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SUPERIOR COURT OF THE STATE OF CALIFORNIA
15 COUNTY OF LOS ANGELES, CENTRAL DISTRICT
16
WILLIAM B. PITT, an individual, and Case No. 22STCV06081
17 MONDO BONGO, LLC, a California limited
liability company, WILLIAM B. PITT AND MONDO
18 BONGO, LLC’S NOTICE OF
Plaintiffs, DEMURRER AND DEMURRER TO
19 CROSS-COMPLAINT OF TENUTE DEL
v. MONDO B.V.; MEMORANDUM OF
20 POINTS AND AUTHORITIES IN
ANGELINA JOLIE, et al., SUPPORT THEREOF
21
Defendants. Filed concurrently with Request for Judicial
22 Notice, Declaration, and Proposed Order
28
4 Street, Los Angeles, CA 90012, Plaintiffs and Cross-Defendants WILLIAM B. PITT and
5 MONDO BONGO, LLC will and hereby do demur to the Cross-Complaint filed by Defendant and
6 Cross-Complainant TENUTE DEL MONDO B.V. pursuant to Sections 430.10, et seq., of the
7 California Code of Civil Procedure on the ground that the pleading fails to state facts sufficient to
9 This demurrer is based on the attached demurrer, memorandum of points and authorities,
10 the accompanying declaration, the request for judicial notice and accompanying exhibits, all of the
11 pleadings, filings, and records in this proceeding, all other matters of which the Court may take
12 judicial notice, and any argument that may be presented to or considered by the Court prior to its
13 ruling.
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
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1 DEMURRER
2 Pursuant to Sections 430.10, et seq., of the California Code of Civil Procedure, Plaintiffs
3 and Cross-Defendants WILLIAM B. PITT and MONDO BONGO, LLC, jointly and severally,
8 Cross-Complainant Tenute’s First Cause of Action for Violation of Penal Code § 496 is
9 subject to demurrer because the statute does not apply to the extraterritorial conduct alleged. Cal.
11 Cross-Complainant Tenute’s First Cause of Action for Violation of Penal Code § 496 is
12 also subject to demurrer because the pleading fails to state facts sufficient to constitute a cause of
14 WHEREFORE, Plaintiffs and Cross-Defendants PITT and MONDO BONGO pray that:
16 2. The Court grant such other and further relief as the Court may deem proper.
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1 TABLE OF CONTENTS
2 Page
3 INTRODUCTION ............................................................................................................................. 8
4 BACKGROUND ............................................................................................................................... 9
5 ARGUMENT .................................................................................................................................. 10
6 I. Cal. Penal Code § 496 does not apply to the extraterritorial conduct alleged. ................ 11
7 A. Section 496 does not rebut the presumption against extraterritoriality. .................. 11
8 B. Tenute’s claim is based on extraterritorial conduct. ............................................... 13
9 II. Tenute fails to plead a violation of Section 496(a). ......................................................... 15
10
A. Tenute fails to plead the embezzlement of Château Miraval’s assets. .................... 16
11
B. Tenute fails to plead the requisite criminal intent to steal....................................... 17
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C. Tenute fails to plead receipt, concealment, or withholding of stolen property. ...... 20
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III. Tenute fails to plead proximate causation of non-speculative damages. ......................... 22
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CONCLUSION ............................................................................................................................... 22
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1 TABLE OF AUTHORITIES
2 Page(s)
3 Cases
4
Carter v. Prime Healthcare Paradise Valley LLC,
5 198 Cal. App. 4th 396 (2011) .................................................................................................. 22
21 In re Wood’s Estate,
137 Cal. 129 (1902) ................................................................................................................. 11
22
Miller v. McColgan,
23 17 Cal. 2d 432 (1941) .............................................................................................................. 21
24 MMM Holdings, Inc. v. Reich,
21 Cal. App. 5th 167 (2018) .............................................................................................. 18, 20
25
Monster Energy Co. v. Pharmaceuticals, Inc.,
26
2019 WL 2619666 (C.D. Cal. May 20, 2019)......................................................................... 20
27
Morrison v. Nat’l Australia Bank Ltd.,
28 561 U.S. 247 (2010) .................................................................................................... 11, 12, 15
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1 Motivo Eng’g, LLC v. Black Gold Farms,
2023 WL 3150099 (C.D. Cal. Mar. 28, 2023) .................................................................. 19, 21
2
N. Alaska Salmon Co. v. Pillsbury,
3 174 Cal. 1 (1916) ..................................................................................................................... 13
4
People ex rel. Lockyer v. R.J. Reynolds Tobacco Co.,
5 116 Cal. App. 4th 1253 (2004) .......................................................................................... 11, 12
6 People v. Stewart,
16 Cal. 3d 133 (1976) .............................................................................................................. 18
7
People v. Tufunga,
8 21 Cal. 4th 935 (1999)....................................................................................................... 18, 19
9 People v. Whitney,
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Cal. Penal Code § 511 ............................................................................................................. 18, 19
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1 Cal. Penal Code § 789 ............................................................................................................. 12, 14
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1 INTRODUCTION
2 In 2008, Brad Pitt and Angelina Jolie purchased the French estate and vineyard, Château
3 Miraval, as a family home and family business. That was how they operated it for years. That all
4 changed in 2021 when Jolie purported to sell her stake in Château Miraval to Cross-Complainant
5 Tenute, a subsidiary of the Russia-affiliated Stoli Group. Jolie did so in secret, without Pitt’s
6 consent or knowledge. Pitt has challenged the sale transaction in this Court. In retaliation, Stoli
7 and Tenute—through Nouvel (the shell entity that Tenute purchased from Jolie)—brought a $350
8 million lawsuit against Pitt and his entity Mondo Bongo, extending a European litigation
9 campaign to Los Angeles. Their objective: bully Pitt into forgoing his rights and handing over the
11 The recently filed Cross-Complaint by Tenute now takes it up a notch. Tenute, a Dutch
12 entity, brings a claim under Cal. Penal Code § 496(c), which creates a claim for treble damages for
13 persons injured by the crime of receiving stolen property. Tenute claims that Pitt and Mondo
14 Bongo embezzled property in violation of the California Penal Code by secretly diverting Château
15 Miraval’s assets in France to “vanity projects” also located in France that allegedly had no
16 “business purpose.” The claim fails as a matter of law for three independent reasons.
17 First, § 496 does not apply to the extraterritorial conduct alleged by Tenute: the
20 diversion to another French entity. California law presumes its statutes do not apply
21 extraterritorially, and nothing in the text or history of § 496 overcomes that presumption.
22 Second, Tenute fails in its attempt to shoehorn what, at best, is a shareholder dispute into a
23 Penal Code violation: it fails to plead that Pitt stole Château Miraval’s assets; acted with the
24 necessary criminal intent; or received, concealed, or withheld the stolen property from its owner.
26 Inflammatory rhetoric aside, the Cross-Complaint reflects nothing more than a misguided
27 and improper effort to exploit the California Penal Code in an unprecedented manner that makes
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1 BACKGROUND
2 In 2008, Pitt and Jolie, who were then in a committed relationship, acquired Château
3 Miraval, a French estate and vineyard. ¶ 16.1 They did so through their purchase of Quimicum, a
4 Luxembourgish LLC and the holding entity of Château Miraval. ¶¶ 11, 17. Pitt and Jolie owned
5 their interests in Quimicum, and thus Château Miraval, through their respective California LLCs,
6 Mondo Bongo and Nouvel. ¶¶ 8, 10, 16-17. They “got to work investing in the business and
7 making improvements to the property.” ¶ 18. Through a series of loans to Quimicum, Pitt and
8 Jolie, via Mondo Bongo and Nouvel, provided “much-needed money . . . to fund improvements”
9 at Château Miraval and its then-unprofitable wine business. ¶ 18. The couple agreed that Pitt
10 would bear the “responsibilit[y]” of “overseeing the couple’s investment in Chateau Miraval,” and
11 Pitt identified directors and officers, including CEO Roland Venturini. ¶ 23.
12 In 2013, Château Miraval entered into a joint venture with Familles Perrin, one of France’s
13 most highly regarded winemaking families, led by Marc Perrin. ¶ 20. Under the stewardship of
14 Pitt and Perrin, the profits of the venture, named Miraval Provence, have “steadily increased year
15 after year” “from around €1 million in 2013 to around €15 million in 2022.” ¶¶ 21, 55.
16 In 2016, Jolie filed for divorce, after which she decided to become more involved in the
17 Château’s operations. ¶¶ 24-25. According to Tenute, Jolie had concerns that Château Miraval
18 was “spending large sums of money on projects that did not appear to have a legitimate business
19 purpose.” ¶ 25. Jolie sought more information about and input into the estate’s activities at a
20 Quimicum shareholders meeting in September 2020. ¶ 26. Meanwhile, based on the “incredibly
21 successful” and “enormously profitable” wine business led by Pitt and Perrin, Château Miraval
22 grew more valuable, receiving about €45 million in Miraval Provence dividends from 2013-2022.
23 ¶¶ 31-32. Pitt helped “build the Miraval brand into the highly profitable business it is today.” ¶ 2.
24 In 2020, Château Miraval spent about €8 million on “construction at a nearby house that is
25 owned by Chateau Miraval,” “renovations for a swimming pool,” and “garment works.” ¶¶ 3, 34.
26 Pitt oversaw the spending, with Château Miraval CEO Venturini’s “authorization,” knowledge,
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Citations to ¶ are of Tenute’s Cross-Complaint. Exhibits referenced herein are attached to the
concurrently filed Declaration of Julia B. Cherlow (“Decl.”).
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1 and participation. ¶¶ 36, 72. Pitt has stayed at the family home under a “personal lease on the
2 property,” which Tenute does not allege is below fair-market value. ¶ 34.
3 Mondo Bongo, Château Miraval, and a third party also established Miraval Studios, a
4 French LLC and recording studio, at the property; they own 40%, 10%, and 50%, respectively.
5 ¶¶ 39-41.2 Château Miraval spent approximately €200,000 toward construction of studio space
6 and €162,000 in management fees, and loaned Miraval Studios €750,000 at a 0.2% interest rate.
8 In October 2021, Tenute, the Dutch company and Stoli subsidiary, announced that it had
9 purchased Nouvel from Jolie. ¶¶ 6, 10, 46. Since then, Stoli has pushed for governance and
11 against Pitt and Mondo Bongo, including civil lawsuits in Luxembourg, discovery actions in
12 France, a criminal action in France, and Nouvel and Tenute’s cross-actions in this Court.
13 ARGUMENT
14 In reviewing the sufficiency of a complaint, the court “treats the demurrer as admitting all
15 material facts properly pleaded, but not contentions, deductions, or conclusions of fact or law.”
16 Rakestraw v. Cal. Physicians’ Serv., 81 Cal. App. 4th 39, 43 (2000). The complaint must allege
17 “facts sufficient to establish every element of each cause of action. If the complaint fails to plead,
18 or if the defendant negates, any essential element,” the cause of action fails as a matter of law, and
19 the demurrer is sustained. Id. Where “statutory remedies are invoked, the facts must be pleaded
20 with particularity.” Hawkins v. TACA Int’l Airlines, S.A., 223 Cal. App. 4th 466, 478 (2014).
21 Tenute fails to meet its burden for three independent reasons. First, Tenute improperly
22 attempts to apply a criminal statute that does not reach extraterritorially to an alleged violation in
23 France. Second, Tenute fails to plead an underlying violation of § 496 of the Penal Code. Third,
24 Tenute fails to plead the alleged conduct proximately caused it non-speculative damages.
25
2
26 It is undisputed that Miraval Studios is a French LLC and Venturini resides in France. Those
facts are alleged in a cross-complaint filed by Tenute’s subsidiary, Nouvel, which has sued
27 Miraval Studios and Venturini. Ex. A (Nouvel First Amended Cross-Complaint) ¶¶ 45, 50.
3
Tenute cites an email and attachment regarding the budgeted expenses for Miraval Studios, ¶ 69,
28 but a second attachment to the email shows that Château Miraval was slated to receive the
majority of projected profits from the business. Ex. C (Sept. 20, 2021 email and attachments) at 4.
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1 I. Cal. Penal Code § 496 does not apply to the extraterritorial conduct alleged.
2 Cal. Penal Code § 496 does not apply extraterritorially. As Tenute asserts a statutory claim
3 for conduct that allegedly occurred outside California, the demurrer should be sustained.
5 California courts “presume the Legislature did not intend a statute to be operative, with
6 respect to occurrences outside the state, . . . unless such intention is clearly expressed or
7 reasonably to be inferred from the language of the act or from its purpose, subject matter or
8 history.” Sullivan v. Oracle Corp., 51 Cal. 4th 1191, 1207 (2011) (internal quotation marks
9 omitted). Reinforcing this presumption is the “rule” that a State “does not have a legitimate
10 concern in imposing” punishment for “acts committed outside of the State’s jurisdiction.” People
11 ex rel. Lockyer v. R.J. Reynolds Tobacco Co., 116 Cal. App. 4th 1253, 1290 (2004) (internal
12 quotation marks omitted). Where a party seeks to apply state law to conduct in another country,
13 the presumption “serves to avoid the international discord that can result when U.S. law is applied
14 to conduct in foreign countries.” RJR Nabisco, Inc. v. Eur. Cmty., 579 U.S. 325, 335 (2016).4
15 Tenute’s claim relies on two provisions of § 496: subdivision (a), defining the criminal
16 offense of receiving stolen property, and subdivision (c), authorizing a treble damages claim for
17 certain violations of (a). Tenute must rebut the presumption against extraterritoriality as to each.
18 Section 496(a) does not apply extraterritorially. Nothing in § 496(a)’s text or history
19 suggests extraterritorial reach. The text defining the offense of receiving stolen property is silent
20 as to theft or receipt of stolen property outside the State. That “silence means no extraterritorial
21 application.” Morrison v. Nat’l Australia Bank Ltd., 561 U.S. 247, 261 (2010); see also In re
22 Wood’s Estate, 137 Cal. 129, 135 (1902) (state marriage statute that was “silent as to marriages
24 Section 496(a) contrasts sharply with other penal provisions that expressly reach out of
25 state. In re Albert W., 240 Cal. App. 4th 411, 418 (2015) (provision not extraterritorial when
27
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California’s presumption against extraterritoriality is “[a]nalogous to the federal presumption.”
Daramola v. Oracle Am., Inc., 92 F.4th 833, 843 (9th Cir. 2024).
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1 property “in another state or country,” or knowingly receiving such property, and “bring[ing] the
2 same into this state.” Cal. Penal Code § 497. Another Penal Code section creates jurisdiction to
3 prosecute embezzling property “in any other state,” or knowingly receiving such property, and
4 “bringing the same into this State.” Id. § 789. And another section provides for criminal
5 punishment of those who commit, “without this state,” an offense that would be embezzlement “if
6 committed within this state,” and “bring” or “are found with” it “within this state.” Id. § 27(a)(2).
7 The Legislature clearly “knows how to give a statute explicit extraterritorial effect—and how to
8 limit that effect to particular applications.” Morrison, 561 U.S. at 265 n.8. The lack of similar
9 language in § 496 shows that the Legislature did not intend the statute to reach extraterritorially.
10 Section 496(c) does not apply extraterritorially. Even if § 496(a) were deemed to apply
11 out of state, Tenute would need to show the same as to § 496(c). RJR Nabisco, 579 U.S. at 350
13 prohibitions and its private right of action”). But § 496(c) is silent as to its geographical reach.
15 damages are punitive in nature.” Imperial Merchant Servs., Inc. v. Hunt, 47 Cal. 4th 381, 394
16 (2009). A State “does not have ‘a legitimate concern in imposing punitive damages to punish a
17 defendant for unlawful acts committed outside of the State’s jurisdiction.’” Lockyer, 116 Cal.
18 App. 4th at 1290 (quoting State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 421 (2003)).
19 Nor does § 496(c)’s purpose or history suggest extraterritorial reach. Section 496(c) “was
20 introduced at the request of the California Trucking Association” and targeted a local concern:
21 “eliminating markets for stolen property, in order to substantially reduce the incentive to hijack
22 cargo from common carriers.” Siry Investment, L.P. v. Farkhondehpour, 13 Cal. 5th 333, 348
23 (2022) (internal quotation marks omitted). The statute was designed to “reach fencing operations
24 on an intrastate basis” as part of a 50-state effort to enact “comparable laws to curb intrastate
25 fencing within the several states,” which would operate alongside proposed federal legislation
26 “designed to reach only interstate thievery.” Ex. D (Letter from U.S. Sen. Bible to 39 Governors
27 and 10 Governors-Elect (Dec. 14, 1972)) at 2. Thus, an intent that § 496(c) apply extraterritorially
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1 B. Tenute’s claim is based on extraterritorial conduct.
2 Tenute alleges that Pitt and Mondo Bongo embezzled from Château Miraval, a French
3 company, by diverting funds toward construction on property “owned by Chateau Miraval” in
4 France and to Miraval Studios, a French LLC and recording studio located at the estate. ¶¶ 3, 9,
5 34, 39-41, 69-72. Tenute also alleges that Pitt and Mondo Bongo received, concealed, and
6 withheld property, but that allegation is based on the underlying alleged embezzlement in France.
7 ¶ 74. Tenute nowhere alleges that Pitt and Mondo Bongo embezzled, received, concealed, or
8 withheld the assets in California. As Tenute itself has urged the Court, this case concerns “a
9 dispute over a Luxembourgish business entity, Quimicum, that owns a French wine business,
10 Chateau Miraval.” Ex. B (Tenute Motion to Quash Service of Summons (Oct. 3, 2022)) at 5. And
11 any alleged injury to Tenute, a Dutch entity, likewise occurred abroad. See N. Alaska Salmon Co.
12 v. Pillsbury, 174 Cal. 1, 4 (1916) (statute had no extraterritorial reach where there was “nothing to
13 indicate that [it was] intended to apply to injuries occurring in foreign jurisdictions”).
14 Tenute intends to argue that Pitt and Mondo Bongo violated § 496 in California based only
15 on the “concealment” prong of § 496(a). Decl. ¶ 5. But to the extent the alleged concealment
16 occurred at all, it occurred abroad. Tenute alleges that Pitt concealed “wrongful uses of Chateau
18 and finances,” ¶ 67. But that information was in France: the Château is located in France and the
19 allegedly wrongful uses (construction at the manor house and spending at Miraval Studios) took
20 place in France. ¶¶ 3, 9, 34, 39-41, 68-72. Moreover, Nouvel or Jolie’s entitlement to such
21 information arose, if at all, from their interests in Château Miraval, a French entity, or its
22 Luxembourg holding company, Quimicum. ¶ 26. Indeed, Tenute alleges that Pitt and Mondo
23 Bongo “have been able to conceal their conduct” by “imposing a shareholder deadlock” at
24 Quimicum, the Luxembourgish entity, precisely to avoid oversight of his activities at the Château
25 in France. ¶¶ 27-28, 67. The alleged concealment thus necessarily occurred overseas.
26 Tenute, nonetheless, claims the messages described in a single paragraph of the Cross-
27 Complaint suffice to establish domestic conduct. Decl. ¶ 5. It points to a June 13, 2021 email
28 attaching a construction budget for Miraval Studios, in which Venturini said, “[o]f course none of
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1 these info have gotten to [Jolie] for now”; and a June 28, 2021 message in which Pitt wrote to
2 Venturini about the studio budget, “I believe we should no longer send [Jolie] reports as she is
3 trying to shop her shares.” ¶ 68. These messages do not plead a domestic violation of § 496.
4 First, the messages Tenute cites fail to show that Pitt concealed Château Miraval’s funds.
5 Venturini sent the June 13 email, and is not alleged to have sent it to Pitt. And Pitt’s June 28
6 message is not an order or directive on its face—Tenute frames it as “support” for a decision that
7 Venturini, Château Miraval’s CEO, had already made, weeks earlier, not to send the studio budget
8 to Jolie. If these messages show any concealment at all, it was by Venturini, not Pitt, and it took
9 place in France, consistent with the fact that the source of the information was in France.
10 Second, the allegations fail to show concealment by Pitt in California. Tenute does not
11 allege that Pitt sent his message to Venturini from California. To be sure, Pitt is a California
12 resident. ¶ 7. But Tenute admits that Pitt has varied business ventures in France and leases the
13 Château Miraval estate, ¶¶ 34, 39-40, 42, and it is indisputable that Pitt’s career takes him across
14 the country and around the globe. There is no basis on which to infer that Pitt sent this particular
15 message from California, let alone a particularized basis of the kind required to plead a statutory
16 violation. Hawkins, 223 Cal. App. 4th at 478. To make that leap would impermissibly treat the
17 extraterritorial conduct alleged by Tenute as if it were a domestic § 496 violation based on mere
18 speculation. See Sullivan, 51 Cal. 4th at 1208 (refusing to “speculate about the place of” asserted
19 conduct where pleading “d[id] not speak to [its] location”).
20 Third, and regardless, there is no reason to believe that the Legislature intended § 496 to
21 apply to extraterritorial embezzlement based solely on domestic concealment. The Legislature has
22 enacted several Penal Code provisions that explicitly apply to out-of-state embezzlement and
23 receipt of embezzled property. Two such statutes apply only if the embezzler or recipient of
24 embezzled property “brings” the property “into this state.” Cal. Penal Code §§ 497, 789. A third
25 statute, which applies to embezzlers but not recipients of embezzled property, applies if the
26 defendant “bring[s]” or is “found with” the property “within this state.” Id. § 27(a)(2). Thus, the
27 Legislature has finely delineated the precise circumstances in which the Penal Code applies to out-
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1 have no application here. See Morrison, 561 U.S. at 265 n.8 (the legislature “knows how to give a
2 statute explicit extraterritorial effect—and how to limit that effect to particular applications”). If
3 the Legislature intended § 496 to apply to foreign embezzlement based solely on domestic
5 Fourth, § 496(a) applies to concealing stolen property only “from the owner,” and the
6 owner of the allegedly diverted funds here is Château Miraval, not Jolie or, for that matter, Tenute.
7 See infra at § II.C. Alleged concealment from Jolie or Tenute of funds spent by Château Miraval
9 Finally, applying § 496 here threatens to flout the principle that a State “cannot punish a
10 defendant for conduct that may have been lawful where it occurred.” State Farm, 538 U.S. at 421.
11 Section 496(c) requires a violation of § 496(a), the elements of which include that property was
12 obtained in a “manner constituting theft.” Cal. Penal Code § 496(a). Whether the alleged conduct
13 was “lawful where it occurred,” i.e., in France, depends entirely on French law. State Farm, 538
14 U.S. at 421-22 (“proper adjudication of conduct that occurred outside” a state ordinarily requires a
15 court “to apply the laws of the[] relevant jurisdiction”). But Tenute has submitted nothing on
16 French law in support of its claim, and this Court has also made clear that it will not entertain
17 foreign law causes of action. Mar. 8, 2024 Ruling on Defendant Angelina Jolie’s Demurrer at 9
18 (sustaining Jolie demurrer to Plaintiffs’ Luxembourgish law claim). And tellingly, Tenute has
19 already tried and failed to pursue a similar claim in France. French authorities dismissed a
20 criminal complaint filed by Nouvel, Tenute’s subsidiary, against Venturini alleging misuse of
21 corporate assets related to some of these same projects, finding insufficient evidence to initiate
22 criminal proceedings. Ex. E (Letter from Office of the Public Prosecutor (Sept. 20, 2023)) at 3.
25 “stolen” or “obtained in any manner constituting theft”; (ii) the defendant “know[s] the property to
26 be so stolen or obtained”; and (iii) the defendant “receives” the property or “conceals” or
27 “withholds” it “from the owner.” Cal. Penal Code § 496(a). Theft includes larceny,
28 embezzlement, and theft by false pretense. Siry, 13 Cal. 5th at 350 n.11. Tenute relies only on
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1 embezzlement, which is “the fraudulent appropriation of property by a person to whom it has been
2 [e]ntrusted,” Cal. Penal Code § 503; accord id. § 484(a). ¶ 73 (“Their conduct amounts to
3 embezzlement.”); Decl. ¶ 6. Tenute must thus show that Château Miraval’s property was obtained
4 by embezzlement, that Pitt and Mondo Bongo knew as much, and that they received it or
5 concealed or withheld it from the owner. Not surprisingly, given Pitt’s undisputed role in
6 overseeing the estate and its purpose as both a family home and family business, the Cross-
9 The essence of embezzlement, assuming California law is determinative, is that the person
10 to whom property was entrusted “exceeded his authority” in his use of the property. Ferrick v.
11 Santa Clara Univ., 231 Cal. App. 4th 1337, 1348 (2014) (emphasis added). Tenute fails to allege
12 that Pitt used Château Miraval’s assets in any manner that Château Miraval did not authorize.
13 Thus, Tenute fails to plead embezzlement, which means it fails to plead a violation of § 496(a).
14 Tenute alleges that Pitt had significant authority to use Château Miraval’s assets. Pitt was
15 “responsib[le]” from the outset for “overseeing the . . . investment in Chateau Miraval,” and he
16 worked with its directors and officers, including Venturini, its CEO and director. ¶ 23; see ¶ 36
17 (alleging Venturini’s “authorization of” unspecified “spending”). Pitt “invest[ed] in the business
18 and ma[de] improvements to the property,” working for years to grow Château Miraval into a
19 flourishing business and brand. ¶¶ 2, 18, 32. This history, pleaded by Tenute itself, undercuts any
20 claim that Pitt exceeded his authority. People v. Whitney, 121 Cal. App. 2d 515, 521 (1953)
21 (reversing embezzlement conviction where “defendant had been given very broad powers” over
22 property, as evidenced by “the manner in which the business was conducted for several years,
24 As for the renovations to the family home that Tenute complains of, Tenute fails to allege
25 that Pitt exceeded his authority in connection with those projects. Tenute alleges that “Pitt himself
26 directed all this spending” but acknowledges that Venturini was involved and “authoriz[ed]” it
27 himself, ¶¶ 36, 72, negating this element of embezzlement. Ferrick, 231 Cal. App. 4th at 1348
28 (complaint failed to plead embezzlement where it did not allege that accused “lacked authority to
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1 use” subject property for complained-of purpose or that spending “exceeded his authority”).
2 And while Tenute claims that Pitt “is effectively charging personal expenses to the
3 Chateau Miraval business” by “stay[ing] at the manor house,” it negates that conclusory assertion
4 by acknowledging that Pitt has a “lease on the property,” ¶ 34—a lease that it does not allege is
5 below fair-market value. In any event, the renovations plainly benefited Château Miraval, as they
6 were “improvements to the property” that Château Miraval owned (independent of its interest in
7 the wine business joint venture) and the value of which the entity retained. ¶ 18.
8 Tenute also fails to allege that Pitt exceeded his authority in the use of funds for Miraval
10 Château Miraval’s authorization. Ferrick, 231 Cal. App. 4th at 1348. Moreover, this constitutes
11 further “invest[ment] in the business” toward “buil[ding] the Miraval brand.” ¶¶ 2, 18. Château
12 Miraval is also an owner of Miraval Studios, ¶¶ 39-40, and retains a stake in the value of the
13 spending; indeed, it was allocated a majority of the studio’s projected profits, Ex. C at 4.
15 As the Supreme Court has emphasized, “not all commercial . . . disputes alleging that a
16 defendant obtained money or property through fraud, misrepresentation, or breach of a contractual
17 promise will amount to a theft.” Siry, 13 Cal. 5th at 361. Rather, to prove theft under § 496, “a
18 plaintiff must establish criminal intent on the part of the defendant,” id.—that is, “an intent to
19 steal,” id. at 368 (Groban, J., concurring). “[W]ithout the requisite specific intent,” there is no
20 § 496(a) violation “as a matter of law.” Garrabrants v. Erhart, 98 Cal. App. 5th 486, 504 (2023).
21 The intent requirement “prevents [o]rdinary commercial defaults from being transformed into a
22 theft,” Siry Investment, 13 Cal. 5th at 362 (internal quotation marks omitted), and § 496(c) thus
23 does “not allow for the recovery of treble damages in all, or even most, . . . commercial disputes
24 involving tort or breach of contract claims,” id. at 367 (Groban, J., concurring) (emphasis added).
25 If the law were otherwise, it could “transmogrify the law of remedies in a wide range of tort or
26 breach of contract cases alleging that the defendant improperly obtained diverted, received, or
27
The Cross-Complaint also alleges diversions of Château Miraval’s assets to two other French
5
28 LLCs, ¶¶ 42-45, but Tenute disclaimed reliance on them as a basis for its claim during the parties’
meet and confer on this demurrer, Decl. ¶ 6.
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 withheld the plaintiff’s money.” Id. (internal quotation marks omitted).6 Indeed, criminal intent is
2 so fundamental that its absence negates two elements of a § 496 claim: that property was obtained
3 by theft and that the defendant knew the property was so obtained. MMM Holdings, Inc. v. Reich,
4 21 Cal. App. 5th 167, 185 (2018) (applying same intent analysis to both elements).
5 A defendant’s “good faith belief, even if mistakenly held, that he has a right or claim to
6 property” of another “negates the felonious intent necessary for conviction of theft.” People v.
7 Tufunga, 21 Cal. 4th 935, 938 (1999) (emphasis added); accord Cal. Penal Code § 511. Theft also
8 requires “the intent to deprive the owner permanently of the property.” MMM Holdings, 21 Cal.
9 App. 5th at 185 (internal quotation marks and emphasis omitted); see also Siry, 13 Cal. 5th at 368
10 (Groban, J., concurring). Tenute fails to allege the necessary criminal intent under this settled law.
11 Good faith. Tenute fails to allege that Pitt acted with anything other than a good-faith
12 belief that he had the right to put Château Miraval’s funds to the uses alleged. Pitt had significant
13 responsibility to oversee the use of Château Miraval’s assets to grow the business and brand, and
14 he did so for years by selecting and working with Château Miraval’s officers and directors. ¶¶ 2,
15 18, 20-21, 23, 32. The complained-of uses of Château Miraval’s property were not only
16 authorized by Venturini but also consistent with this history. The couple purchased Château
17 Miraval and were married there. ¶ 22. Spending on construction at the Château Miraval manor
18 house was in keeping with prior efforts to “mak[e] improvements to the property.” ¶ 18.
19 Investment in Miraval Studios represented further “investing in the business” and “buil[ding] the
20 Miraval brand.” ¶¶ 2, 18. Thus, Pitt acted with a “good faith belief” that he “ha[d] a right” to put
21 Château Miraval’s assets to the uses alleged. Tufunga, 21 Cal. 4th at 938. Tenute’s § 496 claim
22 accordingly fails as a matter of law. People v. Stewart, 16 Cal. 3d 133, 139 (1976) (“[W]here an
23 individual honestly believes that he is authorized to appropriate and use property which he is
24 accused of embezzling, the fraudulent intent which is a necessary element of that crime is
25 absent.”); Tim Cross, LLC v. Associated Adjusters Network, Inc., 2023 WL 9005635, at *5 (C.D.
26 Cal. Nov. 30, 2023) (dismissing § 496(c) claim for failure to allege intent where contract permitted
27
28 6
Tenute’s subsidiary Nouvel brought and is pressing claims based on alleged breaches of contract
and related tort claims. Ex. A (Nouvel First Amended Cross-Complaint).
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
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1 deduction of fees claimed to be “misappropriated”). Tenute’s belief that the funds could have
2 been better spent is a matter for ordinary business litigation, not the Penal Code. Motivo Eng’g,
3 LLC v. Black Gold Farms, 2023 WL 3150099, at *9 (C.D. Cal. Mar. 28, 2023) (dismissing § 496
5 Nor does Tenute show criminal intent by alleging that Nouvel “object[ed]” to unspecified
6 expenses and asked Quimicum at a shareholders meeting to distribute profits or repay loans, ¶¶ 26,
7 35; accusing Venturini of being “beholden to Pitt,” ¶ 29; or labeling the challenged uses as
8 “wasteful vanity projects,” ¶ 31. These allegations reflect a shareholder’s disagreement about how
9 to use corporate assets. But a defendant lacks criminal intent when he and the plaintiff simply
10 dispute rights over property—that is an “[o]rdinary” business dispute, not a Penal Code violation.
11 Siry, 13 Cal. 5th at 361-62. Thus, a complaint failed to plead a § 496 claim when the defendant
12 had “a contrary understanding of its obligations” to start paying funds alleged to be due, Formic
13 Ventures LLC v. SomaLogic, Inc., 2023 WL 6037899, at *1 (N.D. Cal. Sept. 15, 2023), or when
14 the defendants “misconstrue[d]” their ownership of a joint venture over which they allegedly
15 assumed control, GEC US 1 LLC v. Frontier Renewables, LLC, 2016 WL 4677585, at *9 (N.D.
16 Cal. Sept. 7, 2016); see Siry, 13 Cal. 5th at 369 (Groban, J., concurring). Here, Pitt had every
17 reason to believe he had the legal right to put the Château’s assets to the complained-of uses, given
18 Venturini’s authorization and Pitt’s history of overseeing the estate and growing the Miraval
19 business and brand, as well as his personal lease to the property. Pitt used the assets in good faith
20 even if he was “mistaken[]” as to that authority. Tufunga, 21 Cal. 4th at 938; see Cal. Penal Code
21 § 511 (even “untenable” claim of right negates embezzlement). Tellingly, Tenute nowhere alleges
22 that Pitt believed he lacked such authority. Tenute thus fail to plead the requisite criminal intent.
23 No intent to deprive owner permanently. Tenute also fails to allege Pitt’s intent to deprive
24 Château Miraval permanently of its property. With respect to construction at the manor house,
25 Château Miraval continued to own the estate and resulting improvements. ¶ 34. It likewise
26 retained an ownership stake over the value of spending on Miraval Studios, which must repay its
27 loan with interest. ¶¶ 40, 70. And Château Miraval was allocated a majority of projected profits
28 from Miraval Studios, Ex. C at 4, further negating any putative intent to deprive it permanently of
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 property. MMM Holdings, 21 Cal. App. 5th at 185 (retention of property for “limited purpose”
2 “d[id] not support the specific intent” to deprive owner permanently for § 496 claim); Monster
3 Energy Co. v. Pharms., Inc., 2019 WL 2619666, at *14 (C.D. Cal. May 20, 2019) (dismissing
5 At bottom, Tenute’s claim is that these investments were “vanity projects” that lacked a
6 “business purpose.” ¶¶ 25, 31. But there is no basis to infer that Pitt believed the projects would
7 not create value at Château Miraval, including by enhancing the Miraval brand, or that they were
8 inconsistent with his long-term oversight of and vision for the estate. Indeed, Stoli itself initially
9 praised the investments and Pitt’s vision for Miraval Studios before deciding to sue him instead.7
11 Tenute claims Pitt “received” the funds spent on construction at the manor house,
12 purportedly “[j]ust like” Siry. ¶ 72; Decl. ¶ 7 (disclaiming receipt theory for Miraval Studios
13 spending). The Siry defendants received stolen partnership funds by funneling them into a new
14 entity they had created and by charging personal expenses to the partnership, depriving the limited
15 partner of its share of contractually required cash distributions. 13 Cal. 5th at 339-40, 361. Here,
16 the funds were used on renovations that are tied to the estate. Pitt has access through his lease,
17 ¶ 34, but he has not removed any fixtures from the estate or otherwise deprived Château Miraval
18 of the assets, which remain fully within its control. This case is nothing like Siry.
19 Tenute also claims Pitt “concealed” and “withheld” the funds spent on Miraval Studios and
20 construction at the manor house. ¶¶ 3, 67, 68, 74. Tenute’s theory is that Pitt hid “wrongful uses”
21 of Chateau Miraval’s funds by refusing to provide “information about the business’s operations
22 and finances.” ¶¶ 3, 67. The claim is contradicted by allegations Jolie and Nouvel knew “the
23 business was spending large sums of money on projects,” “renovations,” and other “expenses,”
25 complain to Quimicum. ¶¶ 25-26, 35-36. Likewise, Tenute bases its claim about Miraval Studios
26
7
As Stoli’s CEO told Le Figaro: “I think Brad Pitt contributes to the vineyard through his taste
27 in art, as evidenced by the restoration of studio Miraval. That’s what makes this partnership
interesting.” He added, “Our agreement with Brad Pitt is to turn the château into a place where art
28 and wine come together as one, along with the most incredible recording studio.” Ex. F (Le
Figaro article) at 10-11 (emphasis added).
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 from “published financial accounts.” ¶ 70. Regardless, the claim also fails because § 496 applies
2 to concealing or withholding stolen property only “from the owner.” Cal. Penal Code § 496(a).
3 Jolie, Nouvel, and Tenute did not own Château Miraval’s funds—the Château did—and Tenute
4 does not allege that Pitt concealed or withheld the funds from their owner, Château Miraval.
5 Any attempt, particularly in this context relying on the Penal Code, to twist that plain
6 reality fails. Tenute alleges that the Château’s profits “should have been paid out as dividends and
7 loan repayments,” ¶ 31, but it points to no contract or corporate bylaw requiring it to do so. Decl.
8 ¶ 9. It is well established that shareholders have no right to a company’s earnings when dividends
9 have not been declared. Miller v. McColgan, 17 Cal. 2d 432, 436 (1941). Nor has Tenute pleaded
10 that its loan will not or cannot be repaid or even that it has sought repayment and been refused. In
11 any event, Tenute’s loan was to Nouvel, ¶ 46, and that is the entity to which it has recourse.
12 Tenute does not allege some legal right under its loan agreement to funds at Château Miraval.
13 * * *
14 The Cross-Complaint relies entirely on Siry, a case in which default judgment was entered
15 against the defendants. ¶¶ 58-61. In so doing, Tenute underscores its failure to plead a claim.
16 In Siry, the defendants took funds out of a partnership for themselves and charged
personal expenses to the partnership, depriving a limited partner of its share of
17 mandated cash distributions. 13 Cal. 5th at 339-40. Here, Château Miraval was not
deprived of its funds; they were used to benefit the Château by improving the estate
18 and investing in a business to grow the brand—uses entirely consistent with the estate’s
history and Pitt’s oversight role, and that the Château authorized.
19
In Siry, diversion of rental income and personal charges were clearly not consistent
20 with the purposes of the partnership: they amounted to blatant stealing. Id. at 339-40.
Here, the so-called “vanity projects” are consistent with Pitt’s more than decade-long
21 oversight of the family home and business.
22 In Siry, the diverted funds “belong[ed] to” the plaintiff because it was contractually
entitled to a defined share of cash distributions under the governing partnership
23 agreement. Id. at 339-40, 361. Tenute shows no similar right to the Château’s funds.
24 The Court and Justice Groban admonished in Siry that § 496(c) should be used in business matters
25 only in uncommon circumstances and not for ordinary business disputes. 13 Cal. 5th at 362; id. at
26 367 (Groban, J., concurring). Courts have heeded that admonition in dismissing § 496(c) claims
27 on the pleadings even after Siry. E.g., Tim Cross, 2023 WL 9005635, at *5; Formic Ventures,
28 2023 WL 6037899, at *1; Motivo Eng’g, 2023 WL 3150099, at *9. The Court should reject
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 Tenute’s invitation to ignore the Supreme Court’s directive here.
4 Cal. Penal Code § 496(c) (plaintiff must be “injured by” violation); Citizens of Humanity, LLC v.
5 Costco Wholesale Corp., 171 Cal. App. 4th 1, 17 (2009); Cal. Civil Code § 3333 (requiring
6 proximate cause when measuring tort damages). It also requires “actual damages,” or harm from
7 which the plaintiff “currently suffer[s]” or “is certain to suffer in the future.” Citizens of
8 Humanity, 171 Cal. App. 4th at 19. Tenute fails to plead that the alleged diversion of Château
10 Tenute does not allege that the entity it owns, Nouvel, is any less valuable because of the
11 alleged misconduct. It admits that the “enormously profitable” business Nouvel owns through
12 Quimicum—Château Miraval—has grown in value under Pitt’s oversight. ¶¶ 23, 31-32. Tenute
14 certain”—harm. Citizens of Humanity, 171 Cal. App. 4th at 19. Its theory is that Château
15 Miraval’s funds “would have been paid” to Quimicum as dividends and loan repayments, which
16 would have flowed to Nouvel and ultimately Tenute, if the funds had not been diverted. ¶¶ 3, 54-
17 55. But it is speculative to presume that absent the alleged misconduct, Château Miraval would
18 have paid dividends rather than reinvest the funds—or that such payments would exceed the value
19 created through the investments into the estate. Nor does Tenute allege that the loan on which it
20 primarily relies for its damages claim, ¶ 75, would not be repaid if Tenute were to request as
21 much. Tenute fails to plead “the causal link between the [alleged violation] and the injury” with
22 the requisite “particularity, in accordance with the pleading rules governing statutory claims.”
23 Carter v. Prime Healthcare Paradise Valley LLC, 198 Cal. App. 4th 396, 407 (2011) (internal
25 CONCLUSION
26 For the foregoing reasons, the Court should sustain the demurrer and dismiss the claim
28
-22-
NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 DATED: August 13, 2024 By: /s/ John V. Berlinski
BIRD, MARELLA, RHOW,
2 LINCENBERG, DROOKS & NESSIM, LLP
John V. Berlinski
3
WACHTELL, LIPTON, ROSEN & KATZ
4 Jonathan M. Moses (admitted pro hac vice)
5 Adam L. Goodman (admitted pro hac vice)
Won S. Shin (pro hac vice application forthcoming)
6 Jessica L. Layden (admitted pro hac vice)
Ioannis D. Drivas (admitted pro hac vice)
7
Attorneys for Plaintiffs and Cross-Defendants
8
William B. Pitt and Mondo Bongo, LLC
9
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NOTICE OF PITT AND MONDO BONGO’S DEMURRER AND
DEMURRER TO CROSS-COMPLAINT OF TENUTE
1 PROOF OF SERVICE
2 Pitt v. Jolie
Case No. 22STCV06081
3
STATE OF CALIFORNIA, COUNTY OF LOS ANGELES
4
At the time of service, I was over 18 years of age and not a party to this action. I am
5 employed in the County of Los Angeles, State of California. My business address is 1875 Century
Park East, 23rd Floor, Los Angeles, CA 90067-2561.
6
On August 13, 2024, I served the following document(s) described as WILLIAM B.
7 PITT AND MONDO BONGO, LLC’S NOTICE OF DEMURRER AND DEMURRER TO
CROSS-COMPLAINT OF TENUTE DEL MONDO B.V.; MEMORANDUM OF POINTS
8 AND AUTHORITIES IN SUPPORT THEREOF on the interested parties in this action as
follows:
9
SEE ATTACHED SERVICE LIST
10
BY E-MAIL OR ELECTRONIC TRANSMISSION: I caused the document(s) to be
11 sent from e-mail address kminutelli@birdmarella.com to the persons at the e-mail addresses listed
in the Service List. I did not receive, within a reasonable time after the transmission, any
12 electronic message or other indication that the transmission was unsuccessful.
13 I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
14
Executed on August 13, 2024, at Los Angeles, California.
15
16
/s/ Karen M. Minutelli
17 Karen M. Minutelli
18
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21
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23
24
25
26
27
28
PROOF OF SERVICE
1 SERVICE LIST
Pitt v. Jolie
2 Case No. 22STCV06081
3 Paul D. Murphy Laura W. Brill
Daniel N. Csillag Daniel Barlava
4 MURPHY ROSEN LLP Matthew Bernstein
100 Wilshire Boulevard, Suite 1300 KENDALL BRILL & KELLY LLP
5 Santa Monica, CA 90401 10100 Santa Monica Boulevard, Suite 1725
Telephone: (310) 899-3300 Los Angeles, CA 90067-4013
6 Email: pmurphy@murphyrosen.com Telephone: (310) 556-2700
Email: dcsillag@murphyrosen.com Email: lbrill@kbkfirm.com
7 Counsel for Defendant and Cross- Email: dbarlava@kbkfirm.com
Complainant Angelina Jolie Email: mbernstein@kbkfirm.com
8 Counsel appearing specially to challenge
jurisdiction on behalf of Cross-Defendants
9 Roland Venturini and Gary Bradbury
10 Joe Tuffaha Keith R. Hummel
Prashanth Chennakesavan Justin C. Clarke
11 LTL ATTORNEYS LLP Jonathan Mooney
300 South Grand Avenue, Suite 1400 CRAVATH, SWAINE & MOORE LLP
12 Los Angeles, CA 90071 Worldwide Plaza
Telephone: (213) 612-8900 825 Eighth Avenue
13 Email: joe.tuffaha@ltlattorneys.com New York, NY 10019
Email: Telephone: (212) 474-1000
14 prashanth.chennakesavan@ltlattorneys.com Email: khummel@cravath.com
Counsel for Defendant and Cross- Email: jcclarke@cravath.com
15 Complainant Nouvel, LLC and Defendant Email: jmooney@cravath.com
Tenute del Mondo B.V., and specially Counsel for Defendant and Cross-
16 appearing to challenge jurisdiction on behalf Complainant Nouvel, LLC and Defendant
of Defendants Yuri Shefler and Alexey Tenute del Mondo B.V., and specially
17 Oliynik appearing to challenge jurisdiction on behalf
of Defendants Yuri Shefler and Alexey
18 Oliynik
19 Mark Drooks S. Gale Dick
Debbie Throckmorton Phoebe King
20 Assistant to Mark Drooks Randall Bryer
BIRD, MARELLA, RHOW, LINCENBERG, COHEN & GRESSER LLP
21 DROOKS & NESSIM, LLP 800 Third Avenue
1875 Century Park East, 23rd Floor New York, NY 10022
22 Los Angeles, CA 90067-2561 Telephone: (212) 707-7263
Telephone: 310 201-2100 Email: SGDick@CohenGresser.com
23 Email: mdrooks@birdmarella.com Email: PKing@CohenGresser.com
Email: dthrockmorton@birdmarella.com Email: rbryer@cohengresser.com
24 Counsel appearing specially to challenge Counsel appearing specially to challenge
jurisdiction on behalf of Cross-Defendants jurisdiction on behalf of Cross-Defendants
25 Marc-Olivier Perrin, SAS Miraval Provence, Marc-Olivier Perrin, SAS Miraval Provence,
Familles Perrin, SAS Petrichor, Vins et Familles Perrin, SAS Petrichor, Vins et
26 Domaines Perrin SC, SASU Le Domaine, and Domaines Perrin SC, SASU Le Domaine,
SAS Distilleries de la Riviera and SAS Distilleries de la Riviera
27
28
PROOF OF SERVICE
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