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FIRM NEWS & NOTES
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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.

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