HomeMy WebLinkAboutContracts & Agreements_249-2017 8
JOINT DET{ENSE/COMMON INTEREST AND CONFIDENTIALITY AGRrmmENT
This Joint Defense/Common Interest and Confidentiality Agreement ("Agreement") is
entered into this 5" day of December, 2017, by and among A Community of 1 riends ("ACOF"),
a California non-profit corporation, Redlands Supportive Housing, L P ("RSH") and the City of
Redlands ("City") in order to aid the respective parties in their defense of legal matters discussed
below City, ACOF and RSH are sometimes individually referred to herein as a "Party" and,
togethei,as the"Parties "
RECITALS
A On October 18, 2017, Citizens for Equitable Redlands filed Case Number CIVDS
1.720139 in the San Bernardino County Superior Court, a Petition for Peremptory Writ of
Mandate, alleging violations of the California Environmental Quality Act (the"Action")
City is named as Respondent in the Action ACOF and RSH are named as Real Parties in
Interest in the Action the Action challenges the City Council of the City of Redlands'
approval Zone Change No 448 and Conditional Use Permit No 1045 for a residential
development in the City of Redlands(together, the "Project") and approval of a mitigated
negative declaration("MND")for the Project(collectively, the "Challenged Approval")
B Because of then positions as Respondent and Real Parties in Interest in the Action, the
Parties have Joint and common interests with respect to the defense of the Challenged
Approval, as well as the various issues and disputes that have been, alleged or may arise
in the Action concerning the Parties' obligations, liabilities, and/or duties relating to these
issues and disputes All such issues and disputes against the Parties, including those
concerning the Challenged Approval, whether individually or collectively, are referred to
collectively as the"Disputes"
C The Parties acknowledge and agree that their respective positions regarding the Disputes
are such that their interests are generally the same Nevertheless, the Parties understand
that conflicts between their respective positions and interests may currently exist or could
develop in the future Therefore, the Parties wish to share, and have their legal counsel
share, information on the Disputes as to which the Parties' interests are the same and do
not conflict, all on a confidential basis, without waiving the confidentiality of shared
information as to those persons or entities not Parties to this Agreement, and without
sacrificing the Parties' abilities to continue to be represented by their respective counsel
in any of the Disputes, or other existing or future disputes with each other, relating to the
Action of the Challenged Approval The Parties believe and agree that it is in their
respective and collective best interests to share information in this way and to cooperate
in the defense of the Disputes in the Action because such sharing of information is
reasonable and necessary to accomplish the purpose for which their attorneys have been
consulted and employed, that is, the investigation, analysis, and defense of the Disputes
in the Action
TERMS AND CONDITIONS
In consideration of the mutual promises and covenants hereinafter set forth, the Parties
agree as follows
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Section 1 Confidential Sharing of Information
I I The Parties may share with each other and each other's respective Counsel
information in their possession relating to the subject matter of the Disputes, some
of which may be confidential and subject to either the attorney-client privilege,
the attorney work-product doctrine, and/or any other privilege, immunity, or
protection under California law The term "Counsel" shall mean the Parties'
respective in-house and outside counsel that represent any Party's interest related
to the Project of any Dispute, whether or not a particular counsel is directly
involved in prosecuting and defending the various claims in the Disputes Counsel
for ACDF and RSH includes, without limitation, Holland & Knight LLP, Paul
Hastings LLP and Public Counsel Counsel fot City includes, without limitation,
City's appointed City Attorney, and Best, Best & Krieger LLP The Parties agree
that all shared information received from the other Parties or the other Parties'
Counsel shall be held in strict confidence by the receiving Party and by any
counsel or consultants of such Party to which such confidential information is
revealed by the receiving Party and, subject to the reservations set forth in Section
1 9 of this Agreement, such information shall only be used in connection wtth
asserting any common claims or defenses in connection with the Disputes and
conducting such other activities as are necessary and proper to carry out the
purposes of the Parties' defense of the Action
€ 2 The sharing of such confidential information by the Parties that is subject to the
attorney-client privilege, the attorney work-product doctrine, and/or any other
privilege or immunity is not intended by the Parties to be, nor shall it be,
construed as a waiver of any attorney-client privilege, attorney work-product
doctrine, and/or any other privilege, immunity, or protection
1 3 The information and other materials that have been or will be exchanged pursuant
to the understandings memorialized in this Agreement may include factual or
legal inforination, theories, mental impressions, memoranda, percipient or expert
witness statements, interviews or investigations, interview reports, draft briefs,
correspondence, other Iegal position papers, and other documents, information,
and materials, including, but not limited to,the confidences of the Parties relevant
to the Parties' common interests, in oral, written or any other form (collectively,
"Privileged Materials"), and they are exchanged on the understanding and
agreement that
a Privileged Materials shared among the Parties or their Counsel may
contain confidential and privileged communications subject to the
attorney-client privi lege,
b Privileged Materials shared among the Parties or their Counsel may
contain privileged or protected work product, including attorney work-
product,
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c Privileged Materials shared among the Parties or their Counsel may
contain materials protected by other privileges, immunities, and rules of
confidentiality,and
d In accordance with applicable legal standards, exchanges have been and
will be made only of information concerning issues as to which the Parties
believe in their sole discretion that they share common interests with
respect to the Disputes All Privileged Materials provided by any Party in
connection with joint efforts relating to the Disputes, and all material
derived from any Privileged Materials so exchanged, shall be deemed
subject to the terms of this Agreement All Privileged Materials that are
privileged or protected as to any Party or its Counsel shall remain
privileged or protected when communicated to another Party or its
Counsel in accordance with the joint and common defense concept
articulated in Continental Oil Co v United States, 330 F 2d 347 (9th Cir
1964), Waller v Financial Coi p of America, 828 1,2d 579, 5 83 n 7 (9th
Cir 1987), and their progeny, California Oak Foundation v County of
7ehema, 1.74 Cal App 4th 1217 (2009), and in accordance with the
provisions of California Evidence Code section 912(d), the attorney work-
product doctrine and the joint defense common interest, and non-waiver
principles articulated in Raytheon Co v Superior Court, 208 Cal App 3d
683, 687-89 (1989), and to the fullest extent provided by law The
voluntary disclosure by any Party to this Agreement of Privileged
Materials to any other Party shall not be deemed to create any waiver of
implied waiver of any applicable privilege or doctrine protecting the
Privileged Materials from disclosure to persons not parties to this
Agreement The Parties acknowledge that they have been acting in a
manner consistent with the terms of this Agreement since the Action first
arose and agree that this Agreement is meant to apply to all such action
and exchanges of Privileged Materials, whether occurring before or after
the execution of this Agreement
14 If any Party is dismissed from the Action by reason of settlement or otherwise, or
if any Party shall cease to be a part of this Agreement, such Party's obligation to
protect the confidentiality of all Privileged Materials provided to it by the other
Parties shall continue
15 After any Party to this Agreement has voluntarily disclosed Privileged Materials
to any other Party, the Party disclosing the information shall not be entitled to
return of that information until the final determination of the Action as to the
party to whom the information was disclosed Upon final dismissal of settlement
of the Disputes, including the Action, any written Privileged Materials received
pursuant to this Agreement by any settling or dismissed Party shall be returned,
upon request, within a reasonable penod of time to the Party that produced the
Privileged Materials
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1 6 Any written Privileged Materials that are shared of exchanged may be marked
"Confidential, Privileged Materials ' Failure to mark Privileged Materials shall
not be deemed a waiver of any applicable privilege
1 7 This Agreement shall not be construed to require any of the Parties to disclose to
any third party any documents or mformation Subject to the provisions of
Section 1 10 to this Agreement, any Privileged Materials that are shared or
exchanged among any or all of the Parties will not be disclosed to any third party
without the written consent of the Party whose information is to be disclosed,
except that disclosure of Privileged Materials to a Qualified Person, as defined
below, shall not need prior written consent and shall not breach the confidentiality
afford to Privileged Materials under this Agreement "Qualified Person" is
defined as
a Attorneys of record for of general counsel engaged by any Party,
b Any officer or employee of a Party, who would normally be deemed a
client for purposes of the attorney-client privilege and/or those employees
consulted on a need-to-know basis,
c Legal assistants, secretaries, other support personnel, and word processing
personnel working under the direct supervision of any attorney who is a
Qualified Person,
d Outside legal support consultants retained to assist in the Disputes by any
attorney who is a Qualified Person,
e Consultants and experts retained for purposes of the Disputes by any
attorney who is a Qualified Person, provided that any such consultant or
expert shall sign a statement certifying that such consultant or expert has
read this Agreement and agrees to be bound by all of its terms and
conditions, and provided further that such statement be retained by said
attorney, and provided fiirther that any consultant or expert shall not
disclose Privileged Materials without the written consent of the Party
whose information is to be disclosed,
f Entities that are constituent partners in RSH, including, without
limitations, any managing general partner and co-general partner in RSH
and the officers employees, directors, legal counsel, and other consultants
of such entitles,and
g Any person otherwise agreed upon in writing by all of the Parties, and
disclosure to whom is foi the purposes of facilitating the defense of the
Disputes, including the Action as set forth above, provided that any such
person shall sign a statement certifying that he/she has read this
Agreement and agrees to be bound by all of its terms and conditions, and
provided further that such statement be retained by the attorney of record
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for the Party proposing to disclose documents, or information contained
therein,to such person
1 8 Any Privileged Materials shall be used solely in connection with the Disputes,
including the Action, and shall not be used for any other purpose Each Qualified
.Person receiving written Privileged Materials shall maintain those documents, and
any information contained therein, in trust, and shall use reasonable care to
safeguard the confidential nature of the Privileged Materials, and the information
contained therein, and to prevent them from being copied or otherwise used by
anyone who is not a Qualified Person
19 Notwithstanding any other provision in this Agreement, in the event of any
adversarial action, proceeding, or litigation between or among the Parties, nothing
in this Agreement shall be construed to prevent the Parties to this Agreement from
using in such action, proceeding, or litigation any information that is obtained
though discovery or from independent third-party sources, even though such
information obtained through discovery or from independent third-party sources
may be the same, related to, or similar to the Privileged Materials obtained
pursuant to this Agreement
110 Notwithstanding anything in this Agreement to the contrary, the Parties
acknowledge and agree that the Privileged Materials shared as part of this
Agreement are not precluded from use by the Parties hereto in any disputes or
claims that exist or may exist by and between any of the Parties to this
Agreement, as such are not part of the Disputes in the Actton in the common
interest of all the Parties hereto as contemplated under this Agreement
1 11 If Privileged Materials become the subject of a potential administrative orjudicial
order purporting to require disclosure of such information by a Party to this
Agreement, that Party must provide notifiLation no later than twenty-four (24)
hours after receiving notice of said proceedings to the Party that generated the
information of the proceedings seeking to compel disclosure in order The
purpose of the notice required under this section 1 11 is to give the generating
Party reasonable opportunity to protect the confidentiality of the information prtor
to its disclosure Although recognizing that a Party must comply with a valid
administrative or judicial order, any disclosure pursuant to such administrative or
judicial order shall be only to the extent minimally necessary to comply with the
order and shall not be made in any event until notice of the potential disclosure is
given, as provided herein
1 12 Should anyone claim that any otherwise applicable privilege has been waived as a
result of any exchange or disclosure made pursuant to this Agreement, the Parties
agree to�oin in defending against such claim
1 U Nothing in this Agreement is inconsistent with the Parties' respective interests in
receiving independent, vigorous and separate representation
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1 14 Prior to the execution of this Agreement, some or all of the Parties and Counsel
after agreeing that there was a commonality of interest among them relating to the
Disputes and that there communications would be privileged, may have shared
information and materials with one another that would be deemed Privileged
Materials as defined in and governed by this Agreement The Parties agree and
acknowledge that such information and materials (a) shall corse within the
definition of"Privileged Materials" and shall be treated as Privileged Materials
for purposes of this Agreement, and (b) are subject to (i) the same legal
protections and privileges as though it had been shared after the execution of this
Agreement and (n) all terms and conditions of this Agreement This Agreement
shall remain in effect until all issues relating to the Disputes have been finally
determined and resolved or until such time as the Parties mutually agree
Section 2 Payment of Defense Costs/Indenrnity/Secuirity
21 Pursuant to Condition No 19 of Conditional Use Permit No 1045 issued by City
for the Project, ACOF and RSH are required to "defend, by paying for the defense
costs of City (for counsel retained by City), indemnify and hold harmless City,
and its elected officials, officers, employees, and agents, from and against any and
all claims, actions, and proceedings (collectively `Claims') to attack, set aside,
void or annul the approval of Conditional Use Permit No 1045 issued by City and
any other entitlements issued for the Project, or any Claims brought against City
due to acts or omissions in any way connected to the Project that are the subject of
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limited to, damages, fees, costs, liabilities, and expenses incurred in such actions
or proceedings, including damages for the injury to property oL persons including
death of a person,and any award of costs or attorneys' fees In the event any such
action is commenced to attack, set aside, void or annul all, or any, provisions of
Conditional Use Permit No 1045 or other entitlements issued for the Project, or
is commenced for any other reason against City for acts or omissions relating to
the Project, within fourteen (14) City business days following notice of such
action from City, ACOF and RSH shall file with City a performance bond of
irrevocable letter of credit, or other form of security satisfactory to City (the
"Security") in a form satisfactory to City, and in the amount of$200,000 to ensure
ACOF and RSH's perfonnanee of their respective defense and indemnity
obligations However,provision of the Security does not limit the total indemnity
obligation of either ACOF or RSH established by Condition No 19 " The failure
to provide the Security shall be deemed an express acknowledgement and
agreement by ACOP and RSH that City shall have the authority and right, without
objection by ACOF or RSH, to revoke all entitlements granted for the Project, and
City shall have no liability for the exercise of City's right to revoke the challenged
entitlements
22 In the event City retains special counsel in connection with it defense of the
Action, ACOF and RSH shall reimburse City for all costs incurred by City for
such special counsel services City will submit to ACOF and RSH copies of the
summary invoices prepared by special counsel and sent to City, and ACOF and
RSH shall make the required reimbursement payment to City within thirty (30)
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days of the date of City's transmittal of each such invoice In the event ACOF
and RSH fall to make any reimbursement payment, City shall have the right to
draw upon the Security described in Section 2 1 above
Section 3 Notices
3 1 All notices of other communications between the Parties required or permitted
hereunder shall be given in writing by personal delivery or sent by certified mail,
return receipt requested and postage prepaid, sent by reputable overnight courier
(such as rederaI Express, UPS of DIIL), or transmitted by electronic facsimile
transmission (with electronic confirmation of receipt) to the following addresses
Notices sent by mail shall be addressed as follows
City ACOF/RSII
Jeanne Donaldson Dora Leong Gallo
City Clerk Redlands Supportive Housing L P
City of Redlands c/o A Community of Friends
35 Cajon Street, Suite 4 3701 Wilshire Boulevard, Suite 700
P 0 Box 3005 (mailing) Los Angeles, CA 90010
Redlands, CA 92373
With a Copy to With a Coi)v to
Daniel J McHugh,Esq Holland&Knight LLP
City Attorney 50 California Street, Suite 2800
City of Redlands San Francisco, CA
35 Cajon Street, Suite 200 Attention Amanda Monchamp,Esq
P 0 Box 3005 (mailing)
Redlands, CA 92373
A notice shall be effective on the date of personal delivery if personally delivered
before 5 00 p m or otherwise on the day following delivery, or when received, if
transmitted by electronic facsimile transmission (with electronic confirmation of
receipt), or two (2) business days following the date the notice is postmarked, if
mailed, of on the day following delivery to the applicable overnight courier, if
sent by overnight courier Changes may be made in the names and addresses of
the person to whom notices and payments are to be given by giving notice
pursuant to this section 3 1
Section 4 Withdrawal and Modification
41 Any Party may withdraw from this Agreement within twenty (20) days after
written notification to the other Party This Agreement shall continue to protect
all Privileged Materials covered by this Agreement and disclosed to the
withdrawing Party prior to its notification of withdrawal This Agreement cannot
be modified or revised in any respect except with the express written consent of
the Parties
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42 In the event that either Party determines that its interests may be best served by
pursuing a course of action adverse to the interests of the other, or becomes aware
of any other circumstances inconsistent with the maintenance of a joint defense or
common interest privilege, such Party shall immediately notify in writing the
other Party and return to it all Privileged Materials previously received and
withdraw from the Agreement Such withdrawal should not affect the privileged
nature of any Privileged Materials received prior to the date of withdrawal, and
the withdrawing Party and its Counsel shall continue to be bound by the
obligations and confidentiality set forth in this Agreement
Section 5 Choice of Lave
5 1 This Agreement shall be governed by and construed in accordance with the laws
of the State of California
Section 6 Remedy
61 The Parties expressly acknowledge and agree that no adequate remedy is
available at law for breach of this Agreement and that, in addition to any other
remedies available,performance of this Agreement may be specifically ordered or
breach hereof may be enjoined or both
62 1n the event any action is commenced to enforce or interpret any of the terms or
wrWiiion5 ci MIS fXgric.mcnr inu prc.vainng Party shad, in addition io any c,cisis
and other relief, be entitled to the recovery of its reasonable attorneys' fees,
including fees for the use of in-house counsel by a Party
Section 7 Entire Agreement
71 This Agreement constitutes the entire agreement between the Parties with respect
to common defense of the Action and confidentiality This Agreement supersedes
alt prior or contemporaneous agreements, representations, and understandings
with respect to the common defense of the Action and confidentiality Nothing in
this Agreement constitutes, or shall be construed to be, a waiver or
circumscription of any Party's rights to pursue remedies available at law in
disputes (including disputes related to the Action) with the other Party, including
filing suit This Agreement may be modified, altered, of amended only if such
changes are in writing and signed by of on behalf of all Parties who have executed
this Agreement
Section 8 Authority
8 1 Each Party hereby represents and warrants that its execution of this Agreement
has been duly authorized and approved by all necessary authority of the approving
entity This Agreement may be executed in duplicate original or counterpart For
it purposes of this Agreement, a facsimile signature will be deemed an original
signature
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Section 9 Additional Parties
91 Additional parties who share common interests with respect to the Disputes,
including the Action, may join in this ,Agreement by executing a copy of this
Agreement with notice to and agreement by all Parties to this Agreement
Section 10 Miscellaneous
10 1 Nothing in this Agreement is intended to be, not shall it constitute or be used as,
evidence of any admission by any of the Parties to any other Party, of any third
party
102 This Agreement may be executed in counterparts and by facsimile of other
electronic delivery and such execution and delivery shall have the same force and
effect as though each party had signed the same copy of this Agreement This
Agreement shall become binding and enforceable between and among each
signatory Party as of the date of execution without regard to the number of other
parties that may elect to become Parties hereto Signature by a Party's attorney
shall be a representation by the attorney that they are authorized to enter into this
Agreement on behalf of their client(s)
103 in the event that any provision of this Agreement shall be finally determined by a
court of competent jurisdiction to be illegal, void or unenforceable, then such
provision shall have no force or effect, but the illegality or unenforceability of
such provision shall neither affect nor impair the legality and enforceability of any
other provision of this Agreement
11) 4 Entry into this Agreement shall not affect or alter any other obligations or
agreements between any of the Parties hereto that now exist or which will come
into existence in the future
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IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first
written above
CITY OF REDLANDS A COMMUNITY OF FRIENDS
By B I
Paul W Foster, Mayor Dora Le-'n Gallo, Chief Executive Officer
REDLANDS SUPPORTIVE HOUSING, L P,
By Supportive Housing LLC,
Managing General Partner
By A Community of Friends,
Sole member/manager
By
Dora IZodg Gallo, Chief Executive Officer
ATTEST
rine Donaldson, City Clerk
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