Confidential

Facts

The plaintiff condemned the historic Hotel San Diego for expansion of the federal courthouse
facilities. The plaintiff offered the defendant owners, SDH Properties, LLC, $7.7 million for the
property based on an appraisal. The appraiser subsequently revised his appraisal to reflect a fair
market value of $6.8 million. Appraisers retained by the property owners valued the property at $13.4 million and $14,160,000.
USA hired a second appraited who valued the property at $10.8 million.

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Settlement Discussions

From the $11,500,000 settlement amount, the co-defendant lessees sought the following apportionment amounts: Burger King, business goodwill of $370,000, fixtures and leasehold improvements of $685, 183; Sushi Deli, leasehold bonus value of $8,190; Mrith Sririam (Po Color) leasehold bonus value of $18, 295; Pacific Coast Chinese & Thai Food, (unspecified amounts of leasehold bonus value and fixtures and equipment). Prior to trial, SDH offered $325,000 to settle the leasehold bonus value claim by Sushi Deli Express, which offer was rejected.

Result

The plaintiff agreed to pay $11.5 million for the condemned property.

Other Information

From the $11,500,000 settlement amount, the co-defendant lessees sought the following apportionment amounts: Burger King, business goodwill of $370,000, fixtures and leasehold improvements of $685,183; Sushi Deli, leasehold bonus value of $469,269, fixtures and leasehold improvements of $52,390; Mrith Sririam (Pro Color) leasehold bonus value of $18,295; Mr. Juice, lesehold bonus value of $8,190; Pacific Coast Chinese & Thai Food, (unspecified amounts of leasehold bonus value and fixtures and equipment). Before trial, the owners offered $325,000 to settle the leasehold bonus value claim by Sushi Deli Express, which offer was rejected. After trial on the lessees' apportionment claims, Judge Singleton awarded nothing to the lessees.