HomeMy WebLinkAbout04819 - RAMY HORMOZ NEJAT KOHAN SETTLEMENT AGREEMENT SPANISH INN Ramy Hormoz/Nejat Kohan
Settlement Agreement
AGREEMENT #4819
M07433, 1-21-04
SETTLEMENT AGREEMENT, RELEASi
AND WAIVER OF RIGHTS
This SETTLEMENT AGREEMENT,RELEASE AND WAIVER OF RIGHTS (herein
"Agreement") is made and entered into this 2nd day of December, 2003 between the PLAINTIFF,
City of Palm Springs (hereinafter"CITY"), a California Municipal corporation, and Ramy Hormoz
and Nejat Kohan (hereinafter DEFENDANTS) as individuals, and as co-owners of the Property,
as herein defined, "DEFENDANTS" shall include any person acting by, through, or on behalf of
Mr. Hormoz and Mr. Kohan. The DEFENDANTS and the CITY shall collectively be referred to
as the "PARTIES" with reference to the following definitions and recitals:
RECITALS
1. DEFENDANTS are the co-owners and the persons responsible for maintaining that
property commonly known as the Spanish Inn, located at 640 North Indian Carryon Drive, in the
City of Palm Springs, Riverside County ("the Property").
2. A dispute has arisen between the City and DEFENDANT Ramy Hormoz, stemining
from a Notice and Order of a Substandard Building issued to Ranry Hormoz. The Property has
been found by the City to be in violation of numerous municipal and state codes, specifically, the
Uniform Housing Code, as adopted by Municipal Code Section 8.04.035, Muricipal Code
sections 11.72.020, 11.72.160 and 11.72.170 and Palm Springs Zoning Ordinance section 9319.
3. On December 11, 2001, the City, by and through its City Attorney, initiated a civil
action against Mr. Hormoz to enjoin violations of ordinances and municipal regulations, declare
the Property a public nuisance and authorize abatement of such nuisance by demolition. The
lawsuit is entitled The City of Palm Springs v. Ramy Hormoz, an individual, et al., (Riverside
Superior Court Case No. INC 026340, ("CIVIL ACTION"). Mr. Kohan became a co-owner of
the property subsequent to the filing by the CITY of the above-mentioned action and for that
reason he is included in this Agreement as a DEFENDANT.
4. Consistent with the terms of this settlement agreement, the PARTIES wish to settle
this dispute. Accordingly, the PARTIES are executing this Settlement Agreement, Release and
Waiver of Rights, whereby DEFENDANTS agree to bring the Property into compliance with all
City laws by specific deadlines outlined in Exhibit "A." In exchange, the CITY agrees to
dismiss the civil action currently pending in court without prejudice.
5. DEFENDANTS further agree that they will not convey the Property, or any interest
therein, unless and until the CITY receives ten (10) days written notice and the purchaser has
agreed in writing to be bound by the terms of this Agreement to the same extent as
DEFENDANTS, including payment of the $7,500.00 lien if necessary.
6. In executing this Release, DEFENDANTS acknowledge and represent that they are
executing this Release freely, knowingly, and voluntarily and are fully aware of the contents and
effect thereof, and that the execution of this Release is not the result of any fraud, duress,
510
V2 1 � ����,� �' k 0 E01 Spanish Inn Agre nent
coercion, mistake, or undue influence whatsoever. DEFENDANT acknowledges that they have
voluntarily executed this Release in good faith.
The PARTIES understand and agree that this CIVIL ACTION arose out of and relates to alleged
continuing substandard conditions of the Property emanating from the numerous notices of
Violations issued by CITY to DEFENDANTS and the failure to resolve such conditions. The
PARTIES desire to resolve all of the issues raised in the CIVIL ACTION and enter into this
Agreement to FINALLY, FULLY and COMPREHENSIVELY settle the DISPUTE and CIVIL
ACTION, as well as all underlying contentions and allegations, so as to allow the PARTIES to
continue their pursuits.
NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS IN FULL AND
COMPLETE SETTLEMENT OF THE DISPUTE AND CIVIL ACTION:
1. Rehabilitation of Property. DEFENDANTS shall take all actions necessary to
rehabilitate the Property and abate all Municipal Code, Uniform Housing Code and Palm Springs
Zoning Ordinance violations on the Property in accordance with the Schedule of Performance
attached hereto as Exhibit "A".
2. Continued Compliance. DEFENDANTS shall take all steps necessary to ensure
that no new violations of the City Code shall occur. In the event a new violation is discovered by
City Staff, the CITY shall notify DEFENDANTS, who shall promptly take action to correct
same.
3. Letter of Completion. DEFENDANTS shall obtain from CITY a Letter of
Completion of Scheduled Performance upon the completion of the performance required. The
letter of completion shall not be issued until the property has been inspected and signed-off in
writing by a City inspector authorized to conduct such inspection and verify compliance with
City codes. The required performance shall include all items listed in schedule "A", as well as
compliance with all other code requirements. CITY shall execute same upon the written request
of DEFENDANTS once all tasks are completed. If the performance required in Schedule "A" is
completed within the City completion date of December 1, 2004, acid no other code violations
are discovered, the City shall remove the remaining $7,500.00 lien from the property.
4. Permission to Enter Property. DEFENDANTS agree that all repair and
rehabilitation work shall be made under the inspection of and subject to the approval of CITY.
Accordingly, DEFENDANTS hereby grant CITY permission to enter upon the Property from
7:00 a.m. until 4:30 p.m. for the purposes of reasonable inspections of the Property and
determining compliance with this Agreement and all applicable laws and regulations.
5. Permits and Fees: Nothing in this Agreement shall be construed as relieving
DEFENDANT or any other person from the duty to obtain any permit or approval required under
city or state law, or to pay any fee, assessment, charge or tax, including building permit fees and
assessments charged by the City for inspection/administrative costs, as appropriate.
6. Release of Instruments. This agreement does not release the DEFENDANTS
from payment of the $7,500.00 lien that shall be placed on the property after it is refinanced if
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the DEFENDANTS do not comply with the attached schedule "A" performance agreement and
complete full performance on said agreement by December 1, 2004. This agreement does not
include any proposed land use changes to the property (i.e. condominiums, etc), but only the
correction of the violations listed in Schedule "A". Upon a final inspection and approval by
CITY following receipt of the Letter of Completion from DEFENDANT, if the DEFENDANTS
have completed performance of the agreement outlined in Schedule "A" within the allocated
timeframe, CITY shall take all action necessary pursuant to all applicable laws and regulations to
remove the remaining $7,500.00 lien from the title of the property.
7. Dismissal of Action. Upon the execution of this agreement by all parties and
payment of half of the assessed costs and fees, $7,500.00 by the DEFENDANTS, counsel for
City shall execute and file a Request for Dismissal without prejudice, remove the violations from
the title of the property and terminate said CIVIL ACTION.
8. Non-admission of Liability. Nothing in this Settlement Agreement is to be
construed as an admission or concession of liability or as an admission of the absence of liability
of any party hereto, including any public entity, person, firm, partnership, or corporation for any
purpose whatsoever.
9. Inyestl$ation of Facts. DEFENDANTS agree that they have made such
investigation of the facts pertaining to this Agreement and all matters pertaining hereto as they
have determined necessary. This Agreement is intended to be final and binding among the
PARTIES hereto, regardless of any claims or misrepresentations, promises made without the
intention of performing them, mistakes of fact or law, or any other circumstances whatsoever. In
entering into this Agreement, each party assumes the risk of any misrepresentation, concealment
or mistake, whether or not any party should subsequently discover or assert for any reason that
any fact relied upon by such a party in entering into this Release was untrue, or that any fact was
concealed from any party hereto, or that such parties understanding of the facts or of the law was
incorrect or incomplete.
10. General Release of All Claims. Except as provided in paragraph 5 (in the
recitals), DEFENDANTS for themselves and all of their predecessors, successors, assigns,
representatives, attorneys or agents, do hereby fully and forever release and discharge CITY and
all of its predecessors, assigns, representatives, attorneys or agents of and from any and all
actions, claims, demands, rights, damages, costs, expenses, attorneys fees, expert fees, consultant
fees, other fees, interest, and compensation of any nature whatsoever, which DEFENDANTS
have or may hereafter accrue, including without limitation, any and all known and unknown,
foreseen and unforeseen claims, damages and injury, relating to, or in any way, directly or
indirectly, involving or arising out of any facts or circumstances related to the DISPUTE and/or
CIVIL ACTION.
Unless DEFENDANTS are found to be in violation of the Agreement, CITY, for itself
and all of its predecessors, successors, assigns, representatives, attorneys or agents, will filly
and forever release and discharge DEFENDANTS and all of their predecessors, assigns,
representatives, attorneys or agents of and from any and all actions, claims, demands, rights,
damages, costs, expenses, attorneys fees, expert fees, consultant fees, other fees, interest, and
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compensation of any nature whatsoever, which CITY has or may hereafter accrue, including
without limitation, any and all known and unknown, foreseen and unforeseen claims, damages
and injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts
or circumstances related to the DISPUTE and/or CIVIL ACTION.
11. Waiver of Rights. It is the intention and understanding of DEFENDANTS, in
executing this Agreement, that it shall be effective as a full and final accord and satisfaction and
compromise and release, of each and every settled or released matter. hi furtherance of this
intention and except as provided in paragraph 5 (in the recitals), DEFENDANTS acknowledge
that they understands and expressly agree to waive all rights under California Civil Code Section
1542 which provides:
A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing
the release, which if known to him must have materially affected
his settlement with the debtor.
DEFENDANTS acknowledge that they are aware that the facts with respect to which
they have given this general release of the claims may turn out to be different from the facts they
now believe to be true. DEFENDANTS hereby assume the risk of the facts turning out to be
different, and agree that this Waiver shall in all respects be effective and not subject to
termination or rescission because of any such difference in facts.
12. Responsible PartV. This Agreement is expressly conditioned on the
representation of DEFENDANTS that they are the owners of, and persons responsible for the
Property which is the subject of this CIVIL ACTION.
OTHER TERMS AND PROVISIONS
1. Governing Law. Each Party hereto agrees that this Agreement shall be governed
and interpreted in accordance with the laws of the State of California. The PARTIES expressly
agree that any disputes, disagreements or actions shall be subject to the jurisdiction of the
Riverside Superior Court and expressly waive any defense to assertion of jurisdiction by that
court in such an action.
2. Integrated Agreement. This Agreement contains the entire understanding and
agreement between the PARTIES, and the terms and conditions contained herein shall inure to
the benefit of, and be binding upon, the heirs, representatives, successors and assigns of each of
the PARTIES hereto. It is understood that there are no oral agreements between the parties
hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous
negotiations, arrangements, agreements and understandings, if any, between the parties, and none
shall be used to interpret this Agreement.
3. Modification. No supplement, modification or amendment of this Agreement shall
be binding unless executed in writing by all of the Parties. No waiver of any of the provisions of
the Agreement shall be deemed to constitute a waiver of any other provision whether or not
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similar, nor shall a waiver constitute a continuing waiver. No waiver shall be binding unless
executed in writing by the PARTIES hereto.
4. Binding on Successors. The Agreement and the covenants and conditions
contained herein shall obligate, bind, and extend to the benefit of the PARTIES in each of their
respective successors in interest, including, but not limited to, their administrators, executors,
owners, partners, officers, directors, shareholders, legal representatives, assignees, attorneys,
successors, and agents or employees of the PARTIES hereto.
5. Representations.
DEFENDANTS have been given a full and fair opportunity to, seek and receive legal
advice regarding the effect of this Release prior to signing it, including the opportunity to confer
with an attorney regarding the Release's terms. DEFENDANTS have retained the services of,
Mark M. Geyer, Attorney at Law, who has reviewed this Agreement and has approved it as to
form. DEFENDANTS represent and agree that they have thoroughly discussed all aspects of
any claims, causes of action, or rights they may have against the City or any agent thereof, and
the terms and conditions of this Release with his legal counsel to the fullest extent they deem
appropriate and necessary and has been advised by legal counsel as to their rights to the fullest
extent appropriate and necessary.
DEFENDANTS further acknowledge that reliance is placed wholly upon their judgment
and first hand knowledge as to the terms of this Agreement. Other than the terms and conditions
specifically set forth in this Release, DEFENDANTS do not rely on any inducements, promises,
or representations by the City or any person in executing this Agreement.
6. Notice. Any notice, demand, request, document, consent, approval, or
communication that either party desires or is required to give to the other party or any other
person shall be in writing and either served personally or sent by prepaid, first-class mail, in the
case of the City, to: Palm Springs City Prosecutor, c/o Aleshire & Wynder, LLP, 18881 Von
Karman, Suite 400, Irvine, CA 92612, Attn: Karen R. Graham. In the case of DEFENDANTS,
to: Mark M. Geyer, 16027 Ventura Boulevard, Suite 205, Encino, CA 91436.
7. Construction. This Agreement shall not be construed against the party preparing
it, but shall be construed as if all PARTIES jointly prepared the Agreement. Any uncertainty or
ambiguity shall not be interpreted against any one party. Language in all parts of the Agreement
shall be in all cases construed as whole according to its very meaning.
8. Attorney's Fees. If either party to this Agreement is required to initiate or defend
this Agreement, the prevailing party in such action or proceeding, in addition to any other relief
which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees.
Attorney's fees shall include attorney's fees on any appeal, and in addition, a party entitled to
attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking
depositions and discovery and all other necessary costs the court allows which are incurred in
such litigation. All such fees shall be deemed to have accrued on commencement of such action
and shall be enforceable whether or not such action is prosecuted to judgment.
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9. Current Costs. The Parties stipulate and agree that the CITY has incurred fifteen
thousand dollars ($15,000) in costs (including attorney's fees) to date on this CIVIL ACTION,
and that CITY is entitled to recover said costs. DEFENDANTS are not entitled to costs
(including attorney's fees) in connection with this DISPUTE. To settle the DISPUTE, CITY
agrees to accept one half of the costs for this CIVIL ACTION ($7,500.00), and remove the
current violations from the title of the property to allow DEFENDANTS to obtain funding to
correct the remaining code violations. The remainder of the fees ($7,500.00) shall be placed on
the property with a lien to be recorded after the DEFENDANTS refinance the property and shall
be removed from the title if the DEFENDANTS complete the code violation corrections within
the scheduled time period, December 1, 2004. However, this date may be extended upon
approval by the City Manager.
10. Gender Neutral. Whenever the context in this Agreement may so require, the
masculine, feminine and neutral genders shall be deemed to include the other and the singular
and plural shall refer to one another.
11. Counterparts. This Agreement may be executed in duplicate counterparts, each of
which shall be deemed an original and all of which shall constitute an agreement to be effective
as of the date of signing. Further, signatures transmitted and memorialized by facsimile shall be
deemed to have the same weight and effect as an original signature. The PARTIES may agree
that an original signature may be substituted at some later time for any facsimile signature.
12. Subsequent Actions. The PARTIES agree that each Party shall execute and
deliver such further documents and instruments and take such other actions as may be necessary
or appropriate to consummate or implement the transactions contemplated herein or to evidence
such events or matters.
13. Captions and Interpretations. The paragraph titles and captions are inserted in
this Agreement as a matter of convenience. As such, the paragraph titles or captions are not
intended to define or describe the scope of any provision.
14. Severability. In the event that part of this Agreement shall be declared invalid or
unenforceable such invalidity or mienforecability shall not affect any of the remaining portions
of this Agreement which are hereby declared as severable and shall be interpreted to carry out
the intent of the parties hereunder unless the invalid provision is so material that its invalidity
deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
15. Corporate Authority. The persons executing this Agreement on behalf of the
PARTIES hereto warrant that (i) such parties are duly organized and existing, (ii) they are duly
authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing
this Agreement, such parties are formally bound to the provisions of this Agreement, and (iv) the
entering into this Agreement does not violate any provision of any other Agreement to which
said party is bound.
Signatures binding the terms of this agreement are on page 7.
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I have carefully read and fully understand, and hereby execute this Agreement:
- y - - ----- _ DATE: `
R41-liy Hor noz, Defendant
K. DATE:
Nejat I{olian, Defend t �y
DATE: Gi 0 `� LSD✓
David Ready T
PALM SPRINGS CITY M QAGER ��; e',l ���-'
APPROVED AS TO FORM: PATRICIA A. SANDERS D to e
y City Clerk
By: �LQ� � V 11�(�� DATE:
Markeyer
Attorney for R`amy Honnoz
By:�C✓���� / I?-
DATE: / ' /
Karen R. Grahatn
ALESI-IIRE& WYNDER, LLP
City of Palm Springs
L
V2 7 Spanish Inn Agreement
-— ---- --- --
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DEC 02 .03 0 st
EXHIBIT "A"
SCHEDULE OF PERFORMANCE
Ramy Hormoz and Nejat Kohan
Property Address: 640 N. Indian Canyon Drive (Spanish Inn)
PHASE VIOLATION/PROBLEM ACTION NEEDED & DEADLINE
1 Exterior of all buildings including Permit requirements must be diligently
windows and doors must be complied with and submitted to the CITY for
completed and installed approval within 10 days of the receipt of the
funds for the corrections. The work must be
completed within 45 days after the issuance of
the permits, with the exception of the lobby
entry which shall be completed within six
months of the issuance of the permit.
2 Complete refurbishing of the interior Permit requirements must be diligently
of the buildings/units complied with and submitted to the CITY for
Electrical, walls, plumbing, flooring, approval within 10 days of the receipt of the
and all other items necessary to bring funds for the corrections. The work must be
the interior in compliance with City completed within 180 days of the issuance of
codes. the permits.
3 Pool and Parking Areas These areas are to be worked on in conjunction
with the landscape. Work on these areas is to
be completed, approved, and signed off on by
the City inspector prior to the issuance of a
certificate of insurance.
4 Landscape of the entire interior and It is understood that the landscaping is the last
exterior of the Property thing to be completed. The landscaping must
be completed within 30 days of completion of
the refurbishing of the interior of the buildings.
5 Compliance Defendants must maintain compliance with
City conditions of approval required by the
City Planning Commission. Appointments
must be made with City inspectors at
appropriate intervals during the duration of the
corrections of the violations.
6 Final Completion Date All of the work necessary to correct the five
notices of violations contained in instruments
numbered: 2001-380434, 2001-484478, 2000-
372545, 1999-560181, and 1999-533770, is
December 1, 2004.
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