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Lafferty Obtains Verdict Awarding Clients Specific Performance 

Partner Allison Cherry Lafferty obtained a verdict after a court trial on our clients' claim for specific performance.  Our clients entered into an option to purchase real property on which a walnut orchard was to be planted. After our clients timely exercised the option, the seller refused to close escrow. 

The case was tried over three weeks in San Joaquin County.  After conclusion of the court trial, the Court issued a Statement of Decision granting specific performance and ordering that the property be transferred to our clients.  The Court also determined that our clients were the prevailing party on the option contract and entitled to recover their attorneys' fees and costs.   

Abdallah Obtains Substantial Judgment for Winery Client in Jury Trial

Kathleen Abdallah obtained a verdict in San Joaquin County in favor of a winery client on a breach of contract claim against a grape grower-winemaker and its owner. Our client, who owns a custom crush winery facility in Victor, California, entered into a multiyear contract with the defendants for custom crush services and storage of defendants’ wine. In the second year of the contract, defendants failed to deliver the contracted grapes, failed to pay under the contract terms and then made unfounded complaints to the Alcohol & Tobacco Tax & Trade Bureau in a retaliatory attempt to close down our client’s facility. Our client exercised his contractual lien and set off rights. Defendants attempted to terminate the contract before the end of its term and our client filed suit for breach of contract. Defendants filed a cross complaint also alleging breach of contract.  

We successfully obtained a writ of attachment and defendants obtained a bond to release the money held in a deposit account that was subject to the writ of attachment. Settlement discussions and mediation were fruitless. We served a Code of Civil Procedure section 998 offer that went unanswered. The jury trial lasted a month including a week and a half of jury deliberations. The jury found that defendants breached the contract and awarded our client a verdict in an amount that exceeds our 998 offer. We successfully defeated the cross complaint.

Lafferty Defends Products Liability Trial

Partner, Allison Cherry Lafferty obtained a judgment in favor of the supplier of a safety chain after court trial in San Joaquin County Superior Court. Plaintiff was injured when a trailer being towed behind a truck became dislodged and collided with his car.  Plaintiff claimed that he was injured because the safety chain was defective.  The Court granted a motion for judgment after plaintiff's presentation of evidence, finding that there was insufficient evident to establish a defective product.

Abdallah Prevails for Clients After Trial of a Bankruptcy Adversary Proceeding

Kathleen Abdallah obtained a judgment favorable to our clients who were plaintiff/creditors in an adversary proceeding before the United States Bankruptcy Court, Eastern District of California wherein the court ordered that the debtors/defendants could not discharge in their Chapter 7 bankruptcy proceedings debtors’ equitable duties under a pre-petition settlement agreement.

Our clients own several adjacent parcels of real property in Stockton, California. One of the parcels is improved with a residence; the other parcels are unimproved.  Our clients sold the residence to debtors. Debtors remodeled and enlarged their residence but built their front entry way, front porch and side concrete patio over the lot line and onto the adjacent, unimproved parcel. We filed suit in state court to enjoin the encroachment. We settled the state court lawsuit in mediation and the parties executed a written settlement agreement. The settlement agreement allowed debtors an option to purchase the lot upon which they are encroaching and if they failed to exercise the option, the debtors agreed to remove the encroachments.

Before the debtors’ right to exercise the option ripened, debtors filed for bankruptcy protection. They attempted to discharge all their obligations under the settlement agreement, including their equitable duty to remove the encroachments. We filed an adversary proceeding for declaratory relief. The matter went to court trial. The bankruptcy court ordered that the debtors could not discharge in their bankruptcy their equitable duties under the settlement agreement and that the bankruptcy does not authorize or sanction the encroachment. The court confirmed that debtors discharged their monetary obligations under the settlement agreement. The court found that our clients have the right, but not the obligation, to remove the encroachments. We recorded the order to provide notice of the encroachments and the right of the property owner to remove the encroachments.

Firm Announces Sixty-Fifth Anniversary

Kroloff, Belcher, Smart, Perry & Christopherson is pleased to announce it is celebrating its 65th anniversary in 2011. Founded in 1946, the firm has expanded from a partnership of two attorneys into its present team of 14 attorneys and 3 paralegals, forming one of the most successful, diverse and dependable law firms in the Central Valley.

The firm’s founders, Yale Kroloff and Richard Belcher, ushered the firm into prominence in the field of civil litigation, along the way building and shaping the firm’s core tenets of commitment to clients and the highest quality legal representation. These tenets live on today, and the firm has grown and thrived, developing expertise in the areas of civil litigation, commercial transactions, medical malpractice, estate planning, trust and probate law, real estate, agribusiness, employment law, creditor’s rights, construction law, and fertility and surrogacy law. The firm is rated “AV” by Martindale-Hubbell, the highest rating available for a firm’s legal acumen and ethical practice.

During its 65 years of practice, the firm has been privileged to represent many outstanding individuals, businesses and entities, including Bank of America, Bank of Stockton, Bank of the West, Barton Healthcare System, BETA Healthcare Group, Catholic HealthCare West, Clark Pest Control, County of San Joaquin,  County of Stanislaus, County of Tuolumne, Crestwood Behavioral Health, Dameron Hospital Association, Delta Rubber Company, Inc., Emanuel Medical Center, Filios Properties, Foster Dairy Farms, Knife River, Lodi Memorial Hospital, Mechanics Bank, Optima Health Care Insurance Services, Pacific Storage, Rabo Agrifinance, Inc., St. Joseph's Medical Center of Stockton, Teichert Construction, Union Bank of California, Union Safe Deposit Bank (before acquisition by Bank of the West), and many others.

Kroloff, Belcher, Smart, Perry & Christopherson is recognized not only as a premier law firm in the Central Valley, but also as a civic leader in the City of Stockton and the County of San Joaquin. The firm and its attorneys support their community, participating in local and regional professional organizations and events. The firm’s attorneys serve on many boards of directors for local not-for-profit and charitable organizations.

The firm is proud of its longevity and history, but it does not take its status for granted, constantly re-dedicating itself to its clients and community and never forgetting the fundamentals of commitment and quality. Here’s to 65 more years!

Partner Named "Super Lawyer" Yet Again!

For the sixth time, Christopher Engh was named a "Super Lawyer" for Northern California in the area of estate planning by Northern California Super Lawyers magazine. The "Super Lawyer" selection process includes peer nominations from throughout Northern California, a blue ribbon panel review and independent research of each candidate. Those selected represent the top 5% of attorneys in the Northern California area.

Perry Wins Two Malpractice Cases in Early 2011

After a five week jury trial in San Joaquin County, Thomas O. Perry obtained a defense verdict in a medical malpractice suit on behalf of a hospital.

Plaintiffs alleged that the hospital, surgeon, and anesthesiologist negligently responded to a patient’s blood pressure following her surgery, causing her to be paralyzed.  Perry presented  evidence that established the hospital staff performed as expected under the circumstances and the patient’s rare complication was not due to any negligence on the part of the hospital staff. 

Following deliberations, the jury agreed, and exonerated all defendants. 

Ironically, the patient rejected a six figure settlement offer made by the hospital before trial. 

Perry successfully defended another medical malpractice claim against an Emergency Department physician in a jury trial in Merced County. 

In the second case, a patient sought damages for her complete blindness, alleging an emergency department physician failed to admit her to the hospital after she presented to the emergency department after becoming dizzy and suffering a significant drop in blood pressure.  Perry presented evidence that the emergency department physician properly evaluated, treated and discharged the patient, and that the loss of vision she experienced several days after her ER visit, and following two visits to her primary care physician, had no connection to her emergency department visit.  (The patient was later determined to have suffered a rare ischemia – lack of blood flow – to her optic nerves.)   

After a very short deliberation, the jury returned a unanimous verdict for the defense. 

Much of the workup of both cases was done by associates Kerry Krueger and Oona Mallett. 

Abdallah Appointed to the Agribusiness Committee of the Business Law Section of the State Bar

The Business Law Section of the California State Bar recently approved the appointment of Kathleen Abdallah as a member on the Agribusiness Committee. It is a three year appointment, ending at the close of the 2014 State Bar Annual Meeting. The Agribusiness Committee is a standing committee of the Business Law Section of the State Bar. The Committee is dedicated to educate members on recent developments and current issues in all aspects of agriculture business. Through the Business Law Section, the committee provides a means of communication between bar members and the public, the California legislature, government agencies and business trade organizations. The Agribusiness Committee organizes numerous seminars and educational opportunities set at agriculture sites or agriculture-related sites, such as the USDA Agricultural Research Service office or a tour through the Sacramento/San Joaquin Delta. If you are a member of the Business Law Section of the California State Bar, you should receive notification of the seminars.

Abdallah Appointed to Modesto Bankruptcy Clerk's Office, Attorney Advisory Committee

Partner Kathleen Abdallah, was appointed as a member of the Modesto Bankruptcy Clerk’s Office Attorney Advisory Committee. The committee provides services to the office of the Clerk of the United States Bankruptcy Court, Eastern District of California. The committee assists the clerk’s office on providing the practicing bar with the best service possible.  The committee helps the clerk’s office identify and address filing and procedure issues and it reviews the clerk’s office policies and procedures that affect the bar. The committee also plays a key role in recommending changes to the court’s local rules and practice guidelines.

Christopherson Speaks to Bar Association on Oral Advocacy

Partner Gary Christopherson, recently presented a program entitled “Oral Advocacy – It Still Matters” to members of the San Joaquin County Bar Association.  His program was part of the Bar Association’s annual Masters Series, which provides high quality continuing education presentations to local attorneys. In his program, Mr. Christopherson drew from troves of personal experiences gathered over decades of successful trial and litigation work, providing his audience of new and well-seasoned attorneys with time-honored strategies for making the most of each opportunity to advocate for your client before the court.

Engh Speaks to Bar Association on Probate Law Developments

Partner Christopher Engh, in conjunction with Julie Watts of the San Joaquin Superior Court, recently presented a program to members of the San Joaquin County Bar Association exploring recent legislation, local practices,  and case law   concerning practice in Probate Court. Mr. Engh and Ms. Watts’ program was presented as part of the Bar Association’s annual Masters Series, which provides high quality continuing education presentations to local attorneys. In the program, Mr. Engh reviewed  legislation coming into effect in 2011 and cases decided in 2010  and how they will  affect California’s probate and estate planning practitioners and their clients

Reynolds to Teach Labor and Employment Law

Matthew Reynolds has accepted an adjunct position teaching Labor and Employment Law at Humphreys College, Laurence Drivon School of Law. The course will be offered as an elective during the summer quarter to law students in their second, third and fourth years of law school. The Laurence Drivon School of Law has not offered a course in labor and employment law for almost twenty years and Mr. Reynolds is excited to teach a new generation of students the basics of this interesting, and growing, area of the law. Mr. Reynolds also teaches Business Associations at the Laurence Drivon School of Law and maintains his active law practice with the firm.

Firm Closes Two More Complex HUD Loans

Associate Matthew S. Reynolds, with backup from partners Gary Christopherson and Laurie Bell Schrum, recently closed two complex loan refinancings for our client, a regional health care provider. The refinanced loans are insured by the U.S. Department of Housing and Urban Development and secured by facilities located in Humboldt and Solano counties. HUD has unusually demanding standards for providing insurance, requiring extensive documentation and efficient coordination from potential mortgagees and their attorneys. The Firm is certainly up to the task: over the last two years, we have closed more than $28 million in new and refinanced HUD-insured loans.

Firm Completes Sale of Business

Partner Laurie Bell Schrum, represented the seller of a business that is headquartered in Stockton, with a number of locations elsewhere in California and in Nevada. The transaction became complicated when the buyer, a large conglomerate, decided that it wished to purchase the assets of the business only, not the entire business.  In addition to the sale of the assets of the business, the transaction included the negotiation and transfer of numerous real property leases and an employment agreement, a unique accounting system, and a complicated financing structure.

Lim Wins Summary Judgments in Five Employment Cases in 2010

In 2010, Partner Velma Lim successfully obtained five summary judgments for employers in employment cases, dispensing with the need to take those cases to trial.  By prevailing on these motions for summary judgment, Ms. Lim saved clients from the time, expense, and risk inherent in any jury trial.

Upon the filing of a lawsuit, the parties conduct discovery for a sometimes lengthy period of time to learn the testimonies of witnesses, documents and records, and other evidence that each side may present at trial. A motion seeking judgment in favor of a party, known as a “Motion for Summary Judgment”, may thereafter be brought seeking the Court to review the law and evidence to determine whether trial should be precluded and judgment should be granted. 

Requiring fact intensive analysis and a keen eye for legal intricacy, Ms. Lim and her team of associate attorneys, paralegals, and staff enjoy marshaling the complexities of employment cases and presenting persuasive legal arguments to attain judgments in favor of employers.

A review of Ms. Lim’s 2010 summary judgment successes follows:

·         Investigator v. Employer, California Superior Court

A female investigator took a pregnancy leave, during which time some qualifications for promotion were modified. Upon return from leave, the investigator’s promotional evaluation was deferred due to her failure to meet performance standards. Ultimately, the investigator was promoted. 

The investigator sued her employer alleging gender discrimination, harassment, and retaliation based on her pregnancy. The employer produced evidence that its promotional guidelines were applied on a neutral basis and the investigator was given the benefit of the doubt in her job performance.  Summary judgment was granted in favor of employer. 

Associate Matthew Reynolds, paralegals Sarah Kennedy and Leslie Fontes, and staff Kelly Linder and Shelley Swingle assisted in the case.

· Administrative / Personnel Clerk v. Employer,  California Superior Court

A female administrative/personnel clerk engaged in a consensual sexual relationship with a male co-worker.  After the relationship ended, the administrative clerk learned that her male co-worker was sexually involved with another female co-worker.  The administrative clerk made a harassing telephone call to the female co-worker’s husband. She also brought a harassment claim against the other female co-worker. Following an investigation, the employer terminated the administrative clerk, but not the male co-worker or the other female co-worker. 

The administrative clerk sued her employer for gender discrimination, harassment, retaliation, violation of Civil Rights, and wrongful termination.  The employer presented evidence that the administrative clerk violated confidentiality policies, lost her employer’s trust in dealing with personnel matters, and had not been harassed.   Summary judgment was granted in favor of employer.

Associate Matthew Reynolds, paralegals Sarah Kennedy and Leslie Fontes, and staff Kelly Linder and Shelley Swingle were members of the defense team. 

·      Nurse Administrator v. Employer,  California Superior Court

A Caucasian female nurse administrator faced performance deficiencies and did not get along with her supervisor, who was African American.  The nurse administrator took a medical leave of absence, vowing not to return to work as long as her supervisor remained in place. Upon expiration of her leave, the nurse administrator submitted a doctor’s note extending her leave. The employer terminated the nurse administrator after an investigation showed that the doctor’s note was fraudulent. 

The nurse administrator sued her employer alleging race and age discrimination, harassment, retaliation, and wrongful termination. The employer established evidence that the discrimination complaints had been investigated by an independent investigator who determined no discrimination occurred and found the African American supervisor treated managers and staff equally regardless of race or age. The employer’s investigation substantiated that the doctor’s note was fraudulent. Summary judgment was granted in favor of the employer.

Associate Oona Mallett, paralegal Sarah Kennedy, and staff Miquela Wallace and Shelley Swingle worked on this matter.

·   Probation Detention Officer v. Employer, California Superior Court

An Hispanic male detention officer unsuccessfully applied for promotion numerous times, until he was finally promoted on his twelfth try.  Each time the detention officer applied for promotion, other candidates surpassed him in the selection process and received the promotions.  Shortly after his promotion, the detention officer violated department policy and was terminated.

The detention officer brought two lawsuits.  The first lawsuit alleged failure to promote due to race and national origin discrimination, harassment, retaliation, and violation of Civil Rights. The employer established evidence that an independent investigation into the detention officer’s failed promotions had determined that no discrimination had occurred. Employees of various races, including Hispanics, had been promoted.  The employer also showed that the many complaints about operational procedures brought by the detention officer were addressed and no retaliation occurred.  Summary judgment was granted in favor of the employer in the failure to promote lawsuit.

The second lawsuit alleged wrongful termination, race and national origin discrimination, harassment, retaliation, and violation of Civil Rights as a result of the detention officer being discharged from employment.  The employer provided evidence that an internal investigation substantiated the detention officer had violated department policies and engaged in misconduct.  Summary judgment was granted in favor of the employer in the wrongful termination case. 

Associate Matthew Reynolds, paralegals Sarah Kennedy and Leslie Fontes, and staff Kelly Linder and Shelley Swingle assisted in preparing these motions for summary judgments. 

Rooker Elected to Board of Directors for Stockton Chorale

Scott Rooker has been selected to serve on the Board of Directors of the Stockton Chorale.  Founded in 1955, the Stockton Chorale is one of Stockton oldest artistic institutions.  The Chorale is an auditioned community chorus of approximately 100 singers from all over San Joaquin and surrounding counties, and is led by a working Board of Directors consisting of singers and community members.  Mr. Rooker has been singing with the Stockton Chorale since 2008, and is honored to serve as one of its directors.

Krueger Featured in an Article in San Joaquin Magazine

Kerry Krueger was featured in the November 2010 issue of San Joaquin Magazine.  The article focused on Ms. Krueger's impressive hobby --running marathons. As of December 2010, Ms. Krueger has run 39 marathons, 9 of which were the Boston Marathon.  Even more impressive, Ms. Krueger is able to find time to run multiple marathons a year while practicing law.  Congratulations Kerry, you are an inspiration to us all.