Whether Defendants, asa common practice and regular policy, have failed to

9 abate the per seviolation oflaw and substandard condition by failing torelocate tenants who

10 reside in illegal units and failing to pay the relocation fees required and fixed by LARSO;

11 (d) Whether Defendants, as a common practice and regular policy, have

12 intimidated tenants to vacate illegal units without first paying these tenants the required

13 relocation fees, specifically, in part,by issuing unauthorized notices uponthesetenants

14 (whether notices to quit or notices to pay rent);

15 (e) Whether Defendants, as a common practice and regularpolicy,have

16 intimidated tenants to vacate illegal unitswithout firstpaying these tenants the required

17 relocation fees, specifically, in part, by initiating unauthorized Unlawful Detainer actions

18 against them;

19 (f) Whether Defendants abused process by initiating Unlawful Detainer actions

20 (rightfully or wrongfully) againsttenantsresiding in other dwelling structures on a property

21 lot and then using anyjudgmentobtained as a basis for obtaining a writ of possession to

22 forcefully (andwrongfully) evicttenants from an illegal uniton the sameproperty lot; and

23 (g) Whether Defendants' conduct was undertaken intentionally or negligently.

24 | The Plaintiff suffered from the same general illicit tactics used by Defendants to circumvent the25 | same rights applicable to the entire Subclass.

26

3Such dwelling unitsare easily identifiable, at least in part, by the lackof a Certificate of Occupancy for theunit that is required by LAMC, §91.109, and issued by the Cityof Los Angeles Department of Building andSafety ("LADBS"). Such a lackof certificatequalifies these dwellings as inherently substandard by therelevant regulatory agencies because Certificates of Occupancy are required"[i]n order to safeguard life andlimb, health, property and public welfare[.]" LAMC, ^1.109

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72. The claims ofthe named Plaintiff are typical ofthe claims ofall members ofthe

2 Subclass because the named Plaintiff is a tenant in adwelling unit or residential dwelling structure

3 in the City of Los Angeles that is owned, managed, or otherwise administered or operated by

4 Defendants and obtained by Defendants through aforeclosure. The Plaintiff has been victimized by

5IDefendants' illegal and unfair business practices uniformly practiced by Defendants throughout Los6 Angeles. In addition, the Plaintiff lives in an "illegal unit," yet Defendants: failed to relocate

7 Plaintiff, failed to pay Plaintiff relocation fees as required by LARSO, issued notices upon Plaintiff

8 that are not applicable to illegal units, and filed an Unlawful Detainer action against Plaintiff

9 (notwithstanding that Plaintiff lives in an illegal unit and cannot be evicted without payment of

10 | relocation fees beforehand).11 II 73. Plaintiff, as representative party, will fairly and adequately protect the interests of the12 IIllegal Unit Subclass by vigorously pursuing the lawsuit through the Plaintiffs attorneys, who are13 Isufficiently skilled and experienced. The individually named Plaintiff has no interest antagonistic to14 those interests of other Subclass members.

15 | 74. Defendants have acted or refused to act on grounds that apply generally to the16 Subclass by systematically and as a business practice refusing to generally comply with local

17 ordinances. Specifically, Defendants have, as acommon practice, refused and failed to pay

18 relocation fees totenants for the purpose ofrelocating them out from illegal units, which would

19 abate the per se substandard condition ofhaving persons living in such illegal units. Instead,

20 Defendants have abused process to vacate these rent-controlled tenants from the illegal units (as

21 described above) in order tocircumvent local laws and avoid the Defendants' obligation topay

22 relocation fees. The Defendants' common practice of ignoring local housing ordinances designed to

23 ensure the safety ofthe general public applies, by definition, toall members ofthe Subclass. This

24 common practice of ignoring local housing ordinances is appropriate for injunctive and declaratory

25 relief that, among other things, prohibits the Defendants from removing members ofthe Subclass

26 from their rent-controlled homes and illegal units without paying relocation benefits.

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26COMPLAINT

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75. The common questions oflaw and fact as to the Illegal Unit Subclass predominate

over questions affecting only individual Subclass members;. Those questions include, but are not

limited to:

(a) Whether Defendants own, manage, orotherwise administer oroperate

dwelling units orresidential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) Whether such properties include a unit unapproved for its current use or

occupancy (e.g., as a dwelling orstructure where humans can live);

(c) Whether Defendants, asa common practice and regular policy, have failed to

abate the per se violation of law and substandard condition by failing torelocate tenants who

reside in illegal units and failing to pay the relocation fees required and fixed by LARSO;

(d) Whether Defendants, as a common practice andregular policy, have

intimidated tenants to vacateillegal units without first paying these tenantsthe required

relocation fees, specifically, in part, by issuing unauthorized notices upon these tenants

(whether notices to quit or notices to pay rent);

(e) Whether Defendants, as a common practice and regularpolicy, have

intimidated tenants to vacate illegal units withoutfirst paying these tenants the required

relocation fees, specifically, in part, by initiating unauthorized Unlawful Detainer actions

against them;

(f) Whether Defendants abused process by initiating Unlawful Detainer actions

(rightfully or wrongfully) against tenants residing in other dwelling structures on a property

lot and then using anyjudgment obtained as a basisfor obtaining a writ of possession to

forcefully (andwrongfully) evict tenants from an illegal unit on the sameproperty lot;

(g) Whether Defendants' conduct was undertaken intentionally or negligently;

(h) Whether Defendants shouldcease prosecuting all Unlawful Detainer actions

in the City of Los Angeles pending the outcome of this litigation so as to prevent the current

piecemeal litigation happening in the form of Unlawful Detaineractionsthat allowthe

27COMPLAINT

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Defendants to take advantage ofSubclass members who cannot individually obtain counsel;

and

(i) Whether aSpecial Master should be appointed to approve - prior to service

thereof- any notices that Defendants wish to serve on atenant in the City ofLos Angeles to,

in part, determine whether the notice is being served upon tenants ofan illegal unit.

76. The extent and nature of any litigation already begun byor against Subclass

members, concerning the controversy herein, should not preclude the certification ofthe Subclass,

because a certified Subclass would end the piecemeal litigation in the form of Unlawful Detainer

actions thatallow the Defendants to take advantage of those members ofthe Subclass who cannot

individually obtain counsel.

77. There are no difficulties that will arise in managing this case with the proposed

Subclass. Notice to members ofthe Subclass can be provided through Defendants' records,

distribution ofnotices posted at the properties that the Defendants own, manage, orotherwise

administer oroperate, and by targeted publication (the cost ofwhich should be properly imposed on

Defendants).

78. A classaction, with the proposed Subclass, is superior to otheravailable methods for

the fair and efficient adjudication of this controversy for at least the following reasons:

(a) Based upon information and belief, the case will require substantial

management and oversight by the Court due to the potential foranexcessively large number

of Subclass members;

(b) Based upon information and belief, thecase will require substantial

management and ongoing oversight by the Court due to the necessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal business practices;

(c) Based upon information and belief, the case will requiresubstantial

management and oversight by theCourt dueto a multiplicity of inter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which the Defendantsuse as

"fronts" and cover in an effort to avoid liability;

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(d) Based upon information and belief, this action will promote an orderly and

expeditious administration and adjudication ofthe claims herein, foster economies oftime,

effort, and resources, and ensure uniformity ofdecisions, especially with respect to

Defendants' uniform business practices that violate local laws;

(e) Based upon information and belief, the equitable relief sought should be

imposed on the Defendants consistently, and aclass action, with the proposed Subclass, is

superior to individual actions because a series ofindividual lawsuits would risk compelling

the Defendants to meet inconsistent standards ofconduct;

(f) Based upon information and belief, handling this case as a class action, with

the proposed Subclass, will potentially alleviate the heavy burden being imposed on the

judicial districts where City ofLos Angeles Unlawful Detainers are being filed that should

never have been filed in the first place except for Defendants' illicit business practices; and

(g) Based upon infonnation and belief, the unnamed members oftheSubclass

frightened ofretribution from the Defendants for invoking their rights to seek the judicial

reliefcontained herein, so proceeding inunity as a group will alleviate such fears and

concerns as well as protect the rights of those victimized Subclass members not individually

named herein.

E. Class Allegations for the Citation Subclass

79. The Class also includes a subclassdefined as: any Class member whose dwelling

unit or residential dwelling structurehasbeen citedby either the City of Los Angeles Housing

Department ("LAHD") or the City of LosAngeles Department of Building andSafety

("LADBS") forunapproved use,occupancy, construction, or similar violation (the "Citation

Subclass").

80. The number of Class members within the Citation Subclass are sufficiently numerous

25 Ithat joinder ofall members would beunfeasible and not practicable. Although the Plaintiffs are

presently unaware ofthe exact number of Subclass members, the Defendants, based oninformation

and belief, eitherown, manage, or otherwise administer or operateat least hundreds of relevant

foreclosed properties in the City of Los Angeles where a relevant citation has been has been issued

29COMPLAINT

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Iby either the LAHD or LADBS. Based on local demographics and residential statistics, each

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relevant property provides shelter to at least an estimated four persons. Thus, the Citation Subclass

contains hundreds, if not thousands, of people.

81. The Subclass is ascertainable and shares a well-defined community of interest in

questions oflaw and fact, because Defendants infringed and violated, in similar fashion, the rights of

each Subclass member based upon Defendants' uniform conduct inthe regularly practiced, unfair,

and unlawful circumvention ofthe rights intended to protect tenants under LARSO. Such questions

of law and fact include but are not limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) Whether suchproperties include a unit unapproved for its current use or

occupancy (e.g., as adwelling or structure where humans can live)4 where the LAHD or

LADBS has issued a citation for unapproved use, occupancy, or similar violation;

(c) Whether Defendants, as a common practiceand regular policy, have failed to

abate theper se violation of law and substandard condition by failing to relocate tenants

residing in units cited by the LAHDor LADBS for unapproved use, occupancy, or similar

violation (including the failure to pay relocation fees);

(d) Whether Defendants, as a common practice and regular policy, have

intimidated tenants to vacate units that have been cited by LAHD and LADBS for

unapproved use or occupancy, specifically, in part, by issuing unauthorized notices upon

these tenants (whether notices to quit or notices to pay rent) yet failing to pay relocation fees;

(e) Whether Defendants, as a common practice and regular policy, have

4Such dwelling units are easily identifiable, at least in part, by the lackof a Certificate of Occupancy for theunit that is required by LAMC, §91.109, and issued by the City of Los Angeles Department of Building andSafety ("LADBS"). Such a lack ofcertificate qualifies these dwellings as inherently substandard by therelevant regulatory agencies because Certificates of Occupancy are required "[i]n order to safeguard life andlimb, health, property and public welfare[.]" LAMC,-&91.109.

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intimidated tenants to vacate units that have beencitedby the LAHD and LADBS for

unapproved use or occupancy, specifically, in part, by initiating unauthorized Unlawful

Detainer actions against them - yetfailing to pay relocation fees;

(f) Whether Defendants abused process by initiating Unlawful Detainer actions

(rightfully or wrongfully) against tenants residing in other dwelling structures on a property

lotand then using any judgment obtained asa basis for obtaining a writ of possession to

forcefully (and wrongfully) evict tenants from a unit on the same property lotthat has been

cited by the LAHD and LADBS for unapproved residential use or occupancy;

(g) Whether Defendants' conduct was undertaken intentionally or negligently.

ThePlaintiffsuffered from the same general illicit tactics used by Defendants to circumvent the

same rights applicable to the entire Subclass.

82. The claims ofthe named Plaintiff are typicalofthe claims of all membersofthe

Subclass because the named Plaintiff is a tenant in a dwelling unit or residential dwelling structure

in the Cityof LosAngeles that is owned, managed, or otherwise administered or operated by

Defendants and obtained by Defendants through a foreclosure. The Plaintiffhas been victimized by

Defendants' illegal and unfairbusiness practices uniformly practiced by Defendants throughout Los

Angeles. Inaddition, the Plaintifflives in a residential dwelling citedby eitherLAHD or LADBS

for unapproved residential use or occupancy, yet Defendants: failed to relocate Plaintiff, failed to

pay Plaintiffrelocation fees as required by LARSO, issued noticesupon Plaintiffnot applicable to a

cited dwellingunit, and filed an Unlawful Detaineraction against Plaintiff.

83. Plaintiff, as representative party, will fairly and adequately protect the interests ofthe

Citation Subclassby vigorously pursuing the lawsuitthrough the Plaintiff's attorneys, whoare

sufficiently skilled and experienced. The individually named Plaintiff has no interest antagonistic to

those interests of other Subclass members

84. Defendants have acted or refused to act on grounds that apply generally to the

Subclass by systematically and as a business practice refusing to generally comply with local

ordinances. Specifically, Defendants have, as a common practice, refused and failed to pay

relocation fees to tenants occupying illegal units that have been cited by the LAHD or LADBS,

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which would abate the/?er se substandard condition ofhaving persons living insuch units

unapproved for residential use oroccupancy. Instead, Defendants have abused process to vacate

these rent-controlled tenants from the illegal units (asdescribed above) thathave been cited bythe

LAHD or LADBS, in orderfor Defendants to circumvent local lawsand avoidthe Defendants'

obligation topay relocation fees. The Defendants' common practice of ignoring local housing

6 Jordinances designed to ensure the safety ofthe general put'lic applies, by definition, to all members

7 ofthe Subclass. This common practice of ignoring local housing ordinances is appropriate for

8 injunctive and declaratory reliefthat, among other things, prohibits the Defendants from removing

9 members ofthe Subclass from their rent-controlled homes and illegal units cited by the LAHD or

10 | LADBS - without first paying relocation benefits as described in LARSO.ill 85. Common questions of law and fact as to the: Citation Subclass predominate over

12 Iquestions affecting individual Subclass members. Those questions include, but are not limited to:

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(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by LARSO;

(b) Whether such properties include a dwelling unit unapproved for its current

use or occupancy (e.g., as a structure where humans can live) and cited by either the

LAHD or LADBS;

(c) Whether Defendants, as a common practice and regular policy, have failed to

abate theper se violation of law and substandard condition by failing to relocate tenants who

reside in illegal units cited by either the LAHD or LADBS, as well as failing to pay the

relocation fees required and fixed by LARSO;

(d) Whether Defendants, as a common practice and regular policy, have

intimidated tenants to vacate illegal units cited by the LAHD or LADBS, specifically, in part,

by issuing unauthorized notices upon these tenants (whether notices to quit or notices to pay

rent);

(e) Whether Defendants, as a common practice and regular policy, have

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intimidated tenants tovacate illegal units cited by the LAHD orLADBS without first paying

these tenants the required relocation fees, specifically, in part, by initiating unauthorized

Unlawful Detainer actions against them;

(f) Whether Defendants abused process; by initiating Unlawful Detainer actions

(rightfully orwrongfully) against tenants residing inother dwelling structures ona property

lot and then using any judgment obtained asa basis for obtaining a writ of possession to

forcefully (and wrongfully) evict tenants from a unit on the same property lot that had been

cited byeither the LAHD or LADBS forunapproved residential use or occupancy;

(g) Whether Defendants' conduct was undertaken intentionally ornegligently;

(j) Whether Defendants should cease prosecuting all Unlawful Detainer actions

in the City of Los Angeles pending theoutcome of this litigation so as to prevent thecurrent

piecemeal litigation happening inthe form of Unlawful Detainer actions that allow the

Defendants to take advantage of Subclass members who cannot individually obtain counsel;

and

(k) Whether a Special Master should be appointed to approve - prior to service

thereof- anynotices that Defendants wishto serve on a tenant in the City of LosAngeles in

orderto, in part, determine whether the notice is being served upontenants of a unitcitedby

the LAHD or LADBS for unapproved residential use or occupancy.

86. The extent and nature of any litigation already begun by or against Subclass

members, concerningthe controversy herein, should not preclude the certificationofthe Subclass,

becausea certified Subclasswould end the piecemeal litigation in the form of Unlawful Detainer

actions that allow the Defendants to take advantage of those members ofthe Subclass who cannot

individually obtain counsel.

87. There are no difficulties that will arise in managing this case with the proposed

Subclass. Notice to members ofthe Subclass can be provided through Defendants' records,

distribution of notices posted at the properties that the Defendants own, manage, or otherwise

administeror operate,and by targeted publication (the cost of which should be properly imposedon

Defendants).

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88. A class action, with theproposed Subclass, is superior to other available methods for

the fair andefficient adjudication of this controversy for at least the following reasons:

(a) Based upon information andbelief, thecasewill require substantial

management and oversight bythe Court dueto the potential foran excessively large number

of Subclass members;

(b) Based uponinformation andbelief, the case will require substantial

management and ongoing oversight bytheCourt dueto thenecessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal business practices;

(c) Based upon informationand belief, the case will require substantial

management and oversight by the Courtdue to a multiplicity of inter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which the Defendants use as

"fronts" and cover in an effort to avoid liability;

(d) Based upon information and belief, this action will promote an orderly and

expeditiousadministration and adjudication ofthe claims herein, foster economiesof time,

effort, and resources, and ensure uniformity of decisions, especially with respect to

Defendants' uniform business practices that violate local laws;

(e) Based upon information and belief, i:he equitable relief sought should be

imposed on the Defendants consistently, and a class action, with the proposed Subclass, is

superior to individual actions because a series of individual lawsuits would risk compelling

the Defendants to meet inconsistent standards of conduct;

(f) Based upon information and belief, handling this case as a class action, with

the proposed Subclass, will potentially alleviate the heavy burden being imposed on the

judicial districts where City of Los Angeles UnlawJiil Detainers are being filed that should

never have been filed in the first place except for Defendants' illicit business practices; and

(g) Based upon information and belief, ihe unnamed members ofthe Subclass are

frightened of retribution from the Defendants for invoking their rights to seek the judicial

relief contained herein, so proceeding in unity as a group will alleviate such fears and

34COMPLAINT

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concerns aswell asprotect the rights ofthose victimized Subclass members not individually

named herein.

89. In summary, Defendants have acted or refused to acton grounds thatapply generally

to the Subclass bysystematically and as a business practice refusing to comply withlocal ordinances

5Jthat require them to either (a) restore the dwellings ofthe Citation Subclass to their approved use,6 (b)obtain Certificates ofOccupancy for those dwellings, or (c) pay the tenants the relocation fees

7 pursuant to LARSO. TheDefendants' common practice of ignoring local housing ordinances

8 designed to ensure thesafety ofthe general public applies, bydefinition, to allmembers ofthe

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Citation Subclass. This commonpractice of ignoringlocal housing ordinances is also appropriate

for injunctive and declaratory relief that, among other things,prohibitsthe Defendants from

collecting rent, declares that the members ofthe Citation Subclass are not obligated to pay rent,

prohibits the Defendants from removing members ofthe Citation Subclass from theirhomes without

first paying relocation benefits as required by LARSO, and compels the Defendants to obtain

Certificates of Occupancyfor all dwelling units pursuant to Section 91.109 ofthe Los Angeles

Municipal Code.

F. Class Allegations for the Article 14 Subclass

90. The Class includes a subclass defined as: any Class member evicted or forced to

vacate after December 23,2008 ("Article 14 Subclass").'

91. The number of Class members within the Article 14 Subclass are sufficiently

numerous that joinder of all members would be unfeasible and not practicable. Although the

Plaintiffs are presently unaware ofthe exact number of Subclass members, the Defendants, based on

information and belief, either own, manage, or otherwise administer or operate at least hundreds of

relevant foreclosed properties in the City of Los Angeles where a Subclass member was either

evicted or otherwise forced to vacate after December 23, 2008. Based on local demographics and

residential statistics, each relevant property provides shelter to at least an estimated four persons.

Thus, the Article 14 Subclass contains hundreds, if not thousands, of people.

5This Subclass is intended toencompass all Class members benefiting from LAMC, 49.90-49.95 (Article14.1 ofthe LAMC), which went into effect on December 23, 2008.

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92. The Subclass is ascertainable and shares a well-defined communityof interest in

questions oflaw and fact, because Defendants infringed and violated, insimilar fashion, the rights of

each Subclass member based upon Defendants' uniform conduct in the regularly practiced, unfair,

and unlawful circumvention ofthe rights intended to protecttenantsunder the LAMC (particularly

Article 14.1). Suchquestions of law and fact include but Eire not limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that arebeing

rentedto tenantsprotected by the temporary expansion of LARSO;

(b) Whether Defendants, as a common practice and regular policy, issued notices

to tenants between December23,2008 and December 31,2010, commanding them to "quit"

and vacate their homes when such notices were per se not supported by the "good cause"

eviction requirements of LARSO (e.g., 3/60/90-day notices to quit);

(c) WhetherDefendants, as a common practice and regular policy, issued such

per se unauthorized Notices to Quit for purposes of vacating the tenants from their rent

controlled homes in order to permanently remove the property from the rental market,

thereby facilitating the sale ofthe foreclosed properties and selling such properties at a

higher sale price;

(d) Whether Defendants, as a common practice and regular policy, failed to pay

relocation fees to the displaced tenants in the amounts fixed by LARSO, notwithstanding

Defendants' demand that the tenants vacate the foreclosed properties (i.e., through the

Notices to Quit) with the intent of permanently removing the foreclosed properties from the

rental market to improve the properties' marketability and sale price;

(e) Whether Defendants, as a common practice and regular policy, abused

process by issuing these per se unauthorized Notices to Quit upon tenants who were

otherwise protected by LARSO's "good cause" eviction requirements and then proceeding to

file Unlawful Detainer actions based upon these unauthorized Notices to Quit (e.g., 3/60/90-

day notices to quit); and

(f) Whether Defendants' conduct was undertaken intentionally or negligently.

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The Plaintiff suffered from the same general illicit tactics and "evict and sell" business model used

2 Iby Defendants to circumvent the same rights applicable to the entire Subclass.3 93. The claims ofthe named Plaintiffare typical ofthe claims ofall members ofthe

4 Subclass because the named Plaintiff is atenant in adwelling unit or residential dwelling structure

5 in the City of Los Angeles that is owned, managed, or otherwise administered or operated by

6 Defendants and obtained by Defendants through aforeclosure. The Plaintiff has been victimized by

7IDefendants' illegal and unfair business practices uniformly practiced by Defendants throughout Los8 Angeles. In addition, the Plaintiff lives in arent-controlled property but nevertheless, during the

9 relevant time period, received aNotice to Quit from Defendants commanding Plaintiff to vacate the

10 property without a "good cause" as required by LARSO.

11 94. Plaintiff, as representative party, will fairly and adequately protect the interests ofthe

12 Article 14 Subclass by vigorously pursuing the lawsuit through the Plaintiffs attorneys, who are

13 Isufficiently skilled and experienced. The individually named Plaintiff has no interest antagonistic to14 those interests of other Subclass members.

15 J 95. Defendants have acted or refused to act on grounds that apply generally to the16 | Subclass by systematically and as abusiness practice refusing to generally comply with local

ordinances, such as LARSO and Article 14.1 ofthe LAMC. More specifically, Defendants have

abused process to vacate rent-controlled tenants from foreclosed properties in order to remove

dwelling units from the rental market but without first paying the displaced tenants relocation fees as

required and fixed by LARSO. The Defendants' common practice ofignoring local housing

ordinances designed to ensure the safety ofthe general public applies, by definition, to all members

ofthe Subclass. This common practice of ignoring local housing ordinances isappropriate for

injunctive and declaratory relief that, among other things, prohibits the Defendants from removing

members ofthe Subclass from theirrent-controlled homes without paying relocation benefits as

required and fixed by LARSO.

26 ///

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96. The common questions of law and fact as to the Article 14 Subclass predominate

over questions affecting only individual Subclass members. Those questions include, but are not

limited to:

(a) Whether Defendants own, manage, or otherwise administer or operate

dwelling units or residential dwelling structures on foreclosed properties that are being

rented to tenants protected by Article 14.1 ofthe LAMC and LARSO;

(b) Whether Defendants, as policy and regular operating procedure, have

undertaken unlawful and unfair business practices intended to circumvent LARSO

notwithstanding passage of Article 14.1 ofthe LAMC - specifically by issuing Notices to

Quit commanding the tenants to "quit" and vacate iheir rent controlled dwellings without a

"good cause" as listed in, and required by, LARSO (e.g., 3/60/90-day notices to quit);

(c) Whether Defendants, as common practice and regular policy, and

notwithstanding the passage of Article 14.1 ofthe LAMC effective December 23,2008,

vacated tenants from rent controlled properties in order to remove the properties from the

rental market to, in turn, facilitate the sale ofthe rent-controlled investments and increase the

sale price;

(d) WhetherDefendants - when intendingto remove a property from the rental

market for sale purposes - initiated eviction proceedings, after the passage of Article 14.1 of

the LAMC, basedon Notices to Quit that were per se invalid under LARSO ratherthan pay

the tenants the required relocation fees as fixed by LARSO;

(e) Whether Defendants' conduct was undertaken intentionally or negligently;

(f) Whether Defendants should cease prosecuting all Unlawful Detainer actions

in the City ofLos Angelespending the outcome of this litigation so as to prevent the current

piecemeal litigation happening in the form ofUnlawful Detainer actions that allow the

Defendants to take advantage of Subclass members whocannot individually obtain counsel;

and

(g) Whethera Special Master should be appointedto approve - prior to service

thereof- anynoticesthat Defendants wish to serve on a tenant in the City of Los Angeles.

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97. Plaintiff, as representative party, will fairly and adequately protect the interests of the

December 23,2008 to the Present Subclass by vigorously pursuing the lawsuit through the

Plaintiffs attorneys who are sufficiently skilled and experienced. The individually named Plaintiff

has no interest antagonistic to those interests of other members ofthe December 23,2008 to the

Present Subclass.

98. The extent and nature ofany litigation already begun by or against Subclass

members, concerning the controversy herein, should not preclude the certification ofthe Subclass,

because a certified Subclass would end the piecemeal litigation inthe form ofUnlawful Detainer

actions that allow the Defendants to take advantage of those members ofthe Subclass who cannot

individually obtain counsel.

99. There arenodifficulties that will arise inmanaging this case with theproposed

Subclass. Notice to members ofthe Subclass can beprovided through Defendants' records,

distribution ofnotices posted at the properties that the Defendants own, manage, orotherwise

administer or operate, and by targeted publication (the cost ofwhich should be properly imposed on

Defendants).

100. Aclass action, with the proposed Subclass, is superior to other available methods for

the fair and efficient adjudication of this controversy for at least the following reasons:

(a) Based upon information and belief, the case will require substantial

management and oversight by the Court due to the potential for an excessively large number

of Subclass members;

(b) Based upon information and belief, the case will require substantial

management and ongoing oversight by the Court due to the necessary injunctive relief

requested by the Plaintiffs related to Defendants' illegal business practices;

(c) Based upon information and belief, the case will require substantial

management and oversight by the Court due toa multiplicity ofinter-connected, related, and

affiliated entities that may be involved in the wrongs alleged, which theDefendants use as

"fronts" and cover in an effort to avoid liability;

39COMPLAINT

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(d) Based upon information and belief, this action will promote an orderly and

expeditious administration and adjudication ofthe claims herein, foster economies of time,

effort, and resources, and ensure uniformity ofdecisions, especially with respect to

Defendants' uniform business practices that violate local laws including ignoring Article

14.1 ofthe LAMC;

(e) Based upon information and belief, the equitable relief sought should be

imposed on the Defendants consistently, and aclass action, with the proposed Subclass, is

superior to individual actions because aseries ofindividual lawsuits would risk compelling

the Defendants to meet inconsistent standards ofconduct;

(f) Based upon information and belief, handling this case as aclass action, with

the proposed Subclass, will potentially alleviate the heavy burden being imposed on the

judicial districts where City ofLos Angeles Unlawful Detainers are being filed that should

never have been filed in thefirst place except for Defendants' illicit business practices

(including ignoring Article 14.1 ofthe LAMC); and

(g) Based upon information and belief, the unnamed members ofthe Subclass are

frightened ofretribution from the Defendants for invoking their rights to seek the judicial

relief contained herein, soproceeding inunity asa group will alleviate such fears and

concerns as well as protect the rights ofthose victimized Subclass members not individually

named herein.

CAUSES OF ACTION

FIRST CAUSE OF ACTION: FAILURE TO PAY RELOCATION

(By the AllMembers ofthe Class Against AllDefendants)

101. Plaintiffs incorporate herein by reference paragraphs 1through 100 as though fully

set forth herein.

102. Plaintiffs are or were tenantsresiding in dwelling unitsor residential dwelling

structures on foreclosed properties subject to LARSO.

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COMPLAINT

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103. When a tenancy that is subject toLARSO isterminated inorder to take a dwelling

unit or residential unit permanently offthe rental market, LARSO requires that the landlord pay to

the tenant certain relocation fees fixed by LARSO.

104. As more fully detailed above, the Defendants, asa direct policy and intended

consequence ofcertain policies and practices, have vacated properties (subject to LARSO) ofits

tenants for the purpose of, among others, permanently removing the properties from the rental

market to, among other things, enhance the marketability and sale price of such properties.

Notwithstanding the Defendants' true purposes, Defendants failed to pay relocation fees required by

LARSO under such circumstances.

105. When a tenancy that is subject to LARSO comprises a dwelling unapproved for

residential use and occupancy, the landlord must either repair the unit toa sufficient degree to obtain

a Certificate ofOccupancy from LADBS or relocate the tenants (including payment ofrelocation

fees fixed by LARSO).

106. As more fully detailed above, the Defendants,as a direct policyand intended

consequence of certain policies and practices, have continued to permit tenants - without regard for

the tenants' safetyor health- to reside in these"illegal" units that are inherently substandard rather

than pay the tenants the required relocation fees fixed by LARSO.

107. As more fully detailed above, the Defendants havealso,as an alternative policy and

business practice, vacated these "illegal" units of its tenants yet have refused and failed to paythe

tenants the required relocation fees fixed by LARSO.

108. Defendants haveemployed various subterfuges to vacate these properties without

paying the mandatory relocation fees, including but not limited to threats and harassment, threats of

eviction, the shut-off of utilities, actual evictions predicated on unauthorized notices, and other

abuses of process.

109. As a proximate result, the Plaintiffs have been damaged in an amount to be proven at

trial, including as to the required relocation fees.

110. In light ofthe intendedpurposesofthe Defendants' conscious failure to complywith

LARSO and the LAMC concerning the paymentof relocationassistance, the Defendants' conduct

41COMPLAINT

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and theconduct ofthe Defendants' officers, directors, and/or managing agents who authorized,

directed, and/or ratified the Defendants' acts was willful and intentional and done with oppression

and malice against the members ofthe Class, and with aconscious disregard oftheir rights, safety,

comfort, and well-being. In addition, the above conduct isatleast inpart a premeditated course of

conduct intended to harass, and create discomfort for, the Class members in order to force them to

vacate their rent controlled apartments for the purposes of enhancing Defendants' marketability and

price ofthe rent-controlled properties. Therefore, under these circumstances, the Defendants'

behavior isdespicable and warrants the imposition ofpunitive damages ina sum appropriate to

punish the Defendants and deter future, similar misconduct.

SECOND CAUSE OF ACTION; VIOLATION OF

BUSINESS AND PROFESSIONS CODE. 617200

(By AllMembers ofthe Class Against AllDefendants)

111. Plaintiffs incorporate herein byreference peiragraphs 1 through 100 and 102 through

108 as though fully set forth herein.

112. The Defendants, and each of them, as a business model ("evict and sell") have

undertaken a course of conduct, as fully outlined above, that is unlawful, unfair, fraudulent, and/or

deceptive by, among other ways:

(a) Issuing facially invalid"notices to quit" without one ofthe "good cause"

permitted reasons to evict tenants pursuant to LARSO;

(b) Issuing "notice to pay rent or quit" without an intentor mechanism to actually

collect the requested rent;

(c) Usingthe notices as basis to file bad faith or meritless eviction actions;

(d) Filing unlawful detainer actions for thepurposeof intimidating tenants into

vacating rent-controlled dwelling units, in part, for the purpose of avoiding payment of

relocation fees under LARSO;

(e) Shutting-offof utijities to dwellingunits, or allowing such utilities to be shut

off for the purposeofencouraging the tenants into vacating in the first instance, and in the

second instance, without the payment of relocation fees;

42

COMPLAINT

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(f) Owning, managing, orotherwise administering oroperating dwelling units on

foreclosed properties that have not been issued a Certificate ofOccupancy asrequired by

Section 91.109 ofthe Los Angeles Municipal Code;

(g) Failing to undertake the necessary compliance work at itsforeclosed

properties inorder to obtain aCertificate ofOccupancy that complies with Section 91.109.1

ofthe Los Angeles Municipal Code, a violation ofthe law that also may beenforced

pursuant to Section 36900(a) ofthe Government Code;

(h) Demanding and collecting rent without first obtaining a Certificate of

Occupancy from the LADBS;

(i) Misleading the Tenants into vacating the rent-controlled properties in the first

instance and, in the second instance, without payingthe relocation fees to which the Tenants

are entitled;

(j) Owning, managing, or otherwise administering or operating dwelling units on

foreclosed properties in substandard condition (as determined by a governmental agency),

thereby limiting the Tenants' beneficial use ofthe property; and

(k) Failing to bring structures in compliance with their authorized use.

113. Each of these businesspracticesand the others described in the preceding causesof

action, as well as above in the factual background section and incorporated by reference into this

cause of action, are also unfair businesspracticesin that they violate establishedpublic policies

and/or laws without any substantial justification on the part of Defendants.

114. Plaintiffs have lost money or property as a result ofthe Defendants' unlawful and

unfair business practices, or will lose money or property if Defendants are not enjoined by the Court

from, among other things, issuing tenants invalid and unauthorized notices to quit, abusing process

through the unlawful detainer process, failing to generally maintain the rental properties owned by

Defendants (includingutility servicesthereto), condoningtenants residing in unapproved dwellings,

threatening and intimidating tenants into vacating dwelling units unapproved for residential use or

occupancywithout paying tenants the mandatory relocation fees, and refusing to put buildings into a

sufficiently habitable condition that a Certificate of Occupancy can be issued.

43

COMPLAINT

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1 115. As a proximate result ofDefendants' conduct, Plaintiffs have been damaged inan

2 amount tobeproven at trial - sums that should be reimbursed ordisgorged by Defendants -

3 including but not limited to: (a) the payment ofrent onthe "illegal" units, (b) the payment of

4 attorneys' fees and other legal costs expended todefend unlawful detainers predicated upon facially

5 invalid and unauthorized notices to quit, (c) the payment of repaircostsofthe tenants' units, (d) the

6 payment of utility charges that the Plaintiffs incurred when Defendants shut-off water, light, and gas

7 services, and (e)the loss of mandatory relocation assistance (as fixed by LARSO) that was not paid

8 by Defendants upon the Defendants forcefully vacating the tenants from rent-controlled properties.

9 116. These wrongs entitle the Plaintiffs to boththe remedies provided byCalifornia's

10 Unfair Competition Law and the ordinary civil remedies authorized byto Section 36900(a) ofthe

11 Government Code for violations of local ordinances including, but not limited to, damages and

12 injunctive relief.

13 117. Moreover, due to Defendants' continuing pattern and practice of conduct, then

14 pursuant to Business and Professions Code, §17203, Plaintiffs seek an injunction permanently

15 enjoining Defendants from continuing their unlawful and unfair business practices andcompelling

16 them to remedy the problems caused by their previous unlawful and unfair business practices.

17 Such a preliminaryand permanentinjunctionwould, at least in part, preclude Defendantsfrom

18 continuing their violations of local ordinances. Such injunctive relief would prohibit the Defendants

19 1from, among other things, acting as landlords for buildings that do not comply with state and local

20 housing codes and would compel them to put buildings into a sufficiently habitable condition that a

21 Certificate of Occupancy can be issued. Appropriate injunctive relief would compel the Defendants

22 to either bring the inherently substandard dwelling units (e.g., those without a Certificate of

23 Occupancy) into legal compliance or legally relocate the tenants.

24 THIRD CAUSE OF ACTION: NEGLIGENCE

25 (ByAll Members ofthe Class Against All Defendants)

26 118. Plaintiffs incorporate herein by reference paragraphs 1 through 100, 102 through 108

27 and 112 through 114 as though fully set forth herein.

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44COMPLAINT

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119. Asset forth in detail above, Defendants owed Plaintiffs a general duty of care arising

out of their tenanciesas Defendants became Plaintiffs' landlords by obtaining ownershipofthe

relevant properties through foreclosure - a duty ofcare created by generally-applicable law and local

ordinancessuch as Section 91.109 and Article 14.1 ofthe Los Angeles Municipal Code. This duty

ofcare is actionable underbothcommon law negligence and Section36900(a) ofthe Government

Code that renders anyviolation of a municipal ordinance actionable.

120. This duty of care as a landlord, owed byDefendants to Plaintiffs, includes but is not

limited to: (a) refraining from illicit activities intended to vacate tenants from their rent-controlled

homes (e.g., invalid notices, baseless eviction actions, utility shut-offs, general harassment and

intimidation), (b)abiding by local ordinances requiring payment of fixed relocation sums to tenants

under express circumstances, and (c)providing the Plaintiffs with a safe and habitable dwelling not

deemed substandard and sufficiently compliant with local laws to be issued a Certificate of

Occupancy by LADBS, and (d) otherwise abiding by all laws intended to protect tenants.

121. To the extent that anyof the above allegations may be deemed or categorized as

"accidental" rather than intentional, then the Defendants breached their general duty by negligently

undertaking the actions described more fully detailed above.

122. As a proximate result ofthe Defendants' negligence, Plaintiffs suffered injuries and

damages, as alleged herein above, in an amount to be proven at trial.

123. Additionally, Plaintiffs seek a preliminary and permanent injunction precluding

Defendants from continuing their violations of local ordinances. Such injunctive relief would

Iprohibit the Defendants from, among other things, acting as landlords for buildings that do not

comply with state and local housing codes and from refusing to put buildings into a sufficiently

habitable condition that a Certificate of Occupancy can be issued. Appropriate injunctive relief

would compel the Defendants to either bring the inherently substandard dwelling units (e.g., those

without a Certificate of Occupancy) into legal compliance or legally relocate the tenants.

45COMPLAINT

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PRAYER FOR RELIEF

WHEREFORE, Plaintiffs pray for judgment against Defendants, and each of them, as

follows:

ON THE FHtST CAUSE OF ACTION;

1. For compensatory and general, statutory damages according toproof;

2. For preliminary and permanent injunctive relief;

3. For declaratory relief; and

4. Forpunitive and exemplary damages in order to deter future misconduct.

ON THE SECOND CAUSE OF ACTION;

5. For disgorgement and restitution according to proof;

6. For declaratory relief; and

7. For preliminary and permanent injunctive relief.

ON THE TfflRD CAUSE OF ACTION;

8. Forcompensatory and general damages according to proof;

9. For declaratory relief; and

10. For preliminary and permanent injunctive relief.

ON ALL CAUSES OF ACTION

11. For attorneys' fees and costs pursuant to applicable statutesand ordinances; and

12. For such other and further relief that the Court may deem just and proper.

DATED: May ,2011 BASTA, Inc.

By: ^fl &^Daniel Jr.Bramzond"—Attorneys for Plaintiffs

46COMPLAINT

Page 47: Gonzalez v. JPMorgan Chase Bank

\•»

M\I-I-

ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, Suit Barnumber, end adOms):-Daniel J. Bramzon, SBN 214325

BASTA, Inc.2500 Wilshire Blvd., Suite 1111Los Angeles, California 90057

telephone no, (213)736-5050 fax no, (213)736-5055ATTORNEY FOR (Name): Plaintiffs

SUPERIOR COURT OF CALIFORNIA. COUNTY OF LOS AngeleSstreet address: \ \ ] N. Hill Streetmailing address: 111 N. Hill Street

city and zip code: Los Angeles, California 90012branch name: Central District

CASE NAME:

Gonzalez, et al. v. JP Morgan Chase Bank, et al.

CM-010FOR COURT USe ONLY

u- EILEDLOS ANGELES SUPERIOR COURT

MAY 11 2011John AXterKc.^. „M0ojticwiww^

9y. '-aJeKr^vsTr Deputy

CIVIL CASE COVER SHEET

l~71 Unlimited • Limited(Amount (Amountdemanded demanded isexceeds $25,000) $25,000 or less)

Complex Case Designation

I I Counter I 1 Joinder

Filed with first appearance by defendant(Cal. Rules of Court, rule 3.402)

CASE NUMBER:

JUDGE: PC461404Items 1-6 below must be completed (see instructions on page 2).

1. Check one box below forthe case type that best describes this case:Auto Tort

• Auto (22)I I Uninsured motorist (46)OUter PI/PD/WD (Personal Injury/PropertyDamage/Wrongful Death) Tort

• Asbestos (04)r~~l Product liability (24)I I Medical malpractice (45)• Other PI/PD/WD (23)Non-PI/PD/WD (Other) Tort

Business tort/unfair business practice (07)

I I Civil rights (08)I I Defamation (13)• Fraud (16)I I Intellectual property (19)I Professional negligence (25)• Other non-PI/PD/WD tort (35)Bloyment

Wrongful termination (36)

| | Other employment (15)2. This case I• I is | | is not complex under rule 3.400 of the California Rules ofCourt. Ifthe case is complex, mark the

factors requiring exceptional judicial management:d. I / ILarge number of witnessese. \V2 Coordination with related actions pending in one or more courts

in other counties, states, orcountries, orin a federal courtf. GZH Substantial postjudgment judicial supervision

Contract

I I Breach olcontract/warranty (06)CD Rule 3.740 collections (09)I Other collections (09)I I Insurance coverage (18)LZZI Other contract (37)Real Property

I I Eminent domain/Inversecondemnation (14)

I I Wrongful eviction (33)I I Other real property (26)Unlawful Detainer

L_J Commercial (31)I I Residential (32)• Drugs (38)Judicial Review

I I Asset forfeiture (05)I I Petition re: arbitration award (11)I I Writ ofmandate (02)I I Other judicial review (39)

Provisionally Complex Civil Litigation(Cal. Rules of Court, rules 3.400-3.403)

I I Antitrust/Trade regulation (03)L I Construction defect (10)L~Z] Mass tort (40)I I Securities litigation (28)I I Environmental/Toxic tort (30)[ J Insurance coverage claims arising from the

above listed provisionally complex casetypes (41)

Enforcement of Judgment

L I Enforcement ofjudgment (20)Miscellaneous Civil Complaint

[Z3 RICO (27)I J Other complaint (not specified above) (42)Miscellaneous Civil Petition

[!Zj Partnership and corporate governance (21)I I Other petition (not specified above) (43)

3.

4.

5.

6.

Date: May 8, 20 llDaniel J. Bramzon

a. I I Large number of separately represented partiesb. I / I Extensive motion practice raising difficult ornovel

issues that will be time-consuming to resolvec. I / I Substantial amountof documentary evidence

Remedies sought (check allthatapply): a.l / I monetary b.I / I nonmonetary; declaratory orinjunctive relief c. [_£jpunitiveNumber ofcauses ofaction (specify): Three: Failure to Pay Relocation;Violation ofB&P 17200; and NegligenceThis case I / 1is I I is not a class action suit.If there are any known related cases, file and serve a notice of related case. (You may use form CM-015.)

(TYPE OR PRINT NAME)HM

NOTICE» Plaintiffmust file this cover sheet with the first paper filed in the action or proceeding (except small claims cases or cases filed

under the Probate Code, FamilyCode, or Welfare and Institutions Code). (Cal. Rules of Court, rule 3.220.) Failure to file may resultin sanctions.

• File this cover sheet in addition to any cover sheet required by local court rule.• Ifthis case is complex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all

other parties to the action or proceeding.• Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only.

Form Adopted for Mandatory UmJutactal Coundl of CaMomiaCM-010 |R«v. July 1,20071

CIVIL CASE COVER SHEET

QRNEY FOR PARTY)

Cal. Rtfes of Court, rules 2.30. 3 220. 3.400-3.403, 3.740.Cal. Standards of Judicial Administration, std. 3.10

rvww.cov7tjiri/b.ca.0ov

Page 48: Gonzalez v. JPMorgan Chase Bank

the case is complex.

Auto TortAuto (22)-Personal Injury/Property

Damage/Wrongful DeathUninsured Motorist (46) (if the

case involves en uninsuredmotorist claim subject toarbitration, check this iteminstead of Auto)

Other PVPDAVD (Personal Injury'Property Damege/Wrongful Death)Tort

Asbestos (04)Asbestos Property DamageAsbestos Personal Injury/

Wrongful DeathProduct Liability (not asbestos or

toxic/environmental) (24)Medical Malpractice (45)

Medical Malpractice-Physicians &Surgeons

Other Professional Health CareMalpractice

Other PI/PD/WD (23)Premises Liability (e.g., slip

and fall)Intentional Bodily InJury/PD/WD

(e.g., assault, vandalism)Intentional Infliction of

Emotional DistressNegligent Infliction of

Emotional DistressOther PI/PD/WD

Non-PI/PD/WD (Other) TortBusiness Tort/Unfair Business

Practice (07)Civil Rights (e.g., discrimination,

false arrest) (not civilharassment) (08)

Defamation (e.g., slander, libel)(13)

Fraud (16)Intellectual Property (19)Professional Negligence (25)

Legal MalpracticeOther Professional Malpractice

(not medical or legal)h Other Non-PI/PD/WD Tort (35)> EmploymentP WrongfulTermination (36)

Other Employment (15)

8

CM-010|R*v. July1.2007]

CASE TYPES AND EXAMPLES

ContractBreach of Contract/Warranty (06)

Breach of Rental/LeaseContract (not unlawfuldetainer

or wrongful eviction)Contract/Warranty Breach-Seller

Plaintiff(not fraudor negligence)Negligent Breach of Contract/

WarrantyOther Breach of Contract/Warranty

Collections (e.g., money owed, openbook accounts) (09)Collection Case-Seller PlaintiffOther Promissory Note/Collections

CaseInsurance Coverage (notprovisionally

complex) (18)Auto SubrogationOther Coverage

Other Contract (37)Contractual FraudOther Contract Dispute

Real PropertyEminent Domain/Inverse

Condemnation (14)

Wrongful Eviction (33)Other Real Property (e.g., quiet tide) (26)

Writ of Possession of Real PropertyMortgage ForeclosureQuiet TitleOther Real Property (not eminentdomain, landlord/tenant, orforeclosure)

Unlawful Detainer

Commercial (31)

Residential (32)Drugs (38) (ifthe case involves illegal

drugs, check this item; otherwise,report as Commercial or Residential)

Judicial ReviewAsset Forfeiture (05)Petition Re: Arbitration Award (11)Writ of Mandate (02)

Writ-Administrative MandamusWrit-Mandamus on Limited Court

Case MatterWrit-Other Limited Court Case

Review

Other Judicial Review (39)Review of Health Officer OrderNotice of Appeal-Labor

Commissioner Appeals

CIVIL CASE COVER SHEET

CM-010INSTRUCTIONS ONHOW TOCOMPLETE THE COVER SHEET

To Plaintiffs and Others Filing First Papers. If you are filing a first paper (for example, a complaint) in a civil case you mustcomDlete and file along with your first paper, the CM Case Cover Sheet contained on page 1. This information will be used to compile3cs%bout me, *£lumbers* cases filed. You must complete items 1through 6on the sheet. In item 1jfou,must checkone box for the case type that best describes the case. If the case fits both ageneral and amore specific type of case listed in item 1,c£*£emore^peSc-one. If the case has multiple causes of action, check the box that best indicates the primary cause of actionTo assist you in completing the sheet, examples of the cases that belong under each case type in item 1are provided beta*. Acoyersheet must be filed only with your initial paper. Failure to file a cover sheet with the first paper filed in a civil case may subject a party,its counsel, or both to sanctions under rules 2.30 and 3.220 of the California Rules of Court.To Parties In Rule 3740 Collections Cases. A"collections case" under rule 3.740 is defined asan action for recovery of moneyowed in a sum stated to be certain that is not more than $25,000, exclusive of interest and attorney's fees, arising from a transactor inwhich property, services, or money was acquired on credit Acollections case does no* include an action seeking *efollowing. (1 tortdamaoes (21f punitive damages, (3) recovery of real property, (4) recovery of personal property, or (5) a prejudgment writ oattachment The identification of acase as a rule 3.740 collections case on this form means that it will be exempt ^thegewaltime-for-service requirements and case management rules, unless a defendant files a responsive pleading. Arule 3.740 collectionscase will be subject to the requirements for service and obtaining a judgment in rule 3.740.To Parties In Complex Cases. In complex cases only, parties must also use the Qvil Case Cover Sheet to designate whether thecase is complex. If aplaintiff believes the case is complex under rule 3.400 of the California Rules of Court, this must be mdicated bycompleting the appropriate boxes in items 1and 2. If aplaintiff designates acase as complex, the cover sheet must be servedhjnth thecomplaint on all parties to the action. Adefendant may file and serve no later than the time of its first appearance %W*™*"plaintiffs designaljon, acounter-designation that the case is not complex, or. if the plaintiff has made no des.gnaton, adesignation that

ProvisionallyComplex CivilLitigation(Cal.Rule* of Court Rules 3.400-3.403)

Antitrust/Trade Regulation (03)Construction Defect (10)Claims Involving Mass Tort (40)Securities Litigation (28)Environmental/Toxic Tort (30)Insurance Coverage Claims

(arising from provisionally complexcase type listed above) (41)

Enforcement of JudgmentEnforcement of Judgment (20)

Abstract of Judgment (Out ofCounty)

Confession of Judgment (non-domestic relations)

Sister State JudgmentAdministrative Agency Award

(not unpaid taxes)Petition/Certification of Entry of

Judgment on Unpaid TaxesOther Enforcement of Judgment

Case

Miscellaneous Civil ComplaintRICO (27)Other Complaint (not specified

above) (42)Declaratory Relief OnlyInjunctiveRelief Only (non-

harassment)Mechanics LienOther Commercial Complaint

Case (non-tortmon-complex)Other Civil Complaint

(non-tort/hon-complex)Miscellaneous CMI Petition

Partnership and CorporateGovernance (21)

Other Petition (nor specifiedabove) (43)Civil HarassmentWorkplace ViolenceElder/Dependent Adult

Abuse

Election ContestPetition for Name ChangePetition for Relief From Late

Claim

Other Civil Petition

Paga 2 of 2

Page 49: Gonzalez v. JPMorgan Chase Bank

SHORT TITLE:

BC4614Q4Gonzalez, et al. v. JP Morgan Chase, et al.

CASE NUMBER

CIVIL CASE COVER SHEET ADDENDUM ANDy STATEMENT OF LOCATION(CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION)

This form is required pursuant to Local Rule 2.0 in all new civil case filings inthe Los Angeles Superior Court.

Item I. Check thelypes ofhearing andfill in theestimated length ofhearing exisected for this case:

JURY TRIAL? M YES CLASS ACTION? 0 YES LIMITED CASE? DyES TIME ESTIMATED FOR TRIAL 30 DHOURS/ B DAYS

item II. Indicate thecorrect district and courthouse location (4 steps- If you checked "Limited Case", skip to Item III, Pg. 4):

Step 1: After first completing the Civil Case Cover Sheet form, find the main Civil Case Cover Sheet heading for yourcase in the left margin below, and, tothe right in Column A,the Civil Case Cover Sheet case type you selected.

Step 2:Check one Superior Court type of action in Column B below which best describes the nature of this case.

Step 3: In Column C, circle the reason for the court location choice that applies to the type of action you havechecked. Foranyexception to the court location, see Local Rule 2.0.

Applicable Reasons for Choosing Courthouse Location (see Column C below)

1 Class actions must be filed in the Stanley Mosk Courthouse, central district.2. May be filed incentral (other county, orno bodily Injury/property damage).3. Location where cause of action arose.4. Location where bodily injury,death or damage occurred.5. Location where performance required or defendant resides.

6. Location of property or permanently garaged vehicle.7. Location where petitioner resides.8. Location wnerein defendant/respondent functions wholly.9. Location where one or more of the parties reside.

10. Location of Labor Commissioner Office

Step 4: Fill in the information requested on page 4 in Item III; complete Item IV. Sign the declaration.

—. •»

8 5a!a

ACivil Case Cover Sheet

Category No.

BType of Action

(Check only one)

cApplicable Reasons -

See Step 3 Above

Auto (22) • A7100 MotorVehicle - Personal Injury/Property Damage/Wrongful Death 1,2,4.

Uninsured Motorist (46) D A7110 Personal Injury/Property Damage/Wrongful Death - Uninsured Motorist 1..2..4.

Asbestos (04)D A6070 Asbestos Property Damage

D A7221 Asbestos - Personal Injury/Wrongful Death

2.

2.

Product Liability (24) D A7260 Product Liability(not asbestos or toxic/environmental) 1.,2..3.,4.,8.

Medical Malpractice (45)Q A7210 Medical Malpractice - Physicians & Surgeons

D A7240 Other Professional Health Care Malpractice

1., 4.

1..4.

Other

Personal InjuryProperty DamageWrongful Death

(23)

Q A7250 Premises Liability (e.g.. slip and fall)

D A7230 Intentional Bodily Injury/PropertyDamage/Wrongful Death (e.g.,assault, vandalism, etc.)

D A7270 Intentional Infliction of Emotional Distress

• A7220 Other Personal Injury/Property Damage,Wrongful Death

1..4.

1..4.

1,3.

1,4.

LACIV 109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

Local Rule 2.0

Page 1 of 4

Page 50: Gonzalez v. JPMorgan Chase Bank

SHORT TITLE:

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8 ?1

Gonzalez, et al. v. JP Morgan Chase, et al.CASE NUMBER

ACivil Case Cover Sheet

Category No.

"-" TypeTofAction" (Check'bnlyone)

cApplicable Reasons -

See Step 3 Above

Business Tort (07) • A6029 OtherCommercial/Business Tort (not fraud/breach of contract) 1., 3.

Civil Rights (08) D A6005 CivilRights/Discrimination 1..2..3.

Defamation (13) D A6010 Defamation (slander/libel) 1„ 2., 3.

Fraud (16) D A6013 Fraud (no contract) 1.,2., 3.

Professional Negligence (25)O A6017 Legal Malpractice

D A6050 Other Professional Malpractice (not medical or legal)

1„ 2.. 3.

1.,2. 3.

Other (35) D A6025 Other Non-Personal Injury/Property Damage tort 2.,3.

Wrongful Termination (36) D A6037 Wrongful Termination 1., 2„ 3.

Other Employment (15)D A6024 Other Employment Complaint Case

D A6109 Labor Commissioner Appeals

1., 2., 3.

10.

Breach of Contract/ Warranty(06)

(not insurance)

D A6004 Breach of Rental/Lease Contract (not unlawfuldetainer or wrongfuleviction)

D A6008 ConlractArVarranty Breach -Seller Plaintiff (no fraud/negligence)

• A6019 NegligentBreach of Contract/Warranty (no fraud)

D A6028 Other Breach of Contract/Warranty (not fraud or negligence)

2., 5.

2., 5.

1., 2., 5.

1„2., 5.

Collections (09)D A6002 Collections Case-Seller Plaintiff

D A6012 Other Promissory Note/Collections Cas«

2., 5., 6.

2,5.

Insurance Coverage (18) D A6015 Insurance Coverage (not complex) 1„2.,5.,8.

Other Contract (37)

D A6009 Contractual Fraud

D A6031 Tortious Interference

D A6027 Other Contract Dispute(not breachflnsurance/fraud/negligence)

1..2..3., 5.

1., 2.,3.,5.

1,2., 3-8.

Eminent Domain/InverseCondemnation (14)

• A7300 Eminent Domain/Condemnation Number of parcels 2.

Wrongful Eviction (33) D A6023 Wrongful Eviction Case 2,6.

Other Real Property (26)

O A6018 Mortgage Foreclosure

D A6032 Quiet Title

D A6060 Other Real Property (not eminent domain, landlordAenant, foreclosure)

2., 6.

2,6.

2., 6.

Unlawful Detainer-Commercial(31)

• A6021 Unlawful Detainer-Commercial (not drugs or wrongful eviction) 2., 6.

Unlawful Detainer-Residential(32)

• A6020 Unlawful Detainer-Residential (not drugu or wrongful eviction) 2., 6.

Unlawful Detainer-Post-Foreclosure (34)

D A6020F Unlawful Detainer-Post-Foreclosure 2., 6.

Unlawful Detainer-Drugs (38) D A6022 Unlawful Detainer-Drugs 2,6.

LACIV 109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

Local Rule 2.0

Page 2 of 4

Page 51: Gonzalez v. JPMorgan Chase Bank

SHORT TITLE: , ,„., _. . .Gonzalez, et al. v. JP Morgan Chase, et al.

CASE NUMBER

ACivil Case Cover Sheet

Category No.

B ..'•••' M-rTypeofAction .< TSl'.^. ;'

(Check only one) SK;

cApplicable Reasons •

See Step 3 Above

Asset Forfeiture (05) D A6108 Asset Forfeiture Case 2., 6.

i Petition re Arbitration (11) D A6115 Petition to Compel/Confirm/Vacate Arbitration 2., 5.

Sor: • A6151 Writ - Administrative Mandamus 2.. 8.

to

"5 Writ of Mandate (02) O A6152 Writ - Mandamus on LimitedCourt Case Matter 2.

->D A6153 Writ - Other Limited Court Case Review 2.

Other Judicial Review (39) D A6150 Other Writ/Judicial Review 2.. 8.

c

O

Antitrust/Trade Regulation (03) • A6003 Antitrust/Trade Regulation 1..2.. 8.

CO

•sConstruction Defect (10) • A6007 Construction Defect 1..2..3.

_i

D.

Eo

o

Claims Involving Mass Tori(40)

13 A6006 Claims Involving Mass Tort 1..2..8.

Securities Litigation (26) D A6035 Securities Litigation Case 1..2.. 8.

co

'R

Toxic TortEnvironmental (30)

• A6036 Toxic Tort/Environmental 1., 2., 3.. 8.

Ia.

Insurance Coverage Claimsfrom Complex Case (41)

Q A6014 Insurance Coverage/Subrogation (complexcase only) 1., 2.. 5., 8.

D A6141 Sister State Judgment 2., 9.

^ -s• A6160 Abstract of Judgment 2„6.

S £ EnforcementD A6107 Confession of Judgment (non-domestic relations) 2,9.

of Judgment (20) • A6140 Administrative Agency Award (not unpaid taxes) 2., 8.

^ .2UJ o D A6114 Petition/Certificate for Entry of Judgment on Unpaid Tax 2,8.

D A6112 Other Enforcement of Judgment Case 2., 8., 9.

« ARICO (27) D A6033 Racketeering (RICO) Case 1.,2„ 8.

3 £

§4 D A6030 Declaratory Relief Only 1., 2., 8.

jj E8 o Other Complaints

D A6040 Injunctive Relief Only (not domestic/harassment) 2., 8.

•5(Not Specified Above) (42) D A6011 Other Commercial ComplaintCase (non-tort/non-complex) 1., 2., 8.

D A6000 Other CivilComplaint (non-tort/non-complex) 1.. 2., 8.

Partnership CorporationGovernance (21)

D A6113 Partnership and Corporate Governance Case 2., 8.

D A6121 Civil Harassment 2. 3.. 9.

2 =O o O A6123 Workplace Harassment 2., 3., 9.

a T&

.8 1Other Petitions

(Not Specified Above)

O A6124 Elder/Dependent Adult Abuse Case

D A6190 Election Contest

2., 3., 9.

2.

9- =°(43)

• A6110 Petition for Change of Name 2., 7.

Q A6170 Petition for Relief from Late Claim Law 2.. 3., 4., 8.

\ • A6100 Other Civil Petition 2.. 9.

LACIV 10S (Rev. 03/11) CIVIL CASE COVER SHEET ADDENDUM l ocal Rule 2.0

LASC Approved 03-04 AND STATEMENT OF LOCATION Page 3 of 4

Page 52: Gonzalez v. JPMorgan Chase Bank

SHORT TITLE:

Gonzalez, et al. v. JP Morgan Chase, et al.CASE NUMBER

Item III. Statement of Location: Enter the address of the accident, party's residence or place of business, performance, or othercircumstance indicated in Item II., Step 3 on Page 1, asthe proper reason for filing in the court location you selected.

REASON: Check the appropriate boxes for the number* shownunder Column C forthe type of action that you have selected forthis case.

01. 02. D3. D4. D5. D6. D7. 08. D9. D10.

CITY:

Los Angeles

STATE:

CA

ZIP CODE:

90011

ADDRESS:

3608 1/2 Adair Street

Item IV. Declaration ofAssignment Ideclare under penalty of perjury under the laws ofthe State of California that the foregoing is trueand correct and that the above-entitled matter is properly filed for assignment to tire Stanley Mosk courthouse in theCentral District of the Superior Court of California, County of Los Angeles [Code Civ. Proa, § 392 etseq., and Local

Rule 2.0, subds. (b), (c) and (d)).

Dated: May8, 2011(SIGNATURE OF ATTORNEY/nijJteTARTY)

PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READYTO BE: FILED INORDER TO PROPERLYCOMMENCE YOUR NEW COURT CASE:

1. Original Complaint or Petition.

2. If filing a Complaint, a completedSummonsform for issuance bythe Clerk.

3. Civil Case Cover Sheet, Judicial Council form CM-010.

4 Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev.03/11).

5. Payment in full of the filing fee, unless fees have been waived.

6. Asigned orderappointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiff or petitioner is aminor under 18 years of age will be required by Court in order to issue a summons.

7. Additional copiesofdocuments to be conformed bythe Clerk. Copiesof the coversheet and thisaddendummust be served along with the summons and complaint, or other initiating pleading in the case.

yi

LACIV109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

Local Rule 2.0

Page 4 of 4