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AGREEMENT OF SETTLEMENT AND MUTUAL RELEASE 

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THIS AGREEJ.\.1EN1.<?F SETTLEMENf AND MUTUAL RELEASE (the 

"Agreement'') is mad'~ and entered into by and between Federal Deposit Insurance 

~ .. ' 

Corporation, as Receiver .. for Indy Mac Bank, FSB (''FDIC" or "Plaintiff"), and 

Jennifer Escobedo, an individ~al, doing business as West Coast Appraisals, a 

California company (collectively, "Escobedo" or "Defendant") as ofJuly 25, 2012. 

(Plaii-1tiff and Defendant m~y be referred to herein collectively as the ''Parties.") 

RECITALS 

This agreement is made with reference to the following facts: 

A. On or about July· 6, 2011, Plaintiff filed a complaint for money 

damages against Escobedo and others (the "Complaint''), alleging causes of action 

against Escobedo for bre~ch of contract and negligent misrepresentation, in 

connection with a mortgage loans (the "Loans") funded by Indy Mac Bank, F.S.B. 

c·"rndyMac"), which were secured by residential real properties located at268 

South Avenue 55, Los Angeles, California and 11310 Meeker Avenue, El Monte, 

California (the "Properties"). The pending action, which the Complaint initiated, 

is entitled Federal Deposit Insurance Corporation as Receiverfor IndyMac Bank, 

FSB v. Escobedo, et al., and is currently pending in the United States District Court 

for the Central District of California Case No.2:11-cv-05625-DSF-JCG) (the 

"Action"). 

Page 1 of16 
B. On or about September 13, 2011, Escobedo answered the Complaint, 

generally denying its allegations and asserting affirmative defenses. On September 

27,2011, Escobedo filed her amended answer to Complaint denying the 

allegations and asserting affirmative defenses. 

C. The Parties agreed to settle all oftheir claims at a mediation which the 

Parties attended. The Parties deem it in their best interests to enter into this 

Agreement to avoid the uncertainty, trouble, and expense of further litigation .. By 

this Agreement, the Parties intend to memorialize the terms oftheir compromise 

and settlement ofthe Action. 

AGREEMENT AND RELEASE 

NOW, THEREFORE, in consideration ofthe undertakings contained in 

this Agreement, and other good, valuable and sufficient consideration, the 

sufficiency ofwhich is hereby acknowledged, the Parties agree as follows: 

1. Preamble, Recitals and Exhibits. The foregoing preamble and recitals 

are true and correct and are integral parts of this Agreement. 

2. Settlement Payment to Plaintiff. No later than thirty (30) business 

days following the Court granting ofEscobedo's Application for Determination of 

Good Faith Settlement, which Escobedo filed on June 15, 2012, and execution of 

this Agreement, Defendant shall cause Plaintiff to be paid the amount of Two 

Hundred Thirty Thousand Hundred Dollars and No Cents ($230,000.00) (the 

Page 2 ofl6 
"Settlement Payment"). The Settlement Payment shall be made in the form of a 

settlement draft, made payabl~ to "Mortgage Recovery Law Group Client Trust 

Account.~· The payment shall be delivered to Helen Gaeta, Mortgage Recovery 

Law Group, 700 North Grand Avenue, Glendale, California 91203. The Parties 

agree that timely receipt ofthe Settlement Payment is an essential term ofthis 

Agreement, and a condition to the effectiveness ofthis agreement. 

3. Dismissal ofthe Action. Upon receipt of a copy ofthis Agreement 

which has been duly signed by Defendant, the Parties shall execute a Stipulation 

~· · · ·for Dismissal with the court retaining jurisdiction to enforce the terms ofthe 

settlement in the form ofExhibit "A" hereto and which Plaintiff shall file with the 

United States District Court for the Central District ofCalifornia together with a 

proposed Order in the form ofExhibit "B" hereto. 

4. Court to Retain Jurisdiction. The Parties agree that the Court shall 

have continuing jurisdiction to enforce the provisions ofthis Agreement to the 

fullest extent permitted by law and at the election ofPlaintiff this Agreement may 

be enforced pursuant to Code ~f Civil Procedure §664.6. 

5. Attorneys Fees and Costs. The Parties shall bear their own costs and 

attorneys fees incurred in connection with this Action. 

6. Release by Plaintiff. The FDIC, on behalf ofitself and Indy Mac 

Bank, FSB, hereby release and forever discharge Escobedo and her current and 

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former officers, directors, employees, agents, sureties, bonding companies, insurers 

(including but not limited to National Fire Insurance Company ofPitttsburgh PA 

and Chartis Claims, Inc.), attorneys, subsidiaries, predecessors, related companies, 

parent companies, successors, assigns and affiliates, of and from any and all 

claims, and demands ofevery kind and nature, in law, equity or othetwise, known 

and unlmown, suspected and unsuspected, disclosed and undisclosed, for damages 

actual and consequential, attorneys' fees and costs, past, present and future, arising 

out ofthe claims set forth in the Action, except as expressly reserved in Paragraph 

7, below. 

7. Express Reservations from Release by Plaintiff. Notwithstanding any 

other provision contain~d herein, by this Agreement, Plaintiffdoes not release, and 

expressly preserves fully and to the same extent as ifthe Agreement had not been 

executed (a) any claims or causes of action that do not arise from or relate to 

(i) loans issued by IndyMac Bank, F.S.B., (ii) the Properties, or (iii) the facts, 

occurrences and transactions alleged in the Action; (b) any claims brought on 

behalf of another failed institution or another governmental entity; or (c) any 

claims arising from the closing ofthe Loans against any other transaction 

participant concerning the Loans, including, but not limited to, Robert 

Dembrowski, Lake View Appraisals, David Ho, John Martynec. This Agreement 

does not waive or release any claim Plaintiff may have relating to or arising from 

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any loans issued by lending institutions other than IndyMac Bank, F.S.B. In 

addition, this Agreement does not purport to waive, nor is it intended to waive, any 

claims which could be brought by the United States through either the Department 

ofJustice, the United States Attorney's Office, or any other federal judicial district, 

including any rights, if appropriate, to court ordered restitution pursuant to the 

relevant provisions ofthe Victim and Witness Protection Act, 18 U.S.C. § 3663, et 

seq. 

8. No Admission ofLiability. Plaintiff acknowledges that this 

Agreement does not constitute an admission by Defendant as to the merits of any 

claim that the FDIC or its predecessors in interest, including IndyMac, has 

asserted, or could have asserted, in the Action and that Defendant has denied and 

continues to deny that Defendant has any liability to Plaintiff as alleged in the 

Action. Likewise, Defendant acknowledges that this Agreement does not 

constitute an admission by Plaintiff that any asserted claiJ?:t is or was in any way 

lacking in merit, and Defendant also acknowledges that this Agreement does not 

constitute an admission by Plaintiff as to the merits of any claim that Defendant 

has asserted, or could have asserted, in the Action. Nevertheless, Plaintiff and 

Defendant have concluded that continued litigation would be expensive and 

protracted and that it is desirable that the Action be settled fully and finally as 

between Plaintiff and Defendant in the manner and upon the tenns and conditions 

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set forth in this Agreement. 

9. Waiver under Section 1542 ofCalifornia Civil Code. Subject to the 

limitations contained herein and in paragraph 7, above, the releases as set forth in 

paragraphs 6 and 8 are intended by the Parties to be read and interpreted as broadly 

as possible to affect the releases set forth therein regardless ofwhether the claims 

are presently known or unknown to the Parties. This agreement is made by the 

Plaintiff and Defendant freely and with independent legal advice and counsel, and 

Plaintiff and Defendant are fully aware ofthe provisions ofSection 1542 ofthe 

Civil Code ofthe State ofCalifornia, which reads as follows: 

"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS 

WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT 

TO EXIST IN IDS OR HER FAVOR AT THE TIME OF 

EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM 

OR HER MUST HAVE MATERIALLY AFFECTED IDS OR 

HER SETILEMENT WITH THE DEBTOR." 

However, this is a limited release and not a general release and is only intended to 

release those claims as specifically identified in paragraphs 6 through 8 ofthe 

Agreement and is specifically limited by the limitations contained in those 

paragraphs. Nevertheless, to the extent Cjvil Code section 1542 (as well as any 

other or successor law of similar effect) applies to the Agreement, Plaintiff and 

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Defendant waive any rights, benefits and protections they may have under section 

Civil Code 1542 to the extent necessary to effectuate the Releases set forth herein 

in paragraphs 6 through 8, inclusive, ofthis Agreement. 

10. Representations and Warranties. The Parties represent and warrant to 

and agree with each other as follows: 

a. 	 Plaintiff and Defendant have received independent legal advice 

from attorneys oftheir choice with respect to the advisability of 

entering into this Agreement and ofgiving the releases 

provided herein. 

b. 	 In connection with the execution ofthis Agreement and the 

making ofthe settlement provided for herein, no Party to this 

Agreement has relied upon any statement, representation or 

promise ofany other Party not expressly contained herein. 

c. 	 This Agreement is fully integrated and contains the entire 

agreement ofthe Parties hereto. There are no agreements or 

understandings between the Parties hereto relating to the 

matters and releases referred to in this Agreement other than as 

set forth in this Agreement, and this Agreement supersedes and 

replaces any and all prior negotiations and agreements between 

the Parties hereto, whether written or oral. 

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d. 	 Plaintiff and Defendant have made such investigation ofthe 

facts pertaining to the releases contained herein as they deem 

necessary. 

e. 	 The terms ofthis Agreement are contractual and are the result 

ofnegotiation among the Parties. Each Party has cooperated in 

the drafting and preparation ofthis Agreement. Hence, in any 

construction to be made ofthis Agreement, the role ofthe Party 

in drafting and preparation ofthe Agreement shall not be 

referred to in order to construe the Agreement against that 

Party, and that canon ofcontractual interpretation shall not be 

applied. 

f. 	 This Agreement has been carefully read by each ofthe Parties 

and the contents thereof are known and understood by each of 

the Parties. This Agreement is signed freely by each Party 

executing it. 

g. 	 The Parties have not assigned or transferred any oftheir claims 

being released herein. 

11. Consideration. The consideration received in connection with this 

Agreement is fair, adequate and substantial and consists only ofthe terms set forth 

in this Agreement. 

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12. Modifications. This Agreement may not be amended, canceled, 

revoked or otherwise modified except by written agreement subscribed by all of 

the Parties to be charged with such modification. 

13. Agreement Binding on Successors and Assigns. This Agreement shall 

be binding upon, and shall inure to the benefit of, the Parties hereto and their 

respective officers, directors, joint venturers, partners, employees, agents, servants, 

heirs, administrators, executors, successors, representatives and assigns. 

14. Applicable Law. This Agreement has been negotiated and exchanged 

in the State ofCalifornia. As such, this Agreement and all matters relating thereto 

shall be governed by the laws of the State of California without regard to its 

' principles of conflicts of law. In addition, in the event of any disputes arising 

between the Parties out ofthis Agreement, the Parties agree that the exclusive 

venue in which all disputes shall be resolved shall be by way of an action filed in 

the United States District Court for the Central District of California. 

15. Execution and Delivery Required- Effective Date. This instrument 

shall not be considered to be the Agreement (defined above) or an enforceable 

contract, nor shall it create any obligation whatsoever on the part of any or all of 

the Parties, nor shall it or any of its terms constitute an undertaking by any ofthe 

Parties unless and until the date on which counterparts of it have been signed by 

and exchanged amongst all Parties (via facsimile, e-mail or otherwise) and unless 

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the Court shall grant the Application for Determination ofGood Faith Settlement 

filed by Escobedo (the "Effective Date,). Until the Effective Date, any Party who 

may already have signed and exchanged one or more counterparts ofthis 

agreement with other Parties shall have the right to revoke such signature. an·the 

Effective Date, this instrument shall become the Agreement and shall become a 

binding and enforceable contract. 

16. Counterparts. This Agreement may be executed in one or more 

counterparts, each ofwhich when executed and delivered shall be an original, and 

all ofwhich when executed shall constitute one and the same instrument. 

Signatures on this Agreement, or any counterpart ofthis Agreement, transmitted by 

facsimile machine or electronic mail in pdf fonnat sJ:~ll have the same force and 

effect as original signatures. 

17. Construction. Each ofthe masculine, feminine and neuter genders 

shall include the others. The singular shall include the plural and vice-versa. 

18. Severability. In the event any provision ofthis Agreement shall be 

held to be void, voidable or unenforceable, the remaining provisions shall remain 

in full force and effect. 

19. Warranty ofAuthority. Each Party or attorney whose signature is 

affixed hereto in a representative capacity represents and warrants that he or she is 

authorized to execute this agreement on behalf of and to bind the entity on whose 

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behalf his or her signature is affixed and that he or she is acting in the scope of 

such agency and authority. Each Party specifically represents and warrants that no 

signatures other than those made on this Agreement are necessary to bind the 

Parties to all ofthe obligations im~osed by the Agreement. 

20. Captions and Headings. The captions, paragraph numbers and 

paragraph headings appearing in this Agreement are inserted only as a matter of 

convenience and in no way defme, limit, construe or describe the scope or intent of 

this agreement, nor in any way affect this Agreement. 

21. Notices. Any notice required under this Agreement shall be in writing 

and shall be sent via both e-mail and either by (i) hand delivery or certified or 

registered mail, postage prepaid, with return receipt requested, or (ii) fax, with a 

conformed copy by US Mail, postage prepaid, and with such writing to be 

addressed to the Parties as follows: 

-

Person To Receive Notice Notification Information 

Defendant JerrrriferEscobedo 

With a copy to: Ari L. Markow, Esq. -

Spile, Leff & Goor, LLP 

16501 Ventura Blvd., Suite 610 

Encino. CA 9143 6 - - ----­ -----­ Tell ----­ I 

Fax-;1--­ ----­ l ---­ -­

- Emaill ·· - -­ -­ l 

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-- --

---

----

-----

- --- ---

(b)(4), b)(6) 

(b)(4),(b)(6) 

(b)(4),(b)(6) 

Person To Receive Notice Notification Information 


Plaintiff 
 Dana J. Clausen, Esq. 

Mortgage Recovery Law Group 

700 N. Brand Blvd., Suite 830 

Glendale CA 92103 - -

Tel. No. -

Fax No. l - -

Email:l­ --- --- ------·

~ With a copy to Maurice Wainer, Esq. 

Snipper, Wainer & Markoff 

270 N. Canon Drive, Penthouse 

Beverly Hills CA 90210 

Tel. No: -- --· 

Fax No: I -­

- Email~ - -

., 

The above addresses may be changed by any Party as to such Party by providing 

the other Parties notice ofany address change in the same marmer as is provided 

above, and which change shall be effective as to any Party upon receipt ofwritten 

notice from the other Party. In the event that written notice, demand, or request is 

made as provided in this paragraph, that writing shall be deemed to have been 

received by the Party to whom it was addressed on the earliest of(i) the date that 

the notice was hand delivered, (ii) the date the notice was sent via facsimile (so 

long as a facsimile transmittal confirmation sheet is contemporaneously generated 

by the facsimile machine from which th~ transmission occurred), or (iii) three days 

after properly addressed notice was deposited with the U.S. Postal Service, 

applicable postage prepaid. 

22. Remedies. All Parties shall be entitled to all remedies available at law 

(b)(4),(b)(6) 

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or in equity for any violation ofthis Agreement, including, but not limited to the 

remedy ofspecific performance. 

23. Further Assurances. The Parties shall execute such other documents 

as may be reasonably necessary to carry out the terms and conditions ofthis 

Agreement. 

24. Survival. All warranties, representations, covenants, and agreements 

set forth herein shall survive the Effective Date. 

25. Compliance Dates. In the event that any date specified in this 

Agreement shall be on a Saturday, Sunday, or a nationally-declared holiday~ then 

the date so specified shall be deemed to be the next business day following such 

date, and compliance by such business day hereunder shall not be deemed a default 

by either ofthe Parties under this Agreement. 

26. Waiver. The waiver by one Party ofthe perfonnance of any covenant 

or condition herein shall not invalidate this Agreement, nor shall it be considered 

to be a waiver by such Party of any other covenant or condition or of any later 

instance ofthe previously waived covenant or condition. The waiver by any 

Parties ofthe time for performing any act shall not con:stitute a waiver at the time 

for performing any other act or an identical act required to be performed at a later 

time. 

27. Jury Trial Waiver. The Parties hereby waive any and all rights that 

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they may otherwise have to a trial by jury in any action, proceeding, claim, 

counterclaim or third party complaint, whether in contract or tort, at law or in 

equity, arising out ofor in any way related to this Agreement. 

28. Entire Agreement. This Agreement contains the complete agreement 

ofthe Parties concerning the subjects ofthis Agreement and supersedes all prior 

drafts ofthis Agreement and all other prior agreements, promises, 

acknowledgements, representations and warranties, if any, that may have been 

made between or among the Parties concerning that subject ofthis Agreement, 

whether in connection with the negotia1;ion ofthis Agreement or otherwise. This 

Agreement has been the product ofnegotiation. The Parties have had the 

opportunity to obtain independent advice from counsel. Prior draft documents 

were prepared, exchanged and discussed by some or all ofthe Parties before finally 

reaching and entering into this Agreement. In any number ofinstances, words 

used in prior drafts may have been changed or removed from the language 

ultimately agreed to in this Agreement. In the event of a dispute over the meaning 

of any ofthe provisions or requirements ofthis Agreement, the fact that other 

words may have been used or deleted from earlier draft documents or provisions in 

such draft documents that were modified before being included herein, shall not be 

used to aid in the construction ofthe meaning and legal effect ofthis Agreement. 

This Agreement may not be modified or changed except by a written instrument 

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executed by all ofthe Parties and no rights under it may be waived except by a 

writing signed by the waiving Party. No promises, representati<ms, warranties, 

agreements or other understandings exist between the parties with respect to the 

subject matter of this Agreement, and this Agreement supersedes and discharges 

any and all prior promises, acknowledgements, representations, warranties, 

· agreements or other understandings that existed or may have existed between the 

Parties. 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement 

f · on the dates set forth below. 

r: FEDERAL DEPOSIT INSURANCE 

CORPORATION, AS RECEIVER FOR 

INDYMAC BANK, F.S.B. · 

By:]._____________·_j-~-- (b)(6) 

Dated: l (2-1 \ \ :2. 


Its: C o u v. 1 .,; e \ 


JENNIFER ESCOBEDO, an individual· 

Dated: By: ----------------------------­

APPROVED AS TO FORM: SNIPPER, WAINER & MARKOFF 

By: ____------------~------- Dated: 


page 15 of 16 

-----------------------------

I 

FEDEX OFFICE 1007 PAGE El2 f

87/27/2012 10:44 714--897-4235 

\ ~ 

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etecuted by all ofthe Parties and no rights under it may be waived except by a \ 

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~ . t ~ting signed by the waiviug Party. No promises, representations, wan·anties) I 

I 

'~ I at,reemenl<~ or other understandings exist between the parties with respect to the 

j 

s.bject matter ofthis Agreement, and this Agreement supersedes and discharges 

~ \ ~ty and all prior promises, acknowledgements, representations, warranties, •I 

j I a4reements or otb.er understaudings that e.xisted or may have existed between the 

• 

~ 

Ptrties. 

3 

1 I 

IN WITNESS WHEREOF~ the Pruties hereto have executed this Agreement ·i t 

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~ 

the dates set forth below. I 

~ f .;• I 

1 FEDERAL DEPOSIT INSURANCE ~ 

~ CORPORATION, AS RECEIVER FOR 

:; INDYMAC BA~ F.S.B. ~ r. 

~ 

~ 

By: l 

Its: -----------------------~---- ~ I 

I 

I JENNIFER ESCOBEDO, an individual l 

(~)(6) 

--1­

~ Bylt_______-~--- l

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APPROVED AS TO FORM: 

Dated: 

! 

~ 

(b)(6) 

By: _jL._--r.:;-;:-;-::::----­

Ma .ce Wainer . .t 

un PI . tiffFederal Depost Attorney for am . as Receiver for Insurance Corporation, 

IndyMac Bank, F.S.B. 

SPILE' LEFF & GOOR, LLP 

·[n(b)(6) 

By:_ 

Ari 

J~........-;-:=-:;-;-------~ L. Markow dant Jennifer..............
 ~ Attorney for Def~n. 

Escobedo, an individual 

!L-------------------------------~P=a=ge~1:6~o~fl:6~------------------·---------

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