A Santa Clara superior court jury awarded $14.2 million in damages to Sutter’s Place, Inc. dba Bay 101 (a California cardroom operating in San Jose) against its landlord, S.J. Bayshore Development LLC for breaching the parties’ lease agreement, while also rejecting all of S.J. Bayshore’s damages claims for concealment against two of Bay 101’s shareholders (Timothy Bumb and Ronald Werner) and S.J. Bayshore’s former general counsel (Loren Vaccarezza).

Bay 101 had claimed that S.J. Bayshore had refused to select an appraiser or conduct an appraisal of the underlying property on which the cardroom is located, thereby delaying Bay 101’s ability to exercise the option and buy the property. S.J. Bayshore had claimed that Timothy, Werner and Vaccarezza allegedly conspired against it to form what it claimed was an unfair lease and was seeking $54 million in damages.

Following a 26-day trial, which included both a four-day bench trial on equitable issues, and a nineteen-day jury trial on damages claims, the jury found that S.J. Bayshore’s conduct caused Bay 101 harm and awarded it $14.2 million in damages. The same jury also held that S.J. Bayshore was not entitled to any recovery on any of its claims. The jury deliberated for seven hours before returning its verdict.

“Bay 101 is grateful to the jury which was extraordinarily attentive and patient and is pleased that the cross-defendants, Timothy Bumb, Ron Werner and Loren Vaccarezza, have been vindicated from the personal and professional attacks that were advanced against them,” says Richard Patch of Coblentz Patch Duffy & Bass LLP.

Bay 101 and Timothy were represented by Richard Patch, Clifford Yin, Christopher Wiener, Ben Pulliam and Sarah Peterson of Coblentz Patch Duffy & Bass LLP.

S.J. Bayshore was represented by Michael Celio, Jessica Valenzuela and Elizabeth Dooley of Gibson Dunn.

Loren Vaccarezza was represented by Alison Buchanan and Laura Riparbelli of Hoge Fenton.

Ronald Werner was represented by James McManis and Matthew Schechter of McManis Faulkner LLP.

The case is Sutter’s Place, Inc. dba Bay 101 v. S.J. Bayshore Development, LLC et al., case number 22CV397119, in Santa Clara Superior Court.

Coblentz’s Family Wealth practice and three family wealth partners have been recognized in the 2024 edition of the Chambers High Net Worth Guide. Family Wealth practice chair Jaime Mannon and partners Phil Feldman and Jim Mitchell are once again ranked as Leading Lawyers in the Private Wealth Law category for Northern California. The Chambers High Net Worth Guide ranks the world’s top service providers to ultra-high net worth and high net worth individuals and families and family offices.

Jaime Mannon is again ranked as a Leading Lawyer in Band 2. Jaime offers affluent individuals and families assistance with estate and gift tax planning and cross-border tax planning. A source notes, “Jaime is well-versed in sophisticated estate matters,” while another adds, “Jaime is great to work with. She is thorough and technical.”

Phil Feldman is again ranked as a Leading Lawyer in Band 2. Phil assists wealthy individuals and families with income, philanthropic, and gift and estate tax planning. A source says, “Philip has robust experience and knowledge. He gives excellent and practical advice.” Another notes, “Phil is terrific.”

Jim Mitchell is again ranked as a Leading Lawyer in Band 2. Jim advises high net worth clients on tax planning and trust and estate administration. One source notes, “James is an excellent professional who understands the importance of communicating risk and understanding cost/benefit analyses.” Another adds, “Jim is a solid, down-to-earth advisor and problem solver.”

The Coblentz Family Wealth practice is also listed by Chambers HNW in Band 2 for Private Wealth Law, Northern California. A source notes, “Coblentz can handle anything. They have a deep bench and their ability to collaborate is great,” while another adds, “Coblentz are elite planners and give top level service.” Independent and objective, Chambers USA and Chambers HNW are carefully researched and widely considered to be the most reputable law firm directories in the world. Ranking criteria include technical legal ability, professional conduct, client service, business understanding, diligence, commitment, and other qualities most valued by legal clients. To view additional details on Chambers HNW rankings, please click here.

Additional Coblentz Chambers USA Rankings

Nine additional Coblentz partners and four practices are recognized in the 2024 edition of Chambers USA, also published by Chambers & Partners. Real Estate partners Alan Gennis, Danna Kozerski, Harry O’Brien, and Tay Via; Litigation partners Timothy Crudo, Sean Coyle, and Rees Morgan; and Employment partners Fred Alvarez and Hannah Jones are ranked as leading lawyers in their respective categories. Coblentz’s Employment, Land Use, Real Estate, and White Collar Defense and Investigations practices are also recognized by Chambers USA 2024.

“[T]he decision whether to sever unconscionable provisions and enforce the balance is a qualitative one, based on the totality of the circumstances. The court cannot refuse to enforce an agreement simply by finding that two or more collateral provisions are unconscionable as written and eschewing any further inquiry.”

-Justice Carol A. Corrigan

On July 15, 2024, the California Supreme Court issued a decision in Charter Communications v. Ramirez, Case No. S273802, making clear that the issue of severance of allegedly unconscionable clauses in an arbitration agreement is a qualitative one rather than a quantitative one – and that an arbitration clause should be saved rather than invalidated if it can be.

The Court’s decision aligns with the argument Coblentz submitted in its amicus curiae brief filed on behalf of Employers Group. Employment partner Fred Alvarez prepared the amicus curiae brief and was recently quoted in the Daily Journal, noting, “If you can show the provision is collateral to the agreement, and it’s severable, then you can enforce the arbitration agreement rather than toss the whole agreement.” Fred was also quoted in Law360.