Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-01236/USCOURTS-caed-2_07-cv-01236-4/pdf.json

Parties Involved:
APIP 220 LLC
Defendant
American National Red Cross
Counter Claimant
United Way California Capital Region
Counter Claimant
Volen Properties 10, LLC
Counter Claimant

Document Text:

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STIP AND ORDER DISMISSING APIP WITHOUT PREJUDICE 

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DAVIS WRIGHT TREMAINE LLP 

865 S. FIGUEROA ST, SUITE 2400 

LOS ANGELES, CALIFORNIA 90017-2566 

(213) 633-6800 

Fax: (213) 633-6899 

MARY H. HAAS (State Bar No. 149770) 

DAVIS WRIGHT TREMAINE LLP 

865 S. Figueroa Street, Suite 2400 

Los Angeles, California 90017-2566 

Telephone: (213) 633-6800 

Fax: (213) 633-6899 

ROCHELLE L. WILCOX (State Bar No. 197790) 

DAVIS WRIGHT TREMAINE LLP 

7405 Greenback Lane, #326 

Citrus Heights, California 95610-5603 

Telephone: (916) 962-0677 

Fax: (916) 962-0678 

Attorneys for Plaintiff 

AMERICAN NATIONAL RED CROSS 

UNITED STATES DISTRICT COURT 

EASTERN DISTRICT OF CALIFORNIA 

AMERICAN NATIONAL RED CROSS, 

a nonprofit organization 

created by an Act of Congress, 

 Plaintiff, 

 vs. 

UNITED WAY CALIFORNIA CAPITAL 

REGION, a California corporation; APIP 

220 LLC, a California limited liability 

company; VOLEN PROPERTIES 10, 

LLC, a California limited liability 

company; and DOES 1-10, inclusive, 

 Defendants. 

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Case No. CV07-01236-WBS-DAD 

STIPULATION AND [PROPOSED] 

ORDER DISMISSING APIP 220 LLC 

WITHOUT PREJUDICE 

Case 2:07-cv-01236-WBS-DAD Document 98 Filed 01/16/08 Page 1 of 5
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STIP AND ORDER DISMISSING APIP WITHOUT PREJUDICE 

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DAVIS WRIGHT TREMAINE LLP 

865 S. FIGUEROA ST, SUITE 2400 

LOS ANGELES, CALIFORNIA 90017-2566 

(213) 633-6800 

Fax: (213) 633-6899 

Plaintiff AMERICAN NATIONAL RED CROSS (the “Red Cross”), Defendant 

APIP 220 LLC (“APIP”) and Defendant VOLEN PROPERTIES 10, LLC (“VOLEN”), by 

and through their respective counsel, hereby enter into this Stipulation and Order with 

reference to the following facts: 

1. On or about October 10, 2007, the Red Cross filed a First Amended 

Complaint (“Complaint”) in this action seeking, among other things, declaratory relief 

relating to real property located at 8928 Volunteer Lane, Sacramento, California (the 

“Property”). 

2. The Red Cross alleges, among other things, that Defendants UNITED WAY 

CALIFORNIA CAPITAL REGION (“UNITED WAY”) and VOLEN have failed and/or 

refused to acknowledge Plaintiff’s claimed option to purchase a portion of the Property. 

3. As relevant here, the Red Cross seeks declaratory relief as to its claimed right 

to exercise the option to purchase a portion of the Property and an order compelling 

VOLEN to provide the Red Cross with a Short Form Memorandum of Lease that it can 

record providing notice of its option to purchase the Property; the Red Cross seeks no 

monetary or other affirmative relief against APIP, and included APIP as a party to this 

action due to its record ownership of the Property commencing September 17, 2007, and 

ending October 10, 2007, to protect the Red Cross’s right to obtain full relief from and 

against VOLEN. 

4. Defendants APIP and VOLEN have made the following representations to the 

Red Cross: 

a. APIP is an Exchange Accommodation Titleholder (“EAT”) and 

facilitates reverse exchanges under Section 1031 of the Internal Revenue Code in 

accordance with Revenue Procedure 2000-37; 

b. On September 17, 2007, Bart Volen, the managing member of 

VOLEN, and APIP entered into a written agreement whereby APIP agreed to take 

beneficial title to the Subject Property in the context of a reverse exchange under 

Section 1031 of the Internal Revenue Code and Revenue Procedure 2000-37 (the 

Case 2:07-cv-01236-WBS-DAD Document 98 Filed 01/16/08 Page 2 of 5
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STIP AND ORDER DISMISSING APIP WITHOUT PREJUDICE 

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DAVIS WRIGHT TREMAINE LLP 

865 S. FIGUEROA ST, SUITE 2400 

LOS ANGELES, CALIFORNIA 90017-2566 

(213) 633-6800 

Fax: (213) 633-6899 

“Volen-APIP Agreement”); 

c. In connection with its obligations under the Volen-APIP Agreement, 

APIP acquired beneficial title to the Property on September 17, 2007; 

d. On October 10, 2007, in compliance with its obligations under the 

Volen-APIP Agreement, APIP transferred title to the Property to VOLEN; 

e. During the time that it was on title to the Property, APIP did not 

otherwise own or operate the Property, nor was it involved in any discussions 

between Plaintiff, VOLEN, UNITED WAY, or any of their representatives regarding 

an option to purchase or any claim of the Red Cross in connection with the Property; 

and, 

f. APIP has no present or future interest in the Property, and other than 

being the holder of beneficial title from September 17, 2007, to October 10, 2007, in 

the context of a reverse exchange under the Volen-APIP Agreement, it had no 

interest in the Property. 

5. The Red Cross has relied on these representations and the authenticity of 

documents provided by APIP in agreeing to enter into this Stipulation and [Proposed] Order 

Dismissing APIP 220 LLC Without Prejudice. 

NOW, THEREFORE, the Red Cross, APIP and VOLEN hereby stipulate and agree 

as follows: 

1. VOLEN and APIP agree and acknowledge that APIP’s temporary ownership 

of the Property was on behalf of VOLEN in the context of the reverse exchange, that 

APIP’s temporary ownership was within the course and scope of the Volen-APIP 

Agreement for APIP to act as the EAT in the context of that reverse exchange, and that 

APIP has no current or future interest in the Property. 

2. VOLEN agrees that for purposes of this litigation, VOLEN’s ownership of the 

Property will be deemed to have started on September 17, 2007, when VOLEN’s agent, 

APIP, first acquired title to the Property. 

3. VOLEN agrees that for purposes of this litigation, VOLEN adopts APIP’s 

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STIP AND ORDER DISMISSING APIP WITHOUT PREJUDICE 

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DAVIS WRIGHT TREMAINE LLP 

865 S. FIGUEROA ST, SUITE 2400 

LOS ANGELES, CALIFORNIA 90017-2566 

(213) 633-6800 

Fax: (213) 633-6899 

record ownership as its own, and VOLEN accepts as its own act, any and all actions taken, 

not taken, or that could have been taken by APIP relative to the Property, all of which shall 

be treated as VOLEN’s act, or failure to act, so long as APIP’s conduct was or would have 

been within the course and scope of its agency with VOLEN. 

4 APIP agrees that it will not object to or challenge in any respect any judgment 

that is entered against VOLEN in this matter. 

5 APIP agrees that if judgment is entered against VOLEN and in favor of the 

Red Cross, and if the facts as revealed in this litigation and/or the applicable law render it 

necessary or appropriate for the same judgment to be entered against APIP in order for the 

Red Cross to obtain complete relief against VOLEN in this matter, upon reasonable notice 

to APIP’s counsel identified below, APIP will appear in the action and permit a judgment 

related to the Red Cross’s claimed option to be entered against it, to the extent necessary to 

protect the Red Cross’s rights and any judgment entered against VOLEN and in favor of the 

Red Cross. APIP will assert no defenses, including but not limited to statute of limitations 

or laches, to the entry of such a judgment. The parties agree that such judgment will not 

include any award of damages or costs against APIP, or otherwise issue affirmative relief 

against APIP, other than the possible judgment relating to the validity of the Red Cross’s 

claimed option to purchase the Property. 

 6 In reliance on this representations and promises, the Red Cross agrees to, and 

hereby does, dismiss APIP from this action without prejudice. APIP will bear its own 

attorneys’ fees and costs incurred in this litigation, subject only to its right to recover those 

attorneys’ fees and costs from VOLEN, in accordance with the terms of the Volen-APIP 

Agreement. Nothing in this provision or agreement shall limit or restrict VOLEN’s right to 

recover its costs or attorneys’ fees, including any costs or attorneys’ fees paid to APIP as 

reimbursement, from Red Cross or any other party to this litigation. 

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STIP AND ORDER DISMISSING APIP WITHOUT PREJUDICE 

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DAVIS WRIGHT TREMAINE LLP 

865 S. FIGUEROA ST, SUITE 2400 

LOS ANGELES, CALIFORNIA 90017-2566 

(213) 633-6800 

Fax: (213) 633-6899 

7 Nothing herein shall act to prevent, bar, or limit any subpoena served upon 

APIP as to a non-party. 

DATED: January 15, 2008 DAVIS WRIGHT TREMAINE LLP 

MARY H. HAAS 

ROCHELLE L. WILCOX 

By: /s/ Rochelle L. Wilcox 

Attorneys for Plaintiff 

AMERICAN NATIONAL RED CROSS 

THE LAW OFFICE OF DANIEL A. STREET 

DANIEL A. STREET 

By: /s/ Daniel A. Street (as authorized on 

January 3, 2008) 

Attorneys for Defendant 

APIP 220 LLC 

WAGNER, KIRKMAN, BLAINE, 

KLOMPARENS & YOUMANS, LLP 

DOUGLAS E. KIRKMAN 

By: /s/ Douglas E. Kirkman (as authorized on 

January 14, 2008) 

Attorneys for Defendant 

VOLEN PROPERTIES 10, LLC 

ORDER

 It is so ordered. 

 Dated this 15th day of January, 2008. 

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