Statement Case Management ConferenceCal. Super. - 6th Dist.December 7, 2020\OWVONU‘I-DUJNH NNNNNNNNNHHHHHHv-AHr-dy-A OOflQUi-PUJNh-‘OKOOOQQUI-bUJNP-‘O 200V37391 6 Santa Clara - Civil Fred W. Schwinn (SBN 225575) fred.schwinn@sjconsumerlaw.com Raeon R. Roulston (SBN 255622) raeon.roulston@sjconsumerlaw.cOm Matthew C. Salmonsen (SBN 302854) matthew.salmonsen@sjconsumerlaw.com CONSUMER LAW CENTER, INC. 1435 K011 Circle, Suite 104 San Jose, California 951 12-4610 Telephone Number: (408) 294-6100 Facsimile Number: (408) 294-6190 Attorneys for Plaintiff DAVID CHAI System S) Electronically Filed by Superior Court of CA, County of Santa Clara, on 3/18/2021 3:30 PM Reviewed By: System System TimothyP Johnson velggggx373916 tjohnson@bn-lawyers cmo 06421 6 BARRON & NEWBURGER, P.C. 1970 Old Tustin Avenue, Second Floor Santa Ana, California 92705 Telephone Number: (714) 832-1 170 Facsimile Number: (7 1 4) 832-1 179 Attorneys for Defendants VELOCITY INVESTMENTS, LLC, and VELOCITY PORTFOLIO GROUP, INC. SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SANTA CLARA DAVID CHAI, individually and on behalf 0f all others similarly situated, Plaintiff, V. VELOCITY INVESTMENTS, LLC, a New Jersey limited liability company; VELOCITY PORTFOLIO GROUP, INC, a Delaware corporation; and DOES 1 through 10, inclusive, Defendants. 1. INTRODUCTION Plaintiff, DAVID CHAI, and Defendants, Case N0. 20CV3739 1 6 (Unlimited Civil Case) Assigned for A11 Purposes t0 The Honorable Patricia M. Lucas JOINT CASE MANAGEMENT CONFERENCE STATEMENT Hearing Date: March 24, 2021 Hearing Time: 2:30 p.111. Hearing Dept: 3 Hearing Location: CourtCall VELOCITY INVESTMENTS, LLC, and VELOCITY PORTFOLIO GROUP, INC, hereby submit this Joint Case Management Conference Statement for the March 24, 2021, Case Management Conference. /// JOINT CASE MANAGEMENT CONFERENCE STATEMENT _ 1 _ Case N0. 20CV373916 stem \DOOflQUI-bmwb‘ NNNNNNNNNr-At-Ar-dr-dy-ar-Ar-‘HHH OONQU‘I-PWNF-‘OQOONO‘xUl-hWNh-‘O 2. ADDITIONAL PARTIES No parties remain t0 be served. Plaintiff and Defendants d0 not anticipate joining additional parties at this time. The Parties reserve the right t0 seek leave 0f the Court t0 join additional parties should either discover additional facts 0r claims necessitating such joinder. 3. SERVICE LISTS Fred W. Schwinn (SBN 225575) fred.schwinn@sjconsumerlaw.com Raeon R. Roulston (SBN 255622) raeon.r0ulston@sjconsumerlaw.c0m Matthew C. Salmonsen (SBN 302854) matthew.sa1monsen@sj c0nsumer1aw.com CONSUMER LAW CENTER, INC. Timothy P. JohnsON (SBN 66333) tjohnson@bn-1awyers.c0m BARRON & NEWBURGER, P.C. 1970 Old Tustin Avenue, Second Floor Santa Ana, CA 92705 Telephone Number: (714) 832-1 170 Facsimile Number: (714) 832-1 179 1435 K011 Circle, Suite 104 San Jose, California 95 1 12-4610 Telephone: (408) 294-6100 Facsimile: (408) 294-6190 Attorneys for Defendants Attorneys for Plaintiff 4. STATUS 0F DISCOVERY a. Plaintiff’s Statement Pursuant t0 the Order Deeming Case Complex and Staying Discovegy, n0 discovery has been served. Plaintiff is hopeful that Defendants will informally provide class size, class list, and net worth information, and will seek an appropriate stipulation regarding these issues. Once discovery is open, Plaintiff anticipates serving interrogatories, requests for production, requests for admission, and will likely seek to depose Defendants’ designee(s). Plaintiff further anticipates conducting third-pafiy discovery and depositions. b. Defendants’ Statement Defendants will informally provide class size and net worth information. Current net worth financial statements will not be available until 0n or about July 1, 2021 when Defendants’ annual audit -2- JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case N0. 20CV373916 \DOOQO‘xU‘I-QUJNy-a NNNNNNNNNr-AHHHHHHHHH OONQUl-bUJNP-‘OKDOOQQU‘I-PWNP-‘O is completed. Defendants suggest that the case management conference be continued t0 date following July 1, 2021 since it is believed that the audit Will disclose that Defendants have a negative net worth which Will affect the Viability 0f any pr0posed class. If it is determined that the class certification process should begin prior t0 July 1, 2021, Defendants agree With the proposed sequencing provided in the Guidelines for Motions Relating t0 Class Certification, Section A t0 initially d0 only class certification discovery and stay merits discovery until after class certification. Defendants also agree to the suggested “double-staging” procedure in the Guidelines for Motions Relating t0 Class Certification, Section A. 5. ARBITRATION None 0f the parties have sought t0 invoke arbitration. 6. RELATED CASES None at this time. 7. FACTUAL AND LEGAL ISSUES Plaintiff contends that the common questions to the class include: a. Whether Defendants are each a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1); and b. Whether Defendants sent, 0r caused to be sent, Plaintiff and the Class initial written communications in the form 0f Exhibit “1,” which failed t0 contain the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1). This case involves the following factual and legal issues: a. Whether Plaintiff is a “debtor” as that term is defined by California Civil Code § 1788.2(h), as incorporated by California Civil Code § 1788.50(C); b. Whether Defendants are each a “debt collector” as that term is defined by California _ 3 - JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case N0. 20CV373916 \OOOQC‘in-bUJNV-J NNNNNNNNNHHHHHHHHp-AH OOQONm-bUJNHOGOOVmUi-PWNHO j-- Civil Code § 1788.2(c), as incorporated by California Civil Code § 1788.50(c); Whether Defendants are each a “debt buyer” as that term is defined by California Civil Code § 1788.50(a)(1); Whether the financial obligation alleged t0 be owed by Plaintiff is a “consumer debt” as that term is defined by California Civil Code § 1788.2(f), as incorporated by California Civil Code § 1788.50(c); Whether the financial obligation alleged t0 be owed by Plaintiff is a “charged-off consumer debt” as that term is defined by Civil Code § 1788.50(a)(2); Whether Defendants’ first written communication t0 Plaintiff failed to provide the notice required by the CFDBPA, California Civil Code § 1788.52(d)(1); Whether the communication in the form 0f Exhibit 1 to the Complaint was a first written communication by Defendants With the debtor as provided in California Civil Code, section 1788.52(d)(1); Whether any statutory damages Should be awarded to Plaintiff and, if so, the amount 0f any statutory damages that should be awarded t0 Plaintiff; Whether any statutory damages should be awarded t0 a class and, if so, the amount 0f any statutory damages that Should be awarded t0 a class; and Whether injunctive relief is appropriate and the scope of any injunctive relief. 8. ALTERNATIVE DISPUTE RESOLUTION Plaintiff will agree t0 Mediation and to participate in a mandatory settlement conference once class discovery has been completed. Defendants Will agree t0 mediation and/or participate in a mandatory settlement conference once it has obtained its current financial statements 0n 0r about July 1, 2021. -4- JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case N0. 20CV373916 [\J \DOOQQU‘I-hm 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9. DISCOVERY TIMELINE a. Plaintiff’s Statement Although Plaintiff is opposed to bifurcation 0f discovery, Plaintiff believes that it may be useful to complete discovery related t0 class certification (e.g., class size, class list, net worth) prior t0 discovery 0n the merits 0f Plaintiffs claim. Plaintiff anticipates that the settlement posture 0f the case will be very different depending 0n Whether the Court certifies a class. AS such, promptly addressing certification by completing the related discovery Will greatly assist in making ADR meaningful. Plaintiff is hopeful that Defendants Will informally provide class size, class list, and net worth information, and Will seek an appropriate stipulation regarding these issues. b. Defendants’ Statement Defendants agree With the proposed sequencing provided in the Guidelines for Motions Relating t0 Class Certification, Section A t0 initially d0 only class certification discovery and stay merits discovery until after class certification. Defendants also agree to the suggested “double-staging” procedure in the Guidelines for Motions Relating t0 Class Certification, Section A. Defendants Will informally provide class size and net worth information. Defendants will not provide a class list until required t0 d0 so in the event that a class is certified. Current net worth financial statements Will not be available until on 0r about July 1, 2021 when Defendants’ annual audit is completed. 10. OTHER MATTERS a. Issues Related t0 Recusal 0r Disqualification None at this time. b. Preservation 0f Evidence The parties have been given the appropriate instruction with respect to the preservation of evidence. _ 5 _ JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case N0. 20CV373916 \OOOQQU‘I-hUJNy-x NNNNNNNNNp-AHHHr-Ah-Ar-AI-AHH OONQUI-b-UJNP-‘OOOOVONUl-RUJNP‘O The parties Will Bates-number all documents produced in discovery. Plaintiff will designate his documents with a four-digit number beginning With “CHAIOOOI .” Defendants Will designate their documents with a four-digit number beginning with “VELOOOI” c. Protection 0f Evidence and Confidentiality The parties will use the Model Confidentiality Order published by the Complex Division of the Santa Clara County Superior Court. d. Publicity Issues None at this time. CONSUMER LAW CENTER, INC. Dated: March 18 2021 By: /s/ Matthew C. Salmonsen D Fred W. Schwinn (SBN 225575) D Raeon R. Roulston (SBN 255622) Matthew C. Salmonsen (SBN 302854) Attorneys for Plaintiff DAVID CHAI BARRON ‘& NEWBURG ' , P.C. ' A AWJohnsoMBNRmk Attorneys for Defendants VELOCITY INVESTMENTS, LLC and VELOCITY PORTFOLIO GROUP, INC. Dated: March E}; . 2021 _ 6 _ JOINT CASE MANAGEMENT CONFERENCE STATEMENT Case N0. 20CV373916