Veros Credit, LLC vs. Zachary & Spencer Bros, Inc.Motion for Attorney FeesCal. Super. - 4th Dist.January 25, 2016F a x (9 49 ) 7 5 6 - 9 0 6 0 M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll N o r t h , Ir vi ne , C A 9 2 6 1 4 Te l (9 49 ) 7 5 6 - 8 0 5 0 «= = B L N o N o 0 ~ ~ O N a 26 27 28 Ali Parvaneh, SBN 218320 aparvaneh(@madisonharbor.com James S. Sifers, SBN 259105 jsifers@madisonharbor.com Erin N. Collins, SBN 291726 ecollins@madisonharbor.com | MADISON HARBOR, ALC | 17702 Mitchell North | Irvine, California 92614 Telephone: 949-756-9050 Facsimile: 949-756-9060 Attorneys for Plaintiff Veros Credit, LLC SUPERIOR COURT OF STATE OF CALIFORNIA FOR THE COUNTY OF ORANGE ~ CENTRAL JUSTICE CENTER VEROS CREDIT, LLC, a Nevada limited liability company; Plaintiffs, v. ZACHARY & SPENCERBROS., INC, a Virginia corporation doing business as KAR SELECT; NABIL MOUAK,an individual; and DOES 1 through 10, inclusive, Defendants. Case No.: 30-2016-00831731-CL-BC-CIC ASSIGNED FOR ALL PURPOSES to: Hon. Judge Corey S. Cramin Dept. C3 PLAINTIFF VEROS CREDIT, LLC’S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES TO BE PAID BY DEFENDANT TO PLAINTIFF: REQUEST FOR ATTORNEYS’ FEES IN THE AMOUNT OF $15,374.90; MEMORANDUM OF POINTS AND AUTHORITIES: DECLARATION OF JAMES S. SIFERS Hearing: Date: May 25, 2017 Time: 9:30 a.m. Dept: C3 Actionfiled: January 22. 2016 Judgment entered: April 10,2017 " PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES -1- M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, Ir vi ne , C A 9 2 6 1 4 Te l (9 49 ) 7 5 6 - 9 0 5 0 «= F a x (9 43 ) 7 5 6 - 9 0 6 0 o D e o ~ 1 h n l W N e e 20 TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD: NOTICE IS HEREBY GIVEN that on May 25, 2017, at 9:30 a.m., or as soon thereafter as this matter may be heard, in Department C3 of this Court, located at 700 Civic Center Dr. West, Santa Ana, California 92614, Plaintiff Veros Credit, LLC (“Plaintiff”) will move this Court for a determination that it is the prevailing party in this action, per Cal. Code Civ. Proc. § 1032(a)(4), and for an award of attorneys’ fees and costs to Plaintiff, in the total amount of $15,374.90 as against Defendant Zachary & Spencer Bros., Inc. dba Kar Select (“Defendant Kar Select”) and Defendant Nabil Mouak (“Defendant Mouak™) (collectively “Defendants™), because the applicable statute provides for an award of attorneys’ fees and costs to the prevailing party in this instant action. This Motion for Determination of Prevailing Party and Award of Attorney’s Fees (“Motion”) is made pursuant to Cal. Civ. Code § 1717, since: (1) the Court entered judgment in favor of Plaintiff, and accordingly Plaintiff should be designated the prevailing party; (2) as the prevailing party, Plaintiff is entitled to recoverits attorneys’ fees and costs incurredin this action pursuant to and Cal. Civ. Code § 3070; and (3) the attorneys’ fees incurred in this action are reasonable and were necessarily incurred. This Motion is based upon this Notice of Motion; the Memorandum of Points and Authorities filed and served herewith; the Declaration of James S. Sifers and any exhibits attached thereto; all records on file with the Court; and any other evidence, oral or documentary, as may be presented to the Court at the time of the hearing on this Motion. Respectfully submitted on this 26" day of April, 2017, by: MADISON HARBOR, ALC a eT James S. Sifers, Attorney for Plaintiff PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES 2. M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he lt No rt h, Ir vi ne , C A 9 2 6 1 4 Te l (9 49 ) 7 5 6 - 9 0 6 0 «e + F a x (9 49 ) 7 5 6 - 9 0 6 0 o t S v a t e e d e e d e e e b e d e e w h A s W N 16 S L 0 N n B W M N MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION Plaintiff brought this action against Defendants on or about January 22, 2016, alleging one cause of action for Breach of Contract. The matter proceeded to trial on or about April 10, 2017, where the Court found in favor of Plaintiff and awarded general damages in the amount of $11,574.23 plusdaily interest accruing from the date of the judgment through the payment ofany judgmentat a rate of21.00% APR. In light of this Court’s ruling in Plaintiff’s favor, Plaintiff, as prevailing party,is entitled to recoverits attorneys’ fees after successfully pursuing this instant action per Cal. Civ. Code § 1717. IL FACTS OF THE ACTION On or about October 28, 2014, Plaintiff and Defendant Kar Select entered into a standard “Master Dealer Agreement — Independent Dealer” (“Dealer Agreement”). The Dealer Agreement governed Plaintiff and Defendant’s relationship. On or about May 28, 20135, Calvin Horton, who is not a party to this action, purchased a used 2013 Chrysler 200 VIN 1C3CCBABSDN713712 (“Vehicle”) from Defendant Kar Select. Shortly thereafter, and pursuant to the Dealer Agreement, Defendant Kar Select assigned its rights under the purchase agreement to Plaintiff, to which Plaintiff accepted on a one payment recourse basis. Payment was made by Plaintiff to Defendant Kar Select, per the Dealer Agreement for Mr. Horton's purchase agreement. A one payment recourse basis meant that should Mr. Horton fail to timely make the first monthly payment due to be made by them per the purchase agreement, upon Plaintiffs demand, Defendant would be obligated to repurchase Mr. Horton's purchase agreement from Plaintiff. Mr. Horton failed to timely make the first payment due to be made to Plaintiff per his purchase agreement thus triggering the recourse provision and Defendant Kar Select’s obligation to repurchaseag ggerng p g p Mr. Horton’s purchase agreement from Plaintiff. Mr. Hortons’s failure to timely make the first monthly payment due to be made by him per the purchase agreement was a default of his purchase agreement. Pursuantto the Dealer Agreement, upon Mr. Horton’s default of his obligations under the purchase agreement, Defendant Kar Select was obligated to repurchase the purchase agreement from Plaintiff. PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES -3- M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, tr vi ne , C A 9 2 6 1 4 Te l (9 48 9) 7 5 6 - 9 0 5 0 se « F a x (9 49 ) 7 5 6 - 9 0 6 0 On or about October 7, 20135, pursuant to the Dealer Agreement, and in light of Mr. Horton’s failure to make their monthly payments due to Plaintiff per his purchase agreement, Plaintiff demanded that Defendant Kar Select repurchase Mr. Horton's purchase agreement. Despite Plaintiff's demand that Defendant Kar Select repurchase Mr. Horton's purchase agreement for the Vehicle, Defendant Kar Select refused to do so. As such, on or about December 3, 2015, Plaintiff again demanded that Defendant Kar Select repurchase Mr. Horton's purchase agreement. That demand indicated that if payment was not forthcoming, this action would be filed. No response was received to Plaintiff's October 7, 20135, or December 3, 2015, demands. IIL. FACTS RELEVANT TO THIS MOTION The Court entered judgment in Plaintiff’s favor on or about April 10, 2017, awarding Plaintiff general damages in the amount of $11,574.23 plus interest, as well as attorneys’ fees and costs. (Declaration ofJames S. Sifers § 3; Exhibit “1.”) In light ofjudgment entered in favor of Plaintiff, this action has concluded and per the applicable statutes, Plaintiff may recoverits attorneys’ fees and costs in successfully pursuing this action. IV. LEGAL ARGUMENTS A. PER CAL. CIV. CODE § 1032(a)(4) PLAINTIFF MAY BE PROPERLY DESIGNATED THE PREVAILING PARTY IN THIS ACTION Per Cal. Civ. Code § 1032(a)(4), Plaintiff may be properly designated the “prevailing party” because Plaintiff received a net monetary recovery in the instant action. Cal. Civ. Code § 1032(a)(4) states that ““[p]revailing party’ includes the party with a net monetary recovery...” (Cal. Civ. Code § 1 1032(a)(4).) This Court entered judgmentin favor ofPlaintiff, and against Defendants, on April 10, 2017, and awarded Plaintiff, amongst other things, general damages in the amount of $11,574.23 with interest, as well as attorneys’ fees and costs. (Declaration of James S. Sifers § 3; Exhibit <1.) Accordingly, it is unequivocal that Plaintiffreceived a net monetary recovery in the instant action, and as such, per Cal. Civ. Code § 1032(a)(4), Plaintiff may be properly designated the “prevailing party” in the instant action. (Cal. Civ. Code § 1032(a)(4).) PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES 4 M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, ir vi ne , C A 9 2 6 1 4 Te i (9 48 9) 7 5 6 - 9 0 5 0 we F a x (9 49 ) 7 5 6 - 2 0 6 0 H W O D c o 1 O N W n i. Plaintiff is Entitled to Attorneys’ Fees per Cal. Civ. Code § 1717 Plaintiff is entitled to attorneys’ fees as to Defendants per Cal. Civ. Code § 1717 because Plaintiff can be properly designated the prevailing party in this action as discussed above. Cal. Civ. Code § 1717(a) and (b)(1), states: (a) In any action on a contract, where the contract specifically provides that attorney's fees and costs, which are incurred to enforce that contract, shall be awarded either to one of the parties or to the prevailing party, then the party who is determined to be the party prevailing on the contract, whether he or she is the party specified in the contract or not, shall be entitled to reasonable attorney's fees in addition to other costs. Where a contract provides for attorney's fees,as set forth above, that provision shall be construed as applying to the entire contract, unless each party was represented by counsel in the negotiation and execution of the contract, and the fact of that representation is specified in the contract Reasonable attorney's fees shall be fixed by the court, and shall be an element ofthe costs of suit. Attorney's fees provided for by this section shall not be subject to waiver by the parties to any contract which is entered into after the effective date of this section. Any provision in any such contract which provides for a waiver of attorney's feesis void. (b) (1) The court, upon notice and motion by a party, shall determine who is the party prevailing on the contract for purposes of this section, whether or not the suit proceeds to final judgment. Except as provided in paragraph (2), the party prevailing on the contract shall be the party who recovered a greater relief in the action on the contract. The court may also determine thatthere is no party prevailing on the contract for purposes ofthis section. (Cal. Civ. Code § 1717.) For the purposes of an action on a contract, the Court in Mackinder v. Osca Dev. Co., (Cal. App. 4th Dist. 1984) 151 Cal. App. 3d 728,held that a “provision for attorney fees in a declaration of restrictions constituting a binding equitable servitude is a ‘contract’ within the meaning of Civil Code section 1717.7] (Id at 738; see also Harbor View Hills Cmty. Ass'n v. Torley, (Cal. App. 4th Dist. 1992) 5 Cal. App. 4th 343, 349.) The Horton Purchase Agreement, entered into by and between Horton and Defendant Kar Select, which was subsequently transferred to Plaintiff, provides that “attorneys” fees and court costs are also allowed expenses.” (Declaration ofJames S. Sifers § 6, Exhibit “3.”) By virtue of the Court entering judgment in Plaintiff’s favor in the instant action, Plaintiff is entitled to attorneys’ fees under Cal. Civ. Code § 1717 and per the Horton Purchase Agreement because Plaintiffis the prevailing party in the instant action. PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES .5. M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, Ir vi ne , C A 9 2 6 1 4 Te l (9 49 ) 75 6- 90 50 er F a x {9 49 ) 7 5 6 - 9 0 6 0 S t S S N O 0 O y h h B s W w B. DEFENDANT CONTRACTUALLY AGREED TO PAY PLAINTIFF'S ATTORNEYS’ FEES TO PLAINTIFF IN THE EVENT PLAINTIFF INCURRED ATTORNEYS’ FEES TO ENFORCE THE MASTER DEALER AGREEMENT Paragraph 7 of the Dealer Agreement entered into between Plaintiff and Defendant Kar Select on or about October 28, 2014, states: “[i]n the event costs and/or attorneys’ fees are incurred by Veros to enforce this Agreement, regardless of whether such costs and/or attorney’s fees are incurred by Verosto enforce this Agreement, regardless of whether such costs and/or attorneys’ fees are incurred, before, during, or after commencementoflitigation, Dealer shall reimburse Veros for reasonable attorney’s fees and all other costs and expenses incurred.” (Exhibit “4.”) Defendant Mouak personally guaranteed Defendant Kar Select’s performance of the Dealer Agreement. Notably, the language ofthe attorneys’ fees section ofthe Dealer Agreement is mandatory, and not permissive. (Exhibit “4.”") The language of the Dealer Agreementstates that Plaintiff shall be compensated for costs and attorneys’ fees, without regard to any determination of who the prevailing party is. (Exhibit “4.”) As such, Defendants cannot reasonably claim they were not on notice that Plaintiff would demand its attorneys’ fees for having to enforce its rights under the Dealer Agreement in court. C. PLAINTIFF'S REQUESTED ATTORNEYS’ FEES WERE REASONABLY AND ACTUALLY INCURRED AND ARE SUPPORTED BY THE LODESTAR METHOD OF CALCULATION Prior to this Motion, Plaintiff incurred $13,399.90 in attorneys’ fees pursuing against Defendant Kar Select’s wrongful conduct by refusing to repurchase the Horton Purchase Agreement for the Vehicle. The amount ofattorneys’ fees is within the sound discretion ofthe trial court. (PLCM Group, Inc. v. Drexler (2000) 22 Cal.4th 1084, 1095-1096.) In determining the reasonableness ofattorneys’ “el fees, the major factors a court will consider are, ““the nature ofthe litigation,its difficulty, the amount involved, the skill required and the skill employed inhandling the litigation, the attention given, the success of the attorney’s efforts, his learning, his age, and his experience in the particular kind ofwork demanded [citation]; the intricacies and importance of litigation, the labor and the necessity for skilled PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES -6- M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, Ir vi ne , C A 8 2 6 1 4 Te l (9 49 ) 75 6- 90 50 se s F a x (9 49 ) 7 5 6 - 8 0 6 0 [8 ] SO S OC co 3 on ah A 11 13 14 15 16 17 19 20 21 22 23 24 26 27 28 legal training and ability in trying the cause, and the time consumed.’(Clejan v. Reisman, (1970) 5 Cal. App. 3d 224, 241.) Thefee setting inquiry in California ordinarily begins with the ‘lodestar,’ i.e., the number of hours reasonably expended multiplied by the reasonable hourly rate . . .. The lodestar figure may then be adjusted, based on consideration offactors specific to the case, in order to fix the fee at the fair market value for the legalservices provided.” (Ketchum v. Moses, (2001) 24 Cal. 4th 1122, 1134.) “The amount involved and the result obtained are proper factors to be considered in determining a reasonable hourly rate.” (Fergus v. Songer, (2007) 150 Cal. App. 4th 552, 576.) The amount of damagesat issue is a factor in determining a “reasonable fee,” but there is no absolute rule that that the fee be proportionate to the amount of damages. (Niederer v. Ferreria (1987) 189 Cal.App.3d 1485, 1508; see also Honey Baked Hams, Inc. v. Dickens (1995) 37 Cal.App.4th 421, 429 (disapproved on other grounds) [upholding an attorneys’ fee award of over 400% more than the amount at issue - $5,000 fee award in unlawful detainer action with $1,232 at issue.]) Further, “[t]he amount involved and the result obtained are proper factors to be considered in determining a reasonable hourly rate.” (Fergus v. Songer, (2007) 150 Cal. App. 4th 552, 576.) The services rendered on Plaintiff's behalf were either personally handled by Plaintiff’s lead trial counsel, James S. Sifers (“Mr. Sifers™), or directly supervised by Mr. Sifers. Mr. Sifers has been | licensed to practice law for over eight consecutive years and is licensed to practice before the California 18 || Supreme Court, multiple district courts, and the 9" Circuit. He is senior attorney at the law firm Madison Harbor, ALC. His primary areas of practice include business and consumer law litigation, and he has tried dozens of cases in these areas. Plaintiff thus was represented by experienced counsel. (Declaration of James S. Sifers 4 4.) Mr. Sifers bills at an hourly rate of $395.00, the associate attorneys he directly supervises bill at an hourly rate of $325.00. Madison Harbor, ALC, bills at a rate of $125.00 per hour for workperformed by its paralegals and law clerks. Approximately $13,399.90 oflegal services was expended by Plaintiff’s counsel as a direct result ofthis action on behalf of Plaintiff, from the date this action was filed, throughthe date of this Motion. (Declaration of James S. Sifers § 5; Exhibit “2.”} In addition, Plaintiff seeks recovery for the fees anticipated to be incurred in litigating this Motion, including two hoursin drafting this motion and an additional three hoursto review any opposition, prepare a reply and PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES 2. M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, ir vi ne , C A 9 2 6 1 4 Te l (3 49 ) 7 5 6 - 9 0 5 0 se e F a x (9 49 ) 7 5 6 - 9 0 6 0 L d S O oo ~~ ON W n 1 12 13 14 15 16 18 19 attend a hearing on the matter, in the amount of $1,975.00. (See Moss v. AP, (1996) 956 F. Supp. 891, 895.) (Declaration of James S. Sifers § 7.) In total, Plaintiff seeks $15,374.90 in attorneys’ fees and $60.00 for the cost offiling the instant Motion. V. CONCLUSION Per Cal. Civ. Code § 1717, and by virtue ofthis Court entering judgment in Plaintiffs favor after granting Plaintiff’s MSJ, Plaintiff should be designated the prevailing party per Cal. Civ. Code § 1032(a)(4). As such, Plaintiff respectfully requests that this Court determine that Plaintiff is the prevailing party in this action and award Plaintiff its attorneys’ fees in the amount of $13,399.90, which | were reasonably incurred in litigating this action. Plaintiff also seeks the anticipated additional fees of $1,975.00 through hearing on this Motion and its costs of $60.00 for filing this Motion, which amountto a total award of $15,374.90 Respectfully submitted on this 26" day of April, 2017, by: MADISON HARBOR, ALC James S. Sifers, Attorney for Plaintiff PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES -8- M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll N o r t h , ir vi ne , C A 9 2 6 1 4 «= = F a x ( 9 4 9 ) 7 5 6 - 9 0 6 0 Te l (9 49 ) 7 5 6 - 9 0 5 0 jo e] ~ 3 a N L h 4 2 3 ) — < < O o o c ~ J [o N w n + W o r o — DECLARATION OF JAMES S. SIFERS I, James S. Sifers, declare as follows: 1. I am an attorney duly licensed to practice law in the State of California. I, along with the firm Madison Harbor, ALC, represent Plaintiff with respect to the above captioned action. I have personal knowledge as to the matters declared hereinand can competently testify thereto, if called upon to do so, except as to matters stated on information and belief whichI believe to be true. Additionally, I am a custodian ofrecords for Madison Harbor, ALC. As acustodian of records for Madison Harbor, ALC, I am in possession of the exhibits referenced herein and am familiar withtheir terms. Since the documents were received and/or generated, I have maintained these records in the files of Madison Harbor, ALC, which I have maintained in my custody and possession until the present. The exhibits referenced herein are business records of Madison Harbor, ALC, and were received, generated, and/or maintained in the ordinary course of business of Madison Harbor, ALC, at or about the time they were received, generated, and/or maintained. Madison Harbor, ALC, and I began representing Plaintiff with respect to this action with Defendant in or around January 22, 2016, after | drafted and caused my office to file Plaintiff's Complaint, and Madison Harbor, ALC, and I continue to represent Plaintiff to date. [ am informed, believe, and based thereonallege that on or about April 10, 2017, this Court completely resolved this action in Plaintiff’s favor as against Defendants, and accordingly entered judgment in favor of Plaintiff on or about April 10, 2017. Attached hereto as Exhibit “1” is a true and correct copy of the Judgment. I have been licensed to practice law for overeight consistent years before the California Supreme Courts, multiple California District Courts, and the 9" Circuit. I am a senior attorney at the law firm of Madison Harbor, ALC. My primary practice areas include business and consumer law litigation, and [ have tried dozens ofcases in these areas, before a judge and a jury. My law office’s time and expense computation equals $13,399.90 in attorneys’ fees and costs for Plaintiff up to the filing of this Motion. Plaintiff is billed at a rate of $395.00 per hour for services performed by me, $325.00 an hour for associates supervised by me, and at $125.00 per PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES 9. M A D I S O N H A R B O R , A L C 1 7 7 0 2 Mi tc he ll No rt h, Ir vi ne , C A 9 2 6 1 4 Fa x (9 49 ) 75 6- 90 60 Te l {9 49 ) 7 5 6 - 3 0 5 0 »» = na nt . B Y N o B R R R S R R R B D r t me e se n e t e m e t e t e e p e © ~ ~ N a B R W N = D N 0 0 S N B W e e D D 0 0 O N u e B w hour for services performed by paralegals/clerks. The services performed herein were either personally handled by me, or at my direction and supervision. Exhibit “2”is a true and correct copy of the redacted detailed billable hours and costs for Plaintiff in this action up to date this Motion is being submitted. 6. I am informed, believe, and based thereonallege that on or about May 28, 2015, Mr. Horton entered in the Horton Purchase Agreement with Defendant Kar Select. Attached hereto as Exhibit “3”is atrue and correct copy of the Horton Purchase Agreement which I located in Plaintiff’s file for this matter which is kept in the ordinary course of business. 7. I am informed, believe, and based thereon allege that on or about October 28, 2014, Plaintiff and Defendants entered into a Master Dealer Agreement and Guaranty. Attachedhereto as Exhibit “4”1s a true and correct copy of the Master Dealer Agreement and Guaranty, which I located in Plaintiff’s file for this matter which is kept in the ordinary course of business. 8. I have spent two hours conducting legal research for and drafting this Motion, and I anticipate an additional three hours for reviewof any opposition, preparing a reply for this Motion, and to appear at the hearing on this Motion. The total amount ofanticipated attorneys’ fees related to this Motion is approximately $1,975.00 and $60.00 for the cost offiling the instant Motion. 9. The total attorneys’ fees sought by Plaintiff for pursuing this action, which I believe to be a true reflection of the attorneys’ fees that have and will actually be incurred by Plaintiff herein,is $15,374.90. I declare under the penalty ofperjury under the laws ofthe State of California that the foregoing is true and correct. Executed in Irvine, California. Respectfully submitted this 26" day of April, 2017, by: James S. Sifers PLAINTIFF'S NOTICE OF MOTION AND MOTION FOR DETERMINATION OF PREVAILING PARTY AND AWARD OFATTORNEYS' FEES-10- EXHIBIT “1” B A D I S C N H A R B O R , A L C 17 70 2 Mi gh el lN or th ,i rv in eC A 82 61 4 Te l ( 34 D) 75 6- 00 50 sr Fa y {3 49 } 75 6- 60 80 O O h r B w N e D O R E B N B M D M N R E B I R T e e e t a t me t em s me et am d se d h e t Q Q = I h n t h P p W w N e D W B D w y W y D b R Y e m B S g p MADE | 17702 Mitchell North Irvine, California 92614 BECTROMCALLY BECEIVED Supedor Court of California, County of Orange GAMT209T aDR0T22 Ad Ali Parvaneh, SBN 218320 aparvaneh@madisonharbor.com James 8. Sifers, SBN 259105 jsifers@madisonharbor.com Erin N. Collins, SBN 291726 ecollins@madisonharbor.com MN HARBOR, ALC Telephone: 949-756-9050 Facsimile: 949-756-9060 Attorneys for Plaintiff Veros Credit, LLC Clerk of the Hy Truemy 4, Deputy Clerk eror Court SUPERIOR CGURT OF STATE OF CALIFORNIA FOR THE COUNTY OF ORANGE VEROS CREDIT, LLC, a Nevada limited liability company; Plaintiff, v, ZACHARY & SPENCER BROS, INC, a Virginia corporation doing business as KAR SELECT; NABIL MOUAK,an individual; and Case No.: 30-2016-00831731-CL-BC-CIC ASSIGNED FOR ALL PURPOSES to: Hon. Judge Corey S. Cramin Dept. C3 [PREPESED] JUDGMENT Action Filed: January 22-2015 Trial Date: April 10, 2017 Defendants. i 111 iH it! “{PROPGBED] JUDGMENT -1- O O 3 O h t a B l W d D N r t w w w t e t pe s B e ta d R d e e s M A D I S O N H A R H O R , A L C > 17 70 2 Mi tc he ll Ko rt h, r a n e C A 82 61 4 Ta l (S 45 )7 58 -8 05 0 «= ~ Fa x (8 49 ) 75 8- 80 60 M O D M O N R O N OR Dd rm em ee ~ W w W R E ee O D 2 0 8 n a [e d IPROPOSER] JUDGMENT After having considered all evidence at trial, Judgment is hereby entered in favor of Plaintiff Veros Credit, LLC, a Nevada limited liability company (“Plaintiff”) on the Complaint against Defendants Zachary & Spencer Bros,Inc.) a Virginia corporation doing business as Kar Select; and Nabil Mouzk, an individual (collectively “Defendants™} as follows: e Plaintiff is awarded general damages in the amount of$1}, S744 23 . s Plaintiffto recover its cost per filed Memorandum of Costs. + Plaintiff may apply to this Court, via noticed motion,to seek to recover their attorneys’ fees incurred, APR 1 0 9077 Dated , by: sgCourt » Corey S. Craminby edSige vA —FREBSEED] JUDGMENT De EXHIBIT “2” ate: 04/26/2017 Trans Client Date - fient ID 2023.89 Veros Credit 2023.89 01/07/2018 2023.89 01/07/2016 2023.88 01/07/2018 2023.89 01/19/2018 2023.89 01/18/2016 2023.89 01/22/2018 2023.89 01/25/2016 2023.89 01/26/2016 2023.89 02/18/2016 2023.89 03/04/2016 2023.88 03/08/2016 2023.89 03/09/2016 2023.89 03/10/2016 2023.89 03/10/2016 2023.89 03/10/2016 2023.89 03/10/2016 2023.89 03/22/2016 2023.89 03/22/2016 2023.89 03/23/2016 2023.89 03/28/2016 2023.89 03/28/2016 2023.89 03/28/2016 2023.89 05/17/2016 2023.88 05/19/2016 2023.89 06/21/2016 2023.89 07/29/2016 2023.88 08/01/2016 2023.89 08/01/2016 2023.89 08/01/2018 2023.88 08/01/2016 2023.89 08/01/2016 2023.89 08/08/2016 2023.89 08/08/2016 2023.89 08/08/2016 2023.89 08/16/2016 2023.89 09/23/2016 2023.89 09/26/2018 2023.88 (9/26/2016 2023.89 11/10/2016 2023.89 11/15/2016 2023.89 11/16/2016 2023.89 11/16/2016 2023.89 11/17/2016 2023.89 11/28/2016 2023.89 11/28/2016 2023.88 12/06/2018 2023.89 12/08/2016 2023.89 12/11/2016 2023.89 12/14/2016 2023.89 12/16/2016 2023.89 12/19/2016 2023.89 12/19/2016 2023.89 12/19/2016 2023.89 12/19/2016 2023.89 12/18/2016 Tmkr H o n - E D E N B n D D B O N D o D ~ ~ N n 12 E N h t —- A O N O I O D T T T T O U T O E N T H Tcode! P Task Code TT v v v v U U T T W U T V T V T T V U V T T 0 m w To T D T V O V T U T T V Y W U T To v v u v T U u r d w h we d e h w h — _ . a a e d a d w a _ — _ A h a — - e d e h e d e d Detail Fee Transaction File List MADISON HARBOR, ALC Rate 325.00 325.00 325.00 325.00 325.00 125.00 325.00 125.00 385.00 325.00 325.00 325.00 325.00 125.00 125.00 125.00 325.00 325.00 395.00 125.00 125.00 125.00 325.00 325.00 125.00 325.00 325.00 125.00 125.00 125.00 125.00 325.00 325.00 325.00 325.00 325.00 385.00 325.00 125.00 325.00 325.00 125.00 395.00 325.00 325.00 125.00 125.00 325.00 325.00 325.00 395.00 325.00 125.00 125.00 125.00 Hours to Bill 0.90 0.20 0.20 0.60 0.20 0.30 0.30 0.20 0.20 0.40 0.50 0.50 0.30 0.20 0.20 0.30 1.40 1.30 0.20 0.20 0.30 0.20 0.40 0.20 0.20 0.50 0.20 0.20 0.20 0.30 0.20 0.20 0.20 0.20 1.20 070 0.20 0.20 0.20 1.10 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 1.50 0.30 0.20 0.20 0.30 0.30 Amount 25.00 25.00 65.00 65.00 487.50 118.50 65.00 25.00 37.50 37.50 Drafted Complaint Drafted Summons Drafted Civil Case Cover Sheet Continued drafting Complaint, Summons, and Civil Case Coversheet. Continued drafting Complaint Electronically filed Complaint, Summons, and Civil Case Coversheet. Continued drafting Complaint, Summons, and Civil Case Coversheet. Emailed Complaint to eserve for service. Spoke with opposing party regarding possible settlement. E-mailed client regarding the same. Drafted Mtn. to Strike Answer as to Zachary Brothers Continued drafting Motion to Strike the Answer. Added redlines to the Motion to Strike the Answer - KK Drafted Request for Entry of Default. Prepared Proof of Service for Request for Entry of Default. Mailed Request for Entry of Defauit. Electronically filed Request for Entry of Default. Drafted Default Package, am Continued Drafting Default Package, am Continued drafting Default Judgment Package. Prepared Proof of Service for Default Package. Electronically filed Default Package. Mailed Default Package. Reviewed Motion to Set Aside Default and case file; emailed opposing counsel re willing to stipulate to set aside defautt. Signed stipulation and sent to opposing counsel, Emailed case status to client. Drafted Case Management Statement. Reviewed and signed Case Management Statement. Revised Case Management Statement. Prepared proof of service for Case Management Statement. Electronically filed Case Management Statement. Mailed Case Management Statement to opposing counsel. Revised Plaintiff's Request for Production of Documents. Revised Plaintiff's Requests for Admissions. Revised Plaintiff's Limited Civil Form interrogatories. Attended the Case Management Conference plus travel time. Drafted discovery to propound. Continued drafting discovery to Defendant, Continued drafting discovery to propound. Reserved Motion for Summary Judgment. Drafted meet and confer letter regarding discovery responses. Continued drafting meet and confer letter to opposing counsel. Emailed and mailed letter to opposing counsel regarding Responses to discovery. Continued drafting letter to opposing counsel regarding written discovery. Listened to voicemail and spoke to opposing counsel regarding extension for supplemental discovery responses. Reviewed and responded to email from opposing counsel regarding extension to provide discovery responses. Followed up with opposing counsel regarding discovery responses. Re-calendared Motion for Summary Judgment deadlines. Reviewed supplemental discovery responses. Drafted Notice of Motion for Summary Judgment. Drafted Motion for Summary Judgment. Continued drafting Motion for Summary Judgment. Continued drafting Motion for Summary Judgment. Prepared overnightlabel for Motion for Summary Judgment. Prepared Proofs of Service for Motion for Summary Judgment. Electronically filed Motion for Summary Judgment. Page: 1 Ref # H N ~ v x 42 43 44 45 56 Wednesday04/26/2017 11.13am ate: 04/26/2017 Trans Client Date ‘Hent ID 2023.89 Veros Credit 2023.89 12/18/2016 2023.89 01/23/2017 2023.88 01/25/2017 2023.89 01/25/2017 2023.89 01/25/2017 2023.89 02/03/2017 2023.89 02/03/2017 2023.89 02/03/2017 2023.89 02/14/2017 2023.89 02/14/2017 2023.89 02/14/2017 2023.88 02/21/2017 2023.88 02/22/2017 2023.88 0212212017 2023.89 02/28/2017 2023.89 03/01/2017 2023.89 03/01/2017 2023.88 03/01/2017 2023.88 03/01/2017 2023.89 03/01/2017 2023.89 03/02/2017 2023.89 03/03/2017 2023.89 03/03/2017 2023.89 03/03/2017 2023.89 03/03/2017 2023.89 03/06/2017 2023.89 03/06/2017 2023.89 03/06/2017 2023.89 03/06/2017 2023.89 03/08/2017 2023.89 03/09/2017 2023.89 03/10/2017 2023.88 03/14/2017 2023.89 04/03/2017 2023.89 04/04/2017 2023.89 04/04/2017 2023.88 04/04/2017 2023.89 04/08/2017 2023.89 04/05/2017 2023.89 04/05/2017 2023.89 04/05/2017 2023.89 04/05/2017 2023.89 04/08/2017 2023.88 04/06/2017 2023.89 04/06/2017 2023.88 04/07/2017 2023.89 04/07/2017 2023.89 04/07/2017 2023.89 04/07/2017 2023.88 04/10/2017 2023.88 04/10/2017 2023.89 04/18/2017 2023.89 04/18/2017 Tmkr S A D D N h H h l 14 14 12 14 14 12 a 0 p y A R O N D A A D D T V O V U V U V T V U V U U H n © H o o — h b O O N E S T V O V T TU H Tcode! T T O U T T U V O W T o T T o oT T w ou T° T U T T © T T O T° U T h d d d - — _ e d w d a a b h w h d h d h w h e h A e a a a Detail Fee Transaction File List MADISON HARBOR, ALC Rate 126.00 125.00 325.00 125.00 125.00 325.00 125.00 125.00 325.00 125.00 125.00 325.00 325.00 325.00 325.00 325.00 395.00 325.00 325.00 385.00 325.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 126.00 125.00 385.00 395.00 325.00 395.00 125.00 325.00 325.00 385.00 125.00 125.00 125.00 325.00 398.00 325.00 125.00 125.00 125.00 125.00 125.00 385.00 325.00 325.00 Hours to Bill 06.20 6.20 0.20 0.20 0.20 0.30 0.20 0.20 0.30 0.20 0.20 0.20 0.40 0.20 0.60 2.00 0.20 0.30 0.20 0.20 0.40 0.20 0.30 0.20 1.30 0.20 0.20 0.20 0.20 0.20 2.50 0.20 0.20 0.50 0.20 0.20 0.40 1.00 0.20 0.20 0.20 3.50 0.30 1.20 1.00 0.20 0.20 0.20 0.80 1.70 1.70 0.20 0.40 — Amount 25.00 25.00 65.00 25.00 25.00 97.50 25.00 25.00 87.50 25.00 25.00 65.00 130.00 65.00 195.00 650.00 79.00 97.50 65.00 79.00 130.00 25.00 37.50 25.00 162.50 25.00 25.00 25.00 25.00 25.00 987.50 79.00 65.00 197.50 25.00 65.00 130.00 385.00 25.00 25.00 25.00 137.50 118.40 380.00 125.00 25.00 25.00 25.00 100.00 671.50 552.50 85.00 0.00 Overnighted Motion for Summary Judgment. Emailed court regarding Separate Statement. Drafted Demand for Designation. Prepared Proof of Service for Demand for Designation. Mailed Demand for Designation. Drafted Supplemental Interrogatory and Production of Documents. Mailed Supplemental Interrogatory and Production of Documents. Prepared Proof of Service for Supplemental Interrogatory and Production of Documents. Drafted Response to Designation of Experts. Prepared Proof of Service for Response to Designation of Experts. Mailed Response to Designation of Experts. Took call from opposing counsel regarding settlement and e-mailed clients regarding the same. Updated fees. Reviewed e-mail form client regarding settlement and emailed opposing counsel regarding the same. Began drafting Reply to Opposition to Plaintiff's Motion for Summary Judgment Continued drafting Reply to Opposition to Plaintiffs Motion for Summary Judgment Continued drafting Reply to Opposition to Motion for Summary Judgment. Drafted Evidentiary Objections to Declaration of Defendant Mouak for Reply to Opposition to Motion for Summary Judgment Drafted Proposed Order on Evidentiary Objections to Declaration of Defendant Mouak for Reply to Opposition to Motion for Summary Judgment Continued drafting Reply to Opposition to Motion for Summary Judgment. Drafted Declaration of Sergio Romo pursuant to CCP 98 Prepared Proof of Service for Reply, Evidentiary Objections and Proposed Order. Electronically filed Proof of Service for Reply, Evidentiary Objections and Proposed Order. Emailed and mailed Proof of Service for Reply, Evidentiary Objections and Proposed Order. Drafted CCP 96 Request Emailed Declaration to Sergio. Prepared Proofs of Service for Declaration and CCP96 Demand. Electronically filed Declaration. Mailed Declaration and CCP36 Demand. Emailed hearing documents to Jim. Traveled to and attended hearing on Motion for Summary Judgement . Spoke with opposing counsel's office regarding discovery extension. Sent settlement demand to opposing counsel. Began preparing for trial. Emailed Sergio to set up Trial prep meeting. Reviewed and responded to e-mail from client regarding trial. Conducted research on breach of contract and materiality. Continued drafting pre-trial documents. Prepared Proof of Service for Motion in Limine. Electronically filed Motion in Limine. Emailed and mailed Motion in Limine. Drafted trial documents. Continued drafting Trial Brief. Prepared trial documents and prepared client for trial. Prepared attorney binder and exhibits. Prepared Proofs of Service for Trial Brief, Witness List, Exhibit List, and Proposed Judgment Electronically filed Trial Brief, Witness List, Exhibit List, and Proposed Judgment. Mailed Trial Brief, Witness List, Exhibit List, and Proposed Judgment. Continued preparing exhibits books and potential exhibits. Traveled to and attended trial. Attended trial pius travel time. Reviewed judgment from the court. Drafted Memorandum of Costs and Worksheet. 71 72 73 74 75 104 105 106 107 108 109 Wednesday04/26/2017 11:13am sate: 04/26/2017 Detail Fee Transaction File List Page: 3 MADISON HARBOR, ALC Trans H Tcode! Hours Date Tmkr P Task Code Rate Ref# Bitable 47.60 13,399.90 FT TEE1S0eesnCUWednesday6473656171113am EXHIBIT “3” (LAN553-VA-eps 7/14 RETAIL INSTALLMENT SALE CONTRACT SIMPLE FINANCE CHARGE Dealer Number 0512812045 Buyer Name and Address {Including County and Zip Code} CALVIN D HORTON 6124 EDEWARD STREET# 20 Norfolk Morfolk City VA 23513 ° Co-Buyer Mame and Address {Including County and Zip Code) Sefler-Creditor (Mane and Address) Kar Select 1737 Virginia Beach Blvd Virginia Beach {T87Y351-8668 VA 23454 You, the Buyer (and Ceo-Buyer, if any), the agreer maybuy the vehicle below for cash or on credit. By signing this contract, you choose to buythe vehicle on eradit under in this contract. You agree to pay the Seller - Creditor (sometimes “we” or “us” in this contract) the Amount Financed and Finance Charge in #5funds aecording to the payment schedule below. Wewill figure your finance charge on a daily basis. The Truth-In-Lending Disclosures below arepart of this contract. fake New/AUsed/Demo Year and Madsi Vehicle identification Number Primary Use For Which Purchased Chrysier Personal, family,orhousehold uinfess USED 2013 200 1CACCBARSDNTI3712 0 business otherwise indicated below {7} agricultural FEDERAL TRUTH-IN-LENDING DISCLOSURES NOTICE: ANY HOLDER OF THIS AMNUAL FINANCE Amount Total of Total Sate [CONSUMER CREDIT CONTRACT 15 PERCENTAGE CHARGE Financed Payments Price SUBJECT TO ALL CLAIMS AND The dollar The amount of The amount you willl The total cost of DEFENSES WHICH THE DEBTOR amount the credit will onst you. hanwiof YOUOF a yes credit provided to you ar on your behalf. have paid after you have made all paymenis as your purchase on credit, including your down. COULD ASSERT AGAINSTTHE SELLER OF GOCDS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE scheduled paymentof loRGCEEDS HEREOF, RECOVERY 5. | [HEREUNDER BY THE DEBTOR SHALL 23.05% ols 5,681.32 |. 12,379.00 G 19,060.32 g 21,060.32 [NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. The preceding NOTICE applies only to re Hoe goods or services obtained primarily for - i . personal, family, or household use. by alf Monthly teginning other cases, Buyer will not assert against ‘ any subsequent holder or assignee of this : contract any claims or defenses the Buyer {debtor} may have against the Seller, or ‘against the manufacturer of the vehicle or ‘equipment obtained under this contract. Your Payment Schedule Will Be: Number of Amount of Payments Payments When Payments Or As Follows: 48 $387.08 Monthly Beginning 06/28/2015 Late Charge. lf payment is not received in full wilhin...Luaysafter itis dua, you will pay of5% of the part of the payment that is late. Prepayment. if you pay off all your debt early, you will net have to pay a penaity. Security Interest. You are giving a security interest in the vehicle being purchased. Additional Information: See this contract for more Information including information about nonpayment, default, any required repayment in full before the scheduled date and sagurityInterest. WARRANTIES SELLER DISCLAIMS Unless the Seller makes a written warranty, or eriters into a servicecontract within 80 days from the date of this coniract, the Seller makes no warranties, express or Implied, on the vehicle, and there will be no implied warranties of merchantability or of fitness for a particular purpose. Any implied warranties arising from a written warranty or service contract are limited to the duration of such written warranty or service contract, This provision does not affect any warranties covering the vehicle that the venicle manuf: VS AND OPTIONAL INSURANCE | Choice of insurer. If vendor's single interest insuranceis required {as indicated below), or if you desire optional insurance, such asy credit life insurance or credit disability insurance, vou have the right to use alternative coverage or to buy insuranceelsewhere from the agent orinsurer of your choice. You may also buy required physical damageinsurancefrom the agent or insurer of your choices. Your choice of agent ar insurer will not affect our decision to extend cradit or your credit terms [CIVENDOR'S SINGLE INTEREST INSURANCE{V5 insurance}: if the preceding boxis checked, the Creditor requires VSI insurance for the initial term ofthe contract toprotect the Creditorfor loss of damagoto the vehicle (collision, fire, theft), VSlinsurance is for the Credilor's sole protection. This insurance does not prolect or interest in the vehicle. You may choose the insurance company Hirough which the VS! insurance is obtained. If you elect to purchase V5iinsurancethrough he Creditor, the cost of this insurancemneeen8:08and is also shownin tem 4B of the liemization of Amount Financed. The coverage is for theinitial on of the comic 50 é¢ ¥ Buyer Signe X Ei a late charge Lo. . 1 The within instrument or agreement is ledoedas collateral to Wells Fargo Bank, NA, {together withits successors and assigns), as agent for various nancial insiitutions: iminsinA x tirer may provide. LAW 553-Va-aps 7/14 vi VERS CREDIT, LLC Page 1 6f 4 CRIGINAL LIENHOLDER | TEMIZATION OF ABGUNT FINANCED ’ ’ | insurance. You may buy the physical damage insurance this | contract requires from anyone youchoose whois autherized | Ed [is 1 Cash Price Gncluin sates tax $13,397.81 3 ie sell such insurance in Virginia. Your choicewilt rota £2 Tote! Downpayment = ’ . decisionfo extend credit or the fe i required (© buy any olher instrance fo obtale credit ur gle a0e-n box indicating Vendor's Single Interest insuran4 {Year {Make} + {Modal} checked on Page 1. po i 0.00 1 any insurance is checked below, pelicies or cerificates Grose Trade-In Allowance , $nMY from the named inswrence companies will describe the terms ang less Pay Off Made By Seller $ 0.00 conditions. Check the insurance you want and sign below: Optional Credit Insurance Equals Net Trade In + Cash FO3 0.60 [J creditiite: [Buyer {"1Co-Buyar [80mm {1 total downpayment is regative, enter “0° and see 41below) §2000.00 2)| |] Credit Disability: [Buyer [| Co-Bayer [80th 3 Unpaid Balance orCashPrice {1 minus 2) $A1.397.91 (3) Premium: 4 Oe Charges including Amounts Paid to Others on Your Behalf Credit Life § _. NA — {Seller may keep pari of these amounts): "Credit Disabitty $_____NIA A Costot Optional Credit Insurance . insurance Company Mame Paid to Inewrance Company or Companies. N/A Life $ 0.00 Home Office Address Disability § 0.00 3 0.00 B Vendor's Single Interest Insurance Credit lite insurance and crect disability insurance oe yin oe 0.00 required to obiain credit. You have the night to uss aller Paic to Insurance Company(ies). $ : coverage of buy such insurance elsewhere. Your choice of C Other Optional insurance Paid to Insurance Company of Companies $ 0.00 irsurar will notaffect our decision fo extend credit or the terms of tional Ga (or ” . £95.00 this contract, Your decision to buy or nut to buy cradit fife in- Db Gptional Gap Contract 3 : surance and credit disability insurancewill not be factor in the E Official Fees Paid to Government Agencies g 0.09 edtapproval process. They will rot be provided uriess yousign a Ty Ohraes ip To and agree fo pay Ine exdra cost. If you choose this insurance, the 1) lo State of VA fon, Gross.ReceiptTax $ 26.34 cost is shown in Hem 4A of the ltemization of Amount Financed. 2 for $ 06.00 Credit fife insurance Is basad on your original payment schedule. Le ' This insurance may not pay all you owe on this contract #f you j for $ 4.00 | ein J ay ar yo 73 So make fete payments, Credit Disability Insura F Taxes Not Included in Cash Price 3 0.06 | any increase in your payment of in the a — Coverage for creck life insurance and credit disability insurance i i ends on the al due datefor the last payment unless 2 $ 50.75 different term for the insurance is shown below. 4 3 16.00 { Other Optional Insurance 5 . oo for Prior Credit or LeaseBatance 5 0.06 {7 NIA State DMV for OMV Filingfee $ 0.90 Type of Insurarice Term Sg NIA tor NIA 3 0.00 Premium $..... 8.60 10 Dealer for ProcessingFee T 299.00 ksurance Company Name Gig Dealer for Inspection § 0.00 NA Bj tn NIA for Unemployment ins $ 0.00 Home Cifice Address Tio NIA “for_Pre-Delivery Fee 3 0.00 io N/A » for MA LY 6.00 Type of insurance Term NIA forWA $ 6.90 Bremitm § Dither Charges and Amounts Paid io Clhers on Your Behalf Insurance Company Mam: ;_ Am 512,379.005) NA - Home Cffice Address OPTION: {| You pay no finance charge if the Amount Financed, item 5, is paid in full on or belore NA eee Year SELLERS INITIALS. Cher optional Insurance is not required ie obtain credit Your : ecisicn to buy or not buy other opticnal ins vill pot 2 NO COOLING OFF PERIOD . factor in the credit approval process, wil i Statelaw does not provide fora “cooling off” or cancellation period for 26 10 pa this sale. After you sign this contract, you may only cancel it if the seller agrees or for legal cause. You cannot cancel this contract simply||,0.= ghecause you change your mind. This notice does not apply to home x CEEEE solicitation sales. : AN OPTIONAL GAP CONTRACT, A gap contract {debt cancellation contract) is not required to obtain credit and will not be provided unless you sign below and agree to pay the extra charge. If you choose x Buyer Sigriatire {ate to buy a gap contract, the charge is shown in ltem4D of the emization of Ameunt Financed. See your Co-Buyer Signature Dale gap coniract for details on the terms and conditions it provides, it is a part of this contract. THIS INSURANCE DOES NOT INCLUDE INSURANCE ON Term we. "GAP VERCS CREDIT. YOUR LIABILITY FOR BODILY IMJURY OR PHOPERTY Name of Gap Contract DAMAGE. Returned Payment Charge: If any check yougive us is dishonored or electronic payment you make is returned unpaid, we may, at our option, chiarge you $50 LAW 553-VA-eps 7/14 vi Page 2 of 4 Buyer Signs X~ 48 Buyer Signs X A ORIGINAL LIENHOLDER OTHER IMPORTANT AGREEMENTS 1. FINANCE CHARGE AND PAYMENTS Ca b, ¢ 4 ch. e. How we will figure Finance Charge. We will figure the Finance Charge on a daily basis at the Annual Percentage Hale on the unpaid part of the Amount Financed, How we will apply payments. We may apply each payment to the earned and unpaid part of the Finance Charge, to the unpaid part of the Amount Financed and to other amounts you owe under this contract in any order we choose: How late payments or early payments change what you must pay. Weabased the Finance Charge. Total of Payments, and Total Sale Price shown on page 1 of this contract on the assumption that you will make every payment on the day it is due. Your Finance Charge, Total of Payments, and Total Sale Price wilt be more if you paylate and less if you pay early. Changes may take the formof a larger or smaller final payment or, at our option, more or fewer payments of the same amount as your scheduled payment with a smaller {inal payment. We will send your a noticetetling you about these changes before the final scheduled payment is due. You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time without penalty. If youdo so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment. Your right to refinancea balloon payment. A bal loon payment is any payment other than a down pay- ment that is more than 10% greater than the regular or recurring instafiment payments. If you use the vehicle primarily for consumer purposes, you have the right to refinance a balloon payment over an extended period with additional payments. The additional periodic payments will not be more than 10% greater than the regularly scheduled install- ment payments. 2. YOUR OTHER PROMISES TO US a. 4 B. c. 8 Buyer Signs if the vehicle is damaged, destroyed, or missing. You agree to pay us all you owe under this contract even if the vehicle is damaged, destroyed, or missing. Using the vehicle. You agree not to remove the vehicle from the U.S. or Canada, or io sell, rent, lease, or transfer any, interest inthe vehicle or this contract without our written permission. You agree not fo expose the vehicle to misuse, seizure, confiscation, or involuntary transfer. If we pay any repairbilis, storage bills, taxes, fines, or charges on the vehicle, you agreeto repay the amount when we ask for i. Security Interest. You give us a security interest in: s+ The vehicle and all parts or goods put on it; = All money or goods received (proceeds) for the vehicle; « Allinsurance, maintenance, service, or other con- tracts we finance for you; and = Al proceeds from insurance, mainienarice, service, or othar contracts we finance for you. This includes any refunds of premiums or charges from the contracts. This secures paymentof all you ewe on this contract. it also secures your other agreements in this contract, You will impake sure the title shows our security interest (iian hin the vehjcte. You will not alicw Insurance you must have on the vehicle. You agree to have physical damage insurance covering loss of or damage to the vehicle for the term of this contract. The insurance must cover our interest in the vehicle. Hi you do not have this insurance, we may, if we choose, buy physical damage insurance. if we decide to buy physical damage insurance, we may either buy insurance that covers yourinterest and our interest in the vehicle, or buy insurance that covers only our interest. If we buy eithertype of Insurance, we will tet you which type and the charge you must pay. The charge will be the premium of the insurance and a finance charge computed al the Annual Percentage Rate shown on page 1 of this contract or, at our option, the highest rate the law permits. if the vehicle is lost or damaged, you agree that we may use any insurance settlement to reduce what you owe or repair thevehicle. What happens to returned insurance, maints- nance, service, or other contract charges. If we obtain a refund of insurance, maintenance, service, or other contract charges, you agrae that we may subtract trie refund from what you owe. a. IF YOU PAY LATE OR BREAKYOUR OTHER PROMISES Youmay owe late charges. You will pay a late charge on each late payment as shown on page 1 of this contract. Acceptance of a late payment or late charge does not excuseyour late payment or mean that you may keep making late payments. If you pay lale, we may also take the steps described below. You may have to pay ali you owe at once. If you break your promises (default), we may demand that you pay all you owe on this contract at once. Defauit means: = You pay any payment (plus any late charges) more than 10 days late or not at all; + You give us false, incomplete, or misleading in- forrnation on a credit application; N You start a proceeding in bankruptcy or one is started against you or your property; or You break any agreements in this contract. The amount you will owe wilt be the unpaid part of the Amount Financed plus the earned and unpaid part of the Finance Charge, any late charges, and any amounts due because you defaulted. You may have to pay collection costs. If we hire an attorney to collect what you owe, you will pay the attorney's fee and court costs as the lawaflows. You wil also pay any collection costs we incur as the law allows. We ray take the vehicle from you. if you default, we way take (repossess) the vehicle from you if we do so beacetaly and the law allows it. lf your vehicle has an electronic tracking device, you agree that we may use the device to find the vehicle. If we take the vehicle. any accessories, equipment, and replacement parts wili stay with the vehicle. If any personal items are in the vehicle, we may store them for you at vour expense. if vou do not ask for these tems back, we may dispose of them as the law allows. How you can get the vehicle backif we take iL lfwe repossess the vehicle, you may pay io get it back (redeem). We will tell you how muchto pay to redeem. Your right to redeent ends when we sell the vehicle. LAW 853-VA-eps 7/14 vi Page 3of 4 ORIGINAL LIENHOLDER i. We will sell the vehicle if you de not get it hack. lf you do not redeem, we wiil sell the vehicle. We will - send you a written notice of sale before selling the vehicle. We will apply the money from thesale, less allowed expenses, to the amount you owe. Allowed expenses are expenses we pay as a direct result of taking the vehicle, holding it, preparing it for safe, and selling it. Attornéy fees and court costs the law permits are also allowed expenses. If any money is eft (surplus), we will pay it to you unless the law requires us to pay it to someone else. if money from the sale is not enough to pay the amount you owe, you must pay the rest to us. If you do not pay this amount when we ask, we may charge you interest at a rate nol exceeding the highest lawfulrate until you pay. g. What we may do about optional insurance, main- tenance, service or other contracts. This contract may contain charges for optional insurance, mainte- nance, service, or other contracts. If we demand that you pay all you owe al once or we repossess the vehicle, we may claim benefits under these contracts and cancel them to obtain refunds of unearned + charges to reduce what -you owe or repair the vehicle. If the vehicle is a total loss because it is confiscated, damaged, or stolen, we may claim benefits under these contracts and cancel them to obtain refunds of unearned charges to reduce what you owe. Used Car Buyers Guide. The information you see on the window form for this vehicle is part of this contract. information on the window form overrides any confrary provisions in the contract of sale. Spanish Translation: Guia para compradores de vehiculos usados. La informacidn que ve en el formulario de fa ventanilla para este vehiculo forma parte del prosente contrato. La informacion del formulario de la ventanilia deja sin efecto toda disposicién en contrario contenida en el contrato de venta. SERVICING AND COLLECTION CONTACTS You agree that we may try to contact you in writing. by e- mail, or using prerecorded/artificial voice messages, texi messages, and automatic telephone dialing systems, as thelaw allows. You also agree that we may try to contact vou in these and other ways at any address or telephone number you provide us, even if the telephone number is a cell phone number or the contact results in a charge to you. APPLICABLE LAW Federal law and the law of the state of cur address shown on page 1 of this contract apply to this contract. The Annual Percentage Rate may be negotiable with the Seller. The Seller may assign this coniract and retain its right to receive a part of the FinanceCharge. HOWTHIS CONTRACT CAN BE CHANGED. This contract, along oi of the vehicle, comprise the entire agreement betweep\you and is binding. Upon assignment of this contract: {i} only thi you and the assignee relating to this contract; (ian {iii} no oral changes are binding. Buyer Signs XR if any part of this contract is not valid, all other parts stay val d.We may delay Ag example, we may extend the time for making somepayments without extending heime for making others, See the rest of this contract for other important poreements. NO LIABILITY INSURANCE INCLUDE NOTICE TO RETAIL BUYER: Do not signthis contract in blank. You are entitled to a copy of the contract at the time you sign. Keep it to protect y our legal rightsf\ : i other documents signedby youin connection with the purchase cting this purchase, No oral agreements or understandings are deénda to this contract comprise the entire agreement between contract must be in writing and the assignee must signit; and on =Co-Buyer Signs X rain from enforcing any of our rights underthiscontract without losing them. For | o o # You agree to the t ims of thi free to take | Buyer Signs XMENGE Ua | Co-Buyers and Cther Owners — Aco-buyeris person who is responsible for paying the entire debt. An other owneris a person whose nameis on the tile the security interast in the vehicle giver: tous in this contract. , Miidrese [72fBaesh 20 hod vi Expy 0528/2015 By X LE SFA pa Titefp to thevehicle but does not have to2 | Other ownersigneneta Selier signe Kar Select ract. You confirm that before you signed this contract, we gave if to you, and you were Hate Q512812015 O0-Buyer 3Signs Xx Date ogf2e2018 ==owner agrees 0 Zlis (Assignee) under the terms of Seller's agreement(s} with Assignee,Seller assigns its imerest in this contract tc VEROS CREDIT [2 Assigned without recourse FT Assigned with fimited recourse By a; ALG PATENY NO. 0480,78% TTT fates Tle 78 Ce” LAY 853-VA-ops 7/14 vi Page 4 of 4 ORIGIHAL LIENHOLDER EXHIBIT “4” VErQs MASTER DEALER AGREEMENT ~ INDEPENDENT DEALER VAL 5oeLéul {dofng business sader the names and at the locations listed on Exbilst & hereto, f°} desires to self to VERIS 11. 10, 3 Hevada fmited 5%. on thefollowing terms, moter vehich a G h safes contracisfy aber erste called “VER rafar " 5 Tontract” or astraarts+ seceplein ERIS ¢ sew or uged antnmohiteds) with encomperning goads, serviess, and acresseries, andaemsvader insnanns fie i 5 thersad, al hersinafer celled “Hutay hh sb at u : retr w alf fe srtvits purchased by VERDE from oh der #59 3 rested 3% an ageney Agreement, hig‘hye is canfrary tos shil cadre. This Aqraswiental agreement,ado theortonthi anyraion ao ory to VERES and shall be duly endorsed or assigned to VERS. VERES may execute the aecoseary o such endorsement or assignment. BERLER's sveeptance of payment from gieent of, sunk Dontract on behelf of BE {Purchase of Contracts: Dentracts submitted for purchase shall be in 2 form sat endorsement ar, or sssinmnent of. any Contract on TEALER's hekaif aed an any remittances received by VEROfof YFRES Gor g Rontract shaft be conchiswr proof of the autharity of theseraaxecuting sechendorsement om, arsss andi Dontrant purchased by YHHshohetrunes that: i therzundee, in tha ardinary pour BERLFR's business, with full paver and wuthurdty ty mak 1 Repessewtatiors and Warrantiesof BEARER: 3PALER represents snd warrants as tn ee fa) The Sontract sense frama bora-dp sale to the purzhaser {“Contrent Sorrower and is the only such instruaent exmcuted foe the Motor Yabinle deserilied therein: uchsal, (6) The Deatractis genuine, legally valid end snforoasbls is and will continas tn be free fram defenses, coustereizing and offsets: fe} Al statements and infarmationcontained In he creditap and Eentraet submitted by GEALER to VERDSare tug, aceuiate aad eomplete; id) BERLER ¢Bas complied wil ral, stats and focal Sows andregulations relating to the of the Donteact, the Hoensing of BEALER. and the underdog sale of the Muar Vehick, including hut ant fit ta the Truth ils i red Dogort dnt, Fedral Fair and Accurate CredTransactions fet (aks “Red HagBeg as”), Misk-Basad 0i i Diclusure rE ! i er, and any applicable state or local laws and regulativas, incleding dischisares cequirsd in any advertisement. and he farm adccaingieting of the Doatrast Toreqaig towsoand regis {2} i the aputGans sadfeat ral dedessited in ths foatract sad/or Snetents pro ad have been delivered © on #po Borenand i i ctthese: {5 t Haterit i les 3. Goesnnd reve frame das wether suchd thete Deparmenttart {g} tive of title+t, or gra (x) and will haw prsndfo preserve {hy 2 shal fie is ange and with insures igfive honed dolars ($5000) {i} hes gusad ang markably ttf Inthe Matar Yelicle and the Jontraet rly sold thareunder shall be fran and clear of af ens, encumbrances, and rights ofany third party, ? has foil right and authoity fo sell, twansler and assign the Lontra pe i i fas the requisite legal power wed authueity ty ew this Agra ofthe based af dicestors snd sharehalders of 2 ad sampled: farce and sffert. i. price 4s determined on2 semzal, Mubje 3 of the Dan alent lu the “Amsgod Ti agread fees fudnetions. [REithbold: ance (called WE trast fae fold until She Castros parties hevely 2gree that © of VERES, VERS omay oo ring sad qd cuir alte is any interest and/or Viple hasben taken 5 Regiend Payment iy fRALE late charges dor aadawdag, pissnay ing bry, mre ow bbl af YER ave, JEALER agers refutedfy that ee gre sched ar unirig, or becames unbrus before the Cantract bal wihthe b © n r ct Harrawee (whether stin the Sentract or de o n o r in} alder ofschact Hote7 days of the 1d} shall have noowred any fraud, braun ®,+. inching sn with antrent, the Molar Vii the Dentragt ty VE Circ Br agentof gpl is) tract Borer fyits maka 3Lure PheHT on any iment et, un ss recgurse 5 sof m i wets which iz lees than ful provided in the Dantract iH or if ay of the dis if wasrensired + gr anyJ partinal the dongeotwas i2 deferred ‘hiigation and was nat praperly disclosed as required by wer un belinif af Soatract Borrower; 2 autivnsof § ave vi ii fur thansaash {omentfor a manufactur if DEALER makes any pre duty VERE asserts against QEALER ar VERDE rehiata) s fy £Contract fait that the © we stafiments being complated by the Cantract Buerower to VERDRse evidenced: :] on the approval transmittal: i emest Addendum, or (iv) any other written iment fe the perchasy of the Doantract and die Ton wer the fantract within the rectecse perind. {f more than one of the dorumants in the preceding senteace edst, sts shall control A “default” shal include, but is ant limited tn, any failure by the Contract Boremear to malea COMPLETE PAYMENT, or utherwise comply with or perder covenants, se conditions undethe sppliceble Contract. VERDS shall be under no nblivationte any defadt on the pert of 3 Contant Borrower, VERTS may extend the time of payment ar may make soy modifeatinn with a Dantract Barrowar sithoet ohiziniey Ge couse and HEALER will stiff be hound by this Agreement, If = Contract Borroweris wore thanthirty {20) days Lete an any instalment payment within the ap Br fad, and eae the time of payment, the recourse period shall suamatially be exiendadby one (1) payment perind of not less than thirty (28) days withuut the mutual agreement of DEALER and VERDE. fh} if mrchase of the Santrast is sonditionsd an reverse foc 3 set number of the check sued for payment foe the Snitrar Borrower defaults on the Contract or sn ny msialioe then the document stating thehighest sumber of eeea Hitable retour consent of EAL Yi tinan any such repurchase VERDE shall resssign the subject DontractTHER who ih entiifed tn holdshe fontract, security foe the Contract and shall fave the right, but not the obligation, to sell any tengibl any breach of any of the regresentations aad warranties at the time of porchase of the HEALER is oifigutedto repurchase 8 Contract, thereis no ohbigaiion, nar is represent if ¢ repurchase the Contract. In the event that VERDSdoes repossess the Motor Vehicle, VERES shall base tho rigfab. bustsrt th ta BEALER's obligations. DEALER hereby expressly waives any and alf right to priaraniification of any sale under fis parag the Uniferm Commercial Code, and such possession and/ur sale shall net be deemed au election of cemedins, Fol subject Mutur Yebicle ari(oe repurchasing the Dantract thereon fr HH OEALERtafls to farward fi fLontesct within seven (7) days of written or verbal natifization by YERUS of its intenting 1 haw the Coat at its sale discretion, reper? such default to any credit reparting bureau. ou#, less Dealer fas othar gutsizading reo Jr the mewn BE his eressary ta puitchased, BEAT fn the event that TEALER enderints any debt cancellation contract ("BAR") and/or serine cuntract with ny Doatrast Bocrawar, and comraet, ar ir the event that Hie Dontrant is resvimded oe the MoteVehicle is repossessed by VERDS, VEROSmay, ofits sole dis serving coitract to the Contract Boreower. sod BEALER agreesthat it shal to VERSfiS the diffarenne hotweenthe amoset paid 1s lester fy anid/ar service contract, or same pro-rata partion theres! as determias S, upon demand by YERTS. t Borrower 2lscls tn caste ae ne all of the ie price of ths SAF ¢ Jarreower and the d seatSEE d/or purchasers) of y Dontrant pircha hereby waives any alAILS) i Dosis and Attorneys’ Peas: in the event costs and/or attorne belore, during, ar after the epmaenteaent of tigation, DEALER of of whtherer such © 4ets and b Iefrmetion Repsived by BEATER: DEALER agrees to reimburse YERES for any and afl Tugses VERS may gation as it desmy necessary (a ansure complisne creditors ard assigeees foo auch persons Es theydeam 3 the grovision nf this Agreemen eoffentians infermstinn,and arkefi persaas other than DEALERs efficare or withzot prior antics of suchdisclosure or firma all, apm recs i$ LY me v by Taw endoroms 5 Attorneyin-Funt BEARER hereby suthorires and appoints YERGEa fe stioraey-In-fal, io payment whith sey come ino VERDEs possession at goymoent on say Comtracte, snd tr sign BEALE redone of sry peidin-oll Doviraots and any He documents comerniog the Neb Vehfoels), anHERESY frrevmsable so long as ang Dontracts seslgned fo VERDE hermender shall remain vepald ve wirslenged. ir 4 any w shart 5 the Dordracts, This auth virstion shall be tl Right of set fe: JERS shal fawwe ihe right&ty set affany Fumds receivedhy DEALER against any and all amounts ow DEALER tn YEADS now wig or herpatter 1 VERBS ie under no ebligation ta stile{a any terest urany of BEALER's funds am nario{ID af soerale 5s 8 waiver of aff hivheen folly ¢ rerment 58 to Hit s hernby agrendthat nothiag her ging, He peg rehasedsir01 3 EnticeAgermment This te canstifute an erigiosl. Hume ofa tems and geavis harupment be held snenforoashly nr !isbeet shall he altered or mod id foeny reso swreaiving provisivis 8 portioes of this Agravment Wh Busceszors and Assig £7: This5 frat ugen and nurs to thetbenz of th respreive firs, ingtu this Agreementshall be bruwght in the federal or state sauvts in the ints of lows statutes or roles which provide for jurisdictionor 4 sof Dalits. Any action avisiey from or relatia ‘ stion of any such court, and without regard to eave or candi Eoanty anywhere of IH WITHERS WHERERE. this Agr bis heehy | this id day of 0ct VERDS CREDIT Sigrature GUARANTY AGREEMENT sine”) and VERS DREDIT UD CVERDS™ as an inducement for YERDSta nates ints the above Agreement of see tzes tn VHS, the timely payment ofof iz] abfigztions of whatever kindor tues stmiza YERUS and DEALER, until such tow ag aff paymentsrequired thereuoder have bean paid in lof. tend: buarsator hersh under the4x fgesemant, ang rior agreements), 7 \loinder Guaracty shalbe wed shall vemsin inhi forse i af any ofFeEli BEM, BF #3 by law, the wtar fram the perks ult see fa farm amy ofits w Agreement. VERIES may, 3 a rightsin reg 5 1 £ digs against SEALER and/or to require VERS to seek to enforce or re nution of any abfiyation aad 16 defense of any kind ur aaturs whichthe Buaraen shal ©beos avila Busranior waives sit presentmests, demands for sorters (i. agtic 4 Lions sad Seta In addi inst he monizs, sel » progucty of Guarantor given im VERS by fave VERES shall have « fen unos and 2 cight of sateff t aif mani r heresfiae the possession of VERSwhether held in sent, ar fir calsand seer S07 GE 8° 0 ; ye bees waly the part of ulated th wer enforce such lien, or by soy uff and fn shall continue andsfact untd sesh isspecifically ido int writing eenuted by 9 's Fras, {aw Yee: attorney fees, which may Fe jncuresd 5 at er the Agresinent or Guzeanty shal be format ly:witarterse shall be brought in thefaders! or state courts in the ont!of fsong. les which provide §HIE SOCHEN GF vENUE Ry 208 ws af te5 fits «offaws statutes oe rule alifernia, the Sounty wllbe ins addition to svery other ra i ght aypower or shall be crrstensd to uaranty sh 07Afsany pr Guarantor and inure te the benefit of § 8 Mise 2 Ehenk Ahnrl ¢ fad & 3ifY 3 a 2 i trash tablishieraa bisslenssvont GHARROR Tix . \Sey" wre Shature: Print Address: [ity/State/717: w n B S W N o O 0 3 O h PROOF OF SERVICE STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) [ am employed in the County of Orange, State of California. I am over the age of 18 and nota party to the within action, my business address is 17702 Mitchell North, Irvine, CA On April 27, 2017, I served the foregoing documents: PLAINTIFF VEROS CREDIT, LLC’S NOTICE OF MOTION AND MOTION FOR DETERMINATIONOF PREVAILING PARTY AND AWARD OF ATTORNEYS’ FEES TO BE PAID BY DEFENDANT TO PLAINTIFF: REQUEST FOR ATTORNEYS’ FEES IN THE AMOUNT OF $15,374.90; MEMORANDUM OF POINTS AND AUTHORITIES: DECLARATION OF JAMES S. SIFERS on the interested parties in this action by placing a true copy thereof enclosed in a sealed envelope addressed as follows: Shawn M. Olson, Esq. Kevin A. Spainhour, Esq. OLSON SPAINHOUR 7372 Prince Dr. #104 Huntington Beach, CA 92647 [X] Iam readily familiar with the firm’s practice ofcollecting and processing of documents and correspondence for mailing with the United States Postal Service. Underthat practice, on the above date, the envelope was sealed and placedfor collection and mailing following the ordinary business practices of our office. This results in the envelope being delivered to the United States Postal Service that same day, with postage thereon fully prepaid. [1] I caused such envelope to be delivered by hand to the office of addressee. Executedat Irvine, CA. [1] I sent the attached documents via electronic mail: mm@oslawyer.com, shawn(@shawnolsonlaw.com, so@olsonspainhour.com, ks@olsonspainhour.com [] [ sent the attached documents via Fascimile: [1 By delivering such documents to an overnight mail service or an authorized courier in an envelope or package designated by the express service courier addressed to the person(s) on whom it is to be served [X] Tdeclare under penalty of perjury under the laws oftheState of California that the foregoing is true and correct. Executed on April 27, 2017 at Irvine, California.