HomeMy WebLinkAbout06265 - CANNAHELP CORPORATION DOCUMENT TRACKING
Page:1
Report: One Document Detail August 8,2012
Condition: Document Numbera6265,
Document# Description Approval Date Expiration Date Closed Date
A6265 Settlement Agreement Case No.INC 084521
Company Name: Cannahelp Corporation
Address: , ,
Contact: Insurance Department
Ins.Status: New Entry.Inactive
Document Tracking Items: Due Completed Trackina Amount Amount
Code Item Description Date Date Date Added Paid
001 New Document Added 08/08/2012
******ENDOFREPORT******
Page 1 of 1
Kathie Hart
From: Kathie Hart
Sent: April 06, 2010 11:13 AM
To: 'Ben Ammerman'
Cc: 'Douglas C. Holland'; 'Nadine Lalich'
Subject: A5947-Settlement Agreement with Cannahelp
Ben:
I have a copy of the fully executed settlement agreement with Cannahelp. May I ask you
(or Doug) for documentation when this was approved by Council. In reviewing the minutes
I was unable to find any info.
Thx!
Kathie Hart, CMC
Chief Deputy City Clerk
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs,CA 92262
(760)323-8206 1 A (760) 322-8332
Kathie.Hart@Palm5pringsCA.gov
Please note that City Hall is open 8 a.m, to 6 p.m.Monday through Thursday,and closed on Fridays at this time.
04/06/10
CITY COUNCIL ACTION SUMMARY
WEDNESDAY, MARCH 3, 2010
CALL TO ORDER: 6:07 P.M.
ROLL CALL: All Present.
REPORT OF CLOSED SESSION:
ACTION: 1) Make the finding that information on the three cases was received after the
posting of the Agenda, and there is an immediate need to hear and/or take action of the
Items and add three Items to Closed Session Agenda, pursuant to Cal. Gov. Code
Section 54856.9(a), City of Palm Springs v. Cannah�, Case No. INC 084521,
Riverside Superior Court, Indio Division, City of Palm Springs v. West Valley Patients
Association, Case No. INC 088933, Riverside Superior Court, Indio Division, City of
Palm Springs v. CAPS - Collective Apothecary, Case No. INC 088918, Riverside
Superior Court, Indio Division. Motion Mayor Pougnet, seconded by Mayor Pro Tern
Hutcheson and unanimously carried.
The City Council recessed into Closed Session to discuss Items on the Closed Session
Agenda. City Attorney Holland reported the City Council, by unanimous vote, authorized
the City Attorney to file an appeal or an appropriate writ in the case titled City of Palm
Springs v. Superior Court of Riverside (Palm Springs Investments) Case No. E047460,
Cal. App. 4th District.
ACCEPTANCE OF THE AGENDA:
City Clerk Thompson requested the City Council take Item 5.C. out of order to be heard
immediately following public comment, requested Consent Calendar Item 2.J. be
withdrawn from the Agenda, and Item 3.A. be withdrawn from the Agenda and tabled for
two weeks.
Mayor Pougnet noted his abstention on Consent Calendar Item 2.13.
Councilmember Mills requested Item 2.E. be removed from the Consent Calendar for
separate discussion.
ACTION: Accept the Agenda as amended. Motion Councilmember Foat, seconded
by Mayor Pro Tem Hutcheson and unanimously carried on a roll call vote.
1. PUBLIC HEARINGS:
1.A. DESIGNATION OF THE DE BRABANT HOUSE AS CLASS 1 HISTORIC
SITE DESIGNATION 67, LOCATED AT 982 NORTH AVENIDA PALMAS
(CASE HSPB 67):
ACTION: Adopt Resolution No. 22677, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
DESIGNATING THE SINGLE FAMILY DWELLING AND SITE AT 982
NORTH AVENIDA PALMAS AS CLASS 1 HISTORIC SITE." Motion
Councilmember Foat, seconded by Mayor Pro Tern Hutcheson and
unanimously carried on a roll call vote.
Page 1 of 1
Jay Thompson
From: Kathleen C. Moore [KMoore@wss-law.com]
Sent: Monday, March 22, 2010 2:54 PM
To: Jay Thompson
Cc: Ben Ammerman
Subject: Palm Springs v. Cannahelp Dispensary- Settlement Agreement
Follow Up Flag: Follow up
Due By: Wednesday, March 24, 2010 12:00 AM
Flag Status: Flagged
Attachments: D00032210.pdf
Good Afternoon Mr. Thompson,
Attached is a copy of the settlement agreement in the above-entitled matter. Please sign the agreement
and send the original signed signature page to my attention. Thank you!
Kathleen Moore � l
3/22/2010
I WOODRUFF, SPRADLIN & SMART APC EXEMPT PER GOY. CODE§6I03
DOUGLAS C. HOLLAND- State Bar CIO. 69014
2 BEN AMMERMAN—State Bar No. 239102
555 Anton Boulevard, Suite 1200
3 Costa Mesa, CA 92626-7670
Telephone: (714)) 558-7000
4 Facslmile: (714).835-7787
5 bammennan@wss-law.com
6 Attorneys for Plaintiff CITY OF PALM SPRINGS, a Municipal Corporation
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8 SUPERIOR COURT FOR THE STATE OF CALIFORNIA
9 FOR THE COUNTY OF RIVERSIDE, DESERT DIVISION, INDIO BRANCH
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11 CITY OF PALM SPRINGS, a Municipal CASE NO.: INCO84521
12 Corporation,
13 Plaintiff, ASSIGNED FOR ALL PURPOSES TO THE
HONORABLE JOHN EVANS
14 V. DEPARTMENT: 1C
INN 15 CANNAHELP CORPORATION, a STIPULATION FOR ORDER OF ENTRY
California Corporation, and DOES I OF JUDGMENT AND ORDER
16 through 500,inclusive, THEREON
17 Defendants. DATE ACTION FILED: March 4,2009
18 1
19
This Stipulation for Entry of Judgment ("Stipulation") is made and entered into and
20 between Plaintiff CITY OF PALM SPRINGS ("CITY" or "Plaintiff') on the one hand and
21
Defendant Cannahelp Corporation ("CANNAHELP" or "Defendant") on the other hand as
22 follows:
23 1. This Stipulation is prepared in conjunction with the Settlement Agreement
24 ("Agreement") entered into between CITY and CANNAHELP. A true and correct copy of
25 the Agreement is attached hereto as Exhibit"A."
26 2. This case arises out Defendant's unlawful operation of a medical marijuana
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storefront dispensary in the City of Palm Springs at 505 Industrial Place, Palm Springs,
28 California 92262, (hereinafter referred to as the"Property")-
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STIPULATION FOR ENTRY OF JUDGMENT
669576.1
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1 3. CANNAHELP and CITY now seek to settle the CITY'S action.
2 CANNAHELP acknowledges it unlawfully operated a storefront medical marijuana
3 dispensary in the City without a valid City-issued regulatory permit in violation of the Palm
4 Springs Municipal Code ("PSMC") and that prior to its eligibility for the regulatory permit
5 that it unlawfully operated a storefront medical marijuana dispensary in the City;all of which
6 constitutes a public nuisance under state and local law.
7 4. CITY has agreed to settle and compromise its action against CANNAHELP in
8 an effort to resolve this case without incurring additional legal expenses.
9 5. The purpose of this Stipulation is to enforce the payment terms set forth in the
10 Agreement; ensure compliance with the Palm Springs Municipal and Zoning Codes as it
11 relates to the presence and operation of a medical cannabis cooperative or collective within
12 the City of Palm Springs.
13 6. This Stipulation shall be filed with the Court.
14 7. In the event that CANNAHELP breaches any term contained in the Agreement
a 15 and, it shall be credited for any sums paid prior to breach.
16 8. In the event the City is required to enforce the terms of the Agreement and/or
17 Stipulation pursuant to its terms, CITY shall be entitled to its reasonable attorney's fees and
18 costs incurred by the entry and enforcement of such judgment, including collection thereof in
19 addition to those attorney's fees, and costs described in the Agreement.
20 9. The amount of the judgment shall be evidenced solely by the declaration of
21 counsel of record for the CITY.
22 \\\
23 \1\
24 DATED: February_,2010
25
26 By:
C LP CORPORATION
27 De endant
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2
STIPULATION FOR ENTRY OF MOMENT
669576.1
eE®(:.
1 APPROVED AS TO FORM:
2
DATED: February ,2010 WOODRUFF, SPRADLIN& SMART,APC
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By:
5 BEN AWAERMAN
6 Attorneys for Plaintiff, CITY OF TUSTIN
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STIPULATION FOR ENTRY OF JUDGMENT
669576.1
SIT "A"
SETTLEMENT AGREEMENT
This Settlement Agreement("Agreement")is entered into by and between the City of Palm
Springs("City"or"Plaintiff')and Cannahelp Corporation("CANNAHELP"or"Defendant"). The City
and CANNAHELP are sometimes referred to herein individually as a"Party"and collectively as the
"Parties" The Parties intend by this Agreement to resolve all claims between them as stated in the
lawsuit entitled City of Palm Springs V. Canna-help Corporation,Riverside Superior Court Case No.
INC084521 ("Litigation").
RECITALS
WHEREAS,the Litigation involves enforcement of Plaintiff's land use and zoning regulations
regarding the use of certain real property located at 505 Industrial Place,Palm Springs,CA("Property")
by Defendants;and
WHEREAS,the purpose of this Agreement is to settle all disputes related to the Litigation.
AGREEMENT
NOW,THEREFORE,in consideration of the mutual covenants,promises and undertakings set
forth herein and other consideration,the receipt and adequacy of which the Parties hereby acknowledge,
the Parties agree as follows:
1. The Parties' Obligations.
a. Defendant's Obligations:
(1) Cessation of Operations. Upon execution of this Agreement,the
Defendant will immediately cease any and all medical cannabis sales,transactions or similar operations at
the Property until such time as it may possess a regulatory permit pursuant to Palm Springs Zoning Code
("PSZC")chapter 93.22. Defendant expressly agrees that the Plaintiff has made no representation
whether such a regulatory permit will be issued under PSZC chapter 93.22.
(2) Costs and Fees. Defendant hereby agrees to pay the sum of six
thousand and four hundred and twenty-five dollars($6425.00)to Plaintiff for Plaintiff s administrative
costs and legal fees associated with the Litigation. Defendant shall pay Plaintiff within thirty calendar
days after executing this Agreement the aforementioned sum simultaneously with the payment in
subparagraph(1)(a)(6)below. Without limiting the generality of the foregoing,Defendant waives any
and all claims for attorneys' fees or costs it has or may have against the City related in any way to the
Litigation.
(3) Liabili . Defendant hereby admits that all allegations contained
in Plaintiffs first amended complaint are true. Defendant further recognizes that the Plaintiffs enactment
and enforcement of its land use and zoning regulations regarding medical cannabis are a legitimate
exercise of the City's police powers.
(4) Release of Claims. Defendant hereby releases the City, and any
of the City's elected and appointed officials,officers, board members, members,owners, principals,
officials,directors,employees,agents,attorneys and/or representatives,and each of them,(collectively,
"City Released Parties',from any and all claims,lawsuits,demands,challenges, liabilities,damages,
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fees,costs,or causes of action,known or unknown,that the Defendant has or may have against the City
or the City Released Parties,or any of them,arising from this Litigation. Notwithstanding the foregoing,
any Party may enforce the terms of this Agreement.
(5) PSZC chapter 93.22 Regulatory Permit. Nothing in this
Agreement shall be construed to represent,imply or suggest that the Plaintiff will issue a regulatory
permit under PSZC chapter 93.22 to Defendant.
(6) Payment of Civil Penalties. Within thirty calendar days after
executing this Agreement Defendant shall pay to Plaintiff one thousand dollars($1,000)as a compromise
for its liability under the first amended complaint for civil penalties. The payment of both the civil
penalty and those costs mentioned in subparagraph(1)(a)(2)above shall be made by a check payable to
City of Palm Springs and sent to Woodruff, Spradlin& Smart,APC,555 Anton Boulevard, Suite 1200,
Costa Mesa,CA 92626.
(7) Stipulated Entry of Judgment. Defendant will sign
contemporaneously with this Agreement a Stipulation for Entry of Judgment in favor of Plaintiff.
b. Plaintiff's Oblations:
(1) Notice of Settlement. Within fifteen calendar days after the
receipt of all moneys agreed to in this Agreement,the Plaintiff shall inform the court of settlement. Upon
request,Plaintiff will provide written confirmation to Defendant regarding the notice of settlement.
Notwithstanding the foregoing,any Party may enforce the terms of this Agreement.
2. Entire Agreement. This Agreement: (a)constitutes the entire Agreement between the
Parties concerning the subject matter hereof,(b)supersedes any previous oral or written Agreements
concerning the subject matter hereof;and(c)shall not be modified except by a writing executed by the
Party or Parties to be bound thereby.
3. Benefited Parties. This Agreement shall be binding upon and inure to the benefit of each
of the Parties and their respective representatives,heirs,devisees, successors and assigns. There shall be
no third party beneficiaries.
4. Assumption of Risk. The Parties fully understand and declare that if the facts with
respect to which this Agreement is executed are found hereafter to be different from the facts now
believed to be true,each Party assumes the risk of such possible difference in facts and hereby agrees this
Agreement shall be in effect and shall remain in effect notwithstanding such difference in facts.The
Parties represent and covenant that they are fully informed regarding all facts related to this Agreement
and will not seek to void,rescind,set aside or alter this Agreement on an assertion of mistake of fact or
law.
5. Waiver of Section 1542. Defendant hereby forever waives,releases and discharges the
City,and its agents,assigns,attorneys,contractors,departments,employees,officials,representatives,and
servants(in the aggregate,"City Representatives")of and from any and all claims,demands,rights,
liabilities and causes of action,of every type and nature,known or unknown,choate or inchoate,
liquidated or unliquidated,resolved or unresolved,which exist or may exist in favor of Defendant(in the
aggregate,"Claims"), arising out of,or in any way related to the Investigation as of the date of this
Agreement's execution. Defendant further expressly waives the provisions of California Civil Code
Section 1542 with respect to the items released above,which provides that:
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669560.2
A general release does not extend to claims which the creditor does not
know or suspect to exist in his or her favor at the time of executing the
release,which if known by him or her must have materially affected his
or her settlement with the debtor.
Defendant hereby expressly waives the provisions of said Section 1542 as to all matters
within the scope of the claims released hereby.Defendant hereby warrants and guarantees that they have
full and complete authority to release all such claims on behalf of themselves,their heirs,assigns,and
successors in interest.
6. Construction.Choice of Law.and Venue. The terms of this Agreement are the product of
arms-length negotiations between the Parties,through their respective counsel of choice,and no provision
shall be construed against the drafter thereof. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. The venue for any disputes concerning this
Agreement shall be in Riverside County. In entering into this Agreement,the Parties represent that they
have had an opportunity to obtain the legal advice of attorneys of their own choice, and that the terms of
this Agreement are fully understood and voluntarily accepted by them. The Parties further represent that
they do not rely and have not relied upon any representation or statement made by any Party or any other
person with regard to the subject matter,basis or effect of this Agreement,other than the express
provisions contained in this Agreement. If any action,at law or in equity,including an action for
declaratory relief,is brought to enforce or interpret the provisions of this Agreement,the prevailing Party
shall be entitled to recover its reasonable attorneys'fees and costs, in addition to any other relief to which
they or it may be entitled.
7. Defendant's Failure to Timms Pay. In the event that Defendant fails to make Payment
within the time specified herein,Defendant shall have judgment entered against it for$17,425.00.
a. Before any judgment may be entered against Defendant,Plaintiff must first
provide written Notice of Default to Defendant by sending said Notice of Default by First Class Mail to
either of the following:
Stacy Hochanadel,President Ulrich McNulty
Cannahelp Corporation Schlecht, Shevlin& Shoenberger
505 Industrial Place, Suite A 801 E.Tahquitz Canyon Way,Suite 100
Palm Springs,CA 92264 Palm Springs, CA 92262
b. Defendant shall have fifteen calendar days to cure such default after written
notice is mailed.
8. Counterparts and Electronic Execution. This Agreement may be executed in counterparts
which,taken together,shall constitute one and the same Agreement. This Agreement may also be
executed and/or delivered by facsimile and/or email transmission and in such event all facsimile and/or
scanned and emailed signatures shall be deemed originals for all purposes hereof.
9. Authori . Each signatory to this Agreement represents and warrants that he or she is
authorized to sign this Agreement on behalf of the Party for which he or she is signing,and thereby to
bind that Party fully to the terms of this Agreement,and that none of the claims being released herein
have been previously assigned to any other person.
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10. Headings. Paragraph headings are for reference only and shall not affect the
interpretation of any paragraph hereto.
11. No Inducement. Defendant wan-ants that no promise or inducement has been made or
offered by any of the Parties,except as set forth herein, and that this Agreement is not executed in
reliance upon any statement or representation of any of the Parties or their representatives,concerning the
Litigation. Defendant further represents it has been represented by legal counsel during the course of the
negotiations leading to the signing of this Agreement,and he has been advised by legal counsel with
respect to the meaning of this Agreement and its legal effect.
12. Effective Date This Agreement to be effective as of the date Defendant's signature(s)is
obtained
AGREED TO AND ACCEPTED AS OF THE EFFECTIVE DATE:
Cannahelp Corporation a
By: l%r. �_✓f/ach.� �2v1 ,� y;
Title: Title:
City of Palm Springs
By:
David H.Ready,Esq�{
City Manager,City of Palm Springs
A
Thompson
Cl k,City of Palm Springs
Approved as t
By: — t
Ben AnanCrman,Deputy City Attorney for he City of Palm Springs
Woodruff,Spradlin&Smart,APC
Attorneys for Plaintiff City of Palm Springs
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