CONTACTS 

SUBJECTS
Jury Duty

0503 -    ..
0504 - Summary/Objective
0505 -
050501 - Follow up ref SDS 22 0000, ref SDS 21 0000.
050502 -
050503 -
050504 -
050505 -
050506 -
050507 -
0506 -
0507 -
0508 - Administration
0509 -
050901 -  ..
050902 - Arrived at Court and Signed In
050903 -
050904 - Follow up ref SDS 22 0482.
050905 -
050906 - Juror ID:  200310516                         551 3843
050907 -
050908 - Juror Group:  213
050909 -
050910 -
050911 -
050912 -  ..
050913 - Assigned to Court #608 for a Rent Control Dispute
050914 - Dominate Intent to Raise Rents v. Compliance with Rent Control Rules
050915 -
050916 - Follow up ref SDS 22 0726.
050917 -
050918 - Do not visit the site.
050919 -
050920 - Offer of proof.
050921 -
050922 - Jurors can take notes.
050923 -
050924 -    Facial expressions and jestures impact meaning so need to watch
050925 -    the witness.
050926 -
050927 -    Disagreement resolved by notes.
050928 -
050929 -    If jurors do not agree, can get a readback on the transcript.
050930 -
050931 -    Jurors can ask questions by submitting them in writing to the
050932 -    court.
050933 - ..
050934 - Judge said I can use the laptop to take notes, but cannot use
050935 - the juor chair next the power outlet.  He feels it is more important
050936 - to administration of the case that each juor remain in their assigned
050937 - seats, in order to make it easy to address each juror.
050938 -
050939 - I asked to sit in the gallery area rather than in the juror area,
050940 - because there is a power outlet that will avoid the battery from
050941 - runnig down.
050942 -
050943 -
050944 -  ..
050945 - Opening Statement
050946 -
050947 - Defendant 33 year old woman.  Moved in 2530 Chestnut Street in 1995,
050948 - a 6 unit building.  She lived in unit #4 on 1st level in the back.
050949 -
050950 - Paying about $800 per month.
050951 -
050952 - Her work was planning for US Army in Germany, and later worked for
050953 - the Olympic committee to do planning.
050954 -
050955 - Gervich gave eviction notice to defendant that she intended to occupy
050956 - the defendant's apartment #4 her principal place of residence.
050957 - Gervich did move into the apartment.  Plantiff will prove that
050958 - despite the record, defendant did not have good faith honest intent
050959 - to occupy the unit.
050960 -
050961 - Good faith, honest intent, without ulterior intent.
050962 -
050963 - Residences prior to occupying #6 were more oppulent, actual homes.
050964 - One property was occupied, refurbished and then sold.  She did this
050965 - with other properties, and seems to have made a good profit on each
050966 - property.
050967 -
050968 - Defendant bought the property in partnership with someone, Balser.
050969 - Balser claims he did not intend to make rennovations.
050970 -
050971 - Defendant planned to allow her children to move into the property
050972 - rent free.
050973 -
050974 - Defendant made rennovations that cost $300K.
050975 -
050976 -
050977 -  ..
050978 - Defendant's Opening Statement
050979 -
050980 - Preponderence of evidence.
050981 -
050982 - Did a nice analogy about showing a hand and the need to see both
050983 - sides of a hand in order to understand all the evidence.
050984 -
050985 - Plaintiff's brother lived in the apartment.
050986 -
050987 - Plaintiff's family tried to buy the building when the owner died.
050988 -
050989 - Lived rent free for 6 months after the owner of the building died.
050990 -
050991 - Plaintiff's family also bid to buy the property in probate court.
050992 -
050993 - Defendant was successful bidder.
050994 -
050995 - There had been no repairs to property in 30 years, prior to defendant
050996 - making the purchase.
050997 -
050998 - Defendant moved into the apartment occupied by plaintiff.
050999 -
051000 - Plaintiff did not object to eviction.
051001 -
051002 - Plaintiff moved into an apartment a few blocks away.  A month or so
051003 - later she moved to another apartment $850, near the defendant's
051004 - apartment.  She moved again to Beach Street a short time later.  She
051005 - was not happy at this location either.
051006 -
051007 - Defendant is a real estate broker.
051008 -
051009 -    Has 3 children.
051010 -
051011 -    Moved to SF in 1987, divorced and no money.
051012 -
051013 - Defendant has lived in the unit since plaintiff moved out.
051014 -
051015 -
051016 -  ..
051017 - Plaintiff's 1st Witness
051018 -
051019 - Defendant - Sue Anna Gurovich
051020 -
051021 - Realtor for Coldwell Banker.    1987 stockbroker.  Went back to being
051022 - a realtor.
051023 -
051024 - Practice primarily with renters.  Helps them find units they can buy
051025 - their buildings.
051026 -
051027 - In San Francisco she lived for several years in a rental at 916
051028 - Diamond Street, 3 bedroom house.  Lived in several rental homes, and
051029 - later rented a 3 bedroom apartment.  Her children lived with her.
051030 -
051031 - D has purchased properties that required extensive repairs, fixed
051032 - them up and then sold them.
051033 -
051034 - She had not previously lived in a one bedroom apartment.
051035 -
051036 - Property purchased end of 1997, beginning of 1998.
051037 -
051038 - She has won awards for being a good producer who brings in a lot of
051039 - sales.
051040 -
051041 - Plaintiff's counsel asks how much money Defendant made in
051042 - 1997.
051043 -
051044 - D's counsel objects.
051045 -
051046 - Judge sustains objection.
051047 -
051048 - Plaintiff's counsel reads from defendant's deposition.
051049 -
051050 -    Trying to find out how much she invested for rennovations.
051051 -
051052 -    Didn't seem to establish this point, but does not seem real
051053 -    important.
051054 -
051055 - D became interested in property in January 1997.
051056 -
051057 - Initially building was sold to the Wilbert family.
051058 -
051059 - In October 1997 property was listed again.  She called listing agent.
051060 -
051061 - D needed partner for financial assistance to buy property.
051062 -
051063 - She liked the units, and asked a friend to be a partner, Gerald
051064 - Balser.  Balser was a client who had purchased property from Defendant
051065 - on prior transactions.  Balser was an experienced property owner.
051066 - They did a project on Lombard within the last 5 years.
051067 -
051068 - Balser did an owner move-in eviction on a prior project on Baker
051069 - street.  Baker street was his first project. Did more projects and
051070 - got experience.  Plaintiff feels Balser was a sophisticated investor.
051071 -
051072 - D notified Balser that she intended that her children would move into
051073 - the buildng.
051074 -
051075 - Building was in bad shape; needed new kitchen, roof, floors needed
051076 - repairs.  It was worst building D had ever considered buying.  It was
051077 - a good location, but a bad building.
051078 -
051079 - Discussed with Balser that they would have invest to make
051080 - improvements.
051081 -
051082 -    2nd stage meetings with Balser.
051083 -
051084 -    Major concern about earthquake, termite report, ground conditions,
051085 -    and systems.
051086 -
051087 -    Got geological report.
051088 -
051089 -    Planned to try and get the building at $800K based on comparable
051090 -    properties in the area.
051091 -
051092 -    D feels income on property did not make sense, relative to the
051093 -    potential income and cost of the property.
051094 -
051095 -    Knew rents were too low.
051096 -
051097 -    D planned to remodel and rent at $1.5 - $1.7k per month.
051098 -
051099 -    Did not discuss market rates of units in original condition, at
051100 -    time of purchase, since planned to improve units.
051101 -
051102 -    Gross Rent multiplier - method of calculating building value based
051103 -    on the rental.  Add up all rents and multiple times 12, and then
051104 -    multiply times a GRM factor -- 10 by lender, 11 or 12 was used for
051105 -    the area.
051106 -
051107 -                      800 x 6 x 12
051108 -
051109 -           72
051110 -            800
051111 -
051112 -          57600 x 10 = 576,000
051113 -
051114 -
051115 -                    1,500 x 6 x 12
051116 -
051117 -            72
051118 -            1500
051119 -
051120 -           36000
051121 -           72
051122 -
051123 -         108000 x 10 = 1,080,000
051124 -
051125 - D and partner, Balser planning to invest about $150K to improve the
051126 - property.
051127 -
051128 - D discussed with partner that she planned to live in the unit.  She
051129 - says Balser retains ownership, so planned to keep the building,
051130 - rather than sell the building.
051131 -
051132 - D goal was to have a nice apartment to live in - Primary goal.
051133 -
051134 - D also had an ultimate goal to have income for retirement and live in
051135 - the apartment.
051136 -
051137 - D discussed with Balser that D's children would live in the building.
051138 - Two of them were "homeless" at the time, which means they were
051139 - struggeling financially.  D paid Balser for the rent of her children,
051140 - in that she paid her part of the expenses.  Initially children paid
051141 - rent for about 6 months in the amount of prior tenants.  Then repairs
051142 - were begun, and P did not require children to pay rent during repairs.
051143 -
051144 - Balser knew children would move in and pay rent.
051145 -
051146 - D moved into Chestnut Street OA December 1998.
051147 -
051148 -     Hensley lived at Chestnut from Dec 1998 until OA 2 months ago.
051149 -
051150 - Plumbing had to be repaired.
051151 -
051152 - Counsel reads from P deposition.
051153 -
051154 -     P 28 2 - 17.
051155 -
051156 - Plaintiff counsel asks how Defendant expected to generate income.
051157 -
051158 - D currently gets benefit from tax write offs.
051159 -
051160 -     D expected property would begin generating positive cash flow in 3
051161 -     - 4 years.
051162 -
051163 -     She may want her mother and dad, and or her aunt to come live
051164 -     with her.
051165 -
051166 - D did not discuss moving her other family members into the apartment,
051167 - with her partner prior to purchasing the unit.
051168 -
051169 - D has not paid rent for the unit.
051170 -
051171 - There is $7,500 per month bill on the mortguage.  D pays 50%.
051172 -
051173 - D has not paid partner for occupancy of the building.
051174 -
051175 -    D is accumulating a debt on her share of remodeling, and monthly
051176 -    ownership, mortguage, insurance, taxes, etc., owed to partner,
051177 -    Balser.
051178 -
051179 -    Payment will be made from eventual building income.
051180 -
051181 -    Probably going to come from selling the property.
051182 -
051183 -    D is paying partner some money every year, but is not sure of the
051184 -    account balance.
051185 -
051186 -    D testifies she will pay Balser from her commissions.
051187 -
051188 - Remodeling costs have totaled $300K.
051189 -
051190 -    D originally estimated to invest $150K, $75K each.
051191 -
051192 - Plaintiff's counsel reads depositon 62:6 to 68:21  991008.
051193 -
051194 -    Refinanced Jan 99.  $150K more.
051195 -
051196 -    Invested over $350K for remodeling.
051197 -
051198 -    No agreement for children to pay rent.
051199 -
051200 -    D pays Balser .5 of expenses.
051201 -
051202 -    D children do not pay rent.
051203 -
051204 -       When children moved into the apartment they would pay no rent.
051205 -
051206 -       Agreement with partner Balser was that when children moved out,
051207 -       then the units would be rented at market rates.
051208 -
051209 - Plaintiff's counsel asks if it is not true children have never paid
051210 - rent.
051211 -
051212 -    D says children did pay rent.
051213 -
051214 - Court asks counsel to re-state the question.
051215 -
051216 - Counsel asks reporter to read the question.
051217 -
051218 -    D says she did not agree with partner that her children could have
051219 -    apartments rent free.
051220 -
051221 -    D said eventually she and partner agreed her children could use
051222 -    apartments rent free.
051223 -
051224 - Plaintiff's counsel reads depositon 100:15 to 101:21  991008.
051225 -
051226 -    D and partner decided children would not pay rent because building
051227 -    was being remodeled.
051228 -
051229 -    D says that prior to buying the property there was no agreement
051230 -    with partner Balser for children to live rent free.
051231 -
051232 -    D says prior to construction starting, children paid some rent,
051233 -    and her children reminded her of this in reading her deposition.
051234 -
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051236 -
051237 -
051238 -
051239 -
051240 -
051241 -
051242 -
051243 -
051244 -
0513 -