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reynold.siemens(a),pillsburylaw.com
MARIAH BRANDT #224076
mariah.brandt@pillsburylaw.com
725 South Figueroa Street, Suite 2800 Los Angeles, CA 90017-5406 Telephone: (213) 488-7100 Facsimile No.: (213) 629-1033
Deputy
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RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP.,
BC482698
Case No.
UNLIMITED JURISDICTION
COMPLAINT FOR
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Plaintiffs,
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vs.
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COMPANY, CENTURY INDEMNITY COMPANY, COLUMBIA CASUALTY COMPANY, THE EMPLOYERS' FIRE INSURANCE COMPANY, ILLINOIS NATIONAL INSURANCE CO.,
INSURANCE COMPANY OF NORTH
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AMERICA, LUMBERMENS MUTUAL CASUALTY COMPANY, STEADFAST INSURANCE COMPANY, TRANSPORT INDEMNITY COMPANY, and DOES 1-50,
Defendants.
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1.
This is a civil action for declaratory relief, breach of contract, and for
breach of the implied covenant of good faith and fair dealing arising from the failure
of certain of the defendant insurers ("Insurers") to satisfy their contractual
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obligations to defend and indemnify Plaintiffs against lawsuits filed by present and
former professional football players alleging long-term neurological injuries caused
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2.
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business in Van Nuys, California, and is wholly owned by Easton-Bell Sports, LLC.
4. RBG Holdings Corp. is a Delaware corporation with its principal place
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place of business in Van Nuys, California, and is wholly owned by RBG Holdings
Corp.
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6.
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business in Chicago, Illinois, and is wholly owned by Riddell Sports Group, Inc.
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principal place of business in Ohio, and is wholly owned by Riddell Sports Group,
Inc.
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corporation with its principal place of business in New York, New York, and is authorized to and is currently doing business in the state of California.
11. Arrowood Indemnity Company ("Arrowood"), formerly known as
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California corporation with its principal place of business in Deerfield, Illinois, and
is authorized to and is currently doing business in the state of California. \
13. Century Indemnity Company ("Century"), successor to Insurance
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with its principal place of business in Chicago, Illinois, and is currently doing
business in the state of California.
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corporation with its principal place of business in Chicago, Illinois, and is currently
doing business in the state of California.
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17.
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Illinois corporation with its principal placeof business in Lake Zurich, Illinois, and
is authorized to and is currently doing business in the state of California.
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with its principal place of business in Schaumburg, Illinois, and is authorized to and
is currently doing business in the state of California.
20.
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The true names and capacities of the defendants sued herein as Does 1-
50, inclusive, are unknown to Plaintiffs, which therefore sued said defendants by
such fictitious names. Plaintiffs will amend this Complaint to allege their true
names and capacities when ascertained, Plaintiffs are informed and believe and
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thereon allege that each of said fictitiously named defendants is in some manner
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22.
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professional football players while playing in the National Football League ("NFL")
403425655v2
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National Football League, et al. was filed in the United States District Court for the
been transferred and consolidated with the other actions in the NFL Players'
Concussion Injury Litigation MDL No. 2323 in the United States District Court for the Eastern District of Pennsylvania ("MDL").
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Football League, et al. was filed in the United States District Court for the Central
District of California, Case No. 2:1 l-cv-08395 ("Pear"). Pear has been transferred
and consolidated in the MDL.
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National Football League, et al. was filed in the United States District Court for the
Central District of California, Case No. 2:11-cv-08396 ("Barnes"). Barnes has been
transferred and consolidated in the MDL.
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National Football, et al. was filed in the Superior Court of the State of California County of Los Angeles, Case No. BC471229 ("Hardman"). Hardman was dismissed without prejudice on December 7, 2011.
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Football League, et al. was filed in the United States District Court for the Central
District of California, Case No. 2:12-cv-00524 ("Steed'). Steed has been transferred
and consolidated in the MDL.
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v. National Football League, et al. was filed in the United States District Court for the Eastern District of Pennsylvania, Case No. 2:12-cv-00336 ^Wallace").
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al. v. National Football League, et al. was filed in the United States District Court for the Eastern District of Louisiana, Case No. 2: l2-cv-00459 ("Hughes"). Hughes
has been transferred and consolidated in the MDL.
30.
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Plaintiffs had in full force and effect primary policies that provide
commercial general liability and products liability coverage (the "Primary Policies")
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and/or excess policies that provide commercial general liability and products
liability coverage (the "Excess Policies," collectively, the "Policies") issued by each
of the Insurers.
33.
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Policy No.
Unknown OYL-211500
1YL-211500
Policy Period
12/31/1959 12/31/1960
Lumbermens
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Lumbermens
Lumbermens
12/31/1960
12/31/1961
12/31/1964
12/31/1961
12/31/1962
3/31/1965
GLG-473526
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GYB 145617
3/31/1965
3/31/1968
AGP 10 21 51,10-68-25
AGP 12-36-88
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3/30/1971
10/31/1971
10/31/1971
11/5/1975
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403425655v2
Columbia
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Employers' Fire
Associated Associated Associated Associated Associated
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Associated
Associated Associated Associated
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GL 101494
PR 102355
PR 103062
Associated Associated
Associated
PR 106742 XS 106787
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34.
Policy No.
GLA-100207
Policy Period
3/31/1965 3/31/1968
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BE 267-71-55
RDX 4169594 42
10/31/1971 -10/31/1974
4/22/1979 4/22/1982 4/22/1980 8/19/1982 4/22/1983
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TUL 675407
TUL 675426
8/19/1982 4/22/1983
TUL 675434
4/22/1984
TUL 675458
BE 357-02-65
SCO 9672420-00
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\
to
Steadfast
SCO 9672420-01
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Actions fall or potentially fall within the scope of coverage of these Policies.
COMPLAINT FOR DECLARA" ORY RELIEF, BREACH OF CONT RACT, AND BREACH OF THE IMPLIED CON/ENANT OF GOOD FAITH AND F/UR DEALING
Accordingly, pursuant to the terms of the Policies and under the law, Insurers have
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the duty to defend and/or indemnify Plaintiffs for losses incurred in connection with
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the Underlying Actions, subject to each policy's terms, indemnity limit, deductible,
or attachment point.
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agreed to defend Riddell against the Underlying Actions, and Steadfast has agreed to
defend upon exhaustion of its self-insured retention, subject to a reservation of
rights. Other Insurers that have a duty to defend have refused to honor their defense
obligations. The Insurers have not agreed to indemnify plaintiffs against the
Underlying Actions.
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and have satisfied all other conditions to coverage, or are otherwise excused from
doing so. All actions taken by Plaintiffs with respect to the above loss have been
reasonable, and no action has prejudiced the ability of the Insurers to fulfill their contractual obligations.
FIRST CAUSE OF ACTION
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and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the
Underlying Actions.
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Actions.
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Plaintiffs and these Insurers concerning the proper construction of the Policies and
403425655v2
the rights and obligations of the parties. The controversy is of sufficient immediacy
to justify the issuance of a declaratory judgment.
WHEREFORE, Plaintiffs pray for relief as set forth below.
SECOND CAUSE OF ACTION
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42.
43.
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indemnify the Plaintiffs covered by their Policies for the entire amount of losses
incurred in connection with the Underlying Actions, subject to the Policies' limits,
deductibles, or attachment points.
44. None of the Insurers have agreed to indemnify or provide a defense for
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any of the Underlying Actions. 45. An actual controversy of a justiciable nature presently exists between
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Plaintiffs and Insurers concerning the proper construction of the Policies and the
rights and obligations of the parties with respect to losses incurred by Plaintiffs in
connection with the Underlying Actions. The controversy is of sufficient immediacy to justify the issuance of a declaratory judgment.
46. WHEREFORE, Plaintiffs pray for relief as set forth below.
THIRD CAUSE OF ACTION
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and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the
403425655v2
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IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
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Underlying Actions.
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Actions.
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of their Policies by refusing to perform their duty to defend Plaintiffs against the
Underlying Actions.
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have been deprived of the benefits of insurance coverage, for which it paid
substantial premiums, with respect to losses incurred by Plaintiffs in connection with
the Underlying Actions. 52. WHEREFORE, Plaintiffs pray for relief as set forth below.
FOURTH CAUSE OF ACTION
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(For Breach of the Implied Covenant of Good Faith and Fair Dealing)
(Against American Home and Lumbermens)
53.
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Implied in each of the Insurers' Policies is a covenant that they will act
in good faith and deal fairly with their insureds; that they will do nothing to interfere
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with their insured's rights to receive the benefits of the Policies; that they will not place their own interests before those of their insureds; that they will exercise
diligence, good faith, and fidelity in safeguarding the interests of their insureds; that
they will deal ethically with their insureds and will fairly and adequately inform them of the nature and scope of their insurance coverage (hereinafter referred to as "the implied covenant of good faith and fair dealing"). 55. American Home and Lumbermens have each breached the implied
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II
denials of coverage, notwithstanding their inability to identify supporting legal or factual authority for their coverage defenses,
and decisions of other Courts rejecting their legal and/or factual
contentions;
d.
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Inventing spurious grounds for avoidance of coverage without regard to the pertinent policy language, facts, or law;
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e.
Failing to provide promptly a reasonable explanation of the basis relied on, in relation to the facts or applicable law, for the
denial of coverage;
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f.
Not attempting in good faith to negotiate a prompt, fair, and reasonable settlement within policy limits of Riddell's claims;
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h.
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Plaintiffs are informed and believe and thereon alleges, that American
Home and Lumbermens are in breach of the implied covenant of good faith and fair
dealing, did the things and committed the wrongful acts alleged above, among other
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things, for the purpose of willfully and consciously withholding from Plaintiffs the
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rights and benefits to which they are entitled under their Policies and in complete
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disregard of said rights; in so doing, American Home and Lumbermens have placed
their own interests above those of Plaintiffs for the purpose of retaining and using
money that should have been spent on the defense of Riddell.
57. Pursuant to Brandt v. Superior Court, 37 Cal. 3d 813 (1983), Plaintiffs
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are entitled to recover all attorneys' fees and expenses that they reasonably have
incurred and will incur, in their efforts to obtain the benefits of insurance that have
been, and continue to be, wrongfully and in bad faith withheld by American Home
and Lumbermens.
58.
disregard of Plaintiffs' rights and with the intent to vex, injure or annoy Plaintiffs, such as to constitute oppression, fraud or malice under California Civil Code Section
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American Home and Columbia policies impose on those Insurers a duty to defend
a duty to indemnify the Plaintiffs insured under their Policies against the Underlying
Actions. 61. On the Third and Fourth Causes of Action:
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a. Compensatory and general damages according to proof; b. Special and incidental damages according to proof;
c. Prejudgment interest at the maximum legal rate;
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IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
62.
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63.
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By
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Synold L.TSiemens Attorneys for Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTONBELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS
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CORP.
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12-
CM-010
ATTORNEYOR PARTY WITHOUTATTORNEY (Name. Slate Barnumber. tmO etidress):
ouitr use ONLY
-PILLSBURY W1NTHROP SHAW PITTMAN LLP REYNOLD L. SIEMENS #I77956/MARIAH BRANDT #224076
TELEPHONE-NO, (213) 488-7100 FAX NO, (213) 629-1033 attorney for (N^m): Kiddeil, Inc., All American Sports Corporation, et al.
SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANG ELES STREET ADDRESS: ] | | ft. Hill Street
MAILING ADDRESS:
*&!*
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Qeputv
CASE NUMBER:
CZ3 Unlimited
(Amount
demanded
Limited
(Amount
I Counter
I Joinder
JUDGE?
BC482 69 8
demanded is Filed with first appearance by defendant DEPT: $25,000 or less) (Cal. Rules of Court, rule 3.402) Items 1-6 below must be completed (see instructions on page 2). 1. Check one box below for the case type that best describes this case:
exceeds $25,000)
Auto Tort
Contract
Real Property
| Eminent domain/Inverse
condemnation (14)
I I Civil rights (08) I I Defamation (13) Fraud (16) Intellectual property (19) Professional negligence (25) Other non-Pt/PD/WD tort (35)
Employment
Unlawful Detainer
I I
Drugs (38)
Judicial Review
I Partnership and corporate governance (21) I Other petition (not specified above) (43)
I is not
(_] Other judicial review (39) complex under rule 3.400 of the California Rules ofCourt. If the caseiscomplex, mark the
d. 1 I Large number ofwitnesses e. I / ICoordination with related actions pending in oneor more courts
inother counties, states, or countries, or ina federal court
c.[ / Ipunitive
4. Number ofcauses ofaction (specify): Four (4) 5. This case I I is I / I is not a class action suit.
6. Ifthere are any known related cases, file and serve a notice of related case. (Youmay use form CM-C15.)
Reynold L. Siemens
h
NOTICE
4
(Sll
Plaintiff must file this cover sheet with the first paper filed in the action or proceeding (except small claimscases or cases filed underthe Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule3.220.)Failure to file may result
in sanctions.
File this cover sheet in addition to any cover sheet required by local court rule.
$ If this case iscomplex under rule 3.400 et seq. of the California Rules of Court, you must serve a copy of this cover sheet on all
"i other parties to the action or proceeding. Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only
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Pago 1 of 2 Pi
*535E55i5"
CM-OtO [Rev. July t, 2Q07|
Cfll. Rules of Court, rules 2.30.3.220, 3.400-3 403, 3.740. Cal. Standards of Judicial Administration, std. 3.10 www.courtinla.ca.gav
SHORT TITLE:
CASE NUMBER
<** 6*8-
JURY TRIAL? EyES CLASS ACTION? D YES LIMITED CASE? DyES TIME ESTIMATED FOR TRIAL 15 D HOURS/ B DAYS
Item II. Indicate the correct district and courthouse location (4 steps - Ifyou checked "Limited Case", skip to Item III, Pg. 4):
Step 1: After first completing the Civil CaseCover Sheet form, find the main Civil CaseCover Sheet heading for your
case in the left margin below, and, to the right in Column A, the Civil Case Cover Sheet case type you selected. Step 2: Check one Superior Courttype of action in Column B below which best describes the nature of this case.
Step 3: In Column C, circle the reason for thecourt location choice that applies tothe type ofaction you have
checked. For any exception to the court location, see Local Rule 2.0. Applicable Reasons for Choosing Courthouse Location (see Column C below)
1. Class actions must be filed in the Stanley Mosk Courthouse, central district. 2. May be filed in central (other county, or no bodily injury/property damage).
3. Location where cause of action arose.
Step 4: Fill in the information requested on page 4 in Item III; complete Item IV. Sign the declaration.
A
Civil Case Cover Sheet
B Type of Action (Check only one) D A7100 Motor Vehicle - Personal Injury/Property Damage/Wrongful Death
c
Applicable Reasons See Step 3 Above
1..2..4.
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1,2., 4.
Asbestos (04)
2.
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Product Liability(24)
2.
D A7260 Product Liability (not asbestos or toxic/environmental) a A7210 Medical Malpractice - Physicians & Surgeons
1..2..3..4..8,
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(23)
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Page 1 of 4
SHORT TITLE:
CASE NUMBER
B
Type of Action
Category No.
Business Tort (07)
Civil Rights (08)
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a
1 2. 3.
1.. 2., 3. 1,2., 3.
2,3.
1..2., 3.
Q.
1 2., 3.
10.
2., 5.
2., 5.
Q A6008 ContracVWarranty Breach -Seller Plaintiff(no fraud/negligence) O A6019 Negligent Breach of Contract/Warranty (no fraud)
Collections (09)
2,5.6.
2,5. 1 2 5., 8.
1..2., 3.. 5.
1., 2., 35. 1.,2.,3.,8.
Condemnation (14)
r
o.
Number of parcels
2.
2., 6.
CO
2., 6.
2., 6.
q:
2., 6.
(31)
Unlawful Detainer-Residential
a
D A6021 Unlawful Detainer-Commercial (not drugs or wrongful eviction) D A6020 Unlawful Detainer-Residential(not drugs or wrongful eviction)
A6020F Unlawful Detainer-Post-Foreclosure
2., 6.
(32)
Unlawful Detainer-
2.,6.
"5
"5 CO
Post-Foreclosure (34)
Unlawtul Detainer-Drugs (38)
2., 6.
2., 6.
T.
Page 2 of 4
SHORT TITLE:
CASE NUM6ER
B
Type of Action
c
Applicable Reasons See Step 3 Above 2., 6.
2.. 5.
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2., 8.
2.
2.
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3
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2., 8.
1..2..8. 1..2..3.
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1..2..8.
Environmental (30)
1.,2.,3..8.
1,2^8.
2., 9. 2,6. 2., 9.
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C -
Enforcement
of Judgment (20)
D A6140 Administrative AgencyAward(not unpaid taxes) D A6114 Petition/Certificate for Entryof Judgment on Unpaid Tax D A6112 Other Enforcement of Judgment Case
2., 8. 28.
2., 8., 9.
LU
RICO (27)
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12..8.
1..2..8.
2,8. 1., 2., 8.
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2., 8.
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2., 3., 9.
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Other Petitions
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2., 3., 9.
2.
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2., 7.
2., 34.,8.
2., 9.
-j Page 3of 4
SHORT TITLE:
CASE NUMBER
Item III. Statement of Location: Enter the address of the accident, party's residence or place of business, performance, or other
circumstance indicated in Item II., Step 3 on Page 1, as the proper reason for filing in the court location you selected.
ADDRESS:
REASON: Check the appropriate boxes for the numbers shown under Column C for the type of action that you have selected for
this case.
DT. D2. D3. D4. 05. D6. 07. D8. L7J9. D10.
CITY: STATE: ZIP COOE:
Los Angeles
CA
90017
Hem IV. Declaration of Assignment: Ideclare under penalty of perjury under the laws of the State of California that the foregoingis true
and correct and that the above-entitled matter is properly filed for assignment to the Stanley Mosk
Central
courthouse in the
District of the Superior Court of California, County of Los Angeles [Code Civ. Proc, 392 et seq., and Local
Reynold L. Siemens
PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLY
COMMENCE YOUR NEW COURT CASE:
1.
4. Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev. 03/11).
5. Payment in full of the filing fee, unless fees have been waived. 6. A signed order appointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiffor petitioner is a minor under 18 years of age will be required by Court in order to issue a summons.
7. Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendum must be served along with the summons and complaint, or other initiating pleading in the case.
CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION AmfrlciB lxglN'cl, Inc.
Page 4 of 4