If You Bought a Condominium from Bosa in California, A Settlement Has Been Reached that Affects Your Rights

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1 If You Bought a Condominium from Bosa in California, A Settlement Has Been Reached that Affects Your Rights The San Diego Superior Court authorized this notice. This is not a solicitation from an attorney. YOUR LEGAL RIGHTS AND OPTIONS WHAT IS THIS? YOU CAN DO NOTHING, BUT SHOULD CONFIRM SOME INFORMATION YOU CAN OBJECT YOU CAN EXCLUDE YOURSELF The parties have settled the lawsuit in which you are a class member. This notice informs you of the settlement terms and your options. You will automatically be sent the award you are entitled to under the settlement. But, you give up your right to sue Bosa separately and you will be bound by the settlement terms. You should confirm whether you are entitled to Type I or relief. The category of relief depends on whether you: (1) still own your condominium or re-sold it using the condominium plan square footage; or (2) re-sold your condominium using the square footage provided by Bosa. You are scheduled to receive relief. The two types of relief are further described inside this notice. Write to the Court about why you don t like the settlement. Get out of this lawsuit. Receive no settlement award. Keep your right to separately sue Bosa. Your rights and options and deadlines to exercise them are explained in this notice. ***Please read this entire notice carefully*** Questions? Visit or Call Page - 1 -

2 WHAT IS THIS LAWSUIT ABOUT? The lawsuit contends that Bosa incorrectly described the square footage of the residential condominium units that Bosa sold in California. Plaintiff alleges that the residential units sold by Bosa were all substantially smaller than Bosa advertised. Bosa denies all allegations and contends that purchasers received the condominiums as it represented and did not overpay for their units. The parties have agreed to settle the lawsuit. The lawsuit covers the following Bosa condominium projects: Discovery, Horizons, Park Place, The Grande, Marquee, Legend, Electra, Radiance and Bayside. The defendants that have agreed to this settlement are: Natale Bosa, Bosa Development Corporation, Bosa Development California, Inc., Bosa Development California II, Inc., Irvine Residential Highrise LLC, Bosa California LLC (collectively, Bosa ). AM I INCLUDED IN THE CLASS? The class includes all persons who purchased from Bosa a residential condominium unit in California where the purchase occurred on or before October 14, Excluded from the class are: (i) those who previously submitted an opt out request and those who now timely submit an opt out request; (ii) defendants and any of their officers, directors, employees and any real estate sales brokers and agents working on behalf of Bosa; and (iii) people who while represented by counsel signed a release of their claims against Bosa. WHAT CAN I RECEIVE UNDER THE SETTLEMENT? THE SETTLEMENT TERMS Under the settlement, Bosa California II, Inc. will create a Settlement Fund of $16,250,000. The Settlement Fund will be used to pay money to class members as well as pay for notice and settlement administration costs, the taxes and costs of maintaining the Settlement Fund account, and attorneys fees and expenses and plaintiff service awards awarded by the Court. Class members are entitled to one of two types of cash payments per unit purchased from Bosa. The type of payment depends on whether the class member (1) re-sold his or her condominium at the square footage amount Bosa used when it originally advertised the size of the residential units (Type I Relief) ( Advertised Square Footage ) or used another square footage amount larger than Residential Unit Square Footage or (2) still owns his or her residential unit or re-sold it using the Residential Unit Square Footage ( Relief). Residential Unit Square Footage means the square footage of the separate interest in the condominium referred to as the residential unit. Residential Unit Square Footage may be derived from dimensions in the applicable condominium plan filed with the State of California Bureau of Real Estate or from as-built measurements of the residential unit, or some other reasonable means of providing the square footage of the residential unit. Type I relief is a payment of $200. A class member is entitled to Type I relief for each residential unit he or she re-sold listing a square footage that was about the same or higher than the square footage Bosa used when it sold the condominium to the class member. For Type I relief, the re-sale must occur, as indicated by the recording of the grant deed for the condominium, 30 days or earlier before payments are distributed to class Questions? Visit or Call Page - 2 -

3 members. The list of condominiums subject to Type I relief is available at The list is subject to change. relief is a payment based on the difference between the Advertised Square Footage and the Residential Unit Square Footage. It will be calculated according to the following formula: (Settlement Fund/Aggregate Differential) x Unit Differential Aggregate Differential is the aggregate of the Advertised Square Footage over the Residential Unit Square Footage for all units, as updated. Settlement Fund is the amount available in the Settlement Fund for relief. Unit Differential is the difference between the Advertised Square Footage of a particular condominium and the Residential Unit Square Footage of that condominium. Although the amount of relief cannot be determined until the amount of the Settlement Fund available for relief is finally calculated, the parties estimate that relief for a particular unit will be equal to $78 multiplied by the excess of the Advertised Square Footage over the Residential Unit Square Footage of that condominium. For example, it is estimated that a class member with a condominium that is 130 square feet smaller than the Advertised Square Footage will receive $10,140 ($78 x 130 sq. ft.). The difference in Advertised Square Footage and Residential Unit Square Footage for your condominium unit can be found at PLEASE NOTE: the actual amount of relief for your condominium may vary significantly and will depend on the Unit Differential of that condominium, the Aggregate Differential and the Settlement Fund balance as calculated shortly before payments are sent to the class members. I BELIEVE I AM ENTITLED TO TYPE II RELIEF RATHER THAN TYPE I RELIEF. WHAT CAN I DO? Based upon listings from the Multiple Listing Service ( MLS ) and other publically available property data reports, the condominiums entitling class members to Type I relief were all sold by class members using a square footage larger than Residential Unit Square Footage. However, Type I class members may present proof that they sold their unit using Residential Unit Square Footage and therefore receive relief. If you wish to present such proof you must: (1) Write to the Settlement Administrator at Bosa Settlement Administrator, P.O. Box 3614, Minneapolis, MN Your letter must be received by the Settlement Administrator no later than October 7, 2014; (2) Include your name, current address and telephone number, and the building and unit number at issue; (3) Include proof that you sold your unit using Residential Unit Square Footage. Such proof may include MLS listings or other evidence the purchaser was informed of the condominium s Residential Unit Square Footage before an offer to purchase was accepted. The Settlement Administrator will inform you in writing of its determination. The Settlement Administrator s determination may be reviewed by Class Counsel for accuracy but otherwise is not subject to appeal. I CURRENTLY STILL OWN MY CONDOMINIUM. IF I SELL IT, DOES MY SETTLEMENT AWARD CHANGE? If you sell your condominium using Residential Unit Square Footage, you will still receive relief. If you sell your condominium using a square footage higher than the Residential Unit Square Footage, you will receive Type I relief. Questions? Visit or Call Page - 3 -

4 WHEN WILL I RECEIVE MY SETTLEMENT AWARD? Awards will be mailed no later than sixty days after the Court grants final approval of the settlement and the settlement is no longer subject to appeal. Checks will be mailed to the last known address of each eligible class member. If you move, keep us informed of your new address. If you do not cash your check within one year, the check may be cancelled and you may not receive any award. Class Members entitled to Type I awards totaling over $600 must complete an IRS form W-9. If the W-9 form is not completed and returned to the Settlement Administrator, 28% will be withheld from the settlement award. The Settlement Administrator will contact you if you need to complete a W-9. The tax treatment of the settlement awards is the responsibility of each Class Member. You should consult your tax advisor to determine the tax consequences, if any, of your settlement award. IN RETURN FOR THESE SETTLEMENT BENEFITS, WHAT AM I GIVING UP? If the Court approves the proposed settlement and unless you opt out in the manner described below, you will release (give up) all claims, demands, rights, lawsuits, and causes of action of whatever kind or nature, known or unknown, against Bosa that arise from or relate to the factual allegations and claims asserted in this case, including the alleged incorrect descriptions of the square footage of your unit(s) covered by this lawsuit. You will not be able to assert these claims against Bosa in any other lawsuit or proceeding. This includes any lawsuit or proceeding already in progress. You will also waive any rights or benefits under Section 1542 of the California Civil Code, and any other similar law, which provides that [a] general release does not extend to claims which a creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. The full terms of the release are contained in the Stipulation of Settlement that is available at and in the public court records on file in this action. DO I HAVE A LAWYER IN THIS CASE? THE LAWYERS REPRESENTING YOU Class Members are represented by the law firm of Blood Hurst & O Reardon, LLP. These attorneys are experienced in class action litigation. Other attorneys, including attorneys from Higgs Fletcher & Mack LLP and Hurst & Hurst, have also performed work on behalf of Class Members during this litigation. The Court informed Class Counsel and Bosa that her adult son had a six week unpaid internship with Higgs Fletcher & Mack, LLP. If you want to be represented by your own attorney, you may hire one at your own expense and enter an appearance through your own counsel. HOW WILL THE LAWYERS BE PAID? The law firms that worked on this litigation will seek attorneys fees and reimbursement of out-of-pocket expenses (to the extent not already reimbursed by Re/Max) from the Settlement Fund. The attorneys fees requested will not exceed 33% of the Settlement Fund. Those fees plus expenses, as Questions? Visit or Call Page - 4 -

5 approved by the Court, will be paid to the three law firms that worked on the litigation: Blood Hurst & O Reardon, LLP, Higgs Fletcher & Mack LLP, and Hurst & Hurst. Plaintiffs will also ask the Court to award them a service award for the extensive time and effort they spent representing the class members in this lawsuit. Plaintiff and court-appointed class representative Victor E. Bianchini will request a service award of $35,000. Former named plaintiff George J. Serochi, Jr. will seek a service award of $5,000. If the requests are granted by the Court, the amounts will be paid from the Settlement Fund. OBJECTING TO THE SETTLEMENT HOW DO I TELL THE COURT THAT I DO NOT LIKE THE SETTLEMENT? You can object to the settlement if you do not like any part of it and the Court will consider your views. To object, you must remain in the class. To object, you must send a letter to the Court and the parties saying that you object to the settlement in Serochi et al. v. Bosa Development California II, Inc. et al., No CU-BT-CTL. You must include your name, address, telephone number, your signature, the reasons you object to the settlement, and whether you are represented by your own attorney. You must also provide the address of your condominium unit or other proof you are a class member. Your objection must be mailed to and actually received at three different places no later than September 22, Send your objection to: Clerk of Court Superior Court of the State of California County of San Diego 330 West Broadway San Diego, California Leslie Hurst Blood Hurst & O Reardon, LLP 701 B Street, Suite 1700 San Diego, California Ryan Hansen DLA Piper LLP (US) 401 B Street, Suite 1700 San Diego, California Questions? Visit or Call Page - 5 -

6 HOW DO I GET OUT OF THIS LAWSUIT? OPTING OUT OF THE SETTLEMENT The settlement gives class members the opportunity to choose to stay in the class and receive a settlement award, or opt out of the class and retain their right to separately sue Bosa. If you stay in the class and the settlement is approved, you will receive a settlement award as described above. However, you cannot separately sue Bosa. The judgment, rulings and orders in this case, whether favorable or unfavorable, will be binding upon you. If you opt out, you will retain a right to separately sue Bosa at your own cost. You will not be bound by any judgment, rulings or orders, whether negative or positive, in this case. You will not receive a settlement award through this settlement. Before opting out of the class action, consult with a lawyer to determine whether your claim is barred by the statute of limitations. If you want to opt out you must send a letter postmarked no later than September 22, 2014 to Bosa Settlement, Administrator, P.O. Box 3614, Minneapolis, MN The letter must include a statement indicating your intent to opt out such as: I want to opt out of the class in Serochi v. Bosa. The letter must be signed and: (i) provide your full name; (ii) identify by building name(s) or address and unit number(s) all of your condominiums that you want excluded from the class; and (iii) your contact information. If the condominium you want excluded is owned by a married couple, either spouse may sign the opt out request and the request will be binding on both spouses. If the condominium you want excluded is owned by more than one class member who are not a married couple, all class members must sign the opt out request or otherwise manifest agreement to opt out. If the condominium is owned by a trust, the trustee must sign. If the condominium is owned by an entity, the president or other officer so authorized must sign the opt out request. THE COURT S REVIEW OF THE SETTLEMENT WHEN WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT? The Court will hold a Final Approval Hearing at 10:30 a.m. on October 10, 2014, at the Superior Court, County of San Diego, 330 West Broadway, Department C-68, San Diego, California, At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. The Court will also consider the request for attorneys fees and reimbursement of expenses and the service awards. If there are objections, the Court will consider them at that time. After the hearing, the Court will decide whether to approve the settlement. DO I HAVE TO COME TO THE HEARING? No. Class Counsel will answer questions the Judge may have. But, you are welcome to come at your own expense. If you submit an objection, you do not have to come to the Court to talk about it. As long as you filed your written objection on time, the Judge will consider it. You may also pay your own lawyer to attend, but it is not necessary. Questions? Visit or Call Page - 6 -

7 MAY I SPEAK AT THE HEARING? You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must file with the Court a Notice of Intention to Appear. Be sure to include your name, address, telephone number, and your signature. You may be required to demonstrate that you are a class member by providing the address of your condominium unit at issue in the lawsuit. Your Notice of Intention to Appear must be filed with the Court no later than September 22, 2014, and must also be sent to Class Counsel, and Bosa s Counsel (DLA Piper). The addresses for the Court, Class Counsel and Bosa s counsel are listed above. You cannot speak at the hearing if you are not a class member or an attorney representing a class member. GETTING MORE INFORMATION ARE THERE MORE DETAILS ABOUT THE SETTLEMENT? The Stipulation of Settlement contains the complete terms. You can get a copy of the Stipulation of Settlement at The Stipulation and the complete records of this case are on file and may be reviewed in the court clerk s office at 330 West Broadway, San Diego, California Case records are also available on the court s website. PLEASE DO NOT CALL OR WRITE TO THE COURT FOR INFORMATION OR ADVICE DATED: August 22, 2014 /s/ The Honorable Judith F. Hayes JUDGE OF THE SUPERIOR COURT, COUNTY OF SAN DIEGO Questions? Visit or Call Page - 7 -

8 BOSA SETTLEMENT ADMINISTRATOR PO BOX 3614 MINNEAPOLIS MN PRESORT FIRST CLASS US POSTAGE PAID PERMIT NO 17 FARIBAULT MN

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