EXHIBIT 99.1
PILLSBURY WINTHROP LLP
MICHAEL J. FINNEGAN #137409
NATHAN M. SPATZ #204769
725 South Figueroa Street, Suite 2800
Los Angeles, CA 90017-5406
Telephone: (213) 488-7100
Facsimile: (213) 629-1033
Attorneys for Plaintiff
AP-LONG BEACH AIRPORT LLC
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES, SOUTH DISTRICT
________________________________________
)
AP-LONG BEACH AIRPORT LLC, a ) Case No. NC033467
Delaware Limited Liability Company, )
) STIPULATION RE: ADMISSION OF
Plaintiff, ) LIABILITY AND BINDING
) ARBITRATION OF DAMAGES
vs. )
)
MOONEY AEROSPACE GROUP, LTD., a )
Delaware corporation, formerly known as )
ADVANCED AERODYNAMICS AND )
STRUCTURES, INC., a Delaware )
Corporation; and DOES 1 through 50, )
inclusive, )
)
Defendants. )
)
)
________________________________________)
This Stipulation is hereby entered into by and between plaintiff
AP-Long Beach Airport LLC ("Plaintiff") and defendant MOONEY AEROSPACE GROUP,
LTD. ("Defendant"), by and through their counsel of record herein, as follows:
WHEREAS, Plaintiff and Defendant have respectively evaluated the merits
of this action and counsel for Plaintiff and counsel for Defendant have advised
the parties as to the relative strength and weaknesses of the claims asserted
herein by Plaintiff against Defendant as well as Defendant's defenses;
WHEREAS, Defendant wishes to stipulate to and admit liability as to all
of Plaintiff's claims and allegations, except for the calculation of damages
sought and the issue of whether Plaintiff properly mitigated its damages, to
narrow the scope of this proceeding;
WHEREAS, the parties further wish to arbitrate the remaining issue of
the amount of Plaintiff's damage and Plaintiff's mitigation of its damages as
set forth herein.
IT IS HEREBY STIPULATED AND AGREED, as follows:
1. Defendant hereby stipulates and admits that all of Plaintiff's
claims and allegations in the First Amended Complaint filed herein are true and
that Defendant breached the terms of the subject lease entitled "Long Beach
Municipal Airport Lease," executed on or about October 17, 1997, and the subject
sublease agreement entitled "Standard Industrial/Commercial Single-Tenant
Lease-Net," executed on or about May 21, 1999 (collectively, the "Lease"),
concerning the property located at 3205 Lakewood Boulevard, Long Beach,
California. Defendant reserves its right to challenge Plaintiff's calculation of
monetary damages due and owing as a result of Defendant's breach of the subject
Lease, including Plaintiff's mitigation of its damages at arbitration.
2. Plaintiff and Defendant wish to binding arbitration in order to
arbitrate (a) the calculation of Plaintiff's breach of lease damages, and (b)
whether Plaintiff's breach of lease damages should be reduced based on
Defendant's argument that Plaintiff failed to properly mitigate its damages.
3. Plaintiff and Defendant hereby stipulate and request that this Court
reserve jurisdiction over this matter and order the binding arbitration of the
damages and mitigation of damages phase of this proceeding pursuant to the terms
hereof.
4. Plaintiff and Defendant agree that a material term of their
agreement to enter into this Stipulation and to arbitrate the damages phase of
this proceeding is that the binding arbitration will in fact take place during
the week of February 23, 2004 before Honorable John Zebrowski and Plaintiff and
Defendant agree not to request a postponement or continuance of said date for
any reason. The fees charged by the Honorable John Zebrowski and ADR Services,
Inc. shall be borne equally by Plaintiff and Defendant.
5. The award issued by the arbitrator in said binding arbitration shall
be confirmed and enforced in this action through a judgment to be entered
herein.
6. The rules of evidence shall be applied and enforced during the
arbitration and the parties shall have the same opportunity for discovery as
permitted under the Code of Civil Procedure including deposition, expert
exchange and deposition, motion practice and other discovery. The parties agree
to exchange their respective expert witness designations on December 3, 2003.
IT IS SO STIPULATED:
Dated: December __, 2003 MOONEY AEROSPACE GROUP, LTD.
By: _______________________________
Its: ______________________________
Dated: December __, 2003 AP-LONG BEACH AIRPORT LLC
By: _______________________________
Its: ______________________________
Approved as to Form by:
Dated: December __, 2003
PILLSBURY WINTHROP LLP
MICHAEL J. FINNEGAN
NATHAN M. SPATZ
By:
---------------------------------
Michael J. Finnegan
Attorneys for Plaintiff
AP-LONG BEACH AIRPORT LLC
Dated: December __, 2003
JENKENS & GILCHRIST
JOEL D. SIEGEL
MICHAEL R. MATTHIAS
RYAN D. FISCHBACH
By:
---------------------------------
Michael R. Matthias
Attorneys for Defendant
MOONEY AEROSPACE GROUP, LTD
ORDER
-----
IT IS HEREBY ORDERED that Defendant's stipulation to liability and
admission of the claims and allegations of Plaintiff's complaint, except for
damages, is hereby accepted. Pursuant to the parties' joint request and
stipulation to submit the damages phase of this proceeding, including issues
relating to the mitigation of damages, to binding arbitration, it is hereby
ordered that the damages phase of this proceeding shall be arbitrated pursuant
to the terms of the parties' Stipulation re: Admission of Liability and Binding
Arbitration of Damages. This Court shall retain jurisdiction of this matter
pending the outcome of said binding arbitration. Any award rendered therein
shall be enforced through this action whereas a judgment will be rendered in
accordance with the arbitrator's findings and award.
Dated: __________________, 2003 _____________________________
TRACEY T. MORENO, LOS ANGELES
SUPERIOR COURT JUDGE