Judge: Mark H. Epstein, Case: SC129672, Date: 2023-02-09 Tentative Ruling

Case Number: SC129672    Hearing Date: February 9, 2023    Dept: R

The court is inclined to set an MSC, although it ought not be needed.  If the statement by all but Shama is true, then both sides are worried about a double-cross.  That is a problem with a solution. 

At least according to the statement the court has seen, everyone has settled except Arjava, who owns half of Shama.  Because of Shama’s structure, it cannot take an action without Arjava’s approval, meaning Shama cannot settle either.  Shama owns certain property that Pickford believes is available to satisfy the judgment.  Everyone (including Arjava) has apparently agreed to sell that property and divide the proceeds as agreed among them.  The problem is that everyone but Arjava wants there to be a Deed of Trust included.  The purpose of the DOT is to protect the proceeds.  In other words, Shama owns the property and thus any sale would be solely between Shama and the buyer.  The other parties are worried that Shama and the buyer could elect to divert the proceeds such that they could not be used as agreed—a double cross.  The DOT would stop that from happening because the DOT could not be released absent consent and no consent would be given unless the deal was honored.  On the other hand, Arjava is apparently worried (as is the potential buyer) that the other parties would not release the DOT even if the deal is honored, but rather would hold the sale hostage for some modification—a double cross.  Without the DOT, there would be no fear of that happening.

The court is confident that intelligent counsel can work out a structure where these potential double-crosses cannot occur.  And the court would at least hope that, at this late stage, no one is intending a double-cross anyway.  Frankly, an MSC is not really needed.

All of that said, given the case’s posture, the court has no intention of working up a summary judgment motion.  The case has settled, including as to Shama, in all practical senses.  It is now a matter of drafting.