Rey et al v. Rey et al

Filing 178

ORDER GRANTING PLAINTIFFS 176 MOTION REGARDING SALE OF REAL PROPERTIES, ETC signed by Judge Benjamin H. Settle. (GMR- cc: WAWD Finance Dept.)

1
2

Honorable Benjamin H. Settle

3
4
5
6
7

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT TACOMA

8
9

JEAN PIERRE REY, an individual, and ILZE
SILARASA, an individual,

10

NO.: 3:14-cv-05093 BHS
Plaintiff,

11
v.
12
13
14
15
16

MICHEL REY and RENEE REY, husband and
wife; US INVESTMENT GROUP
CORPORATION, a Washington corporation; US
GROWING INVESTMENTS INC., a
Washington corporation; VISITRADE INC., a
Washington corporation; BUILDERS SURPLUS
NORTHWEST INC., a Washington corporation;
and NEVAWA, INC., a Nevada corporation,

19
20
21

THIS MATTER having come on for determination upon the Motion Regarding Sale of
Real Properties submitted by Plaintiffs Jean Pierre Rey and Ilze Rey and Defendant Visitrade, Inc.,
and the Court having reviewed the records and files herein and finding good cause therefore, NOW,
THEREFORE:
ORDER

22
23
24
25

Clerk’s Action Required

Defendants.

17
18

ORDER GRANTING
PLAINTIFFS’ MOTION
REGARDING SALE OF REAL
PROPERTIES, ETC.

IT IS HEREBY ORDERED that the distribution of funds from the sale of real properties
referred to in the Court’s April 2, 2018 Order shall be as follows:
ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 1

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1
2

The Firehouse Property
1.

The Firehouse Property. The “Firehouse” is the commercial property located at

3

495 Morrill Ave, Reno, Nevada 89512, Tax Parcel No. 008-342-07 (the “Firehouse”), the legal

4

description of which is:

PARCEL NO. 1:

5

Lot 105 of DOWNTOWN SERVICE CENTER, according to the map
thereof, filed in the Office of the County Recorder of Washoe County,
Nevada, on April 19, 1973, as File No. 283250, of Official Records, as
Tract Map No. 1379.

6
7
8

PARCEL NO. 2:

9

BEGINNING at the Northwest corner of Lot 105 of the DOWNTOWN
SERVICE CENTER SUBDIVISION filed with the Washoe County
Recorder on April 19, 1973;
THENCE Southerly 81.82 feet to the Southwest corner of said Lot 105;
THENCE Westerly 10 feet to the centerline of the alley;
THENCE Northerly along the centerline of said alley to the point of
intersection with the South right-of-way line of East Fifth Street;
THENCE Easterly to the Northwest corner of said Lot 105, to the point of
beginning.

10
11
12
13
14

APN: 008-342-07

15
2.
16

Closing of Firehouse Sale.

Ortoli Rosenstadt, LLP (“the Ortoli firm”) –

represented by Maupin, Cox & LeGoy (“MCL”) and MDK Law (“MDK”) – as well as Visitrade

17

Inc. (“Visitrade”) – represented by the Gunderson Law Firm (“Gunderson”) and the Hunsinger

18

Law Firm (“Hunsinger”) – each seek to act on behalf of Visitrade with respect to the sale of the

19

Firehouse to Javelin Properties, LLC for One Million Eight Hundred Fifty Thousand Dollars

20

($1,850,000.00). Solely for the purpose of facilitating the sale of the Firehouse, Visitrade and the
Ortoli Firm shall both be entitled to speak for and act on behalf of Visitrade with respect to only

21
the Firehouse sale as follows:
22
23
24
25

ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 2

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1

i.

Only members of the Ortoli firm, MCL, and MDK shall communicate with

2

the third parties 1 on behalf of the Ortoli Firm, and only members of Gunderson and Hunsinger

3

shall communicate with the third parties on behalf of Visitrade.
ii.

4
5

All written communications (documentary or electronic) from either party

to any third party shall be cc’d to the other party, and any written communication received by one
party shall be promptly forwarded to the other party if the latter was not cc’d.

6
7

iii.

Each party shall be promptly notified of any non-written communications

to or from third parties by the other party.

8

iv.

All documents that are required to be signed by Visitrade with respect to

9

the sale of the Firehouse shall be signed by both Gunderson or Hunsinger on behalf of Visitrade

10

and either Richard Ortoli, Marc Gottlieb, MCL, or MDK on behalf of the Ortoli firm with the

11

exception of (v) and (vi).
v.

12

With the exception of the Owner’s/Borrower’s Affidavit and the Indemnity

Agreement pertaining to the Owner’s/Borrower’s Affidavit, any document that is required to be

13

signed by Visitrade or produced by Visitrade regarding the status or condition or operations of

14

the Firehouse, particularly the Real Property Disclosure Form, shall be signed or produced by the

15

Ortoli firm only, which shall provide a copy of each such document to the Gunderson firm at least

16

48 hours before sending it to the recipients.
vi.

Jean Pierre Rey shall sign the Grant, Bargain and Sale Deed, the

17
Owner’s/Borrower’s Affidavit, the Indemnity Agreement pertaining to Owner’s/Borrower’s
18
19

Affidavit, and any other closing documents reasonably required by First American Title Insurance
Company.

20
21
22
23
24
25

1

Third parties” referenced herein include the parties’ real estate agents and other representatives, the escrow agents
and title insurers, and any and all other parties involved in the sales.

ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 3

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1

3.

Credit For Sale of Property. Javelin Properties, LLC shall be entitled to a credit

2

of Twenty Seven Thousand Five Hundred Dollars ($27,500.00) in the escrow to close the

3

Firehouse Sale.

4

4.

5

Removal of Encumbrance on Firehouse.

The Ortoli Firm shall cause all

reasonably necessary documents to be deposited with escrow and to be recorded upon the close
of escrow for the Firehouse that will remove any encumbrance or cloud upon title as a result of

6
7

the recordation of the Notice of Court Order Approving Settlement Involving Sale of Properties
that was recorded with the Washoe County Recorder’s office on March 29, 2019 as document

8

number 4898295.

9

5.

10
11

Deposit of Funds into Court Registry. Upon closing of the pending Firehouse sale,

all of the proceeds, minus the amount for standard closing costs, including but not limited to the
credits, prorations and apportionments of costs, expenses, and commissions contained in the
Purchase and Sale Agreement, shall be immediately remitted by First American Title Insurance

12
13

Company to the Clerk of the United States District Court of Western Washington at Tacoma (“the
District Court”):

14

United States Courthouse
1717 Pacific Avenue
Tacoma, WA 98402

15
16
6.

Disbursement of Funds. Once deposited in the District Court’s registry, there shall

17
be no disbursement of the funds without further order from the District Court, EXCEPT that the
18
19
20
21
22
23
24
25

following disbursements shall be made by the District Court Clerk without delay, as follows:
i.

One Hundred and Twenty-Five Thousand Dollars ($125,000.00) to Smyth

& Mason, PLLC, 701 Fifth Avenue, Suite 7100, Seattle, WA 98104.
ii.

Four Hundred Thousand Dollars ($400,000.00) to Renee Rey, c/o Morgan

Hill PC, 2102 C Carriage Drive SW, Olympia, WA 98502.
iii.

Fourteen Thousand Three Hundred Eight Six Dollars and Seventeen Cents

($14,386.17), together with statutory interest from September 11, 2014 through the date of
ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 4

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1

payment, to Michel Rey, c/o Vandeberg Johnson & Gandara, LLP, PO Box 1315, 1201 Pacific

2

Avenue, Suite 1900, Tacoma, WA 98401.

3

Promptly following said payment to Michel Rey, the judgment entered in favor of Michel

4

Rey against Jean Pierre Rey in this action on or about September 10, 2014 shall be satisfied in full

5

by the filing of a Full Satisfaction of Judgment.

6

Promptly following receipt of said payment to Michel Ray, Vandeberg Johnson &

7

Gandara, LLP shall deliver to Jean Pierre Rey those six watches currently in its possession that are

8

depicted in the June 5, 2019 emails sent from Lucy Clifthorne to Jean Pierre Rey, c/o his attorney,

9

Michael Hunsinger, The Hunsinger Law Firm, 6100 219th St. SW, Suite 480, Mountlake Terrace,

10

WA 98043.

11
12

All remaining funds shall remain in the District Court’s registry until a subsequent order
is entered by the District Court. 2

13

The Residential Property

14
15
16

1.

The Residential Property. The Residential Property is located at 5920 Lausanne

Drive, Reno, Nevada 89511, Tax Parcel No. 148-081-10 (the “Residential Property”), the legal
description of which is:

17

All that certain real property situate in the County of
Washoe, State of Nevada, described as follows:

18

Lot 221 of MONTREUX – UNIT 2, according to the map
thereof, filed in the office of the County Recorder of Washoe
County, State of Nevada, on April 9, 1997, as File No.
2087150, and by Certificate of Amendment recorded

19
20
21
22
23
24
25

2

The proposed stipulated order the parties submitted including the following language at the end of the
sentence: “on notice to counsel for all parties to the lawsuit in Washington.” The Court has removed this
language because it is at best redundant and confusing. Any party may file objection to the Court’s
modification of the language by June 21, 2019, and if a party so objects, the stipulation shall be null and
void. The Court has made the same modification to the text on page 7 of the stipulation, and the same
opportunity to object applies.

ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 5

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1

January 20, 1998 in Book 5105, Page 447 as Document No.
2171914 Official Records, Tract Map No. 3365.

2
APN: 148-081-10
3
2.

4
5

Closing of Residential Property Sale. The Ortoli Firm – represented by MCL and

MDK – as well as Visitrade – represented by Gunderson and Hunsinger – each seek to act on
behalf of Visitrade with respect to the sale of the Residential Property to M & M Ranch, LLP for

6

Two Million Twenty Five Thousand Dollars ($2,025,000.00).

Solely for the purpose of

7

facilitating the sale of the Residential Property, Visitrade and the Ortoli Firm shall both be entitled

8

to speak for and act on behalf of Visitrade with respect to only the Residential Property sale as

9

follows:
i.

10

Only members of the Ortoli firm, MCL, and MDK shall communicate with

the third parties 3 on behalf of the Ortoli Firm, and only members of Gunderson and Hunsinger
11
shall communicate with the third parties on behalf of Visitrade.
12

ii.

All written communications (documentary or electronic) from either party

13

to any third party shall be cc’d to the other party, and any written communication received by one

14

party shall be promptly forwarded to the other party if the latter was not cc’d.
iii.

15
16

Each party shall be promptly notified of any non-written communications

to or from third parties by the other party.
iv.

All documents that are required to be signed by Visitrade with respect to

17
the sale of the Residential Property shall be signed by both Gunderson or Hunsinger on behalf of
18
19

Visitrade and either Richard Ortoli, Marc Gottlieb, MCL, or MDK on behalf of the Ortoli firm
with the exception of (v) and (vi).
v.

20
21

Any document that is required to be signed by Visitrade or produced by

Visitrade regarding the status or condition or operations of the Residential Property shall be

22
23
24
25

3

Third parties” referenced herein include the parties’ real estate agents and other representatives, the escrow agents
and title insurers, and any and all other parties involved in the sales.

ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 6

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1
2

signed or produced by the Ortoli firm only, which shall provide a copy of each such document to
the Gunderson firm at least 48 hours before sending it to the recipients.
vi.

3
4
5

Insurance Company and any other closing documents reasonably required by Ticor Title
Insurance Company.
3.

6
7

Jean Pierre Rey shall sign the conveyance deed prepared by Ticor Title

Removal of Encumbrance on the Residential Property. The Ortoli Firm shall cause

all reasonably necessary documents to be deposited with escrow and to be recorded upon the close
of escrow for the Residential Property that will remove any encumbrance or cloud upon title as a

8

result of the recordation of the Notice of Court Order Approving Settlement Involving Sale of

9

Properties that was recorded with the Washoe County Recorder’s office on March 29, 2019 as

10
11

document number 4898295.
4.

Deposit of Funds into Court Registry. Upon closing of the pending Residential

Property sale, all of the proceeds, minus the amount for standard closing costs, minus the amount
12

for standard closing costs, including but not limited to the credits, prorations and apportionments

13

of costs, expenses, and commissions contained in the Purchase and Sale Agreement, shall be

14

immediately remitted by First American Title Insurance Company to the Clerk of the United

15

States District Court of Western Washington at Tacoma (“the District Court”):

16

United States Courthouse
1717 Pacific Avenue
Tacoma, WA 98402

17
18
5.

Disbursement of Funds. Once deposited in the District Court’s registry, there shall

19
be no disbursement of the funds without further order from the District Court, EXCEPT that the
20
21
22
23
24
25

following disbursements shall be made by the District Court Clerk without delay, as follows:
i.

Two Hundred Thousand Dollars ($200,000.00) to Renee Rey, c/o Morgan

Hill PC, 2102 C Carriage Drive SW, Olympia, WA 98502.
All remaining funds shall remain in the District Court’s registry until a subsequent order
is entered by the District Court.
ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 7

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1

Dispute Resolution

2

Any disputes arising from this Order by and between The Ortoli Firm and Visitrade,

3

including but not limited to the payment of attorneys’ fees to, and reimbursement of monies

4

advanced by, the Ortoli firm will be submitted to either George Finkle, Larry Jordan, or Paris

5

Kallas at Judicial Dispute Resolution (JDR) located in Seattle, for resolution by arbitration. Any
other disputes between any of the parties hereto with respect to this case, shall be resolved by this

6
7

Court, pursuant to ¶25 of the Settlement Term Sheet and the Court’s April 2, 2018 Stipulated
Order of Dismissal.

8
9

IT IS SO ORDERED this 13th day of June, 2019.

A

10
11

BENJAMIN H. SETTLE
United States District Judge

12
13
14
15
16
17
18
19
20

Presented By:
THE HUNSINGER LAW FIRM

_________________________________
MICHAEL D. HUNSINGER, WSBA # 7662
The Hunsinger Law Firm
6100 219th Street SW, Suite 480
Mountlake Terrace, WA 98043
Telephone: [phone]
E-mail: [e-mail]
Attorney for Jean Pierre Rey and Ilze Rey

21
22
23
24
25

Approved for Entry By:
MDK Law
ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 8

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]

1
2
3
4
5

__________________________________
MARK D. KIMBALL, WSBA # 13146
DENNIS R. KASIMOV, WSBA # 51303
777 108th Ave NE, Suite 2000
Bellevue, WA 98004
Telephone: [phone]
E-mail: [e-mail]
E-mail: [e-mail]
Attorneys for Ortoli Rosenstadt, LLP

6
7

VANDEBERG JOHNSON & GANDARA

8
9
10
11
12

_________________________________
LUCY RUSSELL CLIFTHORNE, WSBA #27287
PO Box 1315
1201 Pacific Avenue, Suite 1900
Tacoma, WA 98401
E-mail: [e-mail]
Email: [e-mail]
Attorneys for Defendants Michel Rey, US Investment Group Corporation, US Growing
Investments Inc., Visitrade Inc., Builders Surplus Northwest Inc., Nevawa, Inc.

13
14
15

MORGAN HILL PC

16
17
18
19
20

_________________________________
ROBERT M. HILL, WSBA # 21857
MEGAN RUE, WSBA #42425
2102 C Carriage Drive SW
Olympia, WA 98502
[e-mail]
[e-mail]
Attorneys for Defendant Renee Rey

21
22
23
24
25

ORDER GRANTING PLAINTIFFS’ MOTION REGARDING
SALE OF REAL PROPERTIES, ETC.
Rey, et un. v. Rey, et al. - 9

MDK LAW

777 108th Avenue Northeast, Suite 2000
Bellevue, Washington 98004
[phone]