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Real Estate Deception

Silicon Valley Homeowner Wins $450,000 Settlement in Real Estate Fraud Lawsuit!

Ron Chandler's Deposition


        1            SUPERIOR COURT OF THE STATE OF CALIFORNIA

        2                      COUNTY OF SANTA CLARA

        3                             --oOo--

        4

        5    RALPH SIMPSON,                        )
                                                   )
        6                              Plaintiff,  )
                                                   )
        7                vs.                       ) No. 105CV053398
                                                   )
        8    LOU RAE KAGEL; LYNN O'BRIEN; JAMES    )
             O'BRIEN; STONEHENGE PROPERTIES,       )
        9    INC.; VALLEY OF CALIFORNIA, INC. dba  )
             COLDWELL BANKER; DOUGLAS REA; and     )
       10    DOES ONE through TWENTY, inclusive,   )
                                                   )
       11                             Defendants.  )
                                                   )
       12    AND RELATED ACTIONS.                  )

       13

       14

       15                   DEPOSITION OF RON CHANDLER

       16                   Tuesday, November 14, 2006

       17

       18

       19

       20

       21               Taken before JANELL SOKOL, CSR, CM
                     License No. C-3443, State of California
       22

       23
                         DIABLO VALLEY REPORTING SERVICES
       24                  Certified Shorthand Reporters
                        2121 N. California Blvd., Suite 310
       25                 Walnut Creek, California 94596
                                   925-930-7388                       1

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1                            I N D E X

        2                                                      PAGE

        3   EXAMINATION BY:

        4     MR. KOSS                                           4

        5     MR. MINOLETTI                                     28

        6     MR. THOMAS                                        31

        7   FURTHER EXAMINATION BY:

        8     MR. MINOLETTI                                     35

        9     MR. KOSS                                          36

       10                            --oOo--

       11

       12                         E X H I B I T S

       13   NUMBER                                             PAGE

       14      A    Contract                                    26

       15      B    Pool plans                                  26

       16      C    Drawings/map                                27

       17      D    Site plan                                   27

       18      E    Construction Specifications                 27

       19      F    Group of documents                          28

       20                             --oOo--

       21

       22

       23

       24

       25
                                                                      2

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1            BE IT REMEMBERED, that pursuant to notice to the

        2   respective parties, and on Tuesday, the 14th day of

        3   November, 2006, commencing at the hour of 1:30 p.m.

        4   thereof, at the Law Offices of GAGEN, McCOY, McMAHON, KOSS,

        5   MARKOWITZ & RAINES, 279 Front Street, Danville, California,

        6   before me, JANELL SOKOL, a Certified Shorthand Reporter,

        7   License No. C-3443, State of California, there personally

        8   appeared:

        9                          RON CHANDLER,

       10   called as a witness on behalf of the defendants, who, being

       11   first duly sworn, was then and there examined and

       12   interrogated as hereinafter set forth.

       13            PAUL G. MINOLETTI, Attorney at Law, representing

       14   the Law Offices of GREENE, CHAUVEL, DESCALSO & MINOLETTI,

       15   951 Mariner's Island Boulevard, Suite 630, San Mateo,

       16   California 94404, appeared as counsel on behalf of the

       17   plaintiff;

       18            CHARLES A. KOSS, Attorney at Law, representing the

       19   Law Offices of GAGEN, McCOY, McMAHON, KOSS, MARKOWITZ &

       20   RAINES, 279 Front Street, Danville, California 94526,

       21   appeared as counsel on behalf of defendants Lou Rae Kagel;

       22            STEPHEN W. THOMAS, Attorney at Law, representing

       23   NRT Incorporated Western Division, 12657 Alcosta Boulevard,

       24   Suite 500, San Ramon, California 94583, appeared as counsel

       25   on behalf of defendant Coldwell Banker.
                                                                      3

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1                          RON CHANDLER,

        2            called as a witness on behalf of the defendants,

        3            having first been duly sworn by the court reporter

        4            to testify the truth, the whole truth and nothing

        5            but the truth, testified as follows:

        6                             --oOo--

        7                           EXAMINATION

        8            BY MR. KOSS:

        9       Q.   Could you please state your name and business

       10   address.

       11       A.   Ron Chandler, 148 -- excuse me.  1495 South

       12   Winchester, San Jose, California 95128.

       13       Q.   Are you currently employed?

       14       A.   Yes.

       15       Q.   How are you employed?

       16       A.   I am the company's drafter.

       17       Q.   And by the company you mean Swan Pools?

       18       A.   Yes, sir.

       19       Q.   Have you ever been deposed before?

       20       A.   No.

       21       Q.   Let me give you some of the ground rules just so

       22   it's clear.

       23            You've been given an oath to tell the truth and

       24   even though this is an informal setting, it's the same oath

       25   you'd be given in a court of law.
                                                                      4

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1            Do you understand that?

        2       A.   Yes.

        3       Q.   The same penalties of perjury and all that kind of

        4   thing attach to that.

        5            Do you understand that as well?

        6       A.   Yes.

        7       Q.   Okay.  We have a court reporter that's taking down

        8   what you say, what I say, indeed what anybody in this room

        9   says.  In order for her to take down the testimony

       10   accurately, if we talk at the same time that becomes

       11   difficult for her.  So if could you wait for me to finish,

       12   I'll try and wait for you to finish your answers.

       13            Also, you need to answer out loud.  Shakes of the

       14   head, things like that, don't translate very well.  So from

       15   time to time I may prompt you for a yes or a no or an

       16   answer, and I don't mean to be rude.  I just mean to get a

       17   clear record.  Fair enough?

       18       A.   Yes.

       19       Q.   Okay.  Very good.  Are you under any medication or

       20   anything like that that would impair your ability to

       21   testify?

       22       A.   No.

       23       Q.   If you don't understand a question, please let me

       24   know and I'll try and rephrase it, because the last thing I

       25   want to do is either trick you or give you a question you
                                                                      5

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   don't understand.  Fair enough?

        2       A.   Yes.

        3       Q.   Any questions before we get going?

        4       A.   No.

        5       Q.   Okay.  How long have you been employed by Swan

        6   Pools?

        7       A.   A little over ten years.

        8       Q.   And you say your position with the company is

        9   drafter?

       10       A.   Yes.

       11       Q.   Have you held that same job the entire time?

       12       A.   Yes.

       13       Q.   What are the job responsibilities of a company

       14   drafter at Swan Pools?

       15       A.   Research property on the property in question that

       16   belongs to the homeowner, measure the property, draw the

       17   working plans.

       18       Q.   Now, I've asked Swan Pools to produce today all

       19   the documents they have relating to some property located

       20   at 17682 Blanchard Drive, Monte Sereno, California.

       21            Have you brought documents responsive to that?

       22       A.   I believe so.

       23       Q.   Okay.  I briefly looked into that before we

       24   started the deposition and you produced what you call your

       25   job file.
                                                                      6

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   Yes.

        2       Q.   And maybe more precisely, Swan Pools' job file.

        3       A.   Yes.

        4       Q.   Is it correct that every document relating to a

        5   client of Swan Pools would be put into the job file?

        6       A.   Normally, yes, and I believe that's the case here.

        7       Q.   By looking at this file, can you tell when --

        8   strike that.

        9            Do you know who the homeowners were on the

       10   property on Blanchard?

       11       A.   Having recalled, it is the Simpsons.

       12       Q.   Have you ever talked to the Simpsons?

       13       A.   I don't believe they were home when I was out at

       14   the property and I don't recall talking to them.

       15       Q.   How many times did you go to the Blanchard

       16   property?

       17       A.   Once.

       18       Q.   And what was your purpose in going to the

       19   property?

       20       A.   To measure the property so that I could draw the

       21   plans.

       22       Q.   By looking at the file can you tell when the

       23   Simpsons first talked to anyone at Swan Pools about

       24   constructing a pool at their property on Blanchard?

       25       A.   It might be located on the front.  They sometimes
                                                                      7

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   put a note.  Let me take a look and see if this one has it.

        2            It does not have the date that we were contacted

        3   for the initial visit, but it has the date of the contract.

        4       Q.   And what's the date of the contract?

        5       A.   The date of the contract is February 13, 2003.

        6       Q.   By looking at the file can you tell whether or not

        7   the Simpsons met with anyone at Swan Pools prior to

        8   entering into a contract with Swan Pools?

        9       A.   Not by looking at the file.  For all I know, the

       10   salesman may have had only one visit with them and

       11   concluded it all at once or he may have had a call back, in

       12   which case he went out, discussed certain things, said he

       13   would design a pool and then returned at a later time.

       14            That information isn't part of the file.

       15       Q.   From the file can you tell who the salesman was?

       16       A.   Yes.

       17       Q.   And who was that?

       18       A.   Mike Blackburn.

       19       Q.   Is Mr. Blackburn still with Swan Pools?

       20       A.   Yes, he is.

       21       Q.   Does he work out of the Winchester office in San

       22   Jose?

       23       A.   Yes, he does.

       24       Q.   Maybe you can describe for me how the process

       25   typically works.  Is it correct that a salesman would meet
                                                                      8

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   with a potential customer and kind of go over the kind of

        2   things that Swan Pools can do for them?

        3       A.   Yes.

        4       Q.   And what happens from that point?

        5       A.   Assuming that it culminates in a contract, the

        6   salesman discusses what the customer wants, designs a pool

        7   to meet that customer's requirements, submits that pool

        8   back to the customer.  I imagine they dicker over price.  I

        9   haven't been there during a deal, but there's discussions

       10   of price and so forth, maybe additions of additional

       11   features or equipment or deletion of certain features and

       12   equipment, depending on cost, and at some point they come

       13   to a conclusion that says this is the pool I want, this is

       14   what I'm willing to pay for it.

       15            The salesman says, fine, let's write up a

       16   contract.  They write up a contract.  The homeowner reads

       17   the contract, is satisfied with it, signs it.

       18       Q.   Okay.  So there's design work that is done before

       19   the parties sign a contract?

       20       A.   Almost always, yes.

       21       Q.   And looking at the file -- I'm sorry.

       22       A.   I was just going to say, in some instances, you

       23   know, the homeowner may already have a design done by a

       24   landscape architect or something like that, and so when

       25   they have it, then basically it becomes just the bickering
                                                                      9

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   over price and they either come to an agreement or not.

        2   But usually it's done did way I described.

        3       Q.   By looking at the file, can you tell what are the

        4   initial designs that were put together by Swan Pools?

        5       A.   Yes.  They would be shown by the salesman's

        6   wetmores.  This is page 1 and this is page 2.  Somewhere in

        7   there is page 1.  This is a three-dimensional drawing that

        8   Mike did and there is probably a plan drawing in there

        9   somewhere that he shuffled through.

       10            And even this would not necessarily be the final

       11   thing compared to -- because he may do this, which takes an

       12   awful lot of time, and then at some point in time the

       13   customer may say, well, I want this changed or I want that

       14   changed, and that's noted in the contract or on the final

       15   wetmore.  But he wouldn't -- this takes so much time to do.

       16       Q.   Well, I guess that's my question.  Does Swan Pools

       17   do this kind of design work that we're looking at here?  If

       18   it's wetmore I guess --

       19       A.   It depends on the salesman.  A good many of the

       20   salesmen don't do this.  Mike takes the time to do this

       21   particular type.

       22            That one is my drawing, which is construction.

       23   All those ones are -- that one is probably page 1.  Yes,

       24   see down there in the lower corner.  That's page 1 of the

       25   wetmore.  That is a plan view of the same design.
                                                                     10

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   Okay.  So now we have in front of us page 1 and

        2   page 2 of the -- is it wet or webmore?

        3       A.   Wet.

        4       Q.   W-E-T?

        5       A.   Um-hum, like something is damp.  Like I said, I

        6   have no idea where that comes from.

        7       Q.   This is two sheets.  It says "Plan Authorization,"

        8   has a logo for Swan Pools and it indicates that the

        9   buyer/owner is Ralph and Thomasena Simpson.

       10       A.   Mike does pretty pictures.  His handwriting is

       11   deplorable.

       12       Q.   And it shows a contract date of November 11, 2002.

       13       A.   That's the date at which this was prepared and you

       14   can take a look at the actual contract and see what date it

       15   has on it.

       16       Q.   Well, why don't we take a look at that.

       17       A.   Let's see here.  Excuse me.  The final date of the

       18   contract is 2/13/03, which is what's on the package.

       19       Q.   Okay.  So from looking at these documents in the

       20   file, would you conclude that this wetmore was prepared

       21   prior to the time that there was a contractual relationship

       22   between Swan Pools and the Simpsons?

       23       A.   Yes, yes.

       24       Q.   By looking at these plans -- strike that.

       25            Did you ever have any discussions with
                                                                     11

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   Mr. Blackburn about what the Simpsons wanted?

        2       A.   I may have called him.  As I said, his handwriting

        3   leaves something to be desired.  I may have called him with

        4   numerous questions during the period of time that I was

        5   drawing up the plans.  Then again, I may have called him

        6   with one question or even no questions.  It being three

        7   years ago, I don't remember what the case is.

        8       Q.   Okay.

        9       A.   Generally I work off the wetmore and only if I

       10   have a question regarding something that I don't understand

       11   that he may have been trying to convey do I call and ask a

       12   salesman.  Other than that I work off the contract and the

       13   wetmore.

       14       Q.   So the way it works is, at least in this case, is

       15   Mr. Blackburn would have met with the Simpsons, got some

       16   ideas from them, put together these drawings, this wetmore,

       17   and then proceeded to enter into a contract once the

       18   Simpsons were happy with the basic conception on the plans?

       19       A.   Right.

       20       Q.   After that the plan, the wetmore, would be given

       21   to you to prepare formal plans?

       22       A.   Exactly.  And then my plans are actually used to

       23   pull the permits and to construct the pool.

       24       Q.   In your normal job duties, do you typically have

       25   need to contact the homeowner?
                                                                     12

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   It's not necessary.  Generally if I have questions

        2   for the homeowner -- which I usually work through the

        3   salesman.  About the only time I would have contact with

        4   the homeowner is, A, I always call before going out to the

        5   property to make sure that the property is available to be

        6   looked at, if gates or whatever need to be unlocked; also,

        7   do they have any dogs so that I don't get eaten.

        8            The other situation is if either the husband or

        9   wife happen to be home -- I tell them it's not necessary

       10   for them to be home, but if they happen to be home I may

       11   meet with them just to introduce myself and tell them when

       12   I'm done measuring the property.

       13       Q.   Now, this wetmore references a contract date of

       14   November 11, 2002.

       15            Does your file contain a contract with that date

       16   on it?

       17       A.   No, it does not.  The final contract is two days

       18   later than that.  It's the 13th.

       19       Q.   Well, this says November 11 of 2002, some months

       20   earlier.

       21       A.   Oh, okay.  I thought you said 2003.  I

       22   misunderstood.

       23            Yeah, that may have been prepared.  They may have

       24   had a situation where whatever, they thought about it for a

       25   year.  I have no idea why it took a year.
                                                                     13

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1            Or actually, this is February.

        2       Q.   So it looks like three months.

        3       A.   Four months.

        4       Q.   Right.

        5       A.   They may have needed to look at the plan or

        6   something for a period of four months for them to make up

        7   their mind.

        8       Q.   Okay.  Now, there seems to be some --

        9       A.   Those are all the legal disclaimers.

       10       Q.   Okay.  So the legal disclaimers get glued onto the

       11   plan authorization wetmore, as you call it, at some point.

       12       A.   Well, as you can see, it's a different type of

       13   paper, the reason being is that the normal disclaimer

       14   sheet, which is the normal wetmore sheet, is a smaller

       15   piece of paper.  It's a ledger size sheet and if the

       16   salesman -- either the property is too large to show on

       17   that piece of paper and show the detail that needs to be

       18   done or the salesman, as is shown on the second page, wants

       19   to show more detail and so forth.  Then he still needs to

       20   have the disclaimers put on there, so he has another sheet

       21   for salesman and he just attaches it.

       22       Q.   I see.  And in looking at the wetmore, the legal

       23   disclaimer that appears to be glued on there is dated

       24   February 13, 2003, the same date as the contract.

       25       A.   Yeah.  That's when it was finally accepted.
                                                                     14

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   And you may have already alluded to this but I'll

        2   ask you anyway.  Do you have any knowledge as to why there

        3   was some three months' delay from the initial date on the

        4   wetmore to the time of the contract?

        5       A.   No, none.  It could have been just that it was

        6   winter and they didn't want to begin construction at that

        7   time.  I have no idea why there was a delay, whether it was

        8   cost, family, weather, whatever.

        9       Q.   Do you know one way or the other whether or not

       10   the Simpsons wanted any work done in addition to what's

       11   depicted on these plans in terms of accessory structures,

       12   like gazebos or anything along those lines?

       13       A.   No.  As far as I know, the only thing that I'm

       14   aware of is what's shown on that plan.

       15       Q.   Does Swan Pools do that type of work, that is,

       16   accessory structures like gazebos and the --

       17       A.   No.  We don't even do decking.

       18       Q.   Cement decking?

       19       A.   Any decking.

       20       Q.   If this shows cement decking, that would be done

       21   by --

       22       A.   It would be done by another contractor.

       23       Q.   And do you act as the general contractor for that

       24   work or not?

       25       A.   No.
                                                                     15

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   You direct the homeowner to somebody else?

        2       A.   Exactly.

        3       Q.   Do you recall any discussion between yourself or

        4   anybody at Swan Pools with the Simpsons about their desire

        5   to construct any accessory structures or buildings on the

        6   site?

        7       A.   Other than the pool and what is shown on the

        8   wetmore, no.

        9       Q.   Now, at some point you personally became involved

       10   in the project, right?

       11       A.   Right.

       12       Q.   And when you got involved, what documents were you

       13   given?

       14       A.   I was given at that point -- it has much less

       15   stuff in it, but I was given the package with everything

       16   that was in the package, which would have included a copy

       17   of the contract, a copy of the breakdown and a copy of the

       18   wetmore and all the legal disclaimers that go with pool

       19   construction, most of which are stuff that just -- do you

       20   accept this, do you accept this, do you accept this, and

       21   it's all preprinted and -- as you can see in there.

       22       Q.   Okay.  What is the first thing that you did?

       23       A.   The first thing I did was make a copy of the

       24   things that I would need in making up this package.

       25       Q.   And by this package you're talking about --
                                                                     16

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   There's a copy of the plan view of the wetmore.

        2   There is a copy of the contract and normally there would be

        3   copy of the breakdown in there as well, but the breakdown

        4   is somewhere else in this deal, because I look over it and

        5   mark it and then hand it back in.

        6       Q.   By breakdown, what do you mean by that?

        7       A.   Cost breakdown.

        8       Q.   I see.

        9       A.   And there's a map in there, too, that I make so

       10   I'll know how to get to the property.

       11       Q.   And what's your purpose in making copies of the

       12   contract and the wetmore?

       13       A.   So that I know when I draw the plan a couple of

       14   different things.  One is so that I know -- when I draw the

       15   plan, I'll know what the salesman wants.

       16            The other thing is the front page has the address

       17   and so forth on it and I need that in order to do my

       18   research and I need to know how to get to the property, and

       19   other stuff needed to actually draw the plans.

       20       Q.   Before actually starting to draw plans, did you do

       21   research?

       22       A.   Yes.

       23       Q.   What research did you do?

       24       A.   I look at the recorded map at the County of Santa

       25   Clara in this particular case, find out the meets and
                                                                     17

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   bounds of the property.  It's right there on top.  Make a

        2   sketch.

        3       Q.   There seems to be a sketch that's made.  That's a

        4   sketch that you did?

        5       A.   Yes.

        6       Q.   And this is a sketch that shows the meets and

        7   bounds on the property.  There seems to be a calculation of

        8   .607 acres.

        9       A.   Yes.  That's additional information.  That's the

       10   size of the property and this is the number of square feet

       11   that that translates to.

       12       Q.   Where did you get that information?

       13       A.   Off the recorded map.

       14       Q.   So you went down to the county and got -- to the

       15   city and got a map?

       16       A.   Yes.  I didn't get the map.  I copied the

       17   information from the map.

       18       Q.   And then you made calculations off of that to

       19   determine the number of square feet?

       20       A.   Actually, I copied that as well.  But I could

       21   have.  I would have done it using my CAD program to give me

       22   the square footage, and it should be the same.

       23       Q.   Did you copy down from the city records both the

       24   square footage of the lot and the acres of the lot?

       25       A.   It probably gave only acres and I converted.
                                                                     18

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   You converted that.  Okay.

        2            What was your purpose in determining the meets and

        3   bounds of the property and in determining the number of

        4   square feet on the property?

        5       A.   The meets and bounds are required in every

        6   jurisdiction in our area in order to draw a full site plan.

        7   You have to draw the property the way it is as a legal

        8   recorded map and you have to give the meets and bounds.

        9            So I have to know them in order to, A, draw them

       10   and, B, put them down on the map.  The square footage is

       11   required in the City of Monte Sereno as it is in the City

       12   of Saratoga for something called impervious coverage.

       13       Q.   So you needed to know the square footage of the

       14   lot so you could make some impervious coverage --

       15       A.   -- calculations, which are shown on my site plan

       16   which you have there.

       17       Q.   Okay.  Sure.  Why don't we take a look at that

       18   then.

       19            Okay.  Now we're looking at -- I'm trying to see

       20   how to identify this thing.  You call it a site plan?

       21       A.   Yes.

       22       Q.   And it says "Site Plan."  It doesn't have a date

       23   on it, though, does it?

       24       A.   No, although I can tell you what date it was

       25   drawn.
                                                                     19

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   Sure.  What date was it drawn?

        2       A.   It was drawn February 19, 2003.

        3       Q.   And on the site plan you have drawn in dimensions

        4   for the swimming pool?

        5       A.   Actually, dimensions for setback purposes.  The

        6   layout dimensions are shown on the layout plan.

        7       Q.   Do you do a survey of the property?

        8       A.   I do a measuring of the property.

        9       Q.   And when you say you do a measuring of the

       10   property, what do you measure?

       11       A.   I measure the house and I measure the distance

       12   from the house to all the property lines as indicated by

       13   fences and so forth, which should be on the property line.

       14       Q.   So in other words, on the back of the pool here

       15   you have the pool set 12.6 inches off of the back of the

       16   property line.  You just measure that from the fence?

       17       A.   Exactly.

       18       Q.   What's your purpose in measuring the residence?

       19       A.   One, it's required by every city in our

       20   jurisdiction, which includes four counties and all the

       21   cities in those counties; and in this particular case

       22   because it matters from the standpoint of impervious

       23   coverage.

       24       Q.   And I see you have a calculation on your site plan

       25   for impervious cover.
                                                                     20

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   Yes.

        2       Q.   The lot size you got off of public records,

        3   correct?

        4       A.   Correct.

        5       Q.   Are all the rest of the figures figures that you

        6   calculated?

        7       A.   Yes.

        8       Q.   And you calculated those by actually going out to

        9   the site and physically measuring the driveway, the

       10   house --

       11       A.   Exactly.

       12       Q.   -- the patios, all that.  Okay.

       13       A.   And then I used that to make the drawing and then

       14   once they were drawn I was able to let the computer

       15   calculate those.  So I could go over and measure from point

       16   to point, for instance, on the house, and when I was done

       17   it would give me .02 of a foot the square footage of the

       18   house.

       19       Q.   So if we look at the contract date, which was

       20   February 13, 2003, within six days you've now completed the

       21   measurements for the impervious cover and completed the

       22   site plan?

       23       A.   Correct.

       24       Q.   After you completed the site plan, did you believe

       25   that there was some potential difficulties with the amount
                                                                     21

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   of impervious cover on the site?

        2       A.   Not at that point.

        3       Q.   At some point did you determine that there was a

        4   problem?

        5       A.   At some point.  Again, back to dates, it went into

        6   PG&E for their approval on February 21 and it was ready to

        7   pick up from PG&E on March 13, and within a day or so of

        8   that it would have been taken to the City of Monte Sereno,

        9   because that -- PG&E has to give approval before it goes to

       10   the city.

       11       Q.   And I'm sorry.  What date was it picked up from

       12   PG&E or ready to be picked up?

       13       A.   It was ready to the picked up on the 13th of

       14   March.

       15       Q.   Do you know what date it was submitted to the City

       16   of Monte Sereno?

       17       A.   No, I don't.  I'm not the permit runner.

       18       Q.   How did you find out that there was a problem with

       19   the impervious cover?

       20       A.   At some point in time the permit runner came back

       21   to me and said the percentage, which you can see down there

       22   as a final percentage, which is 50.5, I believe, was more

       23   than was allowed for that particular zoning.

       24            I let the salesman know and the salesman let the

       25   Simpsons know.
                                                                     22

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   Do you have any knowledge as to how that was

        2   resolved?

        3       A.   Only by the results.  As I understand it, hearsay,

        4   the Simpsons discussed with the city what would be needed

        5   for them to be able to build the pool as designed, and as I

        6   understand it, they were told that they would have to

        7   convert some of their hard coverage of their driveway from

        8   concrete to pavers.

        9            They were okay with that, or they at least went

       10   ahead with that, and at that point the city approved the

       11   plans and the permits were issued and we built the pool;

       12   and the pool was, on its completion, finaled by the city.

       13       Q.   As a result of this difficulty with the impervious

       14   cover, did that affect any of the drawings that you had

       15   done?

       16       A.   No.  These are the only drawings that I have done.

       17   So since my drawing shows the concrete as it existed prior

       18   to their discussion with the city and I was never told to

       19   actually change it, whatever they discussed with the city

       20   didn't change the drawings.

       21       Q.   Do you know how long it took for the city to work

       22   out an arrangement with Mr. Simpson in order to eliminate

       23   some of the concrete work and replace it with pavers?

       24       A.   No, I don't.

       25       Q.   Can you tell by your file when construction
                                                                     23

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   started?

        2       A.   I can take a look and see if there's something in

        3   here.  It looks like from what I can see that construction

        4   actually began September 17, 2003, plus or minus.  I don't

        5   know if it took more than one day to complete the

        6   excavation or not, but the signoff sheet that was given to

        7   us by the excavator is dated September 17, 2003.

        8       Q.   Do you know when a building permit was issued?

        9       A.   No, I don't offhand.

       10       Q.   Would that be in your file?

       11       A.   I can look and see here.  Okay.  It looks like the

       12   permit was finally issued May 29, 2003.

       13       Q.   And what are you looking at?

       14       A.   I'm looking at a receipt given to us by the City

       15   of Monte Sereno, and this is one that was submitted 3/14,

       16   the City of Monte Sereno.  This is probably the date that

       17   it was submitted.

       18       Q.   In your experience how long does it take at the

       19   City of Monte Sereno for a plan like this to go through

       20   plan check and a permit issue?

       21       A.   It can take anywhere -- it depends on how busy

       22   they are and how much work they have to do.  It can take

       23   anywhere from three weeks to over two months.

       24       Q.   In this case do you know of any reason why there

       25   might be a delay in issuing a permit?
                                                                     24

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   No, I don't.

        2       Q.   Now, you indicate a permit was issued at the end

        3   of May 2003?

        4       A.   And it wasn't done until September.

        5       Q.   Yes.

        6       A.   I have no idea why there was a delay in that.

        7       Q.   And was there anything in your file that would

        8   indicate why there was a delay?

        9       A.   I don't see anything.

       10       Q.   Generally is there a copy of the permit in the job

       11   file?

       12       A.   No, there isn't.  The homeowner usually gets the

       13   only copy of the file.  We have a generic for the

       14   particular cities that we schedule in we have to refer to,

       15   so if they're talking with the homeowner they can tell the

       16   homeowner where to find something on the permit, where to

       17   look.  But we don't have a copy of it.

       18            MR. KOSS:  Why don't we go off the record for a

       19   moment.

       20            (Discussion held off the record.)

       21            MR. KOSS:  Okay.  Why don't we go back on the

       22   record and we'll start marking some documents here.

       23            First I'd like to mark this as -- at one time we

       24   had a convention of marking things sequentially.

       25            (Discussion held off the record.)
                                                                     25

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1                         (Whereupon, the document described

        2                         below was marked Exhibit A for

        3                         identification.)

        4            BY MR. KOSS:

        5       Q.   Mr. Chandler, I'm just going to mark as exhibits

        6   some of the documents that we've taken from your job file.

        7   The first document is Exhibit A and that is the contract?

        8       A.   Yes, sir.

        9            MR. KOSS:  Why don't we mark as Exhibit B the

       10   two-page wetmore.

       11                         (Whereupon, the above-described

       12                         document was marked Exhibit B for

       13                         identification.)

       14            BY MR. KOSS:

       15       Q.   Why don't we mark as next, Exhibit C --

       16       A.   Property research sketch.

       17       Q.   Yes.  The documents from your property research,

       18   the first page being the drawing you did of the property,

       19   including the calculation you did of the square footage.

       20       A.   Meets and bounds.  It's not a calculation.  It's

       21   taken directly.  The only calculation is conversion.

       22       Q.   Right.  And there's a map of the --

       23       A.   -- location of the property.

       24       Q.   And the next page is --

       25       A.   -- a sketch of measurements.
                                                                     26

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   And that's so you could determine --

        2       A.   Yes, how to draw --

        3       Q.   -- the dimensions of the property and impervious

        4   surface?

        5       A.   Um-hum, eventually.

        6       Q.   And the last page is?

        7       A.   A detail from the same.

        8       Q.   And that's a detail of what aspect of the

        9   property?

       10       A.   Patio off the right side of the house.

       11       Q.   Right.  Okay.  We'll call that grouping of

       12   documents Exhibit C, and then Exhibit D is the site plan

       13   which contains your calculation of the impervious cover.

       14       A.   Yes.

       15       Q.   Okay.  We'll call that D.

       16            And last we have a map that we would call what,

       17   construction specifications?

       18       A.   Construction details.

       19            MR. KOSS:  And we'll call that Exhibit E.

       20                         (Whereupon, the above-described

       21                         documents were marked Exhibits

       22                         C, D and E for identification.)

       23            MR. KOSS:  And then why don't we call the balance

       24   of your file which I've had photocopied Exhibit F, and I'll

       25   return the balance to you.
                                                                     27

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1                         (Whereupon, the above-referenced

        2                         documents were marked Exhibit F

        3                         for identification.)

        4            MR. KOSS:  I don't have anymore questions.

        5            (Discussion held off the record.)

        6                          EXAMINATION

        7            MR. MINOLETTI:  Mr. Chandler, my name is Paul

        8   Minoletti.  We met briefly.  I represent Mr. Simpson in

        9   this matter.

       10       Q.   You mentioned earlier that some of the

       11   jurisdictions require this impervious cover data.

       12       A.   Right.  There are three.

       13       Q.   Which three are those?

       14       A.   Monte Sereno, Saratoga and Scotts Valley.

       15       Q.   And in your experience in your ten years as a

       16   drafter with Swan, has that always been the case that those

       17   three jurisdictions require this impervious cover data?

       18       A.   No.  History lesson.  Originally Monte Sereno did

       19   not have their own building department.  Back when I

       20   started, their building was handled by Saratoga and you

       21   went over and you looked at zoning and they decided the

       22   zoning of the deal and then they shipped the plans to

       23   Saratoga to be plan checked and so forth, and basically

       24   they followed all of the City of Saratoga's building laws.

       25   That was a long time ago.
                                                                     28

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1            It's been probably about eight years or so, Scotts

        2   Valley adopted impervious coverage.

        3            And by the way, impervious coverage is counted

        4   differently in all three jurisdictions.  For instance, in

        5   Scotts Valley and in Monte Sereno, you get a discount, if

        6   you will, for pavers.  Saratoga, as of this year, you get a

        7   discount for nothing.  They even count gravel as impervious

        8   cover.  The only things that are not covered in Saratoga

        9   are vegetation and bare ground.

       10       Q.   One of the first things you did was to go out and

       11   measure to obtain this impervious cover data, correct?

       12       A.   Of the existing lot, yeah, what was existing.

       13       Q.   Because you knew there would be an issue there at

       14   some point?

       15       A.   Well, it's not that it's an issue.  It's just a

       16   requirement.  You have to furnish the information to them.

       17       Q.   And at the time did you know what the percentage

       18   was or did you just --

       19       A.   No, I did not.

       20       Q.   You just collect --

       21       A.   I just generate it and give it to them, because

       22   the percentages change depending on the zoning of the lot,

       23   except for Scotts Valley where they consider that basically

       24   everywhere is the same.

       25       Q.   Now, do you know -- I see on here you have
                                                                     29

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   calculations for concrete pool deck and pavers for a pool

        2   deck.

        3       A.   Um-hum.

        4       Q.   Do you know if those are counted the same in Monte

        5   Sereno?

        6       A.   They are not counted the same.  That's why they're

        7   separated.

        8       Q.   And do you know how they are counted, what's the

        9   difference?

       10       A.   I don't know what the difference was at the time.

       11   I can't recall, and I don't know what they are today.

       12            I do know that at times certain cities have given

       13   as much as a 30 percent discount on coverage, and that is

       14   to say something measuring 1,000 square feet would be

       15   measured as something 700 square feet.  I don't remember

       16   what the discount for pavers was at the time that this was

       17   done.

       18       Q.   Did you ever speak with anyone at the city about

       19   your --

       20       A.   No, I did not.

       21            MR. THOMAS:  About what?

       22            MR. MINOLETTI:  About your plan here.

       23            MR. THOMAS:  Oh, okay.

       24            THE WITNESS:  You're hanging in the air.

       25            MR. THOMAS:  I was wondering what it was you were
                                                                     30

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   asking.

        2            But I'm glad you knew.

        3            BY MR. MINOLETTI:

        4       Q.   Did you ever go back to the property after

        5   anything was built?

        6       A.   No, I did not.

        7            MR. MINOLETTI:  All right.  That's all I have.

        8                           EXAMINATION

        9            BY MR. THOMAS:

       10       Q.   Mr. Chandler, my name is Steve Thomas.

       11       A.   Hello, Steve.

       12       Q.   I represent Coldwell Banker, a defendant in this

       13   action.

       14            What was the reason you measured the square

       15   footage of the house?

       16       A.   It's required.

       17       Q.   By the City of Monte Sereno?

       18       A.   Yes.

       19       Q.   Now, on Exhibit C, the third page, these are your

       20   calculations?

       21       A.   Those are the measurements of the property.

       22       Q.   That you took?

       23       A.   Yes.

       24       Q.   These are your notes, your handwriting?

       25       A.   Yes.
                                                                     31

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   How did you measure it?  Was it by tape measure --

        2       A.   Yes.

        3       Q.   By tape.  And you walked through the house and

        4   measured every room?

        5       A.   No.  I measured the exterior of the house.  They

        6   don't care what the square footage of the rooms are.  They

        7   care about what the footprint is.

        8       Q.   I see.  Okay.  And that's the same for the

        9   guesthouse?

       10       A.   Yes.

       11       Q.   Did you check any other records to see what the

       12   square footage of the house was indicated as being?

       13       A.   No, I did not.

       14       Q.   Did you ask the homeowner?

       15       A.   No, I did not.

       16       Q.   Did you ever talk to the architect who designed

       17   the house?

       18       A.   No, I did not.

       19       Q.   Did you ever talk to the general contractor who

       20   was in charge of building the house?

       21       A.   No, I did not.

       22       Q.   What about any real estate agent?

       23       A.   No, I did not.

       24       Q.   Did you talk to a person named Lynn O'Brien?

       25       A.   Not that I recall.  I don't recognize the name.
                                                                     32

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   Jim O'Brien?

        2       A.   Don't recognize the name.

        3       Q.   I'll represent to you that the O'Briens and

        4   perhaps a company named Stonehenge are the ones that built

        5   the house.

        6       A.   I don't ever recall -- I don't recall ever talking

        7   to anyone that had anything to do with the construction of

        8   the house.

        9       Q.   Do you know if Swan Pools has built any pools for

       10   the O'Briens or Stonehenge?

       11       A.   I don't recall.

       12       Q.   Do you have any licenses?

       13       A.   No, I do not.

       14       Q.   Were you ever licensed as an engineer?

       15       A.   No.

       16       Q.   What's a permit runner?

       17       A.   The person who gets the permits.

       18       Q.   And is that person an engineer or --

       19       A.   No.

       20       Q.   It's just someone hired by Swan Pools, an employee

       21   of Swan Pools?

       22       A.   Right.

       23       Q.   And what does a permit runner do?

       24       A.   They take the plans, make copies of it, put them

       25   together with the engineering sheets that are required,
                                                                     33

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   take them wherever they need to be taken in order to

        2   ultimately get a permit.

        3            So in this particular case the permit runner would

        4   have taken copies of the plans first to PG&E for their

        5   approval and then taken them to the city and dropped them

        6   off there.

        7       Q.   Does the permit runner in your experience have any

        8   conversations with, for example, city staff about the plans

        9   in terms of the permit that's requested?

       10       A.   It can happen.  It doesn't necessarily happen.

       11   Sometimes it's a matter of dropping off.  Sometimes it's a

       12   matter of a person at the city or county in question may

       13   have a comment, in which case they will converse about that

       14   particular comment.  If the person taking in the plan

       15   doesn't have any comments, there is no conversation.

       16       Q.   Do you know or can you tell from your file who the

       17   permit runner was for this particular job?

       18       A.   No, I can't.

       19       Q.   When you calculated the impervious coverage for

       20   the property, did you have an understanding as to what

       21   percentage was allowed by the City of Monte Sereno?

       22       A.   No, I did not.

       23       Q.   Did you ever find out?

       24       A.   Subsequently when it was turned down, I did find

       25   out but I've long since forgotten.
                                                                     34

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   So when you calculated the impervious coverage, in

        2   your mind that didn't trigger something that you said, oh,

        3   no, we might have a problem here?

        4       A.   No, because I didn't know what the particular

        5   zoning of the property was, so I didn't know what would be

        6   allowed.  For instance, in the City of Saratoga, as I've

        7   said, every single lot has a different thing I have to go

        8   and check.  In that city it's so bad that I have to check

        9   before I even go out.

       10            It costs us money to get the question answered to

       11   find out what the coverage is because there aren't even

       12   areas where they're the same.  They change erratically.

       13            MR. THOMAS:  Okay.  Thank you, Mr. Chandler.  I

       14   don't have anything else.

       15            THE WITNESS:  Okay.

       16                       FURTHER EXAMINATION

       17            MR. MINOLETTI:  Just one clarification.

       18       Q.   On your site plan with your impervious data here,

       19   when you say you measured the footprint, for example, of

       20   the residence, that would include the garage, correct?

       21       A.   Yes, that includes the garage.

       22       Q.   And the same for the guesthouse; if it had a

       23   garage, it would include the garage?

       24       A.   Right.  The way that it's done is -- in the

       25   computer I start at a corner.  I go from corner to corner
                                                                     35

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   to corner to corner all the way around to the beginning

        2   point, click, and then ask it for object info and it gives

        3   me what the square footage is of that footprint of the

        4   thing that I just measured.

        5       Q.   The entire footprint of the building?

        6       A.   Right.  And the same thing is true for the guest

        7   house.

        8       Q.   What computer program do you use for this?

        9       A.   Minicat.

       10       Q.   Minicat?

       11       A.   Um-hum.  The latest versions of Minicat, which I

       12   don't feel a need for, are now called Vector Works.

       13            MR. MINOLETTI:  Okay.  Thank you.  That's all.

       14            THE WITNESS:  Okay.

       15                       FURTHER EXAMINATION

       16            MR. KOSS:  Just a couple of questions.

       17       Q.   On your site plan you specify pavers at pool deck.

       18       A.   Um-hum.

       19       Q.   Was there any specification as to whether those

       20   pavers would be over concrete or over sand?

       21       A.   I was not told but it is assumed -- I know what

       22   happens when you assume, but it is assumed that it is over

       23   sand, because otherwise it is considered 100 percent

       24   coverage; and the only reason for using pavers usually is

       25   to prevent -- is to decrease the amount of coverage.
                                                                     36

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   When you were doing your site plan, were you given

        2   some information that basically said the homeowner requests

        3   pavers over sand around the pool deck?

        4       A.   No, because that -- again, pavers are done to

        5   decrease the amount of impervious coverage.  So it can be

        6   assumed that the reason why the homeowner would have pavers

        7   in one area and not in another is that they're trying to

        8   decrease the amount of impervious coverage, because pavers

        9   are more uncomfortable to walk on than regular concrete is.

       10       Q.   Do you have any information in your file that the

       11   homeowner, at the time they came to see Swan Pools, were

       12   concerned about the impervious cover on the property?

       13       A.   Not specifically.  It can be deduced from the

       14   wetmore that the specified areas that are shown as pavers,

       15   et cetera, are done for that reason.  But that's just

       16   generally in any city where there is impervious coverage,

       17   they try and keep the impervious coverage, other than the

       18   pool, to a minimum.

       19       Q.   Well, let's turn to Exhibit B, the wetmore.

       20       A.   Um-hum.

       21       Q.   Part of the decking around the pool is specified

       22   as pavers.

       23       A.   Um-hum.  For instance, there.  That's pavers,

       24   pavers, et cetera; and again I have pavers, pavers, pavers

       25   here.  Same thing, pavers (indicating).
                                                                     37

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       Q.   Okay.  So your understanding at the time you

        2   looked at the wetmore was that pavers over sand were

        3   specified to the right and to the left of the pool and in a

        4   semicircle around the spa?

        5       A.   Um-hum.

        6       Q.   That's yes?

        7       A.   Were proposed, yes.

        8       Q.   As a result of this problem that was encountered

        9   with the impervious cover, was the design of any of the

       10   flat work around the swimming pool changed to your

       11   understanding?

       12       A.   Not that I know of.  I don't know.  They may have

       13   had to go to all pavers subsequently.  But since we don't

       14   do the decking, it wouldn't come under my purview, just

       15   like the question of the driveway didn't come back to my

       16   knowledge.  It was something that was worked out between

       17   the Simpsons and the City of Monte Sereno.

       18       Q.   And the flat work around the pool wasn't specified

       19   as pavers on the wetmore; it's specified as colored

       20   concrete?

       21       A.   Yes.  If it's shown as colored concrete, then it

       22   would be the same.  So I would say colored concrete,

       23   colored concrete, pavers.

       24       Q.   In between the semicircle around the spa and the

       25   two rear sections left and right, which are pavers.
                                                                     38

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1       A.   Originally.  I don't know if that was how it was

        2   ultimately built.  The only thing I know is that it was

        3   finally approved by the city and that the city finaled the

        4   pool when it was done.

        5            MR. KOSS:  Okay.  Thanks very much.

        6       (Whereupon, the deposition of RON CHANDLER was

        7   concluded at 2:46 p.m.)

        8                            --oOo--

        9

       10

       11

       12

       13

       14

       15

       16

       17

       18

       19

       20

       21

       22

       23

       24

       25           DATE                         RON CHANDLER
                                                                     39

                         DEPOSITION OF RON CHANDLER - 11/14/06




        1   STATE OF CALIFORNIA    )

        2                          )      ss.

        3   COUNTY OF CONTRA COSTA )

        4

        5

        6          I, JANELL SOKOL, CSR, License No. CSR 3443, State of

        7   California, do certify:

        8          That RON CHANDLER, the witness in the foregoing

        9   deposition, was by me first duly sworn to testify the

       10   truth, the whole truth and nothing but the truth in the

       11   within-entitled cause;

       12          That said deposition was reported at the time and

       13   place therein stated by me, a Certified Shorthand Reporter,

       14   and thereafter transcribed into typewriting;

       15          I further certify that I am not interested in the

       16   outcome of said action, nor connected with, nor related to,

       17   any of the parties of said action or to their respective

       18   counsel.

       19                  IN WITNESS WHEREOF, I have hereunto set

       20                  my hand this      day of November, 2006.

       21

       22                  JANELL SOKOL, CSR, CM, License No. 3443,

       23                  State of California.

       24

       25
                                                                     40

                         DEPOSITION OF RON CHANDLER - 11/14/06