Oracle Corporation et al v. SAP AG et al

Filing 1119

Letter from Steven C. Holtzman re: Further Update. (Attachments: # 1 Exhibit A)(Holtzman, Steven) (Filed on 4/4/2012)

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EXHIBIT A In The Matter Of: Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. Reporter's Transcript of Proceedings March 26, 2012 Behmke Reporting and Video Services, Inc. 160 Spear Street, Suite 300 San Francisco, California 94105 (415) 597-5600 Original File 19612Proceeding.txt Min-U-Script® with Word Index Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 IN AND FOR THE COUNTY OF SAN FRANCISCO - - - - - - - - - - - - - - RINCON EV REALTY LLC, ) et al., ) Plaintiff, ) Case No. vs. ) CGC 10-496887 CP III RINCON TOWERS, INC., ) et al., ) Defendants. ) - - - - - - - - - - - - - - - REPORTER'S TRANSCRIPT OF PROCEEDINGS BEFORE THE HONORABLE MARLA J. MILLER 400 McALLISTER STREET, DEPARTMENT 604 SAN FRANCISCO, CALIFORNIA 94102 MONDAY, MARCH 26, 2012 BEHMKE REPORTING AND VIDEO SERVICES, INC. BY: MELINDA M. SELLERS, CSR NO. 10686, RPR, CCRR 160 SPEAR STREET, SUITE 300 SAN FRANCISCO, CALIFORNIA 94105 (415) 597-5600 BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 1 BEHMKE REPORTING AND VIDEO SERVICES, INC. THE SUPERIOR COURT OF THE STATE OF CALIFORNIA APPEARANCES OF COUNSEL: FOR PLAINTIFF: BOIES, SCHILLER & FLEXNER LLP BY: DAVID W. SHAPIRO, ESQ. MAXWELL V. PRITT, ESQ. 1999 Harrison Street, Suite 900 Oakland, California 94612 Telephone: (510) 874-1000 FOR DEFENDANTS: MANATT, PHELPS & PHILLIPS, LLP BY: BARRY LEE, ESQ. ANN M. HEIMBERGER, ESQ. CHRISTIAN E. BAKER, ESQ. LENARD WEISS, ESQ. One Embarcadero Center, 20th Floor San Francisco, California 94111 Telephone: Min-U-Script® (415) 291-7454 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MONDAY, MARCH 26, 2012; 9:05 A.M. THE COURT: Good morning, everybody. MR. LEE: Good morning, your Honor. MR. SHAPIRO: Good morning, your Honor. THE COURT: Calling the matter of Rincon EV Realty LLC, et al., versus CP III Rincon Towers, Incorporated, et al. Appearances, please. MR. SHAPIRO: Good morning, your Honor. David Shapiro, Boies, Schiller & Flexner, for the plaintiffs. MR. PRITT: Maxwell Pritt for the plaintiffs. THE COURT: Good morning. MR. LEE: Good morning, your Honor. Barry Lee, Manatt Phelps, for defendants. MS. HEIMBERGER: Ann Heimberger, Manatt Phelps, for defendants. MR. BAKER: Christian Baker, Manatt Phelps, for defendants. MR. WEISS: Lenard Weiss from Manatt. Same. THE COURT: Good morning, everybody. We have a number of matters on calendar. We'll start with the simplest first. This is defendants' motion to seal confidential investment committee report. It was originally set for hearing on Page 2 BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 3 Page 4 March 16th, but when the parties requested that we move this hearing until today, this was continued. So I've read all the papers filed in support of and in partial opposition, and my tentative view is to grant the motion for the good cause shown in the motion to seal. Does anybody wish to be heard? MR. SHAPIRO: No, your Honor. MS. HEIMBERGER: No, thank you, your Honor. THE COURT: All right. So I'll sign the order. Okay. The next is the motion to strike portions of the fourth amended complaint. This was continued from the last hearing that we had on -- when was that originally? MR. LEE: Looks like the 24th. MS. HEIMBERGER: February 24th. THE COURT: Is that when it was? MS. HEIMBERGER: Oh, wait. THE COURT: Yeah, time flies. February 24th. And I've read the surreply filed by the plaintiffs to the motion to strike, as well as the defendants' surreply in support of the motion to strike portions of the fourth amended complaint, as well as considered your previous arguments and briefs. And this is my thought: My tentative view is BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (1) Pages 1 - 4 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to deny the motion, particularly in light of the fact that this is going to be a court trial. I will better be able to address the issues raised by the motion to strike; that is, to what extent, if any, any legal arguments about Section 726 have merit or remain in light of Judge Busch's ruling after I've heard all the evidence. I've read your briefs. I've read the judge's order. I'm dubious, the way things stand, that there is a Section 726 claim, but it seems to me that it's not something that's best decided on the papers at this stage as the motion to strike. If there is something that the plaintiffs come forward with that's different from what Judge Busch ruled on, I'll certainly hear it and hear it with an open mind. But it seems to me to be not a good use of resources at this point to try to define whether a legal argument can stand when I haven't heard the evidence that supports the legal argument. It also seems to me that this won't really affect the issues to be proven at trial, in the sense of what evidence we'll need to put on -- will need to be put on because it seemed to me that the 726 argument that the plaintiff was trying to make is a legal argument that falls out of the evidence that's going to BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 5 BEHMKE REPORTING AND VIDEO SERVICES, INC. complaint that would not otherwise be necessary, in our view, at this time, and that's substantial evidence about the actual factual allegations about the flow of funds through the accounts. Our original motion and the argument here have to do with the argument that, even as pled, the facts don't raise a claim. But the fact is that we deny that the allegations are true; and in order to prove that, the evidence that's going to come in is financial statements for, you know, a year or more and complicated expert testimony about the flow of funds through this sort of waterfall of accounts and where it went from the lockbox account through the cash management account through all these other reserve accounts, and what happened to the money on any given day at any given time. And that's evidence that otherwise, I don't think, is going to be necessary to be put in. But if these claims stay, stay in the case, that will be additional evidence that will need to be submitted. THE COURT: All right. Well, you do have Judge Busch's decision, and you have stipulations or the lack of dispute on the part of the plaintiffs to a large number of the facts that were put in evidence by your motion for summary judgment. So it's not clear to me Page 6 BEHMKE REPORTING AND VIDEO SERVICES, INC. be put on in any event. It's not a separate 726 claim. So I just think it makes more sense to let the plaintiffs put on their evidence, see whether they wish to proceed with the 726 argument that's different from the one that Judge Busch ruled on, and then hear motions or argument at trial as to whether or not that evidence should be precluded or the law should be -let me start over -- or whether, after hearing the evidence or at trial, whether the judge's prior motion for summary adjudication precludes the plaintiff from making the argument in this case. That's my tentative thought. And my tentative view also is, as I stated last time, to deny the motion to strike the other particular portions of the complaint which were the subject of defendants' motion for the reasons that I stated last month. So Ms. Heimberger? MS. HEIMBERGER: Yes. Thank you, your Honor. I think first, just one point that wasn't raised in the papers -- because I think you know we've briefed these issues a couple times now, so I don't want to repeat ourselves, but the point about evidence, I think there is additional evidence that defendants will need to put on if these claims stay in the Min-U-Script® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 7 Page 8 that -- it's not immediately clear to me that there can't be a stipulation or a simpler way to proceed. But it's your case. I'm not sure. MR. LEE: Barry Lee for Manatt. I think one of the problems we have is we don't really see, based on the allegations or the argument, what is different about the claim, the 726 claim they're trying to raise now. We don't really see the difference. Therefore, we've got to prepare our defense for all kinds of things, which will entail, I think, in part, this rather fact-intensive description of the flow of funds for the period in question because we're not sure what they're claiming other than what they already claimed. THE COURT: All right. Thank you. Mr. Shapiro. MR. SHAPIRO: I'll respond to what counsel argued today as best I can because I'm not actually sure that I follow it. But I think what they're saying is that they would want to present evidence about the way money came in from tenants, went into different reserve accounts, and then went out to pay for things. I think that's part of the case, regardless of whether the 726 is in or not. I'm not really sure what defense counsel is BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (2) Pages 5 - 8 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 arguing about that. One of the claims in the complaint is for an accounting, which had exactly to do with that, that the plaintiffs never really knew how much money was in the account by the time of July or October 2010. And I do think that if there's evidence that we don't have about the way funds went in and out, defendants ought to give it to us. And maybe we can reach a stipulation about that. That seems to be pretty simple to me. Whatever their argument may be, whatever our argument may be about the money, it is what it is. If there are account statements, we should have those. So it's hard for me to really argue, other than I think that your -- you know, obviously, I'm not going to argue the tentative on the motion to strike, but I don't think that questions of evidence really are relevant at this point. THE COURT: Okay. Anything further? MR. LEE: My only comment would be this -- and maybe this just plays out at trial -- during the period that the plaintiffs owned the property, it's their financial statements that demonstrated the flow of funds. It's not anybody else's. There are bank statements, obviously, but it's their financial BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 9 BEHMKE REPORTING AND VIDEO SERVICES, INC. MS. HEIMBERGER: Your Honor, we apologize, but we weren't aware that -- I don't think your Honor requested case management statements. We weren't planning on submitting one until we saw theirs. THE COURT: I thought I would get something that was an agreed-upon schedule. So let me read this. I'm going to take a short recess. I'll be right back. (Recess taken.) THE COURT: All right. So I've looked over the case management conference statements that I received. To what extent did the parties meet and confer on the subject of pretrial dates and bifurcation, in light of the fact that it's a court trial? MR. SHAPIRO: We got a proposed schedule from the defendants, I think, on Wednesday or Tuesday last week. We sent them back our proposed schedule, which wasn't -- which was different for certain things. Ours was closer to trial. And then we didn't hear back from them about that so we filed our proposed schedule. With respect to the bifurcation, Mr. Lee and I talked about it, and he said he wanted to think about -- and I raised the possibility of trying the foreclosure cause of action, though I did say, and he recognized, that your ruling on the motion to strike Page 10 BEHMKE REPORTING AND VIDEO SERVICES, INC. statements. So they have the information. The extra evidence is people coming in and saying here's how this flowed out, but off of plaintiffs' financial statements. But we'll submit at that point. THE COURT: All right. So the tentative ruling is -- the ruling of the Court on the motion to strike, it is denied in its entirety, without prejudice to making any argument at trial or after trial about the effect of Judge Busch's order for summary adjudication. The last thing we have is the case management conference, and I just received and have not had a chance to look at the Defendants' Supplement to Case Management Statement. So perhaps we could just go off the record for a minute, and I'll review the different dates that you have here. MR. LEE: Okay. THE COURT: Do you want the case management conference reported? MR. SHAPIRO: Sure. Is it okay? MR. LEE: Yes, yes. THE COURT: Why am I getting this now? MR. SHAPIRO: We got theirs on Friday afternoon. Min-U-Script® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 11 Page 12 might affect that, and he was going to think about it. So that's what we talked about last time, about possibly doing that. But I see from their filing today that I don't think they agree with it. THE COURT: All right. MR. LEE: We sent our schedule on Tuesday last week. We had a conference call on Wednesday, about an hour -- just short of an hour, I guess. We did talk about the proposed bifurcation. I didn't fully understand exactly what they were calling the foreclosure action. I understood better after I saw their statement that they're really talking about sort of the procedural components of that. We did get their proposed schedule dates on Thursday of last week. THE COURT: Okay. Well, are you prepared to discuss this now, or do you think, now that you've -- I mean, my inclination is to put you in a jury room and have you discuss this. You know, I just received this from both of you. My fallback is we'll try the whole case at once. I don't think it's worth spending case management conference after case management conference BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (3) Pages 9 - 12 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to try to figure out what to try first if the parties can't agree. But if you can agree and there's a way to be more efficient, I'd like to do that. But receiving statements on Friday and Monday when we walk into court indicates to me that you haven't really been talking about how you really want the case to go forward. MR. SHAPIRO: I think that the big time-saver will be things that we can stipulate to, facts in evidence we can stipulate to. I think that since it is going to be a judge trial, the bifurcation and phasing is just less critical because you can adjust our showing up to court to fit your schedule and we don't have to worry about jurors. So Barry and I -- Mr. Lee and I talked briefly about trying to stipulate to certain of the facts, and I think we should be able to do that because there are things that are just not in dispute. And I -- we just haven't done -- I don't think we've done enough work on that. THE COURT: Well, I would hope so. But I have to tell you, given the fact that the parties cannot even agree on whether all of the documents should be filed under seal or not and that I BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 13 BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 me, something I never appreciated when I was a lawyer, 11 to stop and start and stop and start on your case 12 because I have to -- it's all fresh in your mind, but I 13 have to then go back and pick up where I left off when 14 I'm the finder of fact. 15 So I do want to try this efficiently. It 16 seems to me that trying the foreclosure action first in 17 its entirety, procedural and substantive, makes sense, 18 but you know how the facts go in, and I don't. 19 So that would be my thinking. If there's one 20 issue that can be tried first, it ought to be that. 21 But if you can't agree on that, we'll have to talk 22 more. 23 So what's the situation now with the trial 24 date? Have you heard anything from Judge Hamilton, or 25 Min-U-Script® is that case still going forward? MR. SHAPIRO: Right now, yes. She hasn't responded to our -- my advising her that she's had a trial date that conflicted with this. But we think that if that goes, when she set it, she's -- it's only going to be a two-week trial. So you may recall I originally asked for the beginning of July, and then we pushed it back to June 25th at the defendants' request. So I still think Mr. Boies' schedule could fit into that July time frame. THE COURT: Was the Court -- was it brought to the attention -- start over. Did plaintiffs' counsel bring to the Court's attention the fact that we had a trial set on June 25th when the -MR. SHAPIRO: Yes. THE COURT: Before that date was set by Judge Hamilton? -- I'm sorry, it's by Judge Anderson -- it's Judge Armstrong, right? MR. SHAPIRO: No. Judge Hamilton. It's the SAP trial. That's not my case. I -- we came in on the 24th. I told my partners we were set for June 25th. I think they were -- had submitted something that day -- Page 14 BEHMKE REPORTING AND VIDEO SERVICES, INC. get, you know, two rounds of briefing on that issue, I'm really concerned about what the contours of the pretrial stipulations are going to be, if any. I know it's a court trial, which gives me more flexibility, but I am stacked back to back to back with trials. And so there are going to be trial time limits set on this, even though we don't have jurors. I don't have, you know, an endless amount of time for this. And, also, given the fact that it is a court trial, not a jury trial, it makes it much harder for Page 15 Page 16 and this is just what I think happened -- and then they told Judge Hamilton June 25th is the date for the Rincon trial. I think that's the order of events. But, in any event, they told her if -- if they didn't tell her before, they told her immediately after you set the date. THE COURT: All right. MR. LEE: Your Honor, we need to get this trial started. THE COURT: I'm going to keep it at June 25th until such time as we hear from the federal court that they're not going to change the date, and then we'll have to go from there. But at this point I'm going to keep it at that date. MR. LEE: Our issue, as we just highlighted briefly in our submission today -- and I apologize for the lateness. We just didn't get plaintiffs' until Friday. We didn't know we were submitting anything -- we have already scheduled our, particularly, third-party witnesses, most of whom are on the East Coast. You know, we've got them in a two-week window, two-and-a-half-week window, as well as our experts. I have great respect for Mr. Boies, but I've got trial set -- a very large trial beginning August 7. I've got a week arbitration beginning August 27th. BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (4) Pages 13 - 16 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Starting in July, knowing how these cases work -- and I actually personally have to prepare for the trial. I don't just pick the file up and go in -- we are -- very vigorously oppose anything moving off June 25. This has been scheduled many times. THE COURT: At this point I'm not going to change it. MR. LEE: Okay. THE COURT: And I understand that there's been a request to change a trial date that was set after ours was. No response has been given to that. So at this point I'm just going to keep the date on the 25th; and, pending something further, that's what I'm going to do. Because I don't know what to do otherwise. Otherwise, it's just too much of a moving situation. If we hear something to the contrary, I have to deal with it. But right now I'm going to keep it at the 25th. MR. SHAPIRO: Mr. Lee said something -- and I think that makes sense, said something that triggered a thought, and that is he's talked about third-party witnesses being scheduled. I don't know whether I should make a motion to ask for this or we can just get a commitment -- because we would do the same -- if either side is going to be BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 17 BEHMKE REPORTING AND VIDEO SERVICES, INC. I think we need the additional time. We've had a lot of discovery disputes, and there are scheduling issues, and I don't see any reason why we have to cut it off earlier than what the code provided. MR. LEE: And our view is, as has been the case in this case, every deadline that gets set, things get done right up until the end of it. And this is a big case, with significant issues, legal and factual, and there's no reason the parties can't get their fact discovery done early, earlier than the code. It will permit a better-prepared case for your Honor to try. THE COURT: Okay. MR. LEE: It's as simple as that. MR. SHAPIRO: If there were no disputes, I would agree with Mr. Lee. But the problem is that when there's a dispute, it doesn't get resolved in two days. There's always briefing, waiting, making sure Judge Garcia is available. So it's weeks long. So I think that, in a perfect world, yeah, everything would be smooth. THE COURT: How much more fact discovery needs to be done? Are there more depositions to be -MR. SHAPIRO: There are some more, not a lot more. THE COURT: Are they all noticed? MR. SHAPIRO: We're going to serve a few more Page 18 BEHMKE REPORTING AND VIDEO SERVICES, INC. calling live witnesses who have not been deposed, for whatever reason, I would like the opportunity to depose anybody who is going to be called as a witness who has not been deposed. If I'm going to do that, I'll be happy to tell the defendants, you know, so-and-so witness is going to come and testify live. I hope I don't have to make a motion to ask for that. THE COURT: Is that acceptable? MR. LEE: I think it will be, but let me discuss with -- we have a very involved client. THE COURT: All right. Okay. Well, let's go over dates -- well, actually, let me back up for just a minute. You're in agreement on a lot of these dates, except that the plaintiffs are -- the only ones that you're not in agreement on are where the plaintiffs have indicated that they want to follow what the Code of Civil Procedure would require and defendants proposed earlier dates, for example, fact and expert discovery cutoffs and motions -- I guess those were the two things -- relating to those. What's the issue here? About a month apart, I guess. MR. SHAPIRO: Right. Min-U-Script® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 19 Page 20 deposition notices on some Federal Reserve Bank/Maiden Lane witnesses. There's a motion we have to make to compel Bank of America -- they're not here -- to produce documents, but that's not more depositions. And there are probably a few more document disputes. THE COURT: Okay. And did you have more depositions you'll be taking? MR. LEE: Yes. But I believe -- I don't want to misspeak. I believe all of the remaining we're interested in have already been noticed and subpoenaed. Not blaming anyone on that side, but there's one of the four law firms that are representing the plaintiffs now had just recently asked for a number -three depositions that were scheduled to be moved because of her schedule. I'm happy to do that. So I don't know when they're going to start. But I don't believe there are any remaining witnesses that we have not already subpoenaed with notices of deposition. The dates are moving a little bit. THE COURT: Well, the defendants are proposing April 30th as the cutoff; the plaintiffs are proposing May 28 as the cutoff for discovery. Is it possible to aim to have it all completed by April 30th, notwithstanding that the deadline is BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (5) Pages 17 - 20 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 May 28th? Is that a doable thing, to try to schedule all remaining discovery so that it happens in April? MR. SHAPIRO: We'll certainly try. THE COURT: Does that work for defendants? MR. LEE: Yes, that was -- yes. THE COURT: Okay. So the goal will be to get everything done by April the 30th, that will be the completion of all depositions by that time. Then expert discovery, May the 28th versus June the 11th. Can you aim to have all the expert discovery done by May the 28th? MR. SHAPIRO: Well, yes. It looks like the defendants take the position that the expert exchange identifications back last year was it. I know we have one more -- one different expert than we had. THE COURT: Have you disclosed that person? MR. SHAPIRO: Not yet. I mean, well, they know because we're actually trying to get him to go inspect the property. We have a motion about that because we have not been able to get him to be able to go inspect the property. THE COURT: Has the name been disclosed? MR. SHAPIRO: I don't know because it's not my witness, and I haven't been talking to this -THE COURT: No, the name has not been disclosed. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 21 BEHMKE REPORTING AND VIDEO SERVICES, INC. two sides. So it's -- you know, it's quite a few people. We can certainly try. THE COURT: Okay. Well, you've got two months before it's May 28th. Okay. And then the hearing on motions, you have made the 8th versus -- I'm sorry, June the 8th versus June the 15th, which is the code. MR. LEE: That's for expert discovery -THE COURT: Right. MR. LEE: -- hearings. THE COURT: Okay. MR. LEE: Expert discovery motions. THE COURT: So I'm going to stick to the code dates. So the plaintiffs' proposed date, to the extent they differ with the defendants' proposed dates, will be the governing dates -- and the only reason for that is that they do comply with the Code of Civil Procedure -- with the understanding that the parties are going to try to complete fact and expert discovery by April 30th and May 28th, respectfully. MR. LEE: Point of clarification. THE COURT: Sure. MR. LEE: On our chart, which is, I think, kind of easy to look at because it's got our proposal, Page 22 BEHMKE REPORTING AND VIDEO SERVICES, INC. MR. LEE: The answer is no. MR. SHAPIRO: It's Paul Habibi. He's a professor at UCLA. THE COURT: Paul Habibi? MR. SHAPIRO: Paul Habibi. That's a person who comes to mind. I assume, from what the defendants say, that they have no other experts they're planning to disclose. MR. LEE: We see what this designation is. And it's not our contention that the exchange occurred; it did occur back at the first time. I understand they're looking to supplement. I fully expect the Court to grant that request. THE COURT: Okay. MR. LEE: And once we see what they're designating, it may be that we want somebody to rebut that. I don't know right now. THE COURT: Okay. MR. LEE: But all of our experts have been disclosed. THE COURT: Well, can you aim to have the expert discovery completed by May the 28th? MR. SHAPIRO: We can certainly try. I think there were a total of about ten experts listed between the Min-U-Script® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 23 Page 24 plaintiffs' proposal, and the code, if you -- fifth box from the bottom of the first page, last date to serve opposition to motions in limine -- well, it's actually just serve motions in limine, both parties have agreed to the 1st. So I assume that stands and it won't be supplanted by the code. THE COURT: That's right. MR. LEE: If they agree, then we'll go with the agreement? THE COURT: Absolutely. MR. LEE: Okay. THE COURT: So I'm basically -- if you just look down that center column that you have, plaintiffs' proposed dates, those are the dates that I'm adopting. In all except four instances, those are also defendants' proposed dates. To the extent you've stipulated around the code or local rule requirements, that's completely fine with me. MR. LEE: Okay. I just wanted to make sure. THE COURT: Let me say something about motions in limine, and I'm probably going to give a written order about all of this, but I'm not expecting there will be very many, given that this is a court trial, and -- all right. Having said that, you must meet and confer BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (6) Pages 21 - 24 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 before you file motions in limine. So you have to disclose to each other what the substance is of the motion and see if there's an agreement. Only if you cannot agree can you file a motion in limine. Then you must attach a declaration saying that you did provide notice, that you did meet and confer, and that you couldn't reach an agreement under penalty of perjury. Do not repeat the mistakes made by the lawyers in the following case: Kelly versus New West, 49 Cal. App. 4th 659 at 670, which is a 1996 case, which says, and I quote, "Many of the motions filed were not properly the subject of motions in limine, were not adequately presented, or sought rulings which would be declaratory of existing law or would not provide any meaningful guidance for the parties or witnesses," closed quote. So don't file a motion that says exclude hearsay or things that don't have foundation. Please don't file a motion saying there should be a 24-hour disclosure. That is going to be the rule -- or maybe more than that. You don't need to file a motion that excludes witnesses who haven't yet testified. And if you do make a motion to exclude certain testimony, you just have to be really, really specific as to what the testimony is. BEHMKE REPORTING AND VIDEO SERVICES, INC. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 25 BEHMKE REPORTING AND VIDEO SERVICES, INC. We've advanced our reasoning. THE COURT: Okay. Mr. Shapiro, you want more time to talk to counsel about this? MR. SHAPIRO: We may be able to do that. But I'd like to talk to Mr. Lee about it. Because sometimes you can agree to a concept, and then each one of you has a completely different idea of what that entails. THE COURT: I know. MR. SHAPIRO: So I would like -- I will try to be as specific with him as possible about what I think that means. THE COURT: Okay. Let's pick a date by which you can present in writing to me an agreed-upon proposal for trying the case in something other than the whole thing. And if you can agree and it makes sense, I'll go along with it. When can you do that? MR. SHAPIRO: Can we have at least two weeks, maybe three? THE COURT: You need three weeks? MR. SHAPIRO: I don't know. I mean, we can -- you know, I could always say we couldn't do it. I can try in two weeks. I think, to think through, since we have to go first -- or we get to go first, I think I want to make sure I -- Page 26 BEHMKE REPORTING AND VIDEO SERVICES, INC. And I also refer you to Amtower, A-m-t-o-w-e-r, versus Photo Dynamics, 158 Cal. App. 4th 1582 at 1593 to 1596. It's a 2008 case, which also describes the proper uses of motions in limine. To the extent you do file any, please number them sequentially -- so plaintiffs' motion in limine 1, opposition to motion in limine 1 by the defendant -- so I can keep track of them. And, please, if you moved for -- if you make a motion in limine, provide a chart with all the motions that you've requested for ruling. Now, I know that last point makes it sounds like I'm expecting a lot. I'm really not. But I like to be able to keep them straight. So that's the motions in limine. What shall we do here about -- to the extent -- to what extent we're going to bifurcate this trial? MR. LEE: Your Honor, our position, which is laid out, we do think that if we're going to try -- there may be some advantage to trying the foreclosure, procedural and substantive, and the June 2009 default issues first. If plaintiffs are not amenable to that, let's just go to trial, put the witnesses on, and we'll cross-examine and put our witnesses on. Min-U-Script® 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 27 Page 28 MR. LEE: I'll go first. MR. SHAPIRO: I want to make sure that I have thought through each thing. But if I could have two weeks, that would be -THE COURT: All right. You can have two weeks. MR. SHAPIRO: Okay. THE COURT: So two weeks from today? MR. LEE: Is the 9th of April. THE COURT: 9th of April. So two weeks from today, give the Court a detailed written agreement as to how the case will be bifurcated. If you can agree, great. If you can't, maybe I'll come up with something. But, more likely, we'll try the whole thing. Is there anything further for today? MR. LEE: No. MR. SHAPIRO: No, your Honor. THE COURT: Okay. I'll set a future case management conference after receiving the April 9th submission if it seems like it's required. Okay. Thank you very much. We're off the record. (The proceedings concluded at 9:51 a.m.) BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (7) Pages 25 - 28 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. BEHMKE REPORTING AND VIDEO SERVICES, INC. Page 29 1 STATE OF CALIFORNIA ) 2 ) ss 3 COUNTY OF SAN MATEO ) 4 5 I hereby certify that the foregoing in the 6 within-entitled cause was taken at the time and place 7 herein named; that the transcript is a true record of 8 the proceedings as reported by me, a duly certified 9 shorthand reporter and a disinterested person, and 10 was thereafter transcribed into typewriting by 11 computer. 12 I further certify that I am not interested 13 in the outcome of the said action, nor connected 14 with, nor related to any of the parties in said 15 action, nor to their respective counsel. 16 IN WITNESS WHEREOF, I have hereunto set my 17 hand this 26th day of March, 2012. 18 19 20 21 22 MELINDA M. SELLERS, CSR# 10686 23 STATE OF CALIFORNIA 24 25 Min-U-Script® BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (8) Page 29 Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. 27:16 always (2) 19:17;27:22 amenable (1) able (6) 26:23 5:3;13:18;21:20,20; amended (2) 26:13;27:4 4:12,23 Absolutely (1) America (1) 24:10 20:3 acceptable (1) amount (1) 18:9 14:8 account (4) Amtower (1) 7:13,14;9:5,13 26:1 accounting (1) A-m-t-o-w-e-r (1) 9:3 26:2 accounts (4) Anderson (1) 7:4,12,15;8:22 15:19 action (3) Ann (1) 11:24;12:12;14:17 3:16 actual (1) apart (1) 7:3 18:23 actually (5) apologize (2) 8:18;17:2;18:13; 11:1;16:16 21:18;24:3 App (2) additional (3) 25:10;26:2 6:24;7:20;19:1 Appearances (1) address (1) 3:9 5:3 appreciated (1) adequately (1) 14:11 25:13 April (8) adjudication (2) 20:22,25;21:2,7; 6:10;10:10 23:21;28:8,9,19 adjust (1) arbitration (1) 13:13 16:25 adopting (1) argue (2) 24:14 9:14,16 advanced (1) argued (1) 27:1 8:17 advantage (1) arguing (1) 26:20 9:1 advising (1) argument (13) 15:3 5:17,19,23,25;6:4,6, affect (2) 11;7:5,6;8:7;9:11,11; 5:21;12:1 10:9 afternoon (1) arguments (2) 10:25 4:24;5:5 agree (11) Armstrong (1) 12:5;13:2,3,24; 15:20 14:22;19:15;24:8;25:4; around (1) 27:6,15;28:12 24:17 agreed (1) assume (2) 24:4 22:7;24:5 agreed-upon (2) attach (1) 11:6;27:13 25:5 agreement (6) attention (2) 18:15,17;24:9;25:3, 15:13,15 7;28:11 August (2) aim (3) 16:24,25 20:24;21:10;22:22 available (1) al (2) 19:18 3:7,8 aware (1) allegations (3) 11:2 7:3,8;8:6 along (1) A Min-U-Script® B back (11) 11:8,17,19;14:5,5,5, 14;15:8;18:14;21:14; 22:12 BAKER (2) 3:18,18 bank (2) 9:24;20:3 Bank/Maiden (1) 20:1 Barry (3) 3:14;8:4;13:16 based (1) 8:6 basically (1) 24:12 beginning (3) 15:8;16:24,25 best (2) 5:11;8:18 better (2) 5:2;12:13 better-prepared (1) 19:11 bifurcate (1) 26:16 bifurcated (1) 28:12 bifurcation (4) 11:13,21;12:10; 13:12 big (2) 13:8;19:7 bit (1) 20:20 blaming (1) 20:11 Boies (2) 3:11;16:23 Boies' (1) 15:10 both (2) 12:22;24:4 bottom (1) 24:2 box (1) 24:1 briefed (1) 6:22 briefing (2) 14:1;19:17 briefly (2) 13:16;16:15 briefs (2) 4:24;5:8 bring (1) 15:14 brought (1) 15:12 Busch (2) 5:14;6:5 Busch's (3) 5:6;7:22;10:10 23:22 clear (2) 7:25;8:1 client (1) 18:11 C closed (1) 25:16 Cal (2) closer (1) 25:10;26:2 11:19 calendar (1) Coast (1) 3:22 16:20 call (1) Code (9) 12:8 18:18;19:4,10;23:7, called (1) 13,18;24:1,6,17 18:3 column (1) Calling (3) 24:13 3:6;12:12;18:1 coming (1) came (2) 10:2 8:21;15:23 comment (1) can (24) 9:20 5:17;8:18;9:9;13:3,9, commitment (1) 10,13;14:21;17:24; 17:24 21:10;22:22,24;23:2; 25:4;26:8;27:6,13,15, committee (1) 3:25 17,18,21,22;28:5,12 compel (1) case (26) 20:3 6:11;7:19;8:3,24; complaint (5) 10:11,13,19;11:3,11; 4:12,23;6:15;7:1;9:2 12:23,24,25;13:7; 14:12;15:1,23;19:5,6,8, complete (1) 23:20 11;25:9,10;26:3;27:14; completed (2) 28:11,18 20:24;22:23 cases (1) completely (2) 17:1 24:18;27:7 cash (1) completion (1) 7:13 21:8 cause (2) complicated (1) 4:5;11:24 7:11 center (1) comply (1) 24:13 23:18 certain (3) components (1) 11:18;13:17;25:23 12:14 certainly (4) concept (1) 5:14;21:3;22:24; 27:6 23:2 concerned (1) chance (1) 14:2 10:13 concluded (1) change (3) 28:23 16:12;17:6,10 confer (3) chart (2) 11:12;24:25;25:6 23:24;26:9 conference (7) Christian (1) 10:12,20;11:11;12:8, 3:18 25,25;28:19 Civil (2) confidential (1) 18:19;23:18 3:24 claim (5) conflicted (1) 5:10;6:1;7:7;8:7,8 15:4 claimed (1) considered (1) 8:14 4:24 claiming (1) contention (1) 8:13 22:11 claims (3) continued (2) 6:25;7:19;9:2 4:2,13 clarification (1) BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (1) able - continued Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. contours (1) 14:2 contrary (1) 17:16 counsel (4) 8:17,25;15:14;27:3 couple (1) 6:22 COURT (69) 3:3,6,13,21;4:10,17, 19;5:2;7:21;8:15;9:19; 10:6,7,19,24;11:5,10, 14;12:6,18;13:5,13,22; 14:4,9;15:12,12,18; 16:7,10,11;17:6,9;18:9, 12;19:12,21,24;20:6, 21;21:4,6,16,22,25; 22:4,14,15,19,22;23:3, 9,11,13,23;24:7,10,12, 20,23;27:2,8,12,20; 28:5,7,9,10,18 Court's (1) 15:14 CP (1) 3:7 critical (1) 13:13 cross-examine (1) 26:25 cut (1) 19:4 cutoff (2) 20:22,23 cutoffs (1) 18:21 D date (12) 14:25;15:3,18;16:2, 6,12,14;17:10,12; 23:15;24:2;27:12 dates (13) 10:16;11:13;12:16; 18:13,15,20;20:19; 23:14,16,17;24:14,14, 16 David (1) 3:10 day (2) 7:16;15:25 days (1) 19:16 deadline (2) 19:6;20:25 deal (1) 17:17 decided (1) 5:11 decision (1) 7:22 declaration (1) 25:5 Min-U-Script® declaratory (1) 25:14 default (1) 26:21 defendant (1) 26:7 defendants (12) 3:15,17,19;6:24;9:7; 11:16;18:5,19;20:21; 21:4,13;22:7 defendants' (7) 3:24;4:22;6:16; 10:13;15:9;23:16; 24:16 defense (2) 8:10,25 define (1) 5:17 demonstrated (1) 9:23 denied (1) 10:8 deny (3) 5:1;6:14;7:7 depose (1) 18:2 deposed (2) 18:1,4 deposition (2) 20:1,19 depositions (5) 19:22;20:4,7,14;21:8 describes (1) 26:4 description (1) 8:11 designating (1) 22:16 designation (1) 22:10 detailed (1) 28:11 differ (1) 23:16 difference (1) 8:9 different (8) 5:13;6:4;8:7,22; 10:16;11:18;21:15; 27:7 disclose (2) 22:9;25:2 disclosed (4) 21:16,22,25;22:21 disclosure (1) 25:20 discovery (12) 18:21;19:2,10,21; 20:23;21:2,9,11;22:23; 23:8,12,20 discuss (3) 12:19,21;18:10 dispute (3) 7:23;13:19;19:16 disputes (3) 19:2,14;20:5 doable (1) 21:1 document (1) 20:5 documents (2) 13:25;20:4 done (7) 13:20,20;19:7,10,22; 21:7,11 down (1) 24:13 dubious (1) 5:9 during (1) 9:21 Dynamics (1) 26:2 E earlier (3) 18:20;19:4,10 early (1) 19:10 East (1) 16:20 easy (1) 23:25 effect (1) 10:10 efficient (1) 13:4 efficiently (1) 14:16 either (1) 17:25 else's (1) 9:24 end (1) 19:7 endless (1) 14:8 enough (1) 13:20 entail (1) 8:10 entails (1) 27:7 entirety (2) 10:8;14:18 et (2) 3:7,8 EV (1) 3:6 even (3) 7:6;13:24;14:7 event (2) 6:1;16:4 events (1) 16:3 everybody (2) 3:3,21 evidence (19) 5:7,18,22,25;6:3,7,9, 23,24;7:2,9,17,20,24; 8:21;9:6,17;10:2;13:9 exactly (2) 9:3;12:11 example (1) 18:20 except (2) 18:16;24:15 exchange (2) 21:13;22:11 exclude (2) 25:17,23 excludes (1) 25:22 existing (1) 25:14 expect (1) 22:14 expecting (2) 24:22;26:12 expert (10) 7:11;18:20;21:9,10, 13,15;22:22;23:8,12,20 experts (4) 16:22;22:8,20,25 extent (7) 5:4;11:12;23:16; 24:16;26:5,16,16 extra (1) 10:2 F fact (11) 5:1;7:7;11:14;13:23; 14:9,15;15:15;18:20; 19:9,21;23:20 fact-intensive (1) 8:11 facts (5) 7:6,24;13:9,17;14:19 factual (2) 7:3;19:8 fallback (1) 12:22 falls (1) 5:25 February (2) 4:16,19 federal (2) 16:11;20:1 few (3) 19:25;20:5;23:1 fifth (1) 24:1 figure (1) 13:1 file (7) 17:3;25:1,4,17,19, BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 21;26:5 filed (5) 4:3,20;11:20;13:25; 25:11 filing (1) 12:4 financial (4) 7:9;9:23,25;10:4 finder (1) 14:15 fine (1) 24:18 firms (1) 20:12 first (11) 3:23;6:20;13:1; 14:17,21;22:12;24:2; 26:22;27:24,24;28:1 fit (2) 13:14;15:10 flexibility (1) 14:5 Flexner (1) 3:11 flies (1) 4:19 flow (4) 7:3,11;8:12;9:23 flowed (1) 10:3 follow (2) 8:19;18:18 following (1) 25:9 foreclosure (4) 11:24;12:12;14:17; 26:20 forward (3) 5:13;13:7;15:1 foundation (1) 25:18 four (2) 20:12;24:15 fourth (2) 4:12,23 frame (1) 15:11 fresh (1) 14:13 Friday (3) 10:25;13:5;16:17 fully (2) 12:11;22:14 funds (5) 7:4,11;8:12;9:7,24 further (3) 9:19;17:13;28:15 future (1) 28:18 G Garcia (1) (2) contours - Garcia Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. 19:18 gets (1) 19:6 given (6) 7:15,16;13:23;14:9; 17:11;24:23 gives (1) 14:4 goal (1) 21:6 goes (1) 15:5 Good (9) 3:3,4,5,10,13,14,21; 4:5;5:16 governing (1) 23:17 grant (2) 4:5;22:14 great (2) 16:23;28:12 guess (3) 12:9;18:21,24 guidance (1) 25:15 H Habibi (3) 22:2,4,5 Hamilton (4) 14:25;15:19,21;16:2 happened (2) 7:15;16:1 happens (1) 21:2 happy (2) 18:5;20:15 hard (1) 9:14 harder (1) 14:10 hear (6) 5:14,15;6:5;11:19; 16:11;17:16 heard (4) 4:7;5:6,18;14:25 hearing (5) 3:25;4:2,13;6:8;23:5 hearings (1) 23:10 hearsay (1) 25:18 Heimberger (8) 3:16,16;4:9,16,18; 6:18,19;11:1 here's (1) 10:3 highlighted (1) 16:15 Honor (13) 3:4,5,10,14;4:8,9; 6:19;11:1,2;16:8; Min-U-Script® 19:11;26:18;28:17 hope (2) 13:22;18:7 hour (2) 12:9,9 I idea (1) 27:7 identifications (1) 21:14 III (1) 3:7 immediately (2) 8:1;16:5 inclination (1) 12:20 Incorporated (1) 3:7 indicated (1) 18:18 indicates (1) 13:6 information (1) 10:1 inspect (2) 21:18,20 instances (1) 24:15 interested (1) 20:10 into (3) 8:22;13:5;15:11 investment (1) 3:24 involved (1) 18:11 issue (4) 14:1,21;16:15;18:23 issues (6) 5:3,21;6:22;19:3,8; 26:22 J Judge (13) 5:6,14;6:5;7:21; 10:10;13:11;14:25; 15:18,19,20,21;16:2; 19:17 judge's (2) 5:8;6:9 judgment (1) 7:25 July (4) 9:5;15:8,11;17:1 June (10) 15:9,15,24;16:2,10; 17:4;21:10;23:6,6; 26:21 jurors (2) 13:15;14:7 jury (2) 12:20;14:10 K keep (6) 16:10,14;17:12,17; 26:8,13 Kelly (1) 25:9 kind (1) 23:24 kinds (1) 8:10 knew (1) 9:4 knowing (1) 17:1 L lack (1) 7:22 laid (1) 26:18 Lane (1) 20:2 large (2) 7:23;16:24 last (11) 4:13;6:14,17;10:11; 11:16;12:2,7,17;21:14; 24:2;26:11 lateness (1) 16:17 law (3) 6:7;20:12;25:14 lawyer (1) 14:11 lawyers (1) 25:8 least (1) 27:18 LEE (39) 3:4,14,14;4:15;8:4,4; 9:20;10:18,23;11:21; 12:7;13:16;16:8,15; 17:8,19;18:10;19:5,13, 15;20:8;21:5;22:1,10, 16,20;23:8,10,12,22, 24;24:8,11,19;26:18; 27:5;28:1,8,16 left (1) 14:14 legal (5) 5:4,17,18,24;19:8 Lenard (1) 3:20 less (1) 13:12 light (3) 5:1,6;11:14 likely (1) 28:13 limine (11) 24:3,4,21;25:1,4,12; 26:4,6,7,9,14 limits (1) 14:6 listed (1) 22:25 little (1) 20:19 live (2) 18:1,6 LLC (1) 3:7 local (1) 24:17 lockbox (1) 7:13 long (1) 19:18 look (3) 10:13;23:25;24:12 looked (1) 11:10 looking (1) 22:13 Looks (2) 4:15;21:12 lot (4) 18:15;19:2,23;26:12 M makes (6) 6:2;14:10,18;17:20; 26:11;27:15 making (3) 6:11;10:9;19:17 management (9) 7:14;10:11,14,19; 11:3,11;12:25,25; 28:19 Manatt (5) 3:15,16,18,20;8:4 many (3) 17:5;24:23;25:11 MARCH (2) 3:1;4:1 matter (1) 3:6 matters (1) 3:22 Maxwell (1) 3:12 may (13) 9:11,11;15:7;20:23; 21:1,9,11;22:17,23; 23:4,21;26:20;27:4 maybe (5) 9:9,21;25:20;27:18; 28:13 mean (3) 12:20;21:17;27:21 BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 meaningful (1) 25:15 means (1) 27:11 meet (3) 11:12;24:25;25:6 merit (1) 5:5 might (1) 12:1 mind (3) 5:15;14:13;22:6 minute (2) 10:16;18:14 misspeak (1) 20:9 mistakes (1) 25:8 MONDAY (2) 3:1;13:5 money (4) 7:15;8:21;9:4,12 month (2) 6:17;18:23 months (1) 23:3 more (17) 6:2;7:10;13:4;14:4, 23;19:21,22,23,23,25; 20:4,5,6;21:15;25:21; 27:2;28:13 morning (7) 3:3,4,5,10,13,14,21 most (1) 16:20 motion (30) 3:24;4:5,6,11,21,22; 5:1,3,12;6:9,14,16;7:5, 25;9:16;10:7;11:25; 17:23;18:7;20:2;21:19; 25:3,4,17,19,21,23; 26:6,7,9 motions (13) 6:6;18:21;23:5,12; 24:3,4,20;25:1,11,12; 26:4,10,14 move (1) 4:1 moved (2) 20:14;26:8 moving (3) 17:4,15;20:19 much (5) 9:4;14:10;17:15; 19:21;28:21 must (2) 24:25;25:5 N name (2) 21:22,25 necessary (2) (3) gets - necessary Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. 7:1,18 need (8) 5:22,22;6:25;7:20; 16:8;19:1;25:21;27:20 needs (1) 19:21 New (1) 25:9 next (1) 4:11 notice (1) 25:6 noticed (2) 19:24;20:10 notices (2) 20:1,19 notwithstanding (1) 20:25 number (4) 3:22;7:24;20:13; 26:5 26:2 pick (3) 14:14;17:3;27:12 plaintiff (2) 5:24;6:10 plaintiffs (13) 3:11,12;4:21;5:13; 6:3;7:23;9:4,22;18:16, 17;20:13,22;26:23 plaintiffs' (7) 10:4;15:14;16:17; 23:15;24:1,13;26:6 planning (2) 11:4;22:8 plays (1) P 9:21 please (4) 3:9;25:18;26:5,8 page (1) pled (1) 24:2 7:6 papers (3) point (10) 4:3;5:11;6:21 5:16;6:20,23;9:18; part (3) 10:5;16:13;17:6,12; O 7:23;8:11,24 23:22;26:11 partial (1) portions (3) 4:4 obviously (2) 4:12,23;6:15 9:15,25 particular (1) position (2) occur (1) 6:15 21:13;26:18 22:12 particularly (2) possibility (1) 5:1;16:19 occurred (1) 11:23 parties (8) 22:11 possible (2) October (1) 4:1;11:12;13:1,24; 20:24;27:10 9:5 19:9;23:19;24:4;25:15 possibly (1) partners (1) off (6) 12:3 15:24 10:3,15;14:14;17:4; precluded (1) 19:4;28:21 Paul (3) 6:7 once (2) 22:2,4,5 precludes (1) 12:23;22:16 pay (1) 6:10 8:23 one (10) prejudice (1) 6:5,20;8:5;9:2;11:4; penalty (1) 10:8 14:20;20:12;21:15,15; 25:7 prepare (2) 27:6 pending (1) 8:9;17:2 17:13 ones (1) prepared (1) 18:16 people (2) 12:18 only (5) 10:2;23:2 present (2) 9:20;15:5;18:16; perfect (1) 8:21;27:13 19:19 23:17;25:3 presented (1) open (1) perhaps (1) 25:13 5:15 10:15 pretrial (2) opportunity (1) period (2) 11:13;14:3 8:12;9:21 18:2 pretty (1) oppose (1) perjury (1) 9:10 17:4 25:7 previous (1) opposition (3) permit (1) 4:24 19:11 4:4;24:3;26:7 prior (1) person (2) order (6) 6:9 4:10;5:9;7:8;10:10; 21:16;22:5 PRITT (2) 16:3;24:22 personally (1) 3:12,12 17:2 original (1) probably (2) phasing (1) 7:5 20:5;24:21 originally (3) 13:12 problem (1) 3:25;4:14;15:7 Phelps (3) 19:15 otherwise (4) 3:15,16,18 problems (1) Photo (1) 7:1,17;17:14,14 Min-U-Script® ought (2) 9:7;14:21 Ours (2) 11:18;17:10 ourselves (1) 6:23 out (7) 5:25;8:23;9:7,21; 10:3;13:1;26:19 over (4) 6:8;11:10;15:13; 18:13 owned (1) 9:22 8:5 procedural (3) 12:14;14:18;26:21 Procedure (2) 18:19;23:19 proceed (2) 6:4;8:2 proceedings (1) 28:23 produce (1) 20:4 professor (1) 22:2 proper (1) 26:4 properly (1) 25:12 property (3) 9:22;21:19,21 proposal (3) 23:25;24:1;27:13 proposed (10) 11:15,17,20;12:10, 16;18:20;23:15,16; 24:14,16 proposing (2) 20:21,22 prove (1) 7:8 proven (1) 5:21 provide (3) 25:5,14;26:9 provided (1) 19:4 pushed (1) 15:8 put (10) 5:22,23;6:1,3,25; 7:18,24;12:20;26:24, 25 Q quite (1) 23:1 quote (2) 25:11,16 R raise (2) 7:7;8:8 raised (3) 5:3;6:21;11:23 rather (1) 8:11 reach (2) 9:9;25:7 read (5) 4:3,20;5:8,8;11:7 really (14) 5:20;8:6,8,25;9:4,14, BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 17;12:13;13:6,7;14:2; 25:24,24;26:12 Realty (1) 3:6 reason (4) 18:2;19:3,9;23:17 reasoning (1) 27:1 reasons (1) 6:16 rebut (1) 22:17 recall (1) 15:7 received (3) 10:12;11:11;12:21 receiving (2) 13:4;28:19 recently (1) 20:13 recess (2) 11:8,9 recognized (1) 11:25 record (2) 10:15;28:22 refer (1) 26:1 regardless (1) 8:24 relating (1) 18:22 relevant (1) 9:18 remain (1) 5:5 remaining (3) 20:9,17;21:2 repeat (2) 6:23;25:8 report (1) 3:25 reported (1) 10:20 representing (1) 20:12 request (3) 15:9;17:10;22:14 requested (3) 4:1;11:3;26:10 require (1) 18:19 required (1) 28:20 requirements (1) 24:17 reserve (3) 7:14;8:22;20:1 resolved (1) 19:16 resources (1) 5:16 respect (2) (4) need - respect Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. 11:21;16:23 respectfully (1) 23:21 respond (1) 8:17 responded (1) 15:2 response (1) 17:11 review (1) 10:16 right (19) 4:10;7:21;8:15;10:6; 11:8,10;12:6;15:2,20; 16:7;17:17;18:12,25; 19:7;22:18;23:9;24:7, 24;28:5 Rincon (3) 3:6,7;16:3 room (1) 12:20 rounds (1) 14:1 rule (2) 24:17;25:20 ruled (2) 5:14;6:5 ruling (5) 5:6;10:6,7;11:25; 26:10 rulings (1) 25:13 5:21;6:2;14:18; 17:20;27:15 sent (2) 11:17;12:7 separate (1) 6:1 sequentially (1) 26:6 serve (3) 19:25;24:2,4 set (11) 3:25;14:7;15:5,15, 18,24;16:6,24;17:10; 19:6;28:18 shall (1) 26:15 SHAPIRO (33) 3:5,10,11;4:8;8:16, 17;10:21,25;11:15; 13:8;15:2,17,21;17:19; 18:25;19:14,23,25; 21:3,12,17,23;22:2,5, 24;27:2,4,9,18,21;28:2, 6,17 short (2) 11:8;12:9 showing (1) 13:13 shown (1) 4:5 side (2) 17:25;20:11 sides (1) 23:1 S sign (1) 4:10 Same (2) significant (1) 3:20;17:25 19:8 SAP (1) simple (2) 15:21 9:10;19:13 saw (2) simpler (1) 11:4;12:13 8:2 saying (4) simplest (1) 8:20;10:3;25:5,19 3:23 schedule (10) situation (2) 11:6,15,17,20;12:7, 14:24;17:15 16;13:14;15:10;20:15; smooth (1) 21:1 19:20 scheduled (4) so-and-so (1) 16:19;17:5,22;20:14 18:5 scheduling (1) somebody (1) 19:3 22:17 Schiller (1) sometimes (1) 3:11 27:5 seal (3) sorry (2) 3:24;4:6;13:25 15:19;23:6 Section (2) sort (2) 5:5,10 7:12;12:14 seemed (1) sought (1) 5:23 25:13 seems (6) sounds (1) 5:10,15,20;9:10; 26:11 14:17;28:20 specific (2) sense (5) Min-U-Script® 25:24;27:10 spending (1) 12:24 stacked (1) 14:5 stage (1) 5:12 stand (2) 5:9,17 stands (1) 24:5 start (6) 3:23;6:8;14:12,12; 15:13;20:16 started (1) 16:9 Starting (1) 17:1 stated (2) 6:13,17 Statement (2) 10:14;12:13 statements (9) 7:10;9:13,23,25; 10:1,4;11:3,11;13:5 stay (3) 6:25;7:19,19 stick (1) 23:13 still (2) 15:1,10 stipulate (3) 13:9,10,17 stipulated (1) 24:17 stipulation (2) 8:2;9:9 stipulations (2) 7:22;14:3 stop (2) 14:12,12 straight (1) 26:13 strike (9) 4:11,21,22;5:4,12; 6:14;9:16;10:7;11:25 subject (3) 6:16;11:13;25:12 submission (2) 16:16;28:20 submit (1) 10:5 submitted (2) 7:20;15:25 submitting (2) 11:4;16:18 subpoenaed (2) 20:10,18 substance (1) 25:2 substantial (1) 7:2 substantive (2) 14:18;26:21 summary (3) 6:10;7:25;10:10 supplanted (1) 24:6 Supplement (2) 10:13;22:13 support (2) 4:3,22 supports (1) 5:18 sure (10) 8:3,13,18,25;10:21; 19:17;23:23;24:19; 27:25;28:2 surreply (2) 4:20,22 T talk (4) 12:9;14:22;27:3,5 talked (4) 11:22;12:2;13:16; 17:21 talking (3) 12:14;13:6;21:24 ten (1) 22:25 tenants (1) 8:22 tentative (6) 4:4,25;6:11,13;9:16; 10:6 testified (1) 25:22 testify (1) 18:6 testimony (3) 7:11;25:24,25 theirs (2) 10:25;11:4 Therefore (1) 8:9 thinking (1) 14:20 third-party (2) 16:19;17:21 though (2) 11:24;14:7 thought (5) 4:25;6:12;11:5; 17:21;28:3 three (3) 20:14;27:19,20 Thursday (1) 12:17 times (2) 6:22;17:5 time-saver (1) 13:8 today (7) 4:2;8:18;12:4;16:16; BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 28:7,10,15 told (4) 15:24;16:2,4,5 total (1) 22:25 Towers (1) 3:7 track (1) 26:8 trial (28) 5:2,21;6:6,9;9:21; 10:9,9;11:14,19;13:12; 14:4,6,10,10,24;15:3,6, 15,22;16:3,8,24,24; 17:2,10;24:23;26:17, 24 trials (1) 14:6 tried (1) 14:21 triggered (1) 17:20 true (1) 7:8 try (15) 5:16;12:22;13:1,1; 14:16;19:11;21:1,3; 22:24;23:2,20;26:19; 27:9,22;28:14 trying (8) 5:24;8:8;11:23; 13:17;14:17;21:18; 26:20;27:14 Tuesday (2) 11:16;12:7 two (11) 14:1;18:22;19:16; 23:1,3;27:18,23;28:3,5, 7,10 two-and-a-half-week (1) 16:22 two-week (2) 15:6;16:21 U UCLA (1) 22:3 under (2) 13:25;25:7 understood (1) 12:12 up (6) 13:13;14:14;17:3; 18:14;19:7;28:13 use (1) 5:16 uses (1) 26:4 V versus (6) (5) respectfully - versus Reporter's Transcript of Proceedings March 26, 2012 Rincon EV Realty, LLC, et al. v. CP III Rincon Towers, Inc., et al. 3:7;21:9;23:6,6; 25:9;26:2 view (5) 4:4,25;6:13;7:2;19:5 vigorously (1) 17:4 W wait (1) 4:18 waiting (1) 19:17 walk (1) 13:5 waterfall (1) 7:12 way (5) 5:9;8:2,21;9:7;13:3 Wednesday (2) 11:16;12:8 week (4) 11:16;12:8,17;16:25 weeks (8) 19:18;27:18,20,23; 28:4,5,7,10 WEISS (2) 3:20,20 weren't (2) 11:2,3 West (1) 25:9 what's (2) 14:24;18:23 whole (3) 12:22;27:14;28:14 window (2) 16:21,22 wish (2) 4:7;6:3 without (1) 10:8 witness (3) 18:3,6;21:24 witnesses (9) 16:20;17:22;18:1; 20:2,18;25:15,22; 26:24,25 work (3) 13:20;17:1;21:4 world (1) 19:19 worry (1) 13:14 worth (1) 12:24 writing (1) 27:13 written (2) 24:21;28:11 year (2) 7:10;21:14 25:9 4th (2) 25:10;26:2 1 6 1 (2) 26:6,7 11th (1) 21:10 158 (1) 26:2 1582 (1) 26:3 1593 (1) 26:3 1596 (1) 26:3 15th (1) 23:7 16th (1) 4:1 1996 (1) 25:10 1st (1) 24:5 659 (1) 25:10 670 (1) 25:10 7 7 (1) 16:24 726 (7) 5:5,10,23;6:1,4;8:7, 24 8 8th (2) 23:6,6 9 2 2008 (1) 26:3 2009 (1) 26:21 2010 (1) 9:5 2012 (1) 3:1 24-hour (1) 25:19 24th (4) 4:15,16,19;15:24 25 (1) 17:4 25th (7) 15:9,15,24;16:2,10; 17:12,18 26 (1) 3:1 27th (1) 16:25 28 (1) 20:23 28th (6) 21:1,9,11;22:23; 23:4,21 9:05 (1) 3:1 9:51 (1) 28:23 9th (3) 28:8,9,19 3 30th (4) 20:22,25;21:7;23:21 4 Y 49 (1) Min-U-Script® BEHMKE REPORTING AND VIDEO SERVICES, INC. (415) 597-5600 (6) view - 9th

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