Contract analysis

I. INTRODUCTION Petitioner Marguerite D. Fonseca ("Petitioner" or "Ms. Fonseca"), the surviving spouse of Teodoro R. Fonseca ("Decedent"), who died intestate on September 3, 2022, in Los Angeles County, California, respectfully submits this Response to the Objection filed on November 14, 2022, by Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca (collectively, "Contestants" or "Objectors"), through

II. STATEMENT OF FACTS A. The Marriage and the Decedent's Family Marguerite Delphine Fonseca, age 54, married Teodoro Raúl Fonseca on June 14, 2008, in a ceremony held in Los Angeles County, California. The marriage was Ms. Fonseca's first and the Decedent's second. The couple remained continuously married from the date of their wedding until the Decedent's death on September 3, 2022 — a period of more than fourteen

1. Rafael T. Fonseca, age 33, who currently resides in Los Angeles County and serves as Vice President of Development at Crestline Media Group Inc., a media company located in Burbank, California. Rafael is the designated lead contestant in this proceeding.

2. Isabela C. Fonseca-Greer, age 30, who resides at 78 Eucalyptus Lane, Santa Monica, California 90402. Isabela operates Amber Light Documentary Films LLC, a documentary film production company.

3. Nicolás R. Fonseca, age 26, who resides at 1190 Elm Street, Apt. 4B, Palo Alto, California 94301. Nicolás is a recent graduate who has been pursuing academic studies. Throughout their marriage, Ms. Fonseca and the Decedent worked closely together as both life partners and professional collaborators. In 2009, the couple co-founded Lumiére Canyon Studios LLC, a film and television production company. Ms. Fonseca ser

1. Beverly Hills Residence. The marital residence located at 1847 Coldwater Canyon Drive, Beverly Hills, California 90210, with an estimated fair market value of $8,450,000. This property was acquired during the marriage and served as the couple's primary residence.

2. Malibu Beach House. The property located at 27100 Pacific Coast Highway, Malibu, California 90265, with an estimated fair market value of $6,200,000. This property was originally purchased by the Decedent on August 22, 2007, approximately ten months before the marriage, but was subject to significant community property contributions during the marriage, as discussed in detail below.

3. Lumiére Canyon Studios LLC. The Decedent's 50% membership interest in Lumiére Canyon Studios LLC (California Secretary of State Filing No. 200906410337), estimated at $15,800,000 based on an enterprise value of $31,600,000 as of December 31, 2021. The company was co-founded by the Decedent and Ms. Fonseca in 2009, during the marriage.

4. Pacific Rim Narrative Partners LLC. The Decedent's 35% membership interest in Pacific Rim Narrative Partners LLC (California Secretary of State Filing No. 201518720492), estimated at $27,475,000 based on $78,500,000 in assets under management. This entity was formed in 2015, during the marriage.

5. Financial Accounts at Veltara Basin Bank, N.A. The Decedent maintained three accounts at Veltara Basin Bank, N.A.: (a) a brokerage account ending in -4782, valued at approximately $5,120,000; (b) a personal checking account ending in -3091, with a balance of approximately $342,000; and (c) a money market account ending in -6155, with a balance of approximately $1,875,000. The aggregate value of these accounts is a

7. Personal Property. Art, vehicles, furnishings, and other tangible personal property, with an aggregate estimated value of approximately $1,250,000. These items were acquired during the marriage and are located primarily at the Beverly Hills residence and the Malibu Beach House. The total estimated value of the probate estate, as identified in the Petition, is approximately $71,112,000. In addition to the probate e

III. LEGAL ARGUMENT A. Ms. Fonseca Has Statutory Priority for Appointment as Administrator

1. The Surviving Spouse's Priority Under California Probate Code Section 8461. The California Probate Code establishes a clear statutory priority scheme for the appointment of an administrator in intestacy proceedings. This priority scheme reflects the Legislature's considered judgment regarding which persons are most appropriate to serve as administrator based on their relationship to the decedent and their interest

2. The Contestants' "Adverse Interest" Argument Lacks Legal Basis. The centerpiece of the Contestants' Objection is the argument that Ms. Fonseca should be denied appointment as administrator because she purportedly has an "adverse interest" in the characterization of estate assets as community or separate property. This argument finds no support in the California Probate Code, in case law, or in the policy considera

3. Alternative: The Court May Impose Appropriate Safeguards. While Ms. Fonseca maintains that she is entitled to appointment as administrator without conditions beyond those ordinarily imposed, she recognizes the Court's authority to impose reasonable safeguards to protect the interests of all parties. If the Court has any concern regarding the impartiality of estate administration — however unfounded Ms. Fonseca bel

1. Asset Characterization Is Not Properly Before the Court on This Petition. The Petition for Letters of Administration seeks a single form of relief: the appointment of an administrator to manage and administer the Decedent's estate. The Petition does not seek — nor could it properly seek — a judicial determination of the community or separate property character of specific estate assets. Asset characterization is a

2. In Any Event, the Community Property Presumption Favors Ms. Fonseca. Even though asset characterization is not properly before the Court at this stage, the Contestants' arguments regarding the character of estate assets are, in any event, legally unfounded. Under California's well-established community property regime, the presumption heavily favors Ms. Fonseca's position. California Family Code section 760 provid

3. The Malibu Beach House Includes Substantial Community Property Interest. The Contestants assert that the Malibu Beach House at 27100 Pacific Coast Highway, Malibu, California 90265, is entirely the Decedent's separate property because it was purchased on August 22, 2007, approximately ten months before the marriage. This assertion, even if it were relevant at this stage of the proceedings, fundamentally overstates

4. The Beverly Hills Residence Is Community Property. The Beverly Hills residence at 1847 Coldwater Canyon Drive, Beverly Hills, California 90210, with an estimated fair market value of $8,450,000, was acquired during the marriage. Under the community property presumption established by California Family Code section 760, property acquired during marriage is presumed to be community property. The Beverly Hills reside

1. Isabela C. Fonseca-Greer's Promissory Note Claim. The Objection references a purported $1,200,000 promissory note dated January 15, 2020, executed by the Decedent in favor of Amber Light Documentary Films LLC (California Secretary of State Filing No. 201912360185), a company owned and operated by Isabela C. Fonseca-Greer. The Objection asserts that this note bears interest at 3.5% per annum and has a maturity date

2. Nicolás R. Fonseca's Educational Expense Claim. The Objection also references a claim by Nicolás R. Fonseca for $387,500 in educational expense reimbursement, allegedly based on an oral promise made by the Decedent during his lifetime. According to the Objection, the Decedent promised to reimburse Nicolás for educational expenses, and Nicolás now seeks to enforce that promise as a claim against the estate. As with

IV. MS. FONSECA'S INTESTATE SUCCESSION RIGHTS FURTHER SUPPORT HER APPOINTMENT Ms. Fonseca's substantial beneficial interest in the estate under the intestate succession statutes further supports her appointment as administrator. As the party with the largest stake in the estate, Ms. Fonseca's interests are most closely aligned with the responsible administration and preservation of estate assets — the very objectives

V. PETITIONER'S WILLINGNESS TO COOPERATE IN GOOD FAITH Ms. Fonseca recognizes the Contestants' legitimate interest as heirs at law and is committed to transparent, cooperative, and efficient administration of the Decedent's estate. Notwithstanding the adversarial posture of the present proceeding, Ms. Fonseca remains willing to work constructively with the Contestants and their counsel to resolve disputes and advance

VI. CONCLUSION AND PRAYER FOR RELIEF For the foregoing reasons, the Objection filed by Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca on November 14, 2022, fails to identify any legal basis for denying Ms. Fonseca's Petition for Letters of Administration. Ms. Fonseca, as the surviving spouse of the Decedent, has the highest statutory priority for appointment as administrator under California Prob

1. Overrule the Objection filed by Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca on November 14, 2022;

2. Grant the Petition for Letters of Administration and appoint Marguerite D. Fonseca as administrator of the Estate of Teodoro R. Fonseca, deceased;

3. In the alternative, if the Court determines that additional safeguards are warranted, appoint Ms. Fonseca as administrator subject to such conditions as the Court deems appropriate, including but not limited to the posting of a bond, the filing of periodic accountings, or the appointment of limited neutral oversight over specific aspects of estate administration;

4. Award Petitioner her reasonable costs incurred in responding to the Objection; and

5. Grant such other and further relief as the Court deems just and proper. Dated: December 12, 2022 CALDERWOOD & HARKNESS LLP By: ________ Howard Quinn, Responsible Partner Elliot Nguyen, Lead Associate 350 South Grand Avenue, Suite 4800 Los Angeles, California 90071 Telephone: (213) 629-8800 Facsimile: (213) 629-8801 Attorneys for Petitioner Marguerite D. Fonseca VERIFICATION I, Marguerite D. Fonseca, declare as fol