Tony Shrikian

August 20, 1999

Dan Callahan, Esq.
Callahan & Blaine
3 Hutton Centre Drive, Suite 900
Santa Ana, CA 92707

Dear Dan,

This letter is to thank you for the excellent work that your firm has done for the Spyglass Homeowners Association. When Lynne Palmer, Steve Talley and I met with you about two and a half years ago, our Association was in very dire straits. Several homeowners had sued Spyglass, the panel counsel retained by one of our insurance carriers had mishandled the defense of that case and that insurance carrier had named Spyglass as a defendant in a declaratory relief action. That carrier threatened, in writing, to withdraw their duty to defend Spyglass in the homeowners' lawsuit. They also stated that they would demand reimbursement of over $330,000 in defense costs. The other carriers had indicated that they would take similar action against Spyglass. At our first meeting, you informed us that your firm would be able to help Spyglass defeat the carriers in the declaratory relief action and ultimately obtain coverage for the defense and possible settlement of the underlying lawsuit. Thanks to your firm's tireless efforts, especially the diligence and dedication of Ed Susolik, the very favorable outcome has exceeded Spyglass' expectations.

Because the Spyglass Homeowners Association is a non-profit corporation that is run by a volunteer Board of Directors, we had limited resources to pay for the defense of the homeowners' lawsuit and the insurance carriers' action against Spyglass. In early 1997, our Association might have faced bankruptcy. Your firm rescued Spyglass from that fate by winning a hard fought battle to win a court ruling that was necessary to force the carriers' to pay for Spyglass' independent counsel fees. Subsequently, a settlement was reached in the homeowners' lawsuit that was funded by those carriers. In addition, Callahan & Blaine secured the reimbursement of the money Spyglass had to spend for attorneys' fees, geotechnical fees, costs to minimize liability and related costs over the last six and a half years. Now our Association is financially healthy again and without the burden of any homeowner lawsuits.

On behalf of the 554 homeowners in the Spyglass Homeowners Association, I would like to again express our appreciation to Callahan & Blaine for helping us when we needed good, experienced and strong legal representation.


Tony Shrikian, President

Spyglass Homeowners Association

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