Brooks v. Tarsadia Hotels

District Court, S.D. California·Decided February 4, 2021·No. 3:18-cv-02290·Unknown

Opinion

JASON BROOKS, Case No.: 18cv2290-GPC(KSC)

Plaintiff, ORDER ADOPTING REPORT AND v. RECOMMENDATION GRANTING TARSADIA DEFENDANTS AND TARSADIA HOTELS, 5th ROCK, LLC, PLAYGROUND’S AMENDED MKP ONE, LLP, TUSHAR PATEL, B.U. PATEL, GREGORY CASSERLY, SETTLEMENT AGREEMENT

PROPERTIES, INC. AND DOES 1-50, [REDACTED – ORIGINAL FILED Defendants. UNDER SEAL]

[Dkt. No. 77.]

Before the Court is Defendants Tarsadia Hotels, 5th Rock, LLC, MKP One, LLC and Gaslamp Holdings, LLC’s (“Tarsadia Defendants”) amended motion to enforce settlement agreement filed on June 5, 2020. (Dkt. No. 77.) On the same day, Defendant Playground Destination Properties, Inc. (“Playground”) filed a notice of joinder. (Dkt. No. 76.) On June 22, 2020, Plaintiff Jason Brooks (“Mr. Brooks”) filed an opposition. (Dkt. No. 81.) On July 17, 2020, Tarasdia Defendants filed a reply. (Dkt. No. 82.) On August 4, 2020, the Court referred the motion to the Magistrate Judge Karen S. Crawford for a report and recommendation. (Dkt. No. 83.) On August 20, 2020, Mr. Brooks filed an objection to referring the matter to the Magistrate Judge. (Dkt. No. 88.) On October 2, 2020, the Magistrate Judge issued a report and recommendation (“R&R”) granting Tarsadia Defendant’s and Playground’s (collectively “Defendants”) amended motion to enforce settlement agreement. (Dkt. No. 94.) On October 15, 2020, Mr. Brooks filed an objection. (Dkt. No. 95.) On October 26, 2020, Tarsadia Defendants filed a reply. (Dkt. No. 96.) On January 22, 2021, in response to the Court’s order, Tarsadia Defendants filed the settlement agreement under seal. (Dkt. No. 101.) On January 29, 2021, Brooks filed a notice regarding the settlement. (Dkt. No. 103.) Based on the reasoning below, the Court ADOPTS the R&R and GRANTS Tarsadia Defendants and Playground’s amended motion to enforce settlement agreement. Background On September 25, 2018, Jason Brooks, a prisoner proceeding pro se and in forma pauperis, filed a complaint against Tarsadia Defendants and their principals Gregory Casserly, B.U. Patel, and Tushar Patel as well as Playground for violations of the Interstate Land Sales Full Disclosure Act (“ILSA”) and other related claims arising out of Plaintiff’s purchase of a residential condominium unit in San Diego. (Dkt. No. 1.) After rulings on motions to dismiss the first amended complaint, Plaintiff filed the operative second amended complaint (“SAC”) on September 3, 2019. On December 5, 2019, the Court granted in part and denied in part Tarsadia Defendants and Playground’s motions to dismiss the SAC. (Dkt. No. 56.) Defendants filed their answers on February 21, 2020. (Dkt. Nos. 62, 63.) On April 22, 2020, the parties participated in a telephonic early neutral evaluation conference (“ENE”) with Magistrate Judge Karen S. Crawford. (Dkt. Nos. 70, 71; Dkt. No. 77-1, Moses Decl. ¶ 2.) In attendance were counsel for Tarsadia Defendants, representatives from Tarsadia Defendants, counsel for Playground, representatives from Playground as well as Plaintiff Jason Brooks, Magistrate Judge Crawford and her law clerk. (Dkt. No. 77-1, Moses Am. Decl. ¶ 2.) At the ENE, the Magistrate Judge explained that Plaintiff made the initial settlement demand which was communicated to Defendants who then conferred and presented a counter-proposal which was communicated to Plaintiff. (Dkt. No. 94 at 2- 3.1) This process with back and forth consultations between the parties continued for about three hours until the parties reached a settlement. (Id. at 3; Dkt. No. 84-1, Moses Am. Decl. ¶¶ 3-4 (UNDER SEAL).) (Dkt. No. 93 at 3 (UNDER SEAL).) . (Id. (UNDER SEAL).) . (Id. (UNDER SEAL).) . (Id. (UNDER SEAL).) (Id. (UNDER Magistrate Judge Crawford articulated the following terms of the settlement to the parties in a joint session. (Dkt. No. 94 at 3.) 1.

;

2. ;

3. ;

4.

5. ;

6.

7.

8.

9. ;

10.

11. . (Dkt. No. 93 at 3-4 (UNDER SEAL).) Counsel for Tarsadia Defendants who was present at the conference recited similar terms in their motion which included the following: 1.

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3.

4.

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5. . 6.

(Dkt. No. 84-1, Moses Am. Decl. ¶ 5 (UNDER SEAL).) After the Magistrate Judge recited the terms of the settlement with all parties on the line, she asked each party and counsel to verbally confirm that the stated terms accurately represented the settlement reached. (Dkt. No. 94 at 4.) All parties confirmed that the terms accurately reflected the settlement reached and Mr. Brooks did not express any objections to the terms of the settlement. (Dkt. No. 94 at 4; Dkt. No. 77-1, Moses Am. Decl. ¶ 6.) At the end of the ENE conference, Magistrate Judge Crawford ordered Tarsadia Defendants’ counsel to prepare a written settlement agreement memorializing the terms, and a joint request to dismiss the case, and to send both documents within seven days to Mr. Brooks for his review. (Dkt. No. 77-1, Moses Am. Decl. ¶ 7.) The Court ordered that Mr. Brooks have three days to review and send back the documents to the Tarsadia Defendants. (Id.) The Court also ordered Tarsadia Defendants to provide the Court with a copy of the Settlement Agreement when they transmitted them to Mr. Brooks. (Id.) On April 28, 2020, the Magistrate Judge confirmed the settlement in its Order Following Early Neutral Evaluation Conference. (Dkt. No. 72.) The Order states, The parties reached an agreement in principal during the Early Neutral Evaluation (“ENE”) held on April 22, 2020. As discussed during the ENE, counsel for defendant Tarsadia Hotels will circulate a draft settlement and release agreement by April 29, 2020. Plaintiff shall review and respond within three business days of receipt of the settlement and release agreement. Pursuant to the parties’ agreement, Tarsadia Hotels will deposit the settlement funds with the Clerk of the Court by check made payable to the “Clerk of Court, U.S. District Court, Southern District of California.” The funds so deposited will be held in an interest bearing account pending further order of this Court. Plaintiff Jason Brooks will file a motion before the Hon. Gonzalo P. Curiel, delineating how plaintiff believes the settlement funds should be distributed based on applicable law and in consideration of any restitution order entered against him in connection with his conviction. Plaintiff’s motion shall be filed by June 5, 2020. The settlement funds will be distributed by the Clerk of Court in accordance with the Court’s determination.

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Brooks v. Tarsadia Hotels, (S.D. Cal. 2021).

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