AvantStay, Inc v LQ - 78340 Via Sevilla - 2023 Settlement AgrmtSETTLEMENT AGREEMENT AND RELEASE
This Settlement Agreement and Release (hereinafter the "Agreement") is entered by and
between the CITY OF LA QUINTA, a California municipal corporation ("City") and
AVANTSTAY, INC. the property manager ("AvantStay") and is binding and effective as of the
Effective Date (defined below). The City and the AvantStay are referred to jointly hereinafter
individually as a "Party" and collectively as the "Parties." The Parties enter into this Agreement
with reference to the following:
RECITALS
A. WHEREAS, AvantStay is a short-term vacation rental operator; and
B. WHEREAS, Kishor and Indu Vachhani are the owners (collectively referred to
herein as the "Owner") of certain residential property located at 78340 Via Sevilla, La Quinta,
California (the "Property"); and
C. WHEREAS, the Owner entered into a lease agreement with AvantStay with the
purposes of subletting the Property to short-term vacation renters; and
D. WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (the "STVR
Ordinance") requires the owner of any residential property, including the Owner of the Property,
that is used as a short-term vacation rental ("STVR") to obtain a short term vacation rental
permit ("STVR Permit") from the City; furthermore, if any residential property has a STVR
Permit, it may be suspended or revoked, in accordance with the STVR Ordinance, if there is a
violation of the STVR Ordinance while holding a STVR Permit; and
E. WHEREAS, the City, through its Code Enforcement Office, investigated and
determined that there was a violation of the STVR Ordinance at the Property because the
Property was being used as an unpermitted STVR; and,
F. WHEREAS, on or about May 11, 2022, the City issued Citation LQ220108 (the
"Citation") for using the Property as an unpermitted STVR, and suspended the STVR Permit
issued to the Owner of the Property for 365 days commencing May 10, 2022; and
G. WHEREAS, AvantStay filed an administrative appeal, to be heard before a
hearing officer in accordance with the STVR Ordinance; and
H. WHEREAS, on or about August 17, 2022, the hearing officer heard the
administrative appeal, and on or about August 18, 2022, issued a decision upholding the City's
determination that there was a violation for using the Property as an unpermitted STVR; and
I. WHEREAS, AvantStay disputes the City's and hearing officer's determinations
set forth above and therefore, on or about September 8, 2022, AvantStay filed in Riverside
County Superior Court an appeal to the trial court of the hearing officer's administrative
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decision, entitled "AvantStay v. City of La Quinta," case number CVPS2203771 (the "Appeal"),
in accordance with Government Code section 53069.4; and
J. WHEREAS all fines imposed by the City for the Property ("Fines") have been
paid in full by AvantStay ("Fines"); and
K. WHEREAS, after settlement discussions regarding the terms of agreement,
including the City's request for AvantStay to no longer manage the Property, the Parties were
able to come to a mutually agreeable agreement, as reflected in the terms herein; and
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 Terms. In consideration of the terms and conditions set forth in this
Agreement, the Parties agree to the following:
A. The City shall lift the suspension on the Property and reinstate the STVR Permit
for the Property, to be effective as of March 8, 2023, provided that (i) the Parties have executed
this Agreement, and (ii) AvantStay has dismissed the Appeal with prejudice as set forth in
Section 1(C) below;
B. The City shall keep the Fines and shall have no obligation to return or refund any
of the Fines to AvantStay;
C. AvantStay shall dismiss the Appeal with prejudice no later than three (3) court
days after the complete execution of this Agreement; and
D. AvantStay may continue to occupy the Property, including operating the Property
as a STVR, so long as: (i) the Owner continues to retain AvantStay as tenant for the Property
through and until 11:59 p.m., May 15, 2023, and (ii) there is full compliance with the City's
STVR Ordinance through and until 11:59 p.m., May 15, 2023, at which time AvantStay
(including its officers, directors, employees, partners, members, managers, agents, advisors,
subsidiaries, affiliates or representatives) agrees to no longer manage the Property in any respect
or otherwise be affiliated with the Property for any tenancy or property management purposes
(including but not limited to any short term vacation rental uses), unless this Agreement is
otherwise modified pursuant to section 12 below; and
E. AvantStay hereby provides full waivers and releases of any and all claims and
disputes against the City relating to the allegations referenced in the Recitals, the Appeal, and/or
relating to the administrative citation and STVR suspension, including a waiver and release of
any administrative appeals and a waiver and release of any and all claims and disputes that may
be adjudicated in any state or federal court, agency, or other dispute resolution tribunal relating
to the Property.
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2. No Admission of Fault.
Upon full performance by the Parties to this Agreement of their respective obligations set
forth above, this Agreement is intended to be and is a compromise 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. All such liability and wrongdoing alleged
against one Party is denied by the other Party.
3. Release.
a. Full and General Release. In consideration for the agreements as set forth
herein, and except for the administrative appeals and respective rights of the Parties expressly
retained under this Agreement, AvantStay and City, 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 any and all
claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty,
claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including
attorney's fees, of any nature whatsoever, known or unknown, fixed or contingent as of the date
of execution of this Agreement relating to the unpermitted use of the Property as a short term
vacation rental (STVR) for the reason(s) identified in the Citation (the "Release"). The Release
expressly does not include, and nothing in this Agreement does or shall be deemed as, a release
of any claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of
duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses or
both, relating to any alleged or actual violation(s) (including a citation(s) and/or suspension(s))
that (i) do not involve the Property, (ii) involve a use(s) of the Property other than as an
unpermitted short term vacation rental (STVR) for the reason(s) identified in the Citation, or
(iii) involve a default or breach of this Agreement.
b. Waiver of Civil Code Section 1542: By releasing and forever discharging
claims both known and unknown as above provided in the Release, the Parties expressly waive
any rights 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."
Except for the administrative appeals and respective rights of the Parties expressly retained under
this Agreement, AvantStay and City waive and relinquish any rights and benefits that they have
or may have under section 1542 of the Civil Code of the State of California with respect to the
Appeal. AvantStay and City have performed a full and complete investigation of the facts
pertaining to this Agreement, and AvantStay 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 subject matter of the Release, but it is their
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intention hereby to fully and finally 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, relating to the unpermitted use of the Property as a
short term vacation rental (STVR) for the reason(s) identified in the Citation.
Nothing in this Agreement shall be interpreted in any way as restricting the City from enforcing
any applicable law (including the STVR Ordinance) against AvantStay or the Property for any
future violation(s) unrelated to the Release.
4. Effective Date of Agreement.
This Agreement shall be binding and deemed effective as of March 8, 2023, which date
shall be the "Effective Date" of this Agreement.
5. Entire Agreement.
This Agreement forms the entire agreement of the Parties relating to the subject matter
herein and supersedes any and all prior agreements or understandings relating thereto, if any,
between them pertaining to the subject matter herein, and shall not be modified or altered except
by a subsequent written agreement signed pursuant to Section 12 below. This Agreement shall
be binding upon and shall inure to the benefit of the Parties, their respective successors, assigns,
officials, directors, officers, employees, insurers, lenders, lien holders, attorneys, agents, and
other representatives.
6. Representations and Warranties.
AvantStay hereby expressly represents and warrants that it has not transferred or assigned
or attempted to transfer or assign any of the released claims that are subject to this Agreement.
No claim of subrogation may be brought against the City under any of the other released claims,
and AvantStay expressly agrees to waive any subrogation rights against the City related to any of
the released claims. The persons signing this Agreement hereby represent and warrant that they
have the power and authority to bind any Party on whose behalf this Agreement is signed.
AvantStay acknowledges and agrees that the City is materially relying upon the representations
and warranties of AvantStay set forth in this Agreement. If any of the AvantStay's
representations and warranties as set forth herein are found to be untrue or inaccurate either at
the signing of this Agreement or with the passage of time, or both, then such untrue or inaccurate
representation and warranty shall be a material default and the basis for a breach of this
Agreement.
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 this Agreement. In the event that a Party is required to initiate or defend any litigation
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relating to or arising out of this Agreement, the prevailing Party shall be entitled to recover from
the other Party its reasonable attorneys' fees in addition to any costs to which such prevailing
Party shall be entitled to recover pursuant to applicable law.
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 the 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 on the advice of their respective attorneys (if any),
and that they enter this Agreement freely and voluntarily.
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. Enforcement of Agreement.
The Parties agree that this Agreement is enforceable under California Code of Civil
Procedure section 664.6. The Parties also each agree that the Court shall retain jurisdiction over
the Action for the purpose of entering any orders pertaining to enforcement of this Agreement.
14. Counterparts.
This Agreement may be executed in counterparts and by facsimile, electronic mail or
other electronic delivery, each of which 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 10, 2023 AVANTSTAY, INC.
By: �v
Its: Fiona Quinn
Title: SVP Business Affairs
Date: March 13, 2023 CITY OF LA QUINTA
: Jon McMil en
Its: City Manager
ATTEST (for City):
Monika Radeva
City Clerk
APPROVED AS TO FORM (for City)
By:
William H. Ihrke
City Attorney
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