Gurgenyan v LQ - 44155 Ocotillo Dr - 2026 Settlement Agrmt & Release
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SETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (hereinafter the “Agreement”) is entered by and
between the City of La Quinta, a California charter city (“City”), and Henri Gurgenyan, an
individual (“Gurgenyan”), and is binding and effective as of the Effective Date (defined below).
The City and Gurgenyan are periodically referred to hereinafter individually as a “Party” and
collectively as the “Parties.” The Parties enter into this Agreement with reference to the following:
R E C I T A L S
A. WHEREAS, the City, pursuant to its police powers, passed a short -term vacation
rental (“STVR”) ordinance (Municipal Code § 3.25.050) (the “Ordinance”) which, among other
things, created restrictions on the use of STVRs in the City.
B. WHEREAS, the Ordinance requires that a property owner who wishes to operate a
STVR obtain a permit and business license prior to renting out their property as a STVR.
C. WHEREAS, Gurgenyan owns a real property located at 44155 Ocotillo Dr., La
Quinta, CA 92253 (“Property”).
D. WHEREAS, on April 11 and April 17, 2025, the City received separate
complaints that, among other conditions presented in evidence, there was excessive noise at the
Property.
E. WHEREAS, on July 21, 2025, the City issued two administrative citations
LQ200760 and LQ200761 (collectively, the “Citations”) on Gurgenyan, which imposed fines of
$1,600 and $3,200 respectively, for a total of $4,800 (collectively, the “Fines”). The
administrative citations were for the following: (i) LQ200760 for violating La Quinta Municipal
Code Section 3.25.050(A) & (B) – STVR permit required; and (ii) LQ200761 for violating La
Quinta Municipal Code Section 3.28.030 – Business license required.
F. WHEREAS, Gurgenyan appealed the Citations and Fines on an administrative
level and that appeal was heard by a hearing officer on July 17, 2025. Gurgenyan applied for, and
was granted, a “hardship” exception which relieved Gurgenyan from paying the Fines and costs
of pursuing the administrative appeal.
G. WHEREAS, after the conclusion of the administrative hearing (“Administrative
Proceeding”), the hearing officer ruled in favor of the City, upholding the issuance of the
Citations and obligation to pay the Fines.
H. WHEREAS, Gurgenyan thereafter appealed the hearing officer’s decision for the
Administrative Proceeding through the judicial appeals process at the Superior Court of
California, County of Riverside, in case CVPS2505395 (the “Case”).
I. WHEREAS, there was a hearing on the Case on October 23, 2025, where the Court
considered the administrative hearing officer’s decision upholding the Fines imposed on
Gurgenyan.
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J. WHEREAS, on November 3, 2025, the Superior Court for the Case issued an order
vacating the Fines, finding the definition of “short-term vacation rental unit” in Section 3.25.030
of the La Quinta Municipal Code did not provide proper notice of what action is permitted and
what action is prohibited.
K. WHEREAS, pursuant to applicable procedures, the City filed an appeal of the
Superior Court’s decision on the Case in the Appellate Division of the Riverside County
Superior Court (Case No. APRI2500146) (the “Appellate Division Case”), which is currently
pending.
L. WHEREAS, without either Party admitting any liability, and for the purpose of
resolving their dispute without incurring additional legal costs, Gurgenyan and the City agree to
settle their dispute of this matter on the terms set forth herein.
NOW THEREFORE, in consideration of the Recitals above, which are a substantive part
of this Agreement and incorporated by this reference, and the mutual covenants set forth herein,
the Parties agree as follows:
1. Settlement Obligations of the Parties.
In consideration for this Agreement and the terms and conditions set forth herein, the City
shall withdraw and dismiss with prejudice the Appellate Division Case within three (3) business
days of (i) City’s payment of the Settlement Payment (defined herein) and (ii) receipt of
Gurgenyan’s counter-signed copy of this Agreement. The City shall pay by wire transfer or check the
amount of Seventy Five Hundred Dollars ($7,500) (the “Settlement Payment”) within three (3)
business days of receipt of Gurgenyan’s counter-signed copy of this Agreement. Additionally, the
City shall not seek payment of the Fines or the costs related to the Citations (collectively the
Settlement Payment and waivers for payment of the Fines are referred to herein as the “City’s
Settlement Terms”). The City’s Settlement Terms shall constitute payment and satisfaction in full for
any and all claims or disputes that Gurgenyan has asserted or could have asserted against the City, or
that the City has asserted or could have asserted in the Appellate Division Case, in connection with
the Released Matters (defined below).
2. No Admission of Fault.
Upon full performance by the Parties to this Agreement of their respective obligations set
forth in Section 1, this Agreement is intended to be and is a compromise and settlement
between the Parties, and nothing in this Agreement shall be interpreted, used, or construed as an
admission of fault or wrongful conduct of any kind by any of the Parties.
3. Release.
a. Released Matters. In consideration for the agreements as set forth herein, the
City and Gurgenyan, on behalf of themselves and their respective successors, assigns, officials,
directors, officers, employees, insurers, lenders, lien holders, attorneys, agents, and other
representatives, do hereby release the other Party from all claims, actions and causes of action,
obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable
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relief, suits, liens, losses, costs or expenses, including reasonable attorney’s fees, to the extent
asserted in or arising out of the Citations, Fines, Case, and Appellate Division Case, and that exist as
of the Effective Date (the “Released Matters”). The Released Matters expressly do not include, and
each Party expressly reserves, any claim, action or cause of action (i) arising from a Party’s breach
of this Agreement or a Party’s failure to perform or honor the terms of this Agreement, (ii) unrelated
to the Released Matters, or (iii) based on acts, omissions, or conduct occurring after the Effective
Date.
b. Waiver of Civil Code Section 1542: The Parties acknowledge the provisions
under California Civil Code section 1542, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE WHICH IF KNOWN BY HIM
OR HER MUST HAVE MATERIALLY AFFECTED HIS OR
HER SETTLEMENT WITH THE DEBTOR.”
Gurgenyan and City expressly waive and relinquish any rights and benefits that they have or may
have under California Civil Code section 1542 to the extent those rights and benefits relate to the
Released Matters. Gurgenyan and City acknowledge and agree that they are aware that they may
hereafter discover facts in addition to or different from those which they now know or believe to be
true with respect to the Released Matters, but it is their intention hereby to forever settle and release
any and all matters, disputes and differences, known or unknown, suspected and unsuspected, which
now exist, may exist or heretofore have existed, as against each other, arising out of the Released
Matters.
4. Effective Date of Agreement.
This Agreement shall be binding and effective as of the latest date on the signature page of
this Agreement, which date shall be the “Effective Date” of this Agreement.
5. Entire Agreement.
This Agreement constitutes the entire agreement between the Parties concerning the subject
matter hereof and supersedes all prior and contemporaneous agreements, negotiations, and
understandings, whether oral or written. This Agreement may be modified only in writing and
signed by both Parties. This Agreement shall be binding upon and inure to the benefit of the Parties
and their respective successors and assigns. Except as required by law including but not limited to
the California Public Records Act (Cal. Gov. Code § 7920.000 et seq.), neither Party shall disclose
the terms of this Agreement to any third party; provided, however, that either Party may disclose the
terms of this Agreement to its attorneys, accountants, tax advisors, insurers, and spouse or domestic
partner, and to any court or governmental agency as necessary to enforce or interpret this
Agreement. If the City receives a request under the California Public Records Act (Cal. Gov. Code
§ 7920.000 et seq.) seeking disclosure of this Agreement, the City may provide Gurgenyan with
written notice of the request and a copy of the request at least five (5) business days prior to
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producing the Agreement. Nothing in this Section shall require the City to violate the California
Public Records Act or any other applicable law.
6. Representations and Warranties.
Each Party represents and warrants that it has not transferred, assigned, pledged, or
otherwise encumbered any claim, right, or cause of action being released under this Agreement,
and that it has full power and authority to enter into and perform this Agreement. Each Party
further represents that the person signing on its behalf is duly authorized to bind that Party. No
claim of subrogation shall be asserted by or through either Party against the other with respect to
the Released Matters, and each Party waives any such subrogation rights to the extent they exist
as of the Effective Date. A Party shall be in material breach of this Agreement only upon (i)
written notice from the non-breaching Party describing the alleged breach in reasonable detail,
and (ii) failure to cure such breach within ten (10) days after receipt of the notice; provided,
however, that if the breach cannot reasonably be cured within ten (10) days, the breaching Party
shall not be in material breach so long as it promptly commences cure within that period and
diligently pursues cure to completion.
7. Controlling Law.
This Agreement shall be interpreted and construed in accordance with the laws of the State
of California without regard to conflict of law principles.
8. Attorneys’ Fees and Costs.
The Parties shall bear all of their own respective costs and attorneys’ fees incurred relating
to the Case and this Agreement except, in the event that a Party is required to initiate or defend
any litigation relating to or arising out of this Agreement, the prevailing Party shall be entitled to
recover from the other Party its actual attorneys’ fees, expert witness fees, costs of investigation
and preparation, and other costs and expenses related thereto. The City agrees to pay any and all
Court costs associated with dismissing the Appellate Division Case.
9. Severability
If any provision or part of this Agreement is held, determined, or adjudicated to be invalid,
unenforceable or void for any reason, each such provision shall be severed from the remaining
provisions of the Agreement and shall not affect the validity and enforceability of such remaining
provisions.
10. Review of Agreement.
The Parties each acknowledge and represent that they have read this Agreement, that they
have had an opportunity to consult with their respective attorneys concerning its contents, that the
Agreement is being executed solely in reliance on their respective judgment, belief, and knowledge
of the matters set forth herein and, if applicable, on the advice of their respective attorneys, and
that they enter this Agreement freely and voluntarily. Additionally, the persons signing this
Agreement hereby represent and warrant that they have the power and authority to bind the Party
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on whose behalf this Agreement is signed.
11.Neutral Interpretation.
The Parties agree that all parts of this Agreement shall in all cases be construed as a whole
according to their fair meaning and shall not be construed strictly for or against any Party hereto.
12.Modification.
This Agreement shall not be modified, amended or supplemented unless such
modifications, amendments or supplements are in writing and signed by the Party to be charged.
13. City Manager Authorization to Execute and Implement this Agreement.
The City Manager, on behalf of the City, shall have the authority to sign this Agreement,
to enter into any implementing document or modification, amendment, or supplement, and to take
any actions necessary or property to effectuate the implementation of this Agreement and its terms.
14.Counterparts.
This Agreement may be signed using DocuSign ®, and/or may be executed in counterparts,
and sent by facsimile or other electronic delivery; each counterpart shall be deemed an original
and all of which together shall constitute one and the same instrument.
[signatures on next page]
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth
below.
Date: March ____, 2026 HENRI GURGENYAN, an individual
Date: March ____, 2026 CITY OF LA QUINTA, a California municipal
corporation and charter city
By:
Jon McMillen
City Manager
ATTEST:
Monika Radeva
City Clerk
APPROVED AS TO FORM
By:
William H. Ihrke
City Attorney
9
SIGNED IN COUNTERPART
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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth
below.
Date: March ____, 2026 HENRI GURGENYAN, an individual
Date: March ____, 2026 CITY OF LA QUINTA, a California municipal
corporation and charter city
By:
Jon McMillen
City Manager
ATTEST:
Monika Radeva
City Clerk
APPROVED AS TO FORM
By:
William H. Ihrke
City Attorney
SIGNED IN COUNTERPART
SIGNED IN COUNTERPART
SIGNED IN COUNTERPART