1035-00005 · Marguerite Delp · Pleadings & Court Filings

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SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES

PROBATE DIVISION

STIPULATION AND [PROPOSED] ORDER FOR MEDIATION

Petitioner MARGUERITE D. FONSECA, the surviving spouse of the decedent, TEODORO R. FONSECA, by and through her attorneys of record, Howard Quinn, Esq., of Calderwood & Harkness LLP, 350 South Grand Avenue, Suite 4800, Los Angeles, California 90071, and Contestants RAFAEL T. FONSECA, ISABELA C. FONSECA-GREER, and NICOLÁS R. FONSECA, the adult children of the decedent, by and through their attorneys of record, Damian R. Ortega, Esq., of Brennan, Ortega & Saldívar LLP, 1900 Avenue of the Stars, Suite 2100, Los Angeles, California 90067 (collectively, the "Parties"), hereby stipulate and agree, subject to the approval of this Court, as follows:

RECITALS

WHEREAS, Teodoro R. Fonseca ("Decedent") died on September 3, 2022, domiciled in the County of Los Angeles, State of California, without having executed a valid last will and testament, dying intestate;

WHEREAS, Petitioner Marguerite D. Fonseca ("Petitioner"), as Decedent's surviving spouse, filed a Petition for Letters of Administration with this Court on October 5, 2022, seeking appointment as administrator of the Estate of Teodoro R. Fonseca (the "Estate");

WHEREAS, Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca (collectively, "Contestants"), the three adult children of the Decedent, filed an initial objection to the Petition for Letters of Administration on November 14, 2022, contesting, among other things, the appointment of Petitioner as sole administrator and the characterization of certain Estate assets;

WHEREAS, Contestants filed an amended objection on January 9, 2023, adding a claim based on the existence, validity, and enforceability of a premarital agreement purportedly executed by the Decedent and Petitioner on or about May 30, 2008, which Contestants contend materially alters the disposition of assets within the Estate;

WHEREAS, the Parties, through their respective counsel, have conferred in good faith and have concluded that mediation of the disputed issues before a neutral third party would serve the interests of judicial economy, reduce the costs of protracted litigation, preserve family relationships to the extent practicable, and promote the efficient resolution of the complex issues presented in this proceeding;

WHEREAS, the Parties have jointly selected the Honorable Constance Adler (Retired), a former Judge of the Superior Court of the State of California, County of Los Angeles, as their mediator, and Hon. Adler has confirmed her availability and willingness to serve in that capacity; and

WHEREAS, the Parties desire to set forth the terms and conditions governing the mediation process and to submit this Stipulation and [Proposed] Order for the Court's review and approval.

NOW, THEREFORE, the Parties hereby stipulate and agree as follows:

1. APPOINTMENT OF MEDIATOR

1.1. The Parties stipulate to the appointment of the Honorable Constance Adler (Ret.) as the mediator in this proceeding (the "Mediator").

1.2. The Mediator is affiliated with the Westside Dispute Resolution Center, located at 11400 West Olympic Boulevard, Suite 550, Los Angeles, California 90064.

1.3. The Mediator has confirmed to all Parties, through their respective counsel, that she has no conflicts of interest with any party, counsel, or entity involved in this proceeding, including without limitation no prior professional, financial, or personal relationship with any party, any member of any party's family, or any counsel of record that would impair her ability to serve as a neutral and impartial mediator.

1.4. The Mediator may be replaced only by written stipulation of all Parties filed with and approved by the Court. In the event the Mediator becomes unavailable due to illness, incapacity, or other unforeseen circumstances, the Parties shall confer promptly and endeavor to agree upon a replacement mediator within fourteen (14) days. If the Parties are unable to agree on a replacement mediator, any Party may apply to the Court for the appointment of a substitute mediator.

2. SCOPE OF MEDIATION

2.1. The mediation shall encompass all disputed issues in this proceeding, including but not limited to the following:

(a) The appointment of an administrator of the Estate, including whether Petitioner, one or more of the Contestants, or a neutral third party should be appointed as administrator, and the terms and conditions of any such appointment;

(b) The characterization of Estate assets as community property or separate property of the Decedent, including without limitation:

(i) The Decedent's fifty percent (50%) membership interest in Lumiére Canyon Studios LLC, a California limited liability company, which had an enterprise value of approximately Thirty-One Million Six Hundred Thousand Dollars ($31,600,000) as of December 31, 2021, and the Decedent's interest in which is valued at approximately Fifteen Million Eight Hundred Thousand Dollars ($15,800,000);

(ii) The Decedent's thirty-five percent (35%) membership interest in Pacific Rim Narrative Partners LLC, a Delaware limited liability company, which had assets under management of approximately Seventy-Eight Million Five Hundred Thousand Dollars ($78,500,000), and the Decedent's interest in which is valued at approximately Twenty-Seven Million Four Hundred Seventy-Five Thousand Dollars ($27,475,000);

(iii) The real property located at 1847 Coldwater Canyon Drive, Beverly Hills, California 90210, with an estimated fair market value of Eight Million Four Hundred Fifty Thousand Dollars ($8,450,000);

(iv) The real property located at 27100 Pacific Coast Highway, Malibu, California 90265, with an estimated fair market value of Six Million Two Hundred Thousand Dollars ($6,200,000);

(v) The intellectual property portfolio comprising fourteen (14) feature films and six (6) television series, with a net present value of approximately Four Million Six Hundred Thousand Dollars ($4,600,000);

(vi) Financial accounts held at Veltara Basin Bank, N.A., including without limitation the brokerage account ending in -4782, the checking account ending in -3091, and the money market account ending in -6155; and

(vii) Personal property, including but not limited to art, vehicles, and furnishings;

(c) The existence, validity, and enforceability of the alleged premarital agreement purportedly dated May 30, 2008, between Decedent and Petitioner (the "Premarital Agreement"), including whether the Premarital Agreement was executed voluntarily, whether it was supported by adequate disclosure, and whether its terms are unconscionable;

(d) The claim asserted by Contestant Isabela C. Fonseca-Greer based upon a promissory note dated January 15, 2020, in the principal amount of One Million Two Hundred Thousand Dollars ($1,200,000), made by the Decedent in favor of Amber Light Documentary Films LLC, a California limited liability company in which Ms. Fonseca-Greer holds a controlling interest, including the validity and enforceability of said promissory note and the priority of such claim against the Estate;

(e) The claim asserted by Contestant Nicolás R. Fonseca for reimbursement of educational expenses in the aggregate amount of Three Hundred Eighty-Seven Thousand Five Hundred Dollars ($387,500), purportedly promised by the Decedent during his lifetime;

(f) The rights of Petitioner as the surviving spouse of the Decedent under California Probate Code sections 6400 through 6414, inclusive, including without limitation Petitioner's intestate share of the Decedent's separate property and community property interests; and

(g) Any other issues the Parties and the Mediator deem appropriate for resolution through the mediation process, as may arise during the course of mediation.

2.2. Nothing in this Section shall be construed to limit the Mediator's authority to address related or ancillary issues that the Parties agree to submit for mediation during the course of the proceedings.

3. MEDIATION SCHEDULE

3.1. The Parties agree that the first mediation session shall be scheduled to occur within thirty (30) days of the date of the Court's entry of the Order approving this Stipulation. The Mediator shall coordinate with counsel for both sides to select a mutually convenient date for the first session within that time frame.

3.2. The Mediator shall have discretion to schedule additional mediation sessions as she deems necessary and appropriate in order to facilitate the resolution of the disputed issues. The Mediator may schedule sessions on consecutive days or on separate dates, depending on the progress of the mediation.

3.3. Each Party shall make its principals available in person for all mediation sessions, unless excused in advance by the Mediator upon a showing of good cause. Specifically:

(a) Petitioner Marguerite D. Fonseca shall attend all mediation sessions in person.

(b) At least one of the Contestants with full settlement authority shall attend each mediation session in person. The lead Contestant, Rafael T. Fonseca, shall attend all mediation sessions in person unless otherwise agreed by the Parties with the consent of the Mediator. The remaining Contestants may attend in person or, with the Mediator's prior written consent, appear by videoconference, provided that at least one Contestant is physically present at each session.

3.4. The Mediator shall provide written notice of each session date to all counsel of record not less than fourteen (14) calendar days before the scheduled session. Such notice may be transmitted by electronic mail to counsel at their respective email addresses on file with the Westside Dispute Resolution Center.

3.5. Requests to reschedule a mediation session must be made in writing to the Mediator with a copy to opposing counsel no later than seven (7) calendar days before the scheduled session, unless the request is based upon an emergency, in which case notice shall be provided as soon as practicable.

4. MEDIATION BRIEFS

4.1. Each side shall submit a confidential mediation brief to the Mediator no later than seven (7) calendar days before each scheduled mediation session.

4.2. Mediation briefs shall be submitted directly to the Mediator and shall not be served on opposing counsel or parties. All mediation briefs shall be for the Mediator's use only and shall be treated as confidential mediation communications.

4.3. Mediation briefs shall include, at a minimum, a summary of each side's factual contentions, legal positions, and current settlement proposals. The briefs should address the issues identified in Section 2 of this Stipulation to the extent relevant to the upcoming session and should identify any impediments to settlement as perceived by the submitting party.

4.4. Supporting documentation, including but not limited to financial statements, valuation reports, appraisals, correspondence, and legal memoranda, may be appended to the mediation briefs at each side's discretion. The Mediator may request additional documentation from any party as she deems appropriate.

4.5. The Mediator shall maintain all mediation briefs and supporting documentation in confidence and shall not disclose the contents of any party's brief to any other party without the express written consent of the submitting party.

5. CONFIDENTIALITY

5.1. All communications, whether written or oral, made during or in connection with the mediation, including without limitation mediation briefs, settlement offers, counteroffers, proposals, position statements, and any statements by the Parties, their counsel, or the Mediator, shall be confidential and shall be privileged under California Evidence Code sections 1115 through 1128, inclusive.

5.2. No Party shall disclose or refer to any mediation communication in any court filing, pleading, motion, brief, declaration, deposition, or other proceeding in this matter or any related matter, except as expressly required by law or as necessary to enforce a written settlement agreement reached through the mediation.

5.3. The Mediator shall not be called as a witness, consultant, or expert in any subsequent proceeding related to this matter or any matter arising out of the Estate. No Party shall issue or cause to be issued a subpoena or other compulsory process directed to the Mediator, and no Party shall seek to compel the production of the Mediator's notes, files, records, or work product by any means.

5.4. All documents prepared solely for the mediation, including but not limited to mediation briefs, settlement proposals, financial analyses, and draft agreements, shall be deemed settlement communications and shall be protected from disclosure and admissibility under California Evidence Code section 1152 and, to the extent applicable, Federal Rule of Evidence 408.

5.5. The confidentiality provisions set forth in this Section 5 shall survive the termination of the mediation regardless of the outcome, and shall remain in full force and effect whether the mediation results in a full settlement, a partial settlement, or no settlement.

5.6. Nothing in this Section shall prevent any Party from disclosing the fact that mediation has been scheduled, is in progress, or has concluded, or from disclosing the general outcome of the mediation (i.e., whether or not a settlement was reached), provided that no specific mediation communications are revealed.

6. GOOD FAITH PARTICIPATION

6.1. Each Party agrees to participate in the mediation in good faith and to make a genuine effort to resolve the disputes that are the subject of this proceeding. Good faith participation requires, at a minimum, attendance at all scheduled mediation sessions, preparation and submission of mediation briefs as required under Section 4, and a willingness to engage in meaningful negotiations.

6.2. Each side shall ensure that representatives with full authority to negotiate and settle attend each mediation session. The Parties acknowledge that meaningful mediation requires that the individuals present at the session have the ability to make binding commitments on behalf of the parties they represent, without the need to seek additional approval from absent decision-makers.

6.3. Failure to participate in good faith may be raised with the Court by any Party by noticed motion; provided, however, that no specific mediation communications shall be disclosed in connection with any such motion, and any such motion shall be limited to establishing the fact of non-participation or bad faith conduct in general terms consistent with the confidentiality provisions of Section 5.

7. COST-SHARING

7.1. The Mediator's professional fees and related costs shall be shared equally between Petitioner and Contestants as follows: fifty percent (50%) of all such fees and costs shall be borne by Petitioner, and fifty percent (50%) shall be borne collectively by the three Contestants, to be apportioned among themselves as they may agree.

7.2. The administrative costs of the Westside Dispute Resolution Center facility, including room charges, audiovisual equipment, and related administrative expenses, shall be shared on the same fifty/fifty (50/50) basis as described in Section 7.1.

7.3. Each side shall bear its own attorneys' fees, expert fees, and costs of preparation for the mediation. Nothing in this Stipulation shall be construed to alter or affect any Party's right to seek an award of attorneys' fees in this proceeding to the extent permitted by applicable law.

7.4. The Mediator's standard hourly rate and any retainer requirements, as set forth in her separate fee agreement with the Parties, are acknowledged and accepted by all Parties. Payment of the Mediator's fees and administrative costs shall be made in accordance with the terms of the fee agreement and the policies of the Westside Dispute Resolution Center.

8. EFFECT ON LITIGATION DEADLINES

8.1. During the pendency of the mediation process, the Parties agree that no new motions, applications, petitions, or discovery requests shall be filed or served without the prior written agreement of both sides or leave of the Court upon a showing of good cause. This agreement to refrain from filing shall take effect upon the Court's entry of the Order approving this Stipulation and shall remain in effect until the mediation is terminated pursuant to Section 9.

8.2. Notwithstanding Section 8.1, statutory deadlines and limitations periods that cannot be tolled by stipulation of the Parties are expressly reserved. The Parties acknowledge that this Stipulation does not and cannot operate to extend any deadline imposed by statute that is not subject to party agreement or court order.

8.3. Nothing in this Stipulation shall affect the Court's inherent authority to manage the case, set hearings, issue orders, or take any other action it deems appropriate in the administration of this proceeding.

8.4. If the mediation does not result in a full resolution of all disputed issues, the Parties shall promptly confer in good faith regarding a schedule for further proceedings, including discovery, briefing, and any evidentiary hearing. The Parties shall submit a joint status report to the Court within fourteen (14) days of the conclusion of the mediation or the last mediation session, whichever is later, setting forth the status of the matter and a proposed schedule for further proceedings.

9. TERMINATION OF MEDIATION

9.1. The mediation may be terminated at any time by the Mediator if, in her sole and reasonable discretion, she determines that further mediation efforts would not be productive or that the Parties have reached an impasse that is unlikely to be resolved through continued negotiations.

9.2. Any Party may withdraw from the mediation after the conclusion of the first mediation session by providing fourteen (14) calendar days' written notice to the Mediator and to all other Parties through their respective counsel of record. No Party may withdraw from the mediation before the conclusion of the first mediation session, except with the prior written consent of all other Parties and the Mediator.

9.3. Upon the termination of the mediation, whether by the Mediator, by withdrawal of a Party, or by mutual agreement, all litigation rights and deadlines shall be restored to the status quo ante, subject to any tolling agreements then in effect or any orders of the Court entered during the pendency of the mediation.

10. NO WAIVER

10.1. Participation in the mediation shall not constitute a waiver of any Party's rights, claims, defenses, objections, or privileges in this proceeding or in any other proceeding. Each Party expressly reserves all rights and defenses available under applicable law.

10.2. No statement, offer, proposal, or position taken by any Party during the mediation shall be construed as an admission or used to estop any Party in subsequent litigation, arbitration, or other proceedings. The Parties acknowledge and agree that the positions taken during mediation are made solely for the purpose of facilitating settlement and do not reflect concessions of fact or law.

11. BINDING SETTLEMENT

11.1. Any settlement reached during the mediation shall not be binding on any Party until it has been reduced to a written settlement agreement and signed by all Parties and their respective counsel of record.

11.2. The Parties agree that oral agreements, handshake agreements, or memoranda of understanding that have not been signed by all Parties and counsel shall not be enforceable as binding settlement agreements.

11.3. Upon the execution of a written settlement agreement by all Parties and counsel, the Parties shall jointly submit the agreement to the Court for review, approval, and entry of an appropriate order. The Parties shall cooperate in preparing and filing any additional documents required to effectuate the settlement, including without limitation petitions for court approval under applicable provisions of the California Probate Code.

12. MISCELLANEOUS PROVISIONS

12.1. Modification. This Stipulation may be modified, amended, or supplemented only by a written instrument executed by all Parties and filed with and approved by the Court.

12.2. Governing Law. This Stipulation shall be governed by and construed in accordance with the laws of the State of California.

12.3. Notices. All notices required or permitted under this Stipulation shall be in writing and shall be delivered to counsel of record at the addresses set forth herein, by personal delivery, overnight courier, or electronic mail (with confirmation of receipt):

For Petitioner:

Calderwood & Harkness LLP

Attn: Howard Quinn, Esq.

350 South Grand Avenue, Suite 4800 Los Angeles, California 90071

For Contestants:

Brennan, Ortega & Saldívar LLP

Attn: Damian R. Ortega, Esq.

1900 Avenue of the Stars, Suite 2100 Los Angeles, California 90067

12.4. Counterparts. This Stipulation may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Facsimile and electronic signatures shall be deemed originals for all purposes.

12.5. Entire Agreement. This Stipulation constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior oral and written agreements, understandings, and representations relating to the mediation of this proceeding.

12.6. Authority. Each person signing this Stipulation represents and warrants that he or she has full authority to execute this Stipulation on behalf of the party for whom he or she signs and to bind that party to the terms and conditions set forth herein.

[Signatures on Following Page]

SIGNATURES

FOR PETITIONER:

Dated: March 10, 2023

CALDERWOOD & HARKNESS LLP

By: ________

Howard Quinn, Esq. Calderwood & Harkness LLP 350 South Grand Avenue, Suite 4800 Los Angeles, California 90071 Attorneys for Petitioner Marguerite D. Fonseca

FOR CONTESTANTS:

Dated: March 10, 2023

BRENNAN, ORTEGA & SALDÍVAR LLP

By: ________

Damian R. Ortega, Esq. Brennan, Ortega & Saldívar LLP 1900 Avenue of the Stars, Suite 2100 Los Angeles, California 90067 Attorneys for Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca

[PROPOSED] ORDER

The Court, having reviewed the foregoing Stipulation and [Proposed] Order for Mediation filed by Petitioner Marguerite D. Fonseca and Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca, and having considered the representations of counsel, and finding good cause therefor, hereby ORDERS as follows:

1. The Stipulation for Mediation, filed on March 10, 2023, is APPROVED and shall be effective as of the date signed below by the Court.

2. The Honorable Constance Adler (Ret.) of the Westside Dispute Resolution Center, 11400 West Olympic Boulevard, Suite 550, Los Angeles, California 90064, is hereby APPOINTED as mediator in this proceeding, subject to the terms and conditions set forth in the Stipulation.

3. The Parties shall comply with all terms and conditions of the Stipulation, including but not limited to the provisions governing confidentiality, good faith participation, cost-sharing, and the effect of the mediation on litigation deadlines.

4. The first mediation session shall occur within thirty (30) days of the date of this Order.

5. The Parties shall file a joint status report with this Court within fourteen (14) calendar days following the conclusion of the mediation or the last mediation session, whichever is later. The joint status report shall advise the Court of the outcome of the mediation and, if the mediation did not result in a full resolution of all disputed issues, shall set forth a proposed schedule for further proceedings.

6. The Court retains jurisdiction over all matters in this proceeding, including the authority to set hearings, issue further orders, and manage the case as the Court deems appropriate.

IT IS SO ORDERED.

Dated: ________

________________________________________

Judge of the Superior Court Department: __ Los Angeles County Superior Court

In re the Estate of	Case No. 22STPB09714
TEODORO R. FONSECA,	STIPULATION AND [PROPOSED] ORDER FOR MEDIATION
Deceased.	Filed: March 10, 2023

SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
PROBATE DIVISION
STIPULATION AND [PROPOSED] ORDER FOR MEDIATION
Petitioner MARGUERITE D. FONSECA, the surviving spouse of the decedent, TEODORO R. FONSECA, by and through her attorneys of record, Howard Quinn, Esq., of Calderwood & Harkness LLP, 350 South Grand Avenue, Suite 4800, Los Angeles, California 90071, and Contestants RAFAEL T. FONSECA, ISABELA C. FONSECA-GREER, and NICOLÁS R. FONSECA, the adult children of the decedent, by and through their attorneys of record, Damian R. Ortega, Esq., of Brennan, Ortega & Saldívar LLP, 1900 Avenue of the Stars, Suite 2100, Los Angeles, California 90067 (collectively, the "Parties"), hereby stipulate and agree, subject to the approval of this Court, as follows:
RECITALS
WHEREAS, Teodoro R. Fonseca ("Decedent") died on September 3, 2022, domiciled in the County of Los Angeles, State of California, without having executed a valid last will and testament, dying intestate;
WHEREAS, Petitioner Marguerite D. Fonseca ("Petitioner"), as Decedent's surviving spouse, filed a Petition for Letters of Administration with this Court on October 5, 2022, seeking appointment as administrator of the Estate of Teodoro R. Fonseca (the "Estate");
WHEREAS, Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca (collectively, "Contestants"), the three adult children of the Decedent, filed an initial objection to the Petition for Letters of Administration on November 14, 2022, contesting, among other things, the appointment of Petitioner as sole administrator and the characterization of certain Estate assets;
WHEREAS, Contestants filed an amended objection on January 9, 2023, adding a claim based on the existence, validity, and enforceability of a premarital agreement purportedly executed by the Decedent and Petitioner on or about May 30, 2008, which Contestants contend materially alters the disposition of assets within the Estate;
WHEREAS, the Parties, through their respective counsel, have conferred in good faith and have concluded that mediation of the disputed issues before a neutral third party would serve the interests of judicial economy, reduce the costs of protracted litigation, preserve family relationships to the extent practicable, and promote the efficient resolution of the complex issues presented in this proceeding;
WHEREAS, the Parties have jointly selected the Honorable Constance Adler (Retired), a former Judge of the Superior Court of the State of California, County of Los Angeles, as their mediator, and Hon. Adler has confirmed her availability and willingness to serve in that capacity; and
WHEREAS, the Parties desire to set forth the terms and conditions governing the mediation process and to submit this Stipulation and [Proposed] Order for the Court's review and approval.
NOW, THEREFORE, the Parties hereby stipulate and agree as follows:
1. APPOINTMENT OF MEDIATOR
1.1. The Parties stipulate to the appointment of the Honorable Constance Adler (Ret.) as the mediator in this proceeding (the "Mediator").
1.2. The Mediator is affiliated with the Westside Dispute Resolution Center, located at 11400 West Olympic Boulevard, Suite 550, Los Angeles, California 90064.
1.3. The Mediator has confirmed to all Parties, through their respective counsel, that she has no conflicts of interest with any party, counsel, or entity involved in this proceeding, including without limitation no prior professional, financial, or personal relationship with any party, any member of any party's family, or any counsel of record that would impair her ability to serve as a neutral and impartial mediator.
1.4. The Mediator may be replaced only by written stipulation of all Parties filed with and approved by the Court. In the event the Mediator becomes unavailable due to illness, incapacity, or other unforeseen circumstances, the Parties shall confer promptly and endeavor to agree upon a replacement mediator within fourteen (14) days. If the Parties are unable to agree on a replacement mediator, any Party may apply to the Court for the appointment of a substitute mediator.
2. SCOPE OF MEDIATION
2.1. The mediation shall encompass all disputed issues in this proceeding, including but not limited to the following:
(a) The appointment of an administrator of the Estate, including whether Petitioner, one or more of the Contestants, or a neutral third party should be appointed as administrator, and the terms and conditions of any such appointment;
(b) The characterization of Estate assets as community property or separate property of the Decedent, including without limitation:
(i) The Decedent's fifty percent (50%) membership interest in Lumiére Canyon Studios LLC, a California limited liability company, which had an enterprise value of approximately Thirty-One Million Six Hundred Thousand Dollars ($31,600,000) as of December 31, 2021, and the Decedent's interest in which is valued at approximately Fifteen Million Eight Hundred Thousand Dollars ($15,800,000);
(ii) The Decedent's thirty-five percent (35%) membership interest in Pacific Rim Narrative Partners LLC, a Delaware limited liability company, which had assets under management of approximately Seventy-Eight Million Five Hundred Thousand Dollars ($78,500,000), and the Decedent's interest in which is valued at approximately Twenty-Seven Million Four Hundred Seventy-Five Thousand Dollars ($27,475,000);
(iii) The real property located at 1847 Coldwater Canyon Drive, Beverly Hills, California 90210, with an estimated fair market value of Eight Million Four Hundred Fifty Thousand Dollars ($8,450,000);
(iv) The real property located at 27100 Pacific Coast Highway, Malibu, California 90265, with an estimated fair market value of Six Million Two Hundred Thousand Dollars ($6,200,000);
(v) The intellectual property portfolio comprising fourteen (14) feature films and six (6) television series, with a net present value of approximately Four Million Six Hundred Thousand Dollars ($4,600,000);
(vi) Financial accounts held at Veltara Basin Bank, N.A., including without limitation the brokerage account ending in -4782, the checking account ending in -3091, and the money market account ending in -6155; and
(vii) Personal property, including but not limited to art, vehicles, and furnishings;
(c) The existence, validity, and enforceability of the alleged premarital agreement purportedly dated May 30, 2008, between Decedent and Petitioner (the "Premarital Agreement"), including whether the Premarital Agreement was executed voluntarily, whether it was supported by adequate disclosure, and whether its terms are unconscionable;
(d) The claim asserted by Contestant Isabela C. Fonseca-Greer based upon a promissory note dated January 15, 2020, in the principal amount of One Million Two Hundred Thousand Dollars ($1,200,000), made by the Decedent in favor of Amber Light Documentary Films LLC, a California limited liability company in which Ms. Fonseca-Greer holds a controlling interest, including the validity and enforceability of said promissory note and the priority of such claim against the Estate;
(e) The claim asserted by Contestant Nicolás R. Fonseca for reimbursement of educational expenses in the aggregate amount of Three Hundred Eighty-Seven Thousand Five Hundred Dollars ($387,500), purportedly promised by the Decedent during his lifetime;
(f) The rights of Petitioner as the surviving spouse of the Decedent under California Probate Code sections 6400 through 6414, inclusive, including without limitation Petitioner's intestate share of the Decedent's separate property and community property interests; and
(g) Any other issues the Parties and the Mediator deem appropriate for resolution through the mediation process, as may arise during the course of mediation.
2.2. Nothing in this Section shall be construed to limit the Mediator's authority to address related or ancillary issues that the Parties agree to submit for mediation during the course of the proceedings.
3. MEDIATION SCHEDULE
3.1. The Parties agree that the first mediation session shall be scheduled to occur within thirty (30) days of the date of the Court's entry of the Order approving this Stipulation. The Mediator shall coordinate with counsel for both sides to select a mutually convenient date for the first session within that time frame.
3.2. The Mediator shall have discretion to schedule additional mediation sessions as she deems necessary and appropriate in order to facilitate the resolution of the disputed issues. The Mediator may schedule sessions on consecutive days or on separate dates, depending on the progress of the mediation.
3.3. Each Party shall make its principals available in person for all mediation sessions, unless excused in advance by the Mediator upon a showing of good cause. Specifically:
(a) Petitioner Marguerite D. Fonseca shall attend all mediation sessions in person.
(b) At least one of the Contestants with full settlement authority shall attend each mediation session in person. The lead Contestant, Rafael T. Fonseca, shall attend all mediation sessions in person unless otherwise agreed by the Parties with the consent of the Mediator. The remaining Contestants may attend in person or, with the Mediator's prior written consent, appear by videoconference, provided that at least one Contestant is physically present at each session.
3.4. The Mediator shall provide written notice of each session date to all counsel of record not less than fourteen (14) calendar days before the scheduled session. Such notice may be transmitted by electronic mail to counsel at their respective email addresses on file with the Westside Dispute Resolution Center.
3.5. Requests to reschedule a mediation session must be made in writing to the Mediator with a copy to opposing counsel no later than seven (7) calendar days before the scheduled session, unless the request is based upon an emergency, in which case notice shall be provided as soon as practicable.
4. MEDIATION BRIEFS
4.1. Each side shall submit a confidential mediation brief to the Mediator no later than seven (7) calendar days before each scheduled mediation session.
4.2. Mediation briefs shall be submitted directly to the Mediator and shall not be served on opposing counsel or parties. All mediation briefs shall be for the Mediator's use only and shall be treated as confidential mediation communications.
4.3. Mediation briefs shall include, at a minimum, a summary of each side's factual contentions, legal positions, and current settlement proposals. The briefs should address the issues identified in Section 2 of this Stipulation to the extent relevant to the upcoming session and should identify any impediments to settlement as perceived by the submitting party.
4.4. Supporting documentation, including but not limited to financial statements, valuation reports, appraisals, correspondence, and legal memoranda, may be appended to the mediation briefs at each side's discretion. The Mediator may request additional documentation from any party as she deems appropriate.
4.5. The Mediator shall maintain all mediation briefs and supporting documentation in confidence and shall not disclose the contents of any party's brief to any other party without the express written consent of the submitting party.
5. CONFIDENTIALITY
5.1. All communications, whether written or oral, made during or in connection with the mediation, including without limitation mediation briefs, settlement offers, counteroffers, proposals, position statements, and any statements by the Parties, their counsel, or the Mediator, shall be confidential and shall be privileged under California Evidence Code sections 1115 through 1128, inclusive.
5.2. No Party shall disclose or refer to any mediation communication in any court filing, pleading, motion, brief, declaration, deposition, or other proceeding in this matter or any related matter, except as expressly required by law or as necessary to enforce a written settlement agreement reached through the mediation.
5.3. The Mediator shall not be called as a witness, consultant, or expert in any subsequent proceeding related to this matter or any matter arising out of the Estate. No Party shall issue or cause to be issued a subpoena or other compulsory process directed to the Mediator, and no Party shall seek to compel the production of the Mediator's notes, files, records, or work product by any means.
5.4. All documents prepared solely for the mediation, including but not limited to mediation briefs, settlement proposals, financial analyses, and draft agreements, shall be deemed settlement communications and shall be protected from disclosure and admissibility under California Evidence Code section 1152 and, to the extent applicable, Federal Rule of Evidence 408.
5.5. The confidentiality provisions set forth in this Section 5 shall survive the termination of the mediation regardless of the outcome, and shall remain in full force and effect whether the mediation results in a full settlement, a partial settlement, or no settlement.
5.6. Nothing in this Section shall prevent any Party from disclosing the fact that mediation has been scheduled, is in progress, or has concluded, or from disclosing the general outcome of the mediation (i.e., whether or not a settlement was reached), provided that no specific mediation communications are revealed.
6. GOOD FAITH PARTICIPATION
6.1. Each Party agrees to participate in the mediation in good faith and to make a genuine effort to resolve the disputes that are the subject of this proceeding. Good faith participation requires, at a minimum, attendance at all scheduled mediation sessions, preparation and submission of mediation briefs as required under Section 4, and a willingness to engage in meaningful negotiations.
6.2. Each side shall ensure that representatives with full authority to negotiate and settle attend each mediation session. The Parties acknowledge that meaningful mediation requires that the individuals present at the session have the ability to make binding commitments on behalf of the parties they represent, without the need to seek additional approval from absent decision-makers.
6.3. Failure to participate in good faith may be raised with the Court by any Party by noticed motion; provided, however, that no specific mediation communications shall be disclosed in connection with any such motion, and any such motion shall be limited to establishing the fact of non-participation or bad faith conduct in general terms consistent with the confidentiality provisions of Section 5.
7. COST-SHARING
7.1. The Mediator's professional fees and related costs shall be shared equally between Petitioner and Contestants as follows: fifty percent (50%) of all such fees and costs shall be borne by Petitioner, and fifty percent (50%) shall be borne collectively by the three Contestants, to be apportioned among themselves as they may agree.
7.2. The administrative costs of the Westside Dispute Resolution Center facility, including room charges, audiovisual equipment, and related administrative expenses, shall be shared on the same fifty/fifty (50/50) basis as described in Section 7.1.
7.3. Each side shall bear its own attorneys' fees, expert fees, and costs of preparation for the mediation. Nothing in this Stipulation shall be construed to alter or affect any Party's right to seek an award of attorneys' fees in this proceeding to the extent permitted by applicable law.
7.4. The Mediator's standard hourly rate and any retainer requirements, as set forth in her separate fee agreement with the Parties, are acknowledged and accepted by all Parties. Payment of the Mediator's fees and administrative costs shall be made in accordance with the terms of the fee agreement and the policies of the Westside Dispute Resolution Center.
8. EFFECT ON LITIGATION DEADLINES
8.1. During the pendency of the mediation process, the Parties agree that no new motions, applications, petitions, or discovery requests shall be filed or served without the prior written agreement of both sides or leave of the Court upon a showing of good cause. This agreement to refrain from filing shall take effect upon the Court's entry of the Order approving this Stipulation and shall remain in effect until the mediation is terminated pursuant to Section 9.
8.2. Notwithstanding Section 8.1, statutory deadlines and limitations periods that cannot be tolled by stipulation of the Parties are expressly reserved. The Parties acknowledge that this Stipulation does not and cannot operate to extend any deadline imposed by statute that is not subject to party agreement or court order.
8.3. Nothing in this Stipulation shall affect the Court's inherent authority to manage the case, set hearings, issue orders, or take any other action it deems appropriate in the administration of this proceeding.
8.4. If the mediation does not result in a full resolution of all disputed issues, the Parties shall promptly confer in good faith regarding a schedule for further proceedings, including discovery, briefing, and any evidentiary hearing. The Parties shall submit a joint status report to the Court within fourteen (14) days of the conclusion of the mediation or the last mediation session, whichever is later, setting forth the status of the matter and a proposed schedule for further proceedings.
9. TERMINATION OF MEDIATION
9.1. The mediation may be terminated at any time by the Mediator if, in her sole and reasonable discretion, she determines that further mediation efforts would not be productive or that the Parties have reached an impasse that is unlikely to be resolved through continued negotiations.
9.2. Any Party may withdraw from the mediation after the conclusion of the first mediation session by providing fourteen (14) calendar days' written notice to the Mediator and to all other Parties through their respective counsel of record. No Party may withdraw from the mediation before the conclusion of the first mediation session, except with the prior written consent of all other Parties and the Mediator.
9.3. Upon the termination of the mediation, whether by the Mediator, by withdrawal of a Party, or by mutual agreement, all litigation rights and deadlines shall be restored to the status quo ante, subject to any tolling agreements then in effect or any orders of the Court entered during the pendency of the mediation.
10. NO WAIVER
10.1. Participation in the mediation shall not constitute a waiver of any Party's rights, claims, defenses, objections, or privileges in this proceeding or in any other proceeding. Each Party expressly reserves all rights and defenses available under applicable law.
10.2. No statement, offer, proposal, or position taken by any Party during the mediation shall be construed as an admission or used to estop any Party in subsequent litigation, arbitration, or other proceedings. The Parties acknowledge and agree that the positions taken during mediation are made solely for the purpose of facilitating settlement and do not reflect concessions of fact or law.
11. BINDING SETTLEMENT
11.1. Any settlement reached during the mediation shall not be binding on any Party until it has been reduced to a written settlement agreement and signed by all Parties and their respective counsel of record.
11.2. The Parties agree that oral agreements, handshake agreements, or memoranda of understanding that have not been signed by all Parties and counsel shall not be enforceable as binding settlement agreements.
11.3. Upon the execution of a written settlement agreement by all Parties and counsel, the Parties shall jointly submit the agreement to the Court for review, approval, and entry of an appropriate order. The Parties shall cooperate in preparing and filing any additional documents required to effectuate the settlement, including without limitation petitions for court approval under applicable provisions of the California Probate Code.
12. MISCELLANEOUS PROVISIONS
12.1. Modification. This Stipulation may be modified, amended, or supplemented only by a written instrument executed by all Parties and filed with and approved by the Court.
12.2. Governing Law. This Stipulation shall be governed by and construed in accordance with the laws of the State of California.
12.3. Notices. All notices required or permitted under this Stipulation shall be in writing and shall be delivered to counsel of record at the addresses set forth herein, by personal delivery, overnight courier, or electronic mail (with confirmation of receipt):
For Petitioner:
Calderwood & Harkness LLP
Attn: Howard Quinn, Esq.
350 South Grand Avenue, Suite 4800 Los Angeles, California 90071
For Contestants:
Brennan, Ortega & Saldívar LLP
Attn: Damian R. Ortega, Esq.
1900 Avenue of the Stars, Suite 2100 Los Angeles, California 90067
12.4. Counterparts. This Stipulation may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Facsimile and electronic signatures shall be deemed originals for all purposes.
12.5. Entire Agreement. This Stipulation constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior oral and written agreements, understandings, and representations relating to the mediation of this proceeding.
12.6. Authority. Each person signing this Stipulation represents and warrants that he or she has full authority to execute this Stipulation on behalf of the party for whom he or she signs and to bind that party to the terms and conditions set forth herein.
[Signatures on Following Page]
SIGNATURES
FOR PETITIONER:
Dated: March 10, 2023
CALDERWOOD & HARKNESS LLP
By: ________
Howard Quinn, Esq. Calderwood & Harkness LLP 350 South Grand Avenue, Suite 4800 Los Angeles, California 90071 Attorneys for Petitioner Marguerite D. Fonseca
FOR CONTESTANTS:
Dated: March 10, 2023
BRENNAN, ORTEGA & SALDÍVAR LLP
By: ________
Damian R. Ortega, Esq. Brennan, Ortega & Saldívar LLP 1900 Avenue of the Stars, Suite 2100 Los Angeles, California 90067 Attorneys for Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca
[PROPOSED] ORDER
The Court, having reviewed the foregoing Stipulation and [Proposed] Order for Mediation filed by Petitioner Marguerite D. Fonseca and Contestants Rafael T. Fonseca, Isabela C. Fonseca-Greer, and Nicolás R. Fonseca, and having considered the representations of counsel, and finding good cause therefor, hereby ORDERS as follows:
1. The Stipulation for Mediation, filed on March 10, 2023, is APPROVED and shall be effective as of the date signed below by the Court.
2. The Honorable Constance Adler (Ret.) of the Westside Dispute Resolution Center, 11400 West Olympic Boulevard, Suite 550, Los Angeles, California 90064, is hereby APPOINTED as mediator in this proceeding, subject to the terms and conditions set forth in the Stipulation.
3. The Parties shall comply with all terms and conditions of the Stipulation, including but not limited to the provisions governing confidentiality, good faith participation, cost-sharing, and the effect of the mediation on litigation deadlines.
4. The first mediation session shall occur within thirty (30) days of the date of this Order.
5. The Parties shall file a joint status report with this Court within fourteen (14) calendar days following the conclusion of the mediation or the last mediation session, whichever is later. The joint status report shall advise the Court of the outcome of the mediation and, if the mediation did not result in a full resolution of all disputed issues, shall set forth a proposed schedule for further proceedings.
6. The Court retains jurisdiction over all matters in this proceeding, including the authority to set hearings, issue further orders, and manage the case as the Court deems appropriate.
IT IS SO ORDERED.
Dated: ________
________________________________________
Judge of the Superior Court Department: __ Los Angeles County Superior Court
In re the Estate of | Case No. 22STPB09714
TEODORO R. FONSECA, | STIPULATION AND [PROPOSED] ORDER FOR MEDIATION
Deceased. | Filed: March 10, 2023