Farzam

FACTS AND PROCEDURAL HISTORY

In 2011, appellants loaned $58 million (Loan) to their own entity, Sunshine Enterprises, L.P. (Sunshine), to finance construction of the Shore Hotel (Hotel) on Ocean Avenue in Santa Monica. The trial court took judicial notice of Sunshine’s Certificate of Limited Partnership, which was signed by Siroos Farzam and filed with the California Secretary of State. The Loan is secured by a first deed of trust on Hotel. Sunshine built and operates Hotel. Respondent Anthony Mason Associates, Inc. (AMA) is a manager hired to oversee construction of Hotel. AMA allegedly represented that it has extensive experience navigating the

The facts are from the first amended complaint (FAC).

2 approval process and would oversee and coordinate planning approvals, building permits, and similar jurisdictional agency requirements. AMA promised to “ ‘continually oversee[] the quality of work generated by the entire team throughout the duration of the project.’ ”2 Relying on these assurances, Sunshine constructed Hotel “under the mistaken belief that Defendants had secured all appropriate permits, approvals, and authorizations” from the City of Santa Monica and the CCC.…