AHF V LAC 2013-07-18 Ex Parte Application of AHF For TRO and OSC Re Preliminary Injunction Docs 59 Thru 59-7

C
2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 1 of 4 Page ID #:4589
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aadshealth.org Samantha R. Azulay, SBN 283424 samantha.azulay aidshealth.org AIDS Healthcare oundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim plonskerlaw.com 1990 Bundy Drive, Suite 280
6 Andrew F. Kim(SBN 156533) 7 Plons er Law, LLP
8 Los Angeles, CA 90025 9
Telephone:(310)861-2050 Facsimile: (310)496-2577
l0
Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS 11 and MICHAEL WEINSTEIN

13 14
12
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA (AGR~c) EXPARTE APPLICATION OF PLAINTIFFS AIDS HEALTHCARE FOUNDATION AND MICHAEL WEINSTEIN FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently: 1. Memorandum of Points and Authorities; 2. Declarations of Samantha Azulay, Sharon Matland,Patricia Bermudez,Wayne Chen, M.D., Michael Weinstein Lod ed concurrently 1.[Proposed] Order Date: Time: Courtroom: 15 Hon. Percy Anderson United States District Court Judge
HEALTHCARE 15 AIDS
FOUNDATION; MICHAEL 16 WEINSTEIN Plaintiffs, 17

18
vs. MARIO J. PEREZ,
ANGELES; 19 COUNTY OF LOS

20 21 22 23 24 25 26 27 28
Defendants.
PLAINTIFFS' EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
1 2
EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER
Plaintiffs AIDS Healthcare Foundation and Michael Weinstein hereby request,
3 pursuant to the Federal Rule of Civil Procedure 65 and Central District Local Rules 4 7-19, that the Court issue a temporary restraining order as set forth below. 5
Pursuant to Local Rule 7-19, opposing counsel's contact information is as
6 follows: Patricia L. Glaser, Esq., Joel N. Klevens, Esq. and John K. Ly, Esq. Glaser 7 Weil Find Jacobs Howard Avchen &Shapiro LLP, 10250 Constellation Boulevard, 8 19`'' Floor, Los Angeles, CA 90067, Telephone 310-553-3000. 9 l0 11
I. NECESSITY FOR TEMPORARY RESTRAINING ORDER Plaintiffs seek a temporary restraining order to prevent the County of Los
12 Angeles and Mario Perez(sometimes collectively "Defendants")from commencing 13 on July 22, 2013 a full financial audit of plaintiff AIDS Healthcare Foundation 14 ("AHF")pertaining to a four year period and compelling Defendants to commence 15 that audit on or after September 1, 2013. 16
Defendants have audited various aspects of AHF's business over the last five
17 months (the "Audits"). The Audits have recently completed, although there is a high 18 likelihood of follow up and further discussions between the parties concerning the 19 Audits and the resulting conclusions Defendants have reached. The Audits required 20 AHF staff to devote significant person hours to gathering and interpreting 21 information demanded by Defendants. Many of the AHF staff who worked on these 22 audits are front line patient service providers and/or the supervisory staff overseeing 23 those providers. The Audits have caused these individuals to devote time away from 24 the providing of patient services and from supervision and oversight of those 25 services. 26
Although there is no time sensitivity from Defendants' perspective or any
27 compelling reason to commence a full financial audit covering a four year period on 28 July 22, 2013 and shortly on the heels of the completion of the Audits, Defendants
PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
i demand that such an audit commence that day and on no other (the "New Audit").
2
The treatment of HIV/AIDS provided by AHF is uniquely successful because it
3 involves intensive, highly structured and rigidly scheduled drug regimens and 4 interaction between patients and AHF service providers (e.g., registered nurses and 5 physicians). The treatment provided by AHF is, therefore, time consuming and is not 6 easily subject to "schedule shifting." The Audits caused service providers and their 7 supervisors to see and interact with fewer patients during the time that the Audits 8 took place. The Audits also caused departments within AHF,like finance and 9 accounts payable, to devote time away from providing the administrative support
l0 crucial to AHF's ability to provide superior and economical health care services to its 11 patients. The Audits left the various departments of AHF,including some of its front
12 line service providers, playing "catch up" to compensate for time lost in performing 13 their normal day-to-day functions, and that process is continuing today. The devotion 14 by AHF staff of additional time during July and August to the New Audit and away 15 from patient care, and support of patient care, is highly likely to have a deleterious 16 impact on the health of some AHF patients. There is no satisfactory reason legal or 17 otherwise to force potential harm on AHF patients, and Defendants have stated 18 none. As shown in the accompanying Memorandum of Points and Authorities, this is 19 not the first time that Defendants have used audits as a tool to pressure and retaliate 20 against Plaintiffs. Defendants' insistence on commencing the New Audit on July 22, 21 2013 is part and parcel of their efforts to retaliate against Defendants, as discussed at 22 length in the First Amended Complaint(Doc. 32). 23
An immediate temporary restraining order is necessary to prevent imminent
24 ~ potential harm to AHF's patients. 25 26 27 II.
GROUNDS FOR EXPARTS APPLICATION Plaintiffs make this ex parte application pursuant to Federal Rule of Civil
28 Procedure 65 and Central District Local Rules 7-19 and 65-1. Plaintiffs have
PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Ca~~e 2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 4 of 4 Page ID #:4592
1 demonstrated that they meet the requirements for the issuance of a temporary
2 restraining order by establishing the probability of success on the merits and a 3 possibility of irreparable injury unless relief is granted or a fair chance of success on 4 the merits and that the balance of interests tip strongly in Plaintiffs' favor. Southwest 5
Voters Registration Ed. Project v. Shelley, 344 F.3d 914, 917-18(9th Cir. 2003);
6 Republic ofPhilippines v. Marcos, 862 F. 2d 1355, 1362 (9`'' Cir. 1988); Playboy 7 Enterprises Inc. v. Calvin Designer Label, 985 F.Supp 1218(N.D. Cal. 1997); see 8 also Fed. R. Civ. P. 65. 9 10
RELIEF SOUGHT Plaintiffs therefore respectfully request that the Court grant this ex pane
11
12 application by: 13
1.
Issuing an immediate temporary restraining order forbidding Defendants
14 from commencing the New Audit on July 22, 2013 or on any date prior to September 15 1, 2013; and 16
2.
Issuing an Order to Show Cause setting a schedule and briefing and a
17 hearing on a preliminary injunction. 18
Plaintiffs base this ex parte application on this application, the First Amended
19 Complaint(doc. 32), the accompanying memorandum of points and authorities in 20 support of this Application, declarations, and [Proposed] Temporary Restraining 21 Order and Order to Show Cause re Preliminary Injunction, the complete files and 22 ~ records in this action and such other, further matters and evidence as this Court 23 deems appropriate to consider. 24 DATED: July 18, 2013 25 26 27 28
PLONSKER LAW,LLP
By:
/s/ Andrew F. Kim n rew .Kim Attorneys for Plaintiffs AIDS Healthcare Foundation and Michael Weinstein
PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aidshealth.org Samantha R. Azulay, SBN 283424 Samantha.azulay aidshealth.org AIDS Healthcare oundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim plonskerlaw.com 1990 Bundy Drive, Suite 280
6 Andrew F. Kim(SBN 156533) 7 Plons~er Law, LLP
8 Los Angeles, CA 90025 9 10

12 13 14
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA(AGI~) EXPARTE APPLICATION OF PLAINTIFFS AIDS HEALTHCARE FOUNDATION AND MICHAEL WEINSTEIN FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently: 1. Memorandum of Points and Authorities; 2. Declarations of Samantha Azulay, Sharon Matland,Patricia Bermudez,Wayne Chen, M.D., Michael Weinstein Lod ed concurrently 1.[Proposed] Order Date: Time: Courtroom: 15 Hon.Percy Anderson United States District Court Judge
HEALTHCARE 15 AIDS
FOUNDATION; MICHAEL WEINSTEIN 16 Plaintiffs, 17

18
vs. MARIO J. PEREZ,
OF LOS ANGELES; 19 COUNTY

20 21 22 23 24 25 26 27 28
Defendants.
1 2
EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER
Plaintiffs AIDS Healthcare Foundation and Michael Weinstein hereby request,
3 pursuant to the Federal Rule of Civil Procedure 65 and Central District Local Rules 4 7-19, that the Court issue a temporary restraining order as set forth below. 5
Pursuant to Local Rule 7-19, opposing counsel's contact information is as
6 follows: Patricia L. Glaser, Esq., Joel N. Klevens, Esq. and John K. Ly, Esq. Glaser 7 Weil Find Jacobs Howard Avchen &Shapiro LLP, 10250 Constellation Boulevard, 8 19th Floor, Los Angeles, CA 90067, Telephone 310-553-3000. 9 l0 it
I. NECESSITY FOR TEMPORARY RESTRAINING ORDER Plaintiffs seek a temporary restraining order to prevent the County of Los
12 Angeles and Mario Perez(sometimes collectively "Defendants")from commencing 13 on July 22, 2013 a full financial audit of plaintiff AIDS Healthcare Foundation 14 ("AHF")pertaining to a four year period and compelling Defendants to commence 15 that audit on or after September 1, 2013. 16
Defendants have audited various aspects of AHF's business over the last five
17 months (the "Audits"). The Audits have recently completed, although there is a high 18 likelihood of follow up and further discussions between the parties concerning the 19 Audits and the resulting conclusions Defendants have reached. The Audits required 20 AHF staff to devote significant person hours to gathering and interpreting 21 information demanded by Defendants. Many of the AHF staff who worked on these 22 audits are front line patient service providers and/or the supervisory staff overseeing 23 those providers. The Audits have caused these individuals to devote time away from 24 the providing of patient services and from supervision and oversight of those 25 services. 26
27 compelling reason to commence a full financial audit covering a four year period on 28 July 22, 2013 and shortly on the heels of the completion of the Audits, Defendants
demand that such an audit commence that day and on no other (the "New Audit")
2
3I involves intensive, highly structured and rigidly scheduled drug regimens and 4 interaction between patients and AHF service providers (e.g., registered nurses and
5 physicians). The treatment provided by AHF is, therefore, time consuming and is not
6 easily subject to "schedule shifting." The Audits caused service providers and their 7 supervisors to see and interact with fewer patients during the time that the Audits 8 took place. The Audits also caused departments within AHF,like finance and 9I accounts payable, to devote time away from providing the administrative support 10 crucial to AHF's ability to provide superior and economical health care services to its
11 patients. The Audits left the various departments of AHF,including some of its front
12 line service providers, playing "catch up" to compensate for time lost in performing 13 their normal day-to-day functions, and that process is continuing today. The devotion 14 by AHF staff of additional time during July and August to the New Audit and away 15 from patient care, and support of patient care, is highly likely to have a deleterious 16 impact on the health of some AHF patients. There is no satisfactory reason legal or 17 otherwise to force potential harm on AHF patients, and Defendants have stated 18 none. As shown in the accompanying Memorandum of Points and Authorities, this is 19 not the first time that Defendants have used audits as a tool to pressure and retaliate 20 against Plaintiffs. Defendants' insistence on commencing the New Audit on July 22, 21 2013 is part and parcel of their efforts to retaliate against Defendants, as discussed at 22 length in the First Amended Complaint(Doc. 32). 23
An immediate temporary restraining order is necessary to prevent imminent
24 ~ potential harm to AHF's patients. 25 26 27 II.
GROUNDS FOR EXPARTS APPLICATION Plaintiffs make this ex parte application pursuant to Federal Rule of Civil
28 ~ Procedure 65 and Central District Local Rules 7-19 and 65-1. Plaintiffs have
i demonstrated that they meet the requirements for the issuance of a temporary
2 restraining order by establishing the probability of success on the merits and a 3 possibility of irreparable injury unless relief is granted or a fair chance of success on 4 the merits and that the balance of interests tip strongly in Plaintiffs' favor. Southwest 5
Voters Registration Ed. Project v. Shelley, 344 F.3d 914, 917-18(9th Cir. 2003);
6 Republic ofPhilippines v. Marcos, 862 F. 2d 1355, 1362(9th Cir. 1988); Playboy 7 Enterprises Inc. v. Calvin Designer Label,985 F.Supp 1218(N.D. Cal. 1997); see 8 also Fed. R. Civ. P. 65. 9
l0
11
RELIEF SOUGHT Plaintiffs therefore respectfully request that the Court grant this ex pane
12 application by: 13
1.
Issuing an immediate temporary restraining order forbidding Defendants
14 from commencing the New Audit on July 22, 2013 or on any date prior to September 15 1, 2013; and 16
2.
Issuing an Order to Show Cause setting a schedule and briefing and a
17 hearing on a preliminary injunction. 18
Plaintiffs base this ex pane application on this application, the First Amended
19 Complaint(doc. 32), the accompanying memorandum of points and authorities in 20 support of this Application, declarations, and [Proposed] Temporary Restraining 21 Order and Order to Show Cause re Preliminary Injunction, the complete files and 22 ~ records in this action and such other, further matters and evidence as this Court 23 ~ deems appropriate to consider. 24 ~ DATED: July 18, 2013 25 26 27 28
PLONSKER LAW,LLP
By:
/s/ Andrew F. Kim n rew .Kim Attorneys for Plaintiffs AIDS Healthcare Foundation and Michael Weinstein
PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 1 of 15 Page ID #:4593
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aidshealth.org Samantha R. Azulay, SBN 283424 Samantha.azulay aidshealth.org AIDS Healthcare oundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim@plonskerlaw.com
6 Andrew F. Kim(SBN 156533) 7 Plonsker Law, LLP
1990 Bundy Drive, Suite 280 8 Los Angeles, CA 90025 Telephone:(310)861-2050 9 Facsimile: (310)496-2577
10
Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS ii and MICHAEL WEINSTEIN UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA(AGI~) MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF EXPARTS APPLICATION OF PLAINTIFFS AIDS HEALTHCARE FOUNDATION AND MICHAEL WEINSTEIN FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Application For TRO and OrderTl'o Show Cause; 2. Declarations of Samantha Azulay, Sharon Matla~d,Patricia Bermudez, Wayne Chen, M.D., Michael Weinstein Lod ed concurrently 1.Proposed] Order Courtroom: 15 Hon.Percy Anderson
13 14
12
AIDS HEALTHCARE MICHAEL FOUNDATION; 15 WEINSTEIN Plaintiffs, vs.

17 18
16
COUNTY OF LOS ANGELES; 19 MARIO J. PEREZ, Defendants. 20

21 22 23 24 25 26 27 28
PLAINTIFFS' MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Case X2:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 2 of 15 Page ID #:4594
1
2 I. 3 II. 4 III. 5 6 7 IV.
TABLE OF CONTENTS INTRODUCTION AND SUMMARY OF ARGUMENT...........................1 FACTS......................................................................................2 STANDARD FOR RELIEF.............................................................8 A. B. Ex Parte Application Requirements.............................................8 Temporary Restraining Order.....................................................9
ARGUMENT.............................................................................10 A. Plaintiff Has Shown A Likelihood of Success on the Merits...............................................................................1 C B. C. AHF's Patients Will Suffer Irreparable Harm.................................1 l The Balancing of Hardships Favors The Granting ofthe Temporary Restraining Order..................................................................1~ CONCLUSION...........................................................................1
8
9 10
11
12 13 IV. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
'_:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 3 of 15 Page ID #:4595
1 2 CASES:
TABLE OF AUTHORITIES
3 Alliancefor the Wild Rockies v. CotYell, 4
............................................................9 632 F.3d 1127(9th Cir. 2011) ............................................................10 608 F.3d 540 (9t'' Cir. 2010)
5 Blair v. Bethel School Dist.,. 6
7 K Clark v. Time Warner Cable, 8
..................................8, 9 2007 U.S. Dist. LEXIS 100716(C.D. Cal. 2007)
9 Lochkeed Missile &Space Co., Inc. v. Hughes Aircraft Co., 10
......................................................9 887 F.Supp. 1320(N.D.CaI. 1995)
11 Mazurek v. Armstrong, 12
.....................................................................10 520 U.S. 968(1997)
13 Mission Power Eng g v. Continental Cas. Co., 14
....................................................9 883 F. Supp. 488(C.D. Cal. 1995)
15 Playboy Enterprises, Inc. v. Calvin Designer Label, 16
.....................................................10 985 F.Supp.1218(N.D. Cal. 1987) ...........................................................10 862 F.2d 1355 (9t'' Cir. 1988)
17 Republic ofPhillipines v. Marcos, 18
19 Southwest Voters Registration Ed. Project v. Shelley, 20 21 22
.........................................................10, 1 l 344 F.3d 914(9t " Cir 2003) Winter v. Natural Resources Defense Council, .........................................................................9 555 U.S. 7(2008)
23 STATUTES: 24 Federal Rule of Civil Procedure 65.......................................................10, 11 25 26 27 28

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1
2
MEMORANDUM OF POINTS AND AUTHORITIES

I.
3 4
INTRODUCTION AND SUMMARY OF ARGUMENT Plaintiffs seek a temporary restraining order to prevent the County of Los
5 Angeles and Mario Perez(sometimes collectively "Defendants")from commencing 6 on July 22, 2013 a full financial audit of plaintiff AIDS Healthcare Foundation 7 ("AHF")pertaining to a four year period and compelling Defendants to commence g that audit on or after September 1, 2013. 9 Defendants have audited various aspects of AHF's business over the last five
l0 months (the "Audits"). The Audits have recently completed, although there is a high 11 likelihood of follow up and further discussions between the parties concerning the 12 Audits and the resulting conclusions Defendants have reached. The Audits required 13 AHF staff to devote significant person hours to gathering and interpreting 14 information demanded by Defendants. Many of the AHF staff who worked on these 15 Audits are front line patient service providers and/or the supervisory staff overseeing 16 those providers. The Audits have caused these individuals to devote time away from 17 the providing of patient services and from supervision and oversight ofthose
18 services.
19
20 compelling reason to commence a full financial audit covering a four year period on 21 July 22, 2013 and shortly on the heels ofthe completion of the Audits, Defendants 22 demand that such an audit commence that day and on no other (the "New Audit"). 23 The treatment of HIV/AIDS provided by AHF is uniquely successful because it
24 involves intensive, highly structured and rigidly scheduled drug regimens and 25 interaction between patients and AHF service providers (e.g., registered nurses and 26 physicians). The treatment provided by AHF is, therefore, time consuming and is not 27 easily subject to "schedule shifting." The Audits caused service providers and their 28 supervisors to see and interact with fewer patients during the time that the Audits 1
~sel12:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 5 of 15 Page ID #:4597
1 took place. The Audits also caused departments within AHF,like finance and 2 accounts payable, to devote time away from providing the administrative support 3 crucial to AHF's ability to provide superior and economical health care services to its 4 patients. The Audits left the various departments of AHF,including some of its front 5 line service providers, playing "catch up" to compensate for time lost in performing 6 their normal day-to-day functions, and that process is continuing today. The devotion 7 by AHF staff of additional time during July and August to the New Audit and away g from patient care, and support of patient care, is highly likely to have a deleterious 9 impact on the health ofsome AHF patients. There is no satisfactory reason legal or l0 otherwise to force potential harm on AHF patients, and Defendants have stated ii none. As shown in the accompanying Memorandum of Points and Authorities, this is 12 not the first time that Defendants have used audits as a tool to pressure and retaliate 13 against Plaintiffs. Defendants' insistence on commencing the New Audit on July 22, 14 2013 is part and parcel of their efforts to retaliate against Defendants, as discussed at 15 length in the First Amended Complaint(Doc. 32). An immediate temporary 16 restraining order is necessary to prevent imminent potential harm to AHF's patients. 17 18 19 II. FACTS Plaintiffs in this action allege that Defendants have initiated a retaliatory
20 campaign against Plaintiffs using, among other tools, unwarranted and unduly 21 burdensome audits and incorrect audit findings, including those discussed above, to 22 punish Plaintiffs for exercising their rights and for taking positions critical ofthe 23 County. First Amended Complaint("FAC") (Doc. 32), 5, 40, 52, 113-115, 118, 24 122-125, 134, 145-147; Weinstein Decl., 15. As shown below, Defendants have 25 continued that campaign during the pendency of this action, most recently by 26 insisting that an audit of unprecedented scope commence on July 22, 2013 directly on 27 the heels ofthe conclusion ofthe information-gathering portions ofthe Audits that 28 have been pending for the last several months. FAC,145-47(Doc. 32); Weinstein
2
isell2:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 6 of 15 Page ID #:4598
1 Decl., 15. Defendants have stated no basis for insisting that the contemplated audit
2 commence on the heels of the conclusion of the Audits and, more importantly, have
3 ignored AHF's pleas that Defendants' continued insistence on conducting the

4 contemplated audit would put the health of AHF's patients at risk. Weinstein Decl, 5 15. 6
AHF is a nonprofit corporation. Its mission is to provide cutting edge medicine
7 and advocacy to people with HIV/AIDS, regardless of ability to pay. Declaration of
g Michael Weinstein ("Weinstein Decl."), 3. For the past 25 years, AHF's President 9 and co-founder, Michael Weinstein, has dedicated his life to ending this epidemic, 10 and to providing care, comfort, and treatment to those who are infected with it. 11 Weinstein Decl., 3. Over the years, AHF has grown to provide HIV/AIDS
12 prevention, testing, and medical care services to over 229,000 people per year, in 28
13 countries and in ten states. Weinstein Decl., 5. AHF provides the vast majority of
14 this care for free to people without means of paying for it, and to people of limited 15 means who rely on government programs such as Medicaid, Medicare, and the Ryan 16 White CARE Act to pay for this care. Weinstein Decl., 5. AHF has been able to 17 grow in this manner by providing quality, cost effective care to its patients, as well as 18 aggressively and effectively advocating for their rights and interests with
19 governmental bodies, including the government of Los Angeles County. Weinstein

20 Decl., 6. 21
As the largest safety net HIV/AIDS care provider in Los Angeles County, AHF
22 has entered into a number of contracts with the County to provide this care to 23 uninsured, and underinsured, County residents. Weinstein Decl., 7. These contracts 24 include servicers for psychiatry, medical case management, specialty care, and 25 outpatient medical services. Weinstein Decl., 7. In Los Angeles County, AHF has 26 contracted with the County to provide HIV/AIDS outpatient medical services to 27 residents of limited means for 23 years. Weinstein Decl., 7. The sources of the 28 funds paid by the County for this care include the State of California, the County, and 3
PLAINTIFFS' MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
L isell2:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 7 of 15 Page ID #:4599
1 the federal government through the Ryan White CARE Act,42 U.S.C. Section 300ff2 11 et seq. Weinstein Decl., 7. The terms of this contract for outpatient medical
3 care, and the bases for payment under it, were largely unchanged from the original 4 contract through 2012. Weinstein Decl. 7. 5
6 involves intensive, highly structured and rigidly scheduled drug regimens and 7 interaction between patients and AHF service providers (e.g., registered nurses and
g physicians). Declaration of Wayne Chen ("Chen Decl."), 3; Declaration of Sharon 9 Matland ("Matland Decl."), 3. The treatment provided by AHF is, therefore, time l0 consuming and is not easily subject to "schedule shifting." Chen Decl., 3; Matland 11 Decl., 3. More specifically, in caring for people living with HIV/AIDS, AHF 12 assigns a team of healthcare professionals to monitor members and aggressively
13 manage their treatment. Chen Decl., 3; Matland Decl., 3. A case management 14 team, consisting of a registered nurse, a licensed vocational nurse and a social 15 worker, is provided to each patient. Chen Decl., 3; Matland Decl., 3. The case 16 management team monitors the care plan established by each patient's primary care 17 physician, answers healthcare questions the patient might have, and, perhaps most
ig importantly, takes steps to ensure that members remain compliant with their 19 medication regimens and care plan. Chen Decl., 3; Matland Decl., 3. The 20 registered nurse assigned to each patient further assists the members by acting as a 21 liaison to the patient's primary care physician, by coordinating the various 22 components of care, and by assisting patients in learning to manage their disease.
23 Chen Decl., 3; Matland Decl., 3. The level of service and care provided by AHF is 24 far above what can be had through the traditional fee-for-service system. Chen 25 Decl., 3; Matland Decl., 3. This improves health outcomes and reduces the total 26 cost of caring for AHF patients. Chen Decl., 3; Matland Decl., 3. And it is 27 perhaps needless to say that this level of care saves lives otherwise lost. Chen Decl., 28 3; Matland Decl, 3. 4
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In the last several months, the County has been conducting the audits, which
2 pertained to different aspects of AHF's business and operations (the "Audits"). 3 Declaration of Patricia Bermudez("Bermudez Decl."), 4. The parties began 4 discussing one ofthose audits in January 2013, and the exit conference for that audit, 5 which occurs once the information gathering portion ofthe audit is complete, took 6 place on June 19, 2013. Bermudez Decl., 4. The parties began discussing another 7 of those audits in February 2013, and the exit conference for that audit took place on 8 July 2, 2013. Bermudez Decl., 4. The Audits and the demands for documents and 9 information made in the context of the Audits required AHF staff members, including to those responsible for patient care, to devote significant time to assisting in the audit 11 process and away from rendering, or supervising the rendering, of patient services. 12 Chen Decl., 4 and 5; Matland Decl., 4 and 5; Bermudez Decl., 5. There is no 13 dispute as to these facts. 14 In late March 2013, while the Audits were underway, a representative ofthe
15 Los Angeles County Auditor Controller contacted AHF via telephone and notified it 16 that the County intended to schedule a "contract compliance review" of AHF's 17 contracts with the County (the "New Audit"). Bermudez Decl., 6. At that time, the 18 County representative informed AFH that the focus ofthe New Audit would be fiscal 19 years 2011-2012 and 2012-2013. Bermudez Decl., 6. Later, the County Auditor 20 Controller informed AHF that the scope ofthe audit would be expanded to include 21 two additional fiscal years, 2009-2010 and 2010- 2011. Bermudez Decl., 7; Exh.
A 22 "
23
The process of setting up and scheduling Los Angeles County audits usually
24 involves an initial contact from the County notifying AHF ofthe County's intention 25 to conduct an audit. Bermudez Decl., 3. That initial contact almost always comes to 26 AHF's Director of Grants Administration Patricia Bermudez or someone on her 27 team. Bermudez Decl., 3. The initial contact involves or is shortly followed by 28 discussions concerning the timing ofthe audit as well as its scope (e.g., time frame
5
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1 subject to audit, aspects) of AHF's business to be subject to audit). Bermudez Decl., 2 3. Usually, the parties discuss permissible dates to commence the audit, and the 3 parties engage in efforts to accommodate the schedules of the individuals to be 4 involved with the audit. Bermudez Decl., 3. Once notified of the County's intention 5 to audit and after the parties have some discussions concerning the scope ofthe audit, 6 AHF staff meets internally to discuss the audit and its scope and to formulate a plan 7 for handling the audit. Bermudez Decl., 3. Most often, tentative dates are g exchanged between the parties and, after a period of discussion, the audit is scheduled 9 and commences. Bermudez Decl., 3. l0 Upon receiving notice ofthe County's intent to perform the New Audit, AHF
11 began seeking from the County Auditor Controller an accommodation in the 12 commencement time ofthe New Audit. Bermudez Decl., 6-14; Exhs."B" "H." 13 AHF explained that the Audits, which were in progress for several months prior to 14 the date on which the County intends to commence the New Audit July 22, 2013 15 caused AHF staff, including patient service providers, to devote significant time to 16 assisting with those Audits. Bermudez Decl., 8, 12, 13 and 14; Exhs."B,""F," 17 "G" and "H"; Weinstein Decl., 16, 17, 18, 19; Exh."A." AHF also explained the 18 likely impact on patient care and services in the event the New Audit commences on 19 July 22, 2013, on the heels ofthe conclusion ofthe information-gathering portion of 20 the Audits. Bermudez Decl., 8, 12, 13 and 14; Exhs."B,""F,""G" and "H"; 21 Weinstein Decl., 16, 17, 18, 19; Exh."A." Although the process of scheduling of 22 audits in the past involved some reasoned discussion of scheduling concerns and 23 conflicts, the County, the County Auditor Controller and the Department of Public 24 Health's Division of HIV and STD Programs("DHSP") were almost entirely 25 unwilling even to consider delaying the commencement of the New Audit. Weinstein 26 Decl., 20, Exh."B." (At one point, the Auditor Controller actually agreed with AHF 27 that the New Audit could and would commence in September. Bermudez Decl., 14; 28 Exh."H"; Weinstein Decl., 17. The Auditor Controller later reneged on that
6
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1 agreement because DHSP refused to agree to move off the July 22, 2013 date, and 2 defendant Mario Perez took the unyielding position that the New Audit must
3 commence on July 22, 2013. Weinstein Decl., 17 and 20; Exh."B"). The only
4 purported "justification" advanced by the County Auditor Controller and DHSP for 5 insisting that the New Audit commence on July 22, 2013 is that vacation schedules 6 for Auditor Controller personnel as well as other "agency reviews" prevented the 7 Auditor Controller from accommodating AHF's request. Bermudez Decl., 13, Exh. g G
The contemplated New Audit involves an enormous scope. Bermudez Decl.,
10 16. It will involve as an initial matter a comprehensive review of all of AHF's 11 financial records pertaining to all of its programs in Los Angeles County. Bermudez
12 Decl., 16. Normally, audits reach back 12 months. Bermudez Decl., 16. The New
13 Audit is intended to reach backfour yeaYs. Bermudez Decl., 16. Previously, the
14 financial audits of AHF have involved chiefly an examination of medical outpatient 15 services and the costs, expenses and charges associated with them. Bermudez Decl., 16 16. In the New Audit, the County intends to review financial documents and 17 information related to medical outpatient services as well as medical case
18 management, the benefits sub specialty program, mental health treatment programs 19 and sexually transmitted disease prevention programs. Bermudez Decl., 16.
20 Basically, the County intends to review all of AHF's financial documents pertaining 21 to these programs and activities, which is an audit of unprecedented scope. Bermudez 22 Decl., 16.
23
The County contends that the New Audit poses little or no risk of impacting
24 patient services and care because the New Audit seeks as an initial matter financial 25 information pertaining to AHF's programs and activities, information in the custody 26 of AHF's administrative personnel and not in the custody offront line patient service 27 providers. Weinstein Decl., 20, Exh."B." As AHF understands it, however, the
28 point of the New Audit is to review the expenditures, charges and other expenses 7
1 incurred by AHF in providing patient services and then evaluate that information
2 against patient census information. Bermudez Decl., 17. That latter process the 3 evaluation of the financial information against patient census information always 4 involves follow up or other involvement of front line patient service providers. 5 Bermudez Decl., 17. This is particularly so with AHF because there is no 6 categorization on AHF's general ledger of patient census information. Bermudez 7 Decl., 17. All of AHF's programs are reflected on AHF's financial documents in
g program-wide service components. Bermudez Decl., 17. To connect up the 9 programs and the service dollars with patient census information, the Auditor l0 Controller will need to interface with AHF's patient service providers. Bermudez 11 Decl., 17. AHF,therefore, anticipates that it will be called upon to interface with
12 AHF's patient service providers in the course of the New Audit and that it will be 13 forced to ask them to spend time potentially significant time assisting with the 14 New Audit. Bermudez Decl., 17; Weinstein Decl., 21. The devoting of this time to 15 assisting with the New Audit by patient service providers and those who supervise 16 and oversee them will without doubt impact patient care, particularly on the heels of 17 the completion of the information-gathering portions of the Audits. Bermudez Decl., 18 17; Weinstein Decl., 21; Matland Decl., 6; Chen Decl., 6.
19
20 21 A. 22
III. STANDARD FOR RELIEF

Ex Parte Application Requirements
Tojustify exparte relief, "the evidence must show that the moving party's
23 cause will be irreparably prejudiced ifthe underlying motion is heard according to 24 regularly noticed motion procedures." See Mission Power Eng'g Co. v. Continental 25 Cas. Co., 883 F. Supp. 488, 492(C.D. Cal. 1995). Moreover, the moving party must 26 be "without fault" in creating the need for exparte relief or establish that the "crisis 27 [necessitating the ex parte application] occurred as a result of excusable neglect." K. 28 Clark v. Time Warner Cable, 2007 U.S. Dist. LEXIS 100716, at *2(C.D. Cal. May
8
1 3, 2007)(citing Mission Power Eng'g Co., 883 F. Supp. at 492).

2
Here, Plaintiffs have established irreparable prejudice and that Plaintiffs are
3 "without fault" in creating the need for ex pane relief. As shown in the
4 accompanying declarations and above, Plaintiffs have sought an accommodation
5 from Defendants namely, a five week delay in the commencement ofthe New
6 Audit from July 22, 2013 to September 2013 virtually from the moment Plaintiffs 7 perceived that the New Audit would likely endanger patient care if it took place on
g the heels of the Audits. Plaintiffs explained their positions on the issues in detail. 9 Although one representative ofthe Auditor Controller's office stated in late June 10 2013 that the New Audit could commence in September, Defendants later reneged on 11 that agreement at a point in time at which Plaintiffs could not have brought a noticed
12 motion. Now,if the New Audit proceeds as demanded by Defendants, Plaintiffs are
13 likely to be irreparably prejudiced as will Plaintiffs' patients.

14 g, Temporary Restraining Order
15
The standard for issuing a temporary restraining order is identical to the
16 standard for issuing a preliminary injunction. See Lockheed Missile &Space Co.. 17 Inc. v. Hughes Aircraft Co., 887 F. Supp. 1320, 1323(N.D. Cal. 1995). "A plaintiff
ig seeking a preliminary injunction must establish that he is likely to succeed on the 19 merits, that he is likely to suffer irreparable harm in the absence of preliminary relief,
20 that the balance of equities tips in his favor, and that an injunction is in the public 21 interest." Winter v. Natural Resources Defense Council, 555 U.S. 7, 20, 129 S. Ct. 22 365, 172 L.Ed. 2d 249(2008). The Ninth Circuit employs a "sliding scale" approach 23 to preliminary injunctions as part of this four-element test. Alliancefor the Wild 24 Rockies v. Cottrell,632 F.3d 1127, 1135(9th Cir. 2011). Under this "sliding scale," 25 a preliminary injunction may issue "when a plaintiff demonstrates ...that serious 26 questions going to the merits were raised and the balance ofhardships tips sharply in 27 the plaintiffs favor," as long as the other two Winter factors have also been met. Id. 28 (internal citations omitted). "[A] preliminary injunction is an extraordinary and 9
1 drastic remedy,one that should not be granted unless the movant,by a clear showing,
2 carries the burden ofpersuasion." Mazurek v. Armstrong,520 U.S.968, 972, 117 S. 3 Ct. 1865, 1867, 138 L.Ed. 2d 162(1997). Ultimately, Plaintiff is entitled to a
4 temporary restraining order and preliminary injunction if either(1) he establishes 5 a "probability" of success on the merits and a "possibility" of irreparable injury
6 unless relief is granted; or(2) he establishes a "fair chance" of success on the 7 merits and the balance of interests "tip strongly" in his favor. Southwest Voters g Registration Ed. Project v. Shelley, 344 F.3d 914, 917-18(9th Cir. 2003); Republic of 9 Philippines v. Marcos, 862 F. 2d 1355, 1362(9th Cir. 1988); Playboy Enterprises Inc. 10 v. Calvin Designer Label, 985 F.Supp 1218(N.D. Cal. 1997); see also Fed. R. Civ. P.
11 65.
12 13 IV.
ARGUMENT Plaintiff Has Shown A Likelihood of Success on the Merits To prevail on a claim pursuant to 42 U.S.C. Section 1983 for retaliation under
14 A. 15
16 the First Amendment(Plaintiffs' first claim), Plaintiffs must plead and prove that:(1) 17 they "engaged in constitutionally protected activity;(2)as a result,[they were] ig subjected to adverse action by the defendant that would chill a person of ordinary 19 firmness from continuing to engage in the protected activity; and(3)there was a 20 substantial causal relationship between the constitutionally protected activity and the 21 adverse action." Blair v. Bethel School Dist., 608 F.3d 540, 543(9th Cir. 2010). 22
In the accompanying declarations, Plaintiffs have shown that they have been
23 engaged in constitutionally protected activity criticism of the government and its
24 officials and policies as well as public advocacy for people living with HIV/AIDS. 25 Plaintiffs have also shown that, as a result of their constitutionally protected
26 activities, they have been subjected to a pattern of what Plaintiffs believe to be 27 abusive, burdensome and ultimately inaccurate audits, including the New Audit. 28 Plaintiffs have also shown that Defendants have raised no compelling or even l0
2:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 14 of 15 Page ID #:4606
reasonable justification for conducting the New Audit on the heels ofthe Audits or
2 for refusing to accommodate Plaintiffs' request for a mere five week delay in the 3 commencement of the New Audits. In fact, there is no arguable time sensitivity 4 pertaining to the New Audits, and Defendants have never suggested that there is any. 5 Defendants intend to explore fiscal years that have been closed and reconciled and for 6 which the County has previously accepted Plaintiffs' performance as proper pursuant 7 to the contracts between the parties. There can be no time sensitivity for 8 Defendants in this context. 9 B. 10
AHF's Patients Will Suffer Irreparable Harm Because Plaintiffs have established a "probability" of success on the merits of
11 their first cause of action, they are entitled to a temporary restraining order and 12 preliminary injunction if they can establish the "possibility" of irreparable injury, loss 13 or damage. Southwest Voters, 344 F.3d at 917;see also Fed. R. Civ. P. 65(b). If this 14 Court finds that Plaintiffs have merely established a "fair chance" of success on the 15 merits, they are still entitled to a temporary restraining order and an order to show 16 cause re preliminary injunction if the balance of interests "tip strongly in [Plaintiffs] 17 favor." Southwest Voters, 344 F.3d at 917. 18
Here, there is no question that there is a possibility of irreparable injury and, in
19 fact, there is a virtual certainty of such injury to AHF's patients. AHF's 20 administrative department heads and the individuals at AHF responsible for rendering 21 patient services as well as supervising and overseeing its patient services staff(e.g., 22 physicians and nurses) have declared that they believe that the commencement ofthe 23 New Audit directly on the heels of the Audits stands a high likelihood of impacting 24 patient care and services. In the context of HIV/AIDS and the extraordinarily 25 regimented treatment courses for them, proper scheduling and adherence to such 26 treatment and medication schedules are of paramount importance. AHF's success at 27 treating AHF/HIV stems from its development and adherence to such highly 28 regimented schedules. The New Audits stand a high likelihood of interfering with
1 those schedules just after the completion ofthe Audits, which themselves interfered 2 with these schedules, as shown in the accompanying declarations. 3 C. 4 5 The Balancing of Hardships Favors The Granting Of The Temporary Retraining Order The balance of hardships and equities tips strongly in AHF's favor. In fact,
6 there are no factors militating toward Defendants' interests here. This is not a 7 situation in which the parties are wrangling over the Defendants' right to conduct the g New Audit at all (although Plaintiffs believe that Defendants intend to use and have 9 improperly used the prospect of the New Audit to put pressure on AHF and to cause l0 it to devote maximum resources to the audit process). All that Plaintiffs seek here is 11 a five week delay in the commencement of the New Audit so that AHF's staff and 12 personnel may "catch up" and refocus on patient treatment after having a great deal 13 of their time consumed in the Audits. Defendants' contention that the New Audit 14 should go forward because other providers in the County(who have not been 15 subjected to Audits over the past several months and who are not intended to be 16 subject to audits of a similar unprecedented scope as the New Audit) have made 17 themselves available to be audited has nothing to do with Plaintiffs and does not in ig any way speak to any hardship that the County may claim it will suffer from a mere 19 five week delay in the commencement ofthe New Audit. 20 21 22 V. CONCLUSION For the reasons stated herein, Plaintiff respectfully requests that the Court grant
23 the instant Ex Parte application for temporary restraining order and issue an order to 24 show cause as to why a preliminary injunction should not issue. 25 Dated: July 18, 2013 26 27
28 12
By:
/s/ Samantha R. Azula~ Samantha R. Azulay Attorney for Plaintiff AIDS Healthcare Foundation
':12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 1 of 20 Page ID #:4608
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aidshealth.org Samantha R. Azulay, SBN 283424 samantha.azulay(a~aidshealth.org AIDS HealthcareFoundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim plonskerlaw.com 1990 Bundy Drive, Suite 280

12 13 14
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA(AGl~) DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Apphcation 2. Memorandum of Points and Authorities; 3. Declarations of Samantha Azulay, Sharon Matland,Patricia Bermudez, Wayne Chen, M.D. Lod ed concurrently 1.[Proposed] Order Date: Time: Courtroom: 15
HEALTHCARE 15 AIDS

18 19 20 21 22 23 24 25 26 27 28
vs. COUNTY OF LOS ANGELES; MARIO J. PEREZ, Defendants.
DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Case'X2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 2 of 20 Page ID #:4609
i
2 3
DECLARATION OF MICHAEL WEINSTEIN I, Michael Weinstein declare as follows: 1. The facts set forth herein are true of my own personal knowledge, and if
4 ~~ called upon to testify thereto, I could and would competently do so under oath.
~y
2.
I am the co-founder and President of the AIDS Healthcare Foundation
6 (AHF), which position I have held since 1987. 7
3.
AHF is a nonprofit corporation. Its mission is to provide cutting edge
8 medicine and advocacy to people with HIV/AIDS, regardless of ability to pay. For 9 the past 25 years, I have dedicated my life to ending this epidemic, and to providing 10 care, comfort, and treatment to those who are infected with it. 11
4.
When I co-founded AHF,its name was "AIDS Hospice Foundation." At
12 ~~ that time, there was no effective treatment for AIDS, and AHF's mission was to 13 provide Los Angeles residents afflicted with AIDS a place and means to die with 14 ~ dignity. 15
5.
Since that time, AHF has grown to provide HIV/AIDS prevention,
16 testing, and medical care services to about 229,000 people per year, in 28 countries 17 and in ten states. AHF provides the vast majority of this care for free to people 18 without means of paying for it, and to people of limited means who rely on 19 government programs such as Medicaid, Medicare, and the Ryan White CARE Act to 20 pay for this care. 21
6.
AHF has been able to grow in this manner by providing quality, cost
22 effective care to its clients, as well as aggressively and effectively advocating for 23 their rights and interests with governmental bodies, including the government of Los 24 Angeles County. 25
7.
As the largest safety net HIV/AIDS care provider in Los Angeles
26 County, AHF has entered into a number of contracts with the County to provide this 27 care to uninsured, and underinsured, County residents. These contracts include 28 servicers for psychiatry, medical case management, specialty care, and outpatient
~seJ12:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 3 of 20 Page ID #:4610
1 medical services. In Los Angeles County, AHF has contracted with the County to 2 provide HIV/AIDS outpatient medical services to residents of limited means for 23 3 years. The sources of the funds paid by the County for this care include the State of 4 California, the County, and the federal government through the Ryan White CARE 5 Act,42 U.S.C. Section 300ff-11 et seq. 6 8. The terms of this contract for outpatient medical care, and the bases for
7 payment under it, were largely unchanged from the original contract through 2012. g Based on the length of time AHF has held this contract, and my familiarity with 9 AHF's operations and AHF's economic relationship with the County, I am familiar l0 with the terms and workings of this contract, and how it has been understood, 11 operated, and complied with by both AHF and the County. 12 9. Under the contract, services are payable on a "net cost basis," meaning
13 that AHF is compensated for the actual established costs of providing the care. Each 14 contract year, AHF has proposed to the County how many patients it proposes to 15 treat, and the direct costs the salaries of doctors and medical clinic staff, the rent for
16 the clinic where patients are treated, the costs of medical supplies used to treat the
17 patients, etc. of treating those patients. Each year, the County and AHF have 18 reached agreement as to how many patients the County will pay for, and the cost of 19 those services. Each year, AHF has treated those patients, incurred those costs, and 20 has been reimbursed by the County. 21 10. In addition to the "direct" costs of care, AHF also incurs "indirect" costs,
22 those necessary to keep AHF operational, and able to provide the direct medical 23 services. These indirect costs are sometimes labeled "administrative" costs, and 24 include maintaining Finance, Human Resources, and Information Technology 25 functions and departments. While these services are ultimately necessary for the 26 delivery of medical care under the contract, they support AHF as a whole, and thus 27 the entire costs ofthese functions cannot be attributable to the contract with the 28 County. AHF thus allocates these costs, and ascribes only a portion ofthem to the
2
DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
1 contract for reimbursement. Again, each year, AHF has proposed a cost allocation 2 plan, showing what indirect costs are attributable to providing care under this 3 contract. And, again, each year, the County and AHF agree to an amount of indirect 4 costs; AHF then incurs these costs, and the County reimburses it. 5 11. As stated above, these have been the contract terms, and this is how the
6 parties have conducted themselves, during the entire term of the contract. Over the 7 many years this contract has been in place, AHF's performance and practices have g been subject to numerous reviews and audits by the County. In prior audits, the 9 County made no objections to how AHF determined costs, and how much AHF billed 10 under this contract. 11 12. However, this changed in 2010. At that time, the County conducted an
12 audit of this contract for fiscal years 2007-2008 and 2008-2009. During this audit, 13 for the first time, the County made new and different assumptions about the costs in 14 the contract. The County has not pointed to any portion ofthe contract to justify this 15 change, and there is no language in the contract justifying it. In addition, the
16 County's new and different cost assumptions were different than the assumptions the
17 County had previously made, and pursuant to which the parties acted, without 18 contention between them, under the contract previously. Also during this audit, the 19 County took the new and different position, not supported by the contract, that the 20 direct costs oftreatment the salaries ofthe doctors, the rent ofthe clinic, the cost of 21 medical supplies, etc. should be apportioned between those patients payable by the 22 County under the contract, and those patients either provided free care, or whose cost 23 of care is subsidized by other sources. 24 13. In doing this, the County unilaterally and arbitrarily determined that 64%
25 of AHF's patients at its outpatient clinic in Los Angeles County were covered by this 26 contract. It also unilaterally and arbitrarily determined that each patient was seen the 27 exact same amount of time, for exactly the same type of care, and the exact type and 28 amount of medical supplies and equipment were used for each patient. It also
3
12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 5 of 20 Page ID #:4612
unilaterally and arbitrarily determined that AHF could pay a doctor and every other
2 medical professional and staff member for only 64% of their time, could pay a 3 landlord only 64% of the rent for the use of the clinic space, could pay a utility only 4 64% of the utility bill, etc. 5
14.
For the first time, the County thus unilaterally and arbitrarily determined
6 that only 64% of the direct costs of providing medical care at AHF's clinic could be 7 reimbursed under the contract. For example, for medical supplies, in fiscal year 8 2008-2009, AHF proposed to spend $45,000 on medical supplies for County patients. 9 The County determined that AHF spent $50,348 on medical supplies that year;-thus 10 only 64% or $26,975 of that amount was spent on County patients. Applying that 11 analysis to other costs, on that basis, the County maintains, and has repeatedly stated, 12 that AHF improperly billed the County, and the County overpaid AHF,over $1.7 13 million during those two fiscal years. As stated above, however, AHF's billing and 14 the County's prior payment practices were the subject of prior audits and had passed 15 muster as totally appropriate under the contract. The Defendants knew all these facts 16 they caused the prior audits to be conducted and applied and interpreted the contract 17 in the fashion described in the contract but claimed nevertheless in the audit 18 described above that AHF and I were involved in various improprieties by acting the 19 way we had always acted withfull County approval. 20
15.
Plaintiffs in this action allege that Defendants have initiated a retaliatory
21 campaign against Plaintiffs using, among other tools, unwarranted and unduly 22 burdensome audits and incorrect audit findings, including those discussed above, to 23 punish Plaintiffs for exercising their rights and for taking positions critical of the 24 County. Defendants have continued that campaign during the pendency of this 25 action, most recently by insisting that an audit of unprecedented scope commence on 26 July 22, 2013 directly on the heels of the conclusion of the information-gathering 27 portions of prior audits that have been pending for the last several months. 28 Defendants have stated no basis for insisting that the contemplated audit commence
~sel12:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 6 of 20 Page ID #:4613
1 on the heels ofthe conclusion ofthe prior audits and, more importantly, have ignored 2 AHF's pleas that Defendants' continued insistence on conducting the contemplated 3 audit would put the health of AHF's patients at risk. 4 16. Starting in late March 2013, the Department of Public Health's Division
5 of HIV and STD Programs("DHSP")informed AHF of its intention to conduct an 6 audit of unprecedented scope. The contemplated audit(the "New Audit") would 7 involve a review of all of AHF's financial documents pertaining to a four year period g and pertaining to virtually all of AHF's programs in Los Angeles County. At this 9 time, AHF was involved in other audits, mentioned above, by Defendants. Those l0 audits caused a significant expenditure of time by AHF's administrative personnel as 11 well as its front line patient service providers. When Defendants announced their 12 intention to conduct the New Audit(and had informed AHF of its unprecedented 13 scope), AHF responded by requesting that Defendants commence the New Audit 14 after July 2013 and then in September 2013. AHF communicated at length and many 15 times with Defendants to try to push the New Audit off. AHF described in detail the 16 likely impact on patient care and services that would occur if the New Audit 17 proceeded on the heels ofthe just completed prior audits. AHF sought some 18 breathing room to "catch up." For a time, AHF staff communicated with Defendants 19 on this subject, but Defendants were unwilling to make any accommodations. 20 17. On June 26, 2013,I spoke over the telephone with Katherine
21 Urbanski, Senior Accountant-Auditor at the Los Angeles County Auditor Controller's 22 office. I expressed my concerns about commencing the New Audit fiscal audit in 23 July. Specifically, I told her that AHF had been audited for the past 4 months, we 24 were still being audited at certain facilities, and that our staff needed some time to 25 recover from the administrative overload, and re-focus back on patient services. I 26 asked for the Auditor Controller's cooperation in continuing the New Audit until any 27 date of its choice in September (approximately a five week delay). Ms. Urbanski 28 agreed to delay the New Audit for about five weeks until September and stated that
5
DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
isell2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 7 of 20 Page ID #:4614
1 she would be in touch with our staffto coordinate an exact date and time to initiate
2 the audit. Ms. Urbanski later left a voicemail for me stating that DHSP refused to 3 move off the July 22, 2013 audit commencement date. 4
18.
On July 9, 2013, I wrote a letter to various County representatives again
5 seeking an accommodation so that the New Audit would commence in September as 6 opposed to July (again, a five week delay). A true and correct copy of that letter is
7 attached hereto as Exhibit "A." In that letter, I noted that AHF perceived the County's g insistence that the New Audit take place on the heels of the conclusion ofthe prior 9 audits as part of Defendants' efforts to retaliate against AHF. I discussed the history 10 of Defendants' efforts to use audits, including the prior financial audit, as tools to 11 intimate and retaliate against AHF. I noted that the County appeared to show a lack
12 of concern for "approximately half of the HIV/AIDS patients in Los Angeles that 13 AHF serves." I also pointed to AHF's full cooperation and compliance with the 14 audits the County had initiated and conducted and noted that AHF's resources had 15 been stretched "beyond limits." 16
19.
I specifically addressed the impact ofthe County's continuous audits on
17 patient care: "This constant auditing by DHSP affects patient care as AHF staff is 18 forced to allocate substantial resources to tens to its audit inquiries." I also noted that 19 the County had not stated any valid reasons why the New Audit could not take place
20 just five weeks later in September. In fact, I pointed out that the County intended to 21 audit fiscal years 2009-2010, 2010-2011 and 2011-2012 for which the DHSP had 22 accepted AHF's financial close-out cost reports, tendered settlement payments for 23 those fiscal years and closed those years out. There can therefore be no prejudice 24 whatsoever by a five week delay in the commencement of the audit. 25
20.
On July 12, 2013, Mario Perez, the Director of Department of Public
26 Health's Division of HIV and STD Programs responded to my July 9letter. A true 2'7 and correct copy of this letter is attached hereto as Exhibit "B." In that letter, Mr.
28 Perez "rejected" AHF's contention that the commencement ofthe New Audit on the 6
DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
CaseJl2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 8 of 20 Page ID #:4615
1 heels ofthe just concluded audits would impact patient care. Mr. Perez refused to
2 accommodate AHF's request that the New Audit commence in September,just five 3 weeks after July 22, 2013. 4
21.
Yam informed by members of AHF's staff that there is a substantial
5 likelihood that the commencement of yet another audit on July 22, 2013 this one of 6 unprecedented scope will stretch AHF's personnel to a razor thin margin and
7 ultimately impact patient care and services, which is AHF's reason for being in the g first place. Given the nature of HIV/AIDS and the treatment protocols and drug
9 regimens used for treatment, the devotion of any meaningful time away from patient 10 care and services after the conclusion of audits that themselves required the devotion
11 of a great deal of time by patient service providers stands a substantial likelihood of

12 impacting the health of AHF patients. 13
22.
I should note that AHF seeks only the passage of a five week period
14 prior to the commencement of the New Audit(July 22, 2012 to September 1, 2013). 15 AHF does not take the position that the New Audit may not take place. On the 16 contrary, AHF is more than willing to participate in the New Audit to the fullest
17 extent necessary. AHF is confident that the New Audit will show that AHF has at all ig times complied with its obligations to the County and AHF's patients. AHF's
19 managers and patient service providers require time to "catch up" from the prior 2 0 audits and to refocus on patient care in advance of the New Audit. Otherwise, AHF's 21 staff and I are gravely concerned that AHF's patients will suffer from a diminished 22 amount and intensity of care, thereby having a deleterious impact on the health of 23 AHF's patients. 24
I declare under penalty of perjury pursuant to the laws of the State of California
25 that the foregoing facts are true and correct. 26
Executed on July 17, 2013 at Los Angeles, Califo
28 7
MICHAEL WEINSTEIN
DECLARATION OF MICHAEL WEINSTEIN IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Case 2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 9 of 20 Page ID #:4616
X 1 It
/18/13 Page 10 of 20 Page ID Case 2:12-cv-10400-PA-AGR Document 59-2 Filed 07 #:4617

I ~w~ AI17S HEALTf-TCARE '~' ~ ~x >~~~~`: lOUN17ATI4N
July 9,2013
Via Facsi~riile and U.S, Mail William T. Fujioka Chief Executive Officer 713 Kennet}i Hain Hall of Acitniuistratic~n S00 West Teiilple Street Los Angeles, CA 900:12 Fax..:(213)687-7130 Gloria Molina Mack Ridley-Thomas Zev Yaroslaysky Don Knabe Michael.D. A:ntonovch 383 Kenneth Hahn.Hall of Admij~istr~tion 500 West Temple Street Los Angeles, CA 90012 Fax:(213)633-5100 Jotu~ Kilttli County Counsel 648 Kenneth Hahn Hall of Aciministratioli SOQ West Temple Street Los Angeles, CA 900:12 Fax:(213)626-7446 RE. DfISP al~tl AHFMerliccrl Quf~nti~~lt Ag~eenretrt, Aertlif sclterltr/e~lfo~~ Jrtly 22, 2Qi3 Dear Sirs and Madam: I write to discuss tine Coui~iy's, and see fically the Division of HIV and. STD Pro~ranls' ("D~ISP")co~itinuitig effort to retaliate a~auist the SIDS T-~ealthe~re Fouxidatian("AHF")udder the pretense of audits related to AHF's Medical Outpatient("MOP"} conh~act witlY the County. We understand ttyat under Elie Ryan Wllite CARE Aet, as well as our MOP contact, DHSP, tluotigli the Auditor Controller, leas aa~ glut to audit f1T-IF. However,such audits are authorized for legitimate purposes. 'I'lie actions of DHSP,namely its insistence on audit dig AHF oii a constant basis, the scope a~'the latest audit deiand, its iefii~al to cooperate witk~ oiu schsd~les, and its disre~ad for our patient care, lave ~7~ade ii evident that DHSP's desire to audit4 years
09002& USA TAI.323,86Q,5200 PAX 323.962.8513 ADMiNIS"I`ItATIVE OFFICE; G255 W SUI~ISET BLVD,~15T PI.~OR LQS ANGELS,
worth of almost all of AHF's contracts immediately starting July 22,2013, is for illegitimate and rather retaliatory pucposes. Such retaliatory conduct is transparent from the way DHSP has treated AHI''s cost allocation plans. Despite its initial contentions that AHF failed to provide a cost allocation plan for fiscal year 2008/2009(which tl~e County only recently retracted}, DHSP has always had a cost allocation plan on file for AHF. Each contract year, AHF has submitted such a cost allocation plan to DHSP,and each year AHF has received a confirmation letter from DHSP accepting AHE's cost allocation plan anti rendering AHP' in compliance with contractual requirements. See e.g. attached letters from DHSP at Exhibits A and B. In spite of AHF's continuous submission of cost allocation plans and DHSP's acceptance ofthose plans, around 2009/2010 DHSP initiated an audit based on false informationthat AHF had no cost allocation plan. From that audit, DHSP concluded that AHF overcharged the Cowlty in access of$1.7 million for the fiscal year 2048/2009. DHSP has more recently made it clear that it intends to audit AHF specifically based on the assumption that AHF has acted improperly since fiscal year 2008/2009. Specifically, DHSP has admitted in correspondence and court documents that it intends to audit AHF for the specific purpose ofdetermining hoi~> >rrtrch money it contends AHF overcharged the County in 2009, 2010, 2011, and 2012. DHSP insists on auditing for this purpose despite the fact that it has accepted AHF's cost allocation plan each and every year. In fact, AHF's latest cost allocation plan for the 2013/2014 contract year, which is identical to past cost allocation plans, was also recently accepted by DHSP. See Exhibit B. Finally, DHSP's insistence on starting ttie audit in July also demonstrates its lack of concern for approximately half ofthe HIV/AIDS patients in Los Angeles County that AHF serves, We have explained to DHSP and to the Auditor Controller that conducting the sort of audit it seeks to conduct(with unprecedented breadth in both the number of contracts and fiscal years reviewed) after a continuous 4 months of being audited, threatens patient care. For 4 sh~aight months, AHF has complied with DHSP's series of audits. AHF staff resources have been stretched beyond limits. AHP staff has not only had to continue program operations and support, but have undergone DHSP Program Reviews, DHSP Facilities and Operations Reviews, DHSP Site Visits, DHSP Desk Review and HWLA Site Reviews. This constant auditing by DHSP affects patient care as AHF staff is forced to allocate substantial resources to tend to its audit inquiries. AHF respectfully requested that the latest audit be pushed back until September so that it could focus back on patient care, catch up administratively, and allow its hardworking staff some personal time off of work. This was a reasonable request, and one that was approved by the Auditor Controller. Yet DHSP refuses to cooperate with such considerations. We have yet to hear one valid reason why the audit must take place in July and cannot be moved back a little over a month to early September. DHSP's one contention is that allegedly "all other agencies scheduled for a Fiscal Year 2012/13 audit were able to confirm a start date and began their audits before June 30,2013." Even assumi~ig that is true, AHF is clearly not being audited like all other providers. DHSP intends to audit almost all of AHF's contracts for 4 fiscal years
not simply the 2012/2013 fiscal yeas audit of other ~i~oviders. F'ui~lher, since 3 of the 4 yea~s DHSP seeks to a~~d t hive already encletl, tli~re seeYns to be no itnininent ne~ci to start ttie audit in July versus September. Inciecel, DI-1SP reviewed aritl accepted AHF's f~~iancial close-aizt cost iepoits for fiscal years 2009/201Q,2010/20.11 end 201 l/2012, tendered se~tlen~ents far those fiscal years,. at~d closed those years oiit. Since DIISP is ah~eacty ~o n~ tack to a~~dit closed-out ye~is specially for AHI', certainly them would lie i~o pre{udice to I7I-iSP by continuing the 2012/2013 a~idit of l~HF an extra. month. Again, while we uncieistanti that i~otttitie audits ire authorized, A~IF will only submit to this ]latest audit dem~rid und~t~ protest, as we k ow it is being nlauutacturecl for illegitimate,purposes with the end foal of ha~~miilg ~1~-Ir by clnim n~ false finailciai inlpro~riet es. We contrnue to find I~HSP's actions with ie~aid to this audit i~etaliato~~y. T1ie #'act that we receive excellent 1'EV1~W5 FI'011l eV$i~y otfYc~~ ~i~tity that audits A~-IF fuitl~er ~ieinonstrates t11e County's retaliatal~y intentions, Fi~7a11y, as explained uiat~y times befo~e and ~l~ove liege, we ~anriot st~buiit to ~i~ audit in July while contiuin~ oin quality patietYt care. We oY~ce main plead with yotii to agree to a start date i Septer~ beg. If yoti insist on n~ovin~ fot~ward with the audit on J~ily 22, 2013, we will have iio choice buY to seek legal relief fi~am a count. Please advise haw you plan to proceed. Sincerely, ` ~
Micli~el WeiiYstei~i Presit~ent cc: Joiiatl~an Fielding. M~iio Perez

COUNTY OP L05 ANG~L~S
Pub~~C ~~~It~
JONATHAN ~. FIELOINO, Nf.D,, M~I',N, arega End Heallh 01(g9r JONATHAN ~. ~R~@Dh4AM ChfelDaputyDirodor
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QOARDOPBUFERVISORS
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Offico of AIDS Programs and PoNCy

Mario J. pbra=, bl~oofor 600 South Canmonv~aalth Avenue, 10"F{oor LosMgeles, CalUomla 90005 T8L(213)361.8000FAX (?.13)X87.0912 vronv,publlcho allh,iacounty.Qov
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March t7, 2004 C~SRTfFTGI~ iv1AIL 700$ !]40 0001 098~149G8 MicliAel WeitistcIn, President AIDS Henitltcaro Cou~idntion 6255 Wesl Sunset ~ioulcv~rd, 21s' Floor Los A~igales, CAllfornta 90028 pent Mr. Weinstein; rYSCAL X~AR 2008--2009 AbMTNTSTItATIV~ ~tEV~C~V OIL CONTRAC'PS FOR H[VlAIDS I~Y,A'1'~D S~RVXC~S Thank you for submitting the required doeumontetiou in rosponse to the administrative review conducted on January 22,2009, by fhc Contract Administration Dlvlsion of the Offico of AIDS Programs nitd Policy. Your nga~cy is Gnvently in com~~liauce with the conhaclual rec~gireme~~ts regerdin6 the su~roission of documentation, t'lease ens~na continued co~i~plianco by subn~ftting revised documents ~vlienevar cl~enges era made ar documentation is renewed. 1f you have any nuestions or require add[tionat Information, please contnet ~dsa~ M. Mena,Program Assistant, of(213)35l-1102 or p i I c wt ,go_v. Very tridy yours,
Kavin A. Harvey, Cliief Contract Administrat4o~i Division KA~I:em

W.1DtvlslanslConlracl Admtnislrnllon41di111nlslrnliva Rev(nv12008.7Q69r/~genay CorrespondencelCompNance Lcttcr~AHl+ co~oiplfanca.doo
a: Mario J. P~roz{~v/o enolost~ras) Maxine t~renktin (w/o enclosures) Mary Orticke(w/o enclosures) Sopl~la Ran~nnes(w/o enclosures)
Exhibit A

CouNry o~ dos AN~c~~s
Pr~bliC ~e~rt
JONATHAN E, FIELDING, M0,~dPH
D1~acto~and Ifeaflh O7ficer
~ ~`~
k ~.~
ooaRvo~sur~awsoas FFe~ohRc
Oloda A(o!Ino 61~rkFUal~~7t~omas Second OM1trtl zovY~~os~eveky
CYNTHIA /i. Hh~tDINO,hiPH

Chlaf DBAvIy ~'ledot
rAarioJ. P6roz, Dlrootor 000 Soulh Commomvoaflh Avonuo, 10~ ~Ioor 109Ang01o9, CaII~OmIe 00008 TBI.(213)351.8000 ~ I~/1X 1213) 387-O~J12 rnnv,publfCheallh,lacou nly.gov
Divlslon of HIV and STD Programs
Tniausru ~o~uou,~sa n11eAu1n,Mtonorlch F,u,p4blq
Apri(l7, 2013 Michnol 1Voi~~steln, ProsEcient A117S ~Tenitlicnrc Foundation G2551VBst Sunset Doulovnrcl, 2l" F1oor Los Augcles, Cnlifor~t3n 90028 De~i~Mr. Wcinstain; ~A~INISTRAT~ T2~'VT~'V~'RISCAL YT~AR 202.2013: CONT1tACT NUMB~TtS I[-20900G, IINIAIDS AMBULATORYlOIJTI'ATILIVT S~R'S~IC~S,IIIV/AIDS ~AYtT.Y II~x,~RVL~iYTION PROQRAM S~~VICI,S,T-YTV/AIDS ML~DICAL CASE MAIVAG~N1ENx S~R'VXC~S,HIV/AIDS B~iV~i~'IT$ ST'~CIALTX SL~RVIC~S,T~I'V/AIDS NlL~NTALI3'TAL~'I-Y -I'S'SCC~LIAT1tXC x1t~ATN1LNT S~RVIC~Sj ~I.2090.07, HIV/AYDS AMI3US,A'TORY/~U~'~'ATI~N~'S~Xt'N'IC~S CIiATIY~ ~-I.21081~F, HIY/AIDS M~NTAY,FI~A~,TH PSYCHOT~1~ItA~'~Y ST~R"VxC~S; H-701797, S~7{CJAL TRANSNIITT~D DYS~~S~ SCit~~NIiV'G,T~ATML~NT,C~;S~ rINDING ANA ~DUCATXON S~~t'VICLS;PI~000804,IIN/AIDS COUNSELING ANA~T~STIiV'G S~RVTC~S -SxOTt~I~RONT AND PII-000822, Y~V/AILyS COYINSLLING AlYD T~S'xING S~RVIC~S MOBXL~ TASTING UNX1' Thn~k you for your Mtirch 26,2013,sub~iiissio,ti of rcqulrcd documculs in responso to tlty ndmhifstrntivv rovlcw condnctec! on ~obrunry 5,2013, by tho Contract Adminisi~at(on staff, oftl~e Uivlsion ofIUV and STD Programs, Your agency is tiow in coinplinnco tivilh I(ie contrncUinl requironants for riacnl~Ycnr 2012-2013, Tv ensure conllnued compliance, plessb submit any revisecUor updated daciimettts p~it~i~itiug to eho Adminisirntive Roviaty to Controct Adtnlidstrntion. Tf you linvo any questions or rcqu'sre acicHtlonnl fnform~tioii, J~lons9 contort Sally Martli~ nt(?.13)351- 8072 or caclinbo~{~r(a~ph.l2coimty.gov. Very truly yours, ,
Monique oliins, I-T, CITL~S ContractAdmluis ~tton ivlC;CM;snt

R;lDivlslonslOAblAdminRwMSet1lonW1t1P1'2012.201~1Agenoy Compllnncc Lsller fY l2IJ ANF.Joe
c: Carlos Vagn-Mntos(CSA) Sophie R~mtanes(PSD)
CIrou (NEC)
Exhibit B
X 1 It
Case 2:12-cv-10400-PA-AGR COUNTY OF LOS 14NGELES
Document 59-2 Filed 07/18/13 Page 16 of 20 Pa e ID #:4623
Public Health
JONATHAN E. FIELDING, MD, MPH
Director and Health Officer
.~. , , ~. a~
BOARD OF SUPERVISORS Gloria Molina First District Mark Ridley-Thomas Second District Zev Yaroslaysky Third District Don Knabe Fourth District Michael D. Antonovich Fifth District
CYNTHIA A. HARDING, MPH

Chief Deputy Director
Division of HIV and STD Programs

Mario J. Perez, Director 600 South Commonwealth Avenue, 10`" Floor Los Angeles, California 90005 . FAX (213) 387-0912 TEL (213)351-8000 www.publichealth.lacounty.gov
July 12, 2013
Michael Weinstein, President AIDS Healthcare Foundation 6255 West Sunset Boulevard, Suite 2100 Los Angeles, California 90028
Dear Mr. Weinstein: This is in response to your July 9, 2013, letter to the County of Los Angeles(County)Board of Supervisors; William T. Fujioka, Chief Executive Officer; and John F. Krattli, County Counsel, related to the Auditor-Controller's scheduled July 22, 2013, fiscal audit of AIDS Healthcare Foundation(AHF). As you know,the Department of Public Health and its Division of HIV and STD Programs(DHSP)are obligated by the federal government to monitor and verify the appropriate expenditure of resources under the Ryan White Program (RWP). In order to discharge this federal obligation, DHSP is exercising its audit rights within the County's contract with AHF. Please reference my May 16, 2013, letter(Attachment A) sent to all Ambulatory Outpatient Medical(AOM)providers, including AHF,regarding the Health Resources and Services Administration's(HRSA)expectations for RWP grantees to conduct annual fiscal audits. Accordingly, your assertion that routine, required audits are being used in a retaliatory manner against AHF is false. Further, we reject your assertion that such a required, routine fiscal audit affects patients currently receiving medical care at AHF facilities, and is a reason to delay the audit. Historically, DPH has not received indications from its contracted providers, including AHF,that the fiscal audits of those agencies have had any effect on the delivery of patient care at their RWP-supported clinics. Given that this audit only requires the involvement of financial and administrative staff, and not AHF clinical and program staff, your claim is unwarranted. The Auditor-Controller has now made multiple attempts to accommodate the scheduling of a fiscal audit with AHF, dating back to the initial contact in Apri12013, and including offering two dates in May (as referenced in Mr. Dave Young's July 5, 2013, letter to you). For a summary of what the fiscal audit will entail and a description of the review process, please see Attachment B, which was shared with you by Sat Avtar Khalsa of the Auditor-Controller's office on July 8, 2013. With regard to cost allocation, please note the difference between submitting a cost allocation op licX (which describes a range of methodologies an agency could use to demonstrate how it allocates its costs) versus submitting a cost allocation plan(which specifically demonstrates how costs are allocated across

Michael Weinstein July 12, 2013 Page 2
multiple payer sources). As a reminder, an agency must ultimately adhere to a cost allocation plan tied to an approved budget, and be able to substantiate such costs through documentation and review by the County, hence a fiscal audit by the Auditor-Controller. You will note that the referenced "Exhibit B" attached to your letter simply confirmed that your agency had submitted cost allocation documentation for consideration, but was not a confirmation that AHF had submitted an acceptable cost allocation plan, nor a confirmation that any such plan had been considered and approved in conjunction with AHF's submitted budget. AHF's first submission of a cost allocation plan that clearly attributes costs among multiple payer sources was in connection with its current AOM contract in 2013. While AHF expresses concern over the frequency of audits, AHF has, in fact, seen fewer fiscal audits than any other community-based provider of AOM services dating back to FY 2006-07. Please note that the factors influencing the frequency of fiscal audits include, but are not limited to: internal County capacity; federal fiscal audit mandates and expectations; and the scope and nature of previous fiscal audit findings. Contrary to AHF's assertions, DHSP makes no assumptions as to what, if any, findings may arise from the currently-scheduled audit, and the County has no way of confirming whether or not funds are being spent in accordance with RWP requirements without a fiscal audit. Therefore, the Auditor-Controller expects to continue with the audit scheduled for Monday, July 22, 2013, at 10:00 AM. We look forward to AHF's compliance with the fiscal audit and with contracted mandates relating to fiscal oversight of AHF's AOM contract. If you have any questions or need additional information, please contact me. V trulyours,
M io J. Perez, Di ect Division of HIV and S MJP:kmb Attachments(2)
Programs
Each Supervisor William T. Fujioka John F. Krattli Jonathan E. Fielding, MD,MPH Cynthia A. Harding, MPH Don Chadwick
Case 2:12-cv-10400-PA-AGR COUNTY OF LOS 14NGELES
Document 59-2 Filed 07/18/13 Page 18 of 20 #:4625
e Attachment A
Public Health
JONATHAN E. FIELDING, MD, MPH Director and Health Officer CYNTHIA A. HARDING, MPH Chief Deputy Director
t~ { t}
IF ~
BOARD OF SUPERVISORS Gloria Molina First ~isVic[ Mark Ridley-Thomas Second District Zev Yaroslaysky Third Distrito Don Knabe Fourth District Michael D. Antonovich Fifth District
Division of HIV and STD Programs

Mario J. Perez, Director 600 South Commonwealth Avenue, 10'" Floor Los Angeles, California 90005 TEL (213) 351-8000 FAX (213) 387-0912 www.publichealth.lacounty.gov
May 16, 2013
Dear Ryan White Program Service Provider: REQUIItED FISCAL AUDITING SCHEDULE FOR RYAN WHITE-FUNDED CONTRACTS This is to inform you of the Division of HIV and STD Program's(DHSP)fiscal auditing schedule for Ryan White-funded contracts. As you know,the federal Health Resources and Services Administration(HRSA)requires routine fiscal audits as a condition of its Ryan White Part A award to Los Angeles County. Historically, subcontractors have been audited once every three years due to multiple factors, including size and complexity ofthe many contracts throughout DHSP, and in order to minimize the amount of administrative burden on subcontracted agencies. However, as a result of HRSA's January 2013 site visit and subsequent findings, DHSP is being required to align its fiscal auditing schedule with HRSA's National Monitoring Standards, which require fiscal audits on an annual basis. Please see Attaclunent I for a copy of HRSA's Site Visit Report that references their expectations for fiscal monitoring. The specific section can. be found on page 4: Required Recommendation (F.S.): The Grantee must ensure that each sub-recipient receives an annualfiscal monitoring visit. DHSP Response: DHSP has taken steps to move towards conducting annual fiscal audits by the Auditor-Controller and Contract Monitoring Division(CMD). In the interim, select fiscal monitpring questions will be incorporated into the DHSP monitoring tools. Additionally, the list of contractors to be reviewed by the Auditor-Controller and CMD will be prioritized based on previous audit findings. If you have any questions, please contact Dave Young, Chief, Financial Services at(213)351-8111. Thank you in advance for your cooperation. ery t ly yours
~Iv~ario J. Perez, Division of H MJP:KMB
rector d STD Programs
H~'~,CorrespondenceWgency LeriersWudit Schedule 2013.05-16.doc
Dave Young
Case 2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 19 of 20 Page ID #:4626 Attachment B Page 1 of 2
DEPARTMENT OF AUDITOR-CONTROLLER CONTRACT COMPLIANCE FISCAL REVIEW AIDS HEALTHCARE FOUNDATION JUNE 1, 2009 PRESENT REVIEW PROCESS
The purpose of our review is to determine whether the Agency provided the services outlined in their contract with the County. Our monitoring visit includes reviewing a sample of the Agency's accounting records and documentation to support the Agency's compliance with the fiscal requirements. We also select a sample of the Agency's clients to review the Agency's compliance with program requirements. We will refer to the following regulations and guidelines for conducting our review: 1) County Department of Public Health's Division of HIV and STD Programs (DHSP -formerly known as Office of AIDS Programs and Policy) Contracts) 2) The Federal Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations. 3) The Federal Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Preparation To expedite our review, the Agency should have representatives available to answer program and fiscal questions and provide clarification during our monitoring visit. In addition, the Agency should have its case files and accounting records available. The auditors will also need temporary workspace and access to telephones and copy machines. Entrance Conference The entrance conference will be held on the first day of the review. At the entrance conference, the auditors will give a brief summary of the review objectives, identify the A-C contact information, and discuss the items listed in the confirmation letter. Field Work The field work is an in-depth review of program records, accounting and financial documents and transactions. The field work usually takes between five and ten business days to complete, depending on staffing and other variables. Preliminary findings will be discussed with the Agency's representative during the field work stage of the review. It is important to maintain open communication during the field work stage so that any disagreements or misunderstandings can be resolved in a
Case 2:12-cv-10400-PA-AGR Document 59-2 Filed 07/18/13 Page 20 of 20 Page ID #:4627 Attachment B Page 2 of 2
timely manner. At the conclusion of our field work, we will meet with Agency management to summarize our field work and preliminary findings. Exit Conference The exit conference will take place within two weeks after the issuance of a preliminary draft report and supporting schedules. The purpose of the exit conference is to discuss the findings and recommendations noted in the draft report with the Agency and to resolve any disagreements or misunderstandings that may have occurred during our review. Agencv Response to Draft Report After the exit conference, the final draft report will be issued to the Agency. The Agency will have two weeks to provide a written response, which should include a corrective action plan. The response should address each of the findings affecting the Agency's operations including compliance/internal control issues and identified disallowed costs, and specify agreement/disagreement with each finding and the reasons for such. The corrective action plan should include how and by when the Agency will implement the recommendations addressed in our report. Final Report If a written response is received, we will attach the Agency's response and corrective action plan to the A-C's final report. The report will be issued to the Board of Supervisors and posted on the Auditor-Controller's website for public viewing.
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aidshealth.org Samantha R. Azulay, SBN 283424 samantha.azulay aidshealth.org AIDS Healthcare oundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile
akim plonskerlaw.com
1990 Bundy Drive, Suite 280
Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS it and MICHAEL WEINSTEIN UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA(AGRx) DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Applacation 2. Memorandum of Points and Authorities; 3. Declarations of Samantha Azulay, Michael Weinstein, Sharon Matland, Wayne Chen, M.D. Lod ed concurrently 1.Proposed] Order Date: Time: Courtroom: 15
13 14
12
AIDS HEALTHCARE MICHAEL FOUNDATION; 15 WEINSTEIN

16 17 i8
Plaintiffs, vs.
COUNTY OF LOS ANGELES; 19 MARIO J. PEREZ, Defendants. 20

21 22 23 24 25 26 27 28
DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
isg12:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 2 of 27 Page ID #:4629
1
2 3 4 5 6 7
DECLARATION OF PATRICIA BERMUDEZ I, Patricia Bermudez, declare as follows: 1. The facts set forth herein are true of my own personal knowledge, and if
called upon to testify thereto, I could and would competently do so under oath. 2. I am the Director of Grants Administration for AIDS Healthcare
Foundation("AHF"). I am responsible for managing compliance by AHF with its contractual and regulatory requirements in connection with all of its federally funded
g programs. Part of my responsibility is to deal with contractual audits and to handle

9
and address fonder communications and fonder requirements. I supervise a team of
10 six individuals, all of whom report directly to me. it

12 13 14 15 16 17
3.
The process of setting up and scheduling Los Angeles County audits
usually involves an initial contact from the County notifying AHF ofthe County's intention to conduct an audit. That initial contact almost always comes to me or someone on my team. The initial contact involves or is shortly followed by discussions concerning the timing ofthe audit as well as its scope (e.g., time frame subject to audit, aspects) of AHF's business to be subject to audit). Usually, the parties discuss permissible dates to commence the audit, and the parties engage in
ig efforts to accommodate the schedules of the individuals to be involved with the audit.
19 20 21 22 23 24 25 26 27 28
Once notified ofthe County's intention to audit and after the parties have some discussions concerning the scope ofthe audit, AHF staff, including my team members and me, meet internally to discuss the audit and its scope and to formulate a plan for handling the audit. Most often, tentative dates are exchanged between the parties and, after a period of discussion, the audit is scheduled and commences. 4. In the last several months, the County has been conducting various
audits of different aspects of AHF's business and operations (the "Audits"). The parties began discussing one ofthose audits in January 2013, and the exit conference for that audit, which occurs once the information gathering portion ofthe audit is complete, took place on June 19, 2013. The parties began discussing another of those
1
DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
1 audits in February 2013, and the exit conference for that audit took place on July 2, 2 2013. 3 5. My staff members devoted a great deal of their time to handling the
4 Audits. Aside from myself, four of my staff members devoted significant time to the 5 audits. I estimate that one of my staff members devoted approximately 75% of her 6 work time, another devoted about 35% of her work time, another devoted about 40% 7 of her work time and yet another devoted about 20% of her work time to dealing with g the Audits. In the course ofthe Audits, I have had to interface with AHF's patient 9 service providers to assist with the Audits, and they have devoted time away from 10 patient care to assisting AHF and the County in the process of the Audits. 11 6. In late March 2013, while the Audits were underway, a representative of
12 the Los Angeles County Auditor Controller contacted me via telephone and notified
13 me that the County intended to schedule a "contract compliance review" of AHF's
14 contracts with the County (the "New Audit"). At that time, the County representative 15 informed me that the focus ofthe New Audit would be fiscal years 2011-2012 and 16 2012-2013. The County representative asked that I respond so that the parties could 17 confirm the commencement date for the New Audit. 18 7. On April 16, 2013, the County Auditor Controller representative sent me
19 an email, a true and correct copy of which is attached hereto as Exhibit "A." In that 20 email, the County representative confirmed a prior discussion with me in which the 21 scope ofthe review had expanded to include an examination of contract years 200922 2010 and 2010-2011 in addition to the two contract years previously identified. The 23 County representative asked that I confirm a commencement date for the New Audit. 24 8. On Apri122, 2013, I sent an email to the County representative stating
25 that I had been working to coordinate commencement dates for the New Audit but 26 that the pendency of the Audits, and the demands for information, site visits and the 27 like associated with those Audits, made it difficult to accommodate all requested 28 dates without impacting service to clients. Also, I noted that the scope of the
2
DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS' EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
1 intended New Audit had doubled since the initial contacts between the parties, in that 2 the County intended to examine two additional years than they had initially stated. I 3 asked on behalf of AHF that the Auditor Controller push the commencement ofthe 4 audit until after July 2013. A true and correct copy of this email is attached hereto as 5 Exhibit "B." 6 9. I did not hear from the Auditor Controller or any other County
7 department or representative concerning the scheduling ofthe New Audit during May g 2013. In early June, 2013, I had a telephone call with an Auditor Controller 9 representative, who suggested that the New Audit commence on July 8, 2013 or July l0 15, 2013. I emailed the Auditor Controller representative stating that I would 11 respond concerning whether these dates were workable after concluding internal 12 discussion at AHF. A true and correct copy ofthis email is attached hereto as Exhibit
13 "C" 14
10.
On June 13, 2013, I received an email from an Auditor Controller
15 representative asking that I let the Auditor Controller know by the following week 16 which ofthe July dates work for the commencement ofthe New Audit. The Auditor 17 Controller representative stated that the Auditor Controller's staff would need to plan ig its scheduling. A true and correct copy of this email is attached hereto as Exhibit
D" 19 "
20
11.
Another Auditor Controller representative emailed me on June 20, 2013
21 asking again if the new audit could commence on July 8 or July 15, 2013. A true and 22 correct copy of this email is attached hereto as Exhibit "E." 23 12. On June 21, 2013, I sent to the Auditor Controller representative a letter
24 (via email attachment) responding to the County's demand to commence the New 25 Audit in July 2013. A true and correct copy of this letter is attached hereto as Exhibit 26 "F." In the letter, I explained that, since January 2013, AHF had been undergoing the 27 Audits which at that time were still in the process of completion. I noted that"AHF 28 staff needs to refocus their attention to patient care after the intense administrative
3
DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
C isell2:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 5 of 27 Page ID #:4632
1 overload they undertook for the first half ofthe year" associated with the Audits. I
2 noted that AHF "staff has been put on an intense work schedule including overtime 3 and vacation blackout." I asked that the Auditor Controller "[p]lease note that given 4 the expanded scope of your audit review across 11 service components and 4 5 programmatic fiscal years, AHF is faced with administrative challenges in allocating 6 appropriate resources without impacting services to patients at this time." I proposed 7 that the parties discuss the possibility that the audit commence in September 2013 "to
g ensure that AHF is well equipped to support the audit requests and ensure 9 participation of all the required parties." l0 13. On June 25, 2013, I received an email from an Auditor Controller
11 representative named Katherine Urbanski. A true and correct copy of this email is
12 attached hereto as Exhibit "G." In that email, Ms. Urbanski stated that the Auditor 13 Controller would not accommodate AHF's request for the commencement of the 14 New Audit to take place in September 2013 as a result of"other agency reviews and 15 staff vacations." 16
14.
On June 26, 2013, I spoke with Michael Weinstein, the President of
17 AHF. He told me that he had spoken with Ms. Urbanski and that she had agreed that 18 the New Audit could commence in September. I left a voicemail for Ms. Urbanski
19 that day, so that we could coordinate a precise start date, and I sent an email also to
20 Ms. Urbanski on the same subject matter, a true and correct copy of which is attached 21 hereto as Exhibit "H." At some point later, I received a call from Ms. Urbanski in 22 which she confirmed that the New Audit could commence in September, and we 23 agreed to commence discussions about specific dates. 24
15.
Notwithstanding these discussions with Ms. Urbanski, it is my current
25 understanding that the County and the Auditor Controller are not willing to move the 26 commencement of the new audit into September. 27
16.
The contemplated New Audit involves an enormous scope. It will
28 involve as an initial matter a comprehensive review of all of AHF's financial records 4

L ise~12:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 6 of 27 Page ID #:4633
1 pertaining to all of its programs in Los Angeles County. Normally, audits reach back 2 12 months. The New Audit is intended to reach backfour years. Previously, it is my 3 understanding that financial audits of AHF have involved chiefly an examination of 4 medical outpatient services and the costs, expenses and charges associated with them. 5 In the New Audit, the County intends to review financial documents and information 6 related to medical outpatient services as well as medical case management,the 7 benefits sub specialty program, mental health treatment programs and sexually g transmitted disease prevention programs. Basically, the County intends to review all 9 of AHF's financial documents pertaining to these programs and activities, which is an l0 audit of unprecedented scope. 11 17. I am informed that the County contends that the New Audit poses little
12 or no risk of impacting patient services and care because the New Audit seeks as an 13 initial matter financial information pertaining to AHF's programs and activities, 14 information in the custody of AHF's administrative personnel and not in the custody 15 of front line patient service providers. As I understand it, the point ofthe New Audit
16 is to review the expenditures, charges and other expenses incurred by AHF in
17 providing patient services and then evaluate that information against patient census 18 information. That latter process the evaluation ofthe financial information against 19 patient census information always involves follow up or other involvement of front 20 line patient service providers. This is particularly so with AHF because there is no 21 categorization on AHF's general ledger of patient census information. All of AHF's 22 programs are reflected on AHF's financial documents in program-wide service 23 components. To connect up the programs and the service dollars with patient census 24 information, the Auditor Controller will need to interface with AHF's patient service 25 providers. I, therefore, anticipate that I will be called upon to interface with AHF's 26 patient service providers in the course of the New Audit and that I will be forced to
27 // 28 / / 5
Case x:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 7 of 27 Page ID #:4634
1 ask them to spend time potentially significant time assisting with the New Audit. 2
I declare under penalty of perjury pursuant to the laws of the United States of
3 America that the foregoing facts are true and correct. 4 5

, 7
Executed on July 17, 2013 at Los Angeles, California.
6
7 8 9 10 11 12 13 14 15
PATRICIA BERMUDEZ
16
17 18 19 20 21 22 23 24 25 26 27 28 6
DECLARATION OF PATRICIA BERMUDEZ IN SUPPORT OF PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJiJNCTION
X 1 It
Case 2:12-cv-10400-PA-AGR
Document 59-3 Filed 07/18/13 Page 9 of 27 Page ID #:4636 Thursday, July 18,2013 9:36:15 AM Pacific Daylight Time
Subject: FW: Scheduling for Review of DHSP Contracts Date: From: Thursday, July 18, 2013 9:36:12 AM Pacific Daylight Time Samantha Azulay
Priority: High
From: Khalsa, Sat Avtar jmailto:skhalsaCa~auditor.lacountv.4ov] Sent: Tuesday, April 16, 2013 12:32 PM To: Patricia Bermudez Cc: Lyle Honig; Urbanski, Katherine Subject: Scheduling for Review of DHSP Contracts
Good Afternoon Ms. Bermudez.
I'm following up on our previous phone conversation on April 3~d and the voicemail I left for you on Friday April 12th At the request of DPH, our team from LA County Auditor Controller would like to schedule a contract compliance review of AHF's DHSP contracts beginning the week of May 13th or May 20th. The primary focus of our review will be a fiscal review of contract years 2011-12 and 2012-13 with more limited review of contract years 2009-10 and 201011.Once we agree on a commencement date we will send a formal engagement letter with a list of documents needed for the audit and more details on the scope of our review. I would appreciate it if you could get back to me so we can confirm the start of our review. If you have additional questions please contact me either by email or at the number listed below.
Best regards,
Sat Avtar K. Khalsa, CPA Countywide Contract Monitoring Division Los Angeles County Auditor Controller Phone: 213-253-0311 Fax: 213-897-5963
Page 1 of 1
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Document 59-3 Filed 07/18/13 Page 11 of 27 Page ID # T~~~tlay, July 18,2013 937:58 AM Pacific Daylight Time
Priority: High
From: Patricia Bermudez Sent: Monday, April 22, 2013 11:09 AM To:'Khalsa, Sat Avtar' Cc: Lyle Honig; Urbanski, Katherine Subject: RE; Scheduling for Review of DHSP Contracts Importance: High
Hello Sat Avtar, have been working to coordinate the requested dates for the LA County Auditor Controller compliance review however, given the multiple audits/reviews/monitoring visits which LA County has requested it is difficult to accommodate all requested dates without impacting service to clients. As of Friday, April 12, 2013 the program review to be performed by your office has doubled in scope to include 2 additional program years. Given that we have about five other LA County visit between April and May, AHF is requesting to push back the Auditor Controller review until after July 2013.
Please provide your availability for the new proposed timeframe or let me know if you have any questions
Patricia D. Bermudez Director of Grants Administration AIDS Healthcare Foundation 6255 W. Sunset Blvd., 21st Floor Los Angeles, CA 90028 Office. 323.860.5253 Mobile: 323.203.7381 Fax: 323.962,8513
"Cutting-Edge Medicine and Advocacy Regardless of Ability to Pay"
From: Khalsa, Sat Avtar fmailto:skhalsaC~auditor.lacountv.Qov] Sent: Tuesday, April 16, 2013 12:32 PM Page 1 of 2

To: Patricia Bermudez Cc: Lyle Honig; Urbanski, Katherine Subject: Scheduling for Review of DHSP Contracts
Good Afternoon Ms. Bermudez.
I'm following up on our previous phone conversation on April 3rd and the voicemail I left for you on Friday April 12th At the request of DPH, our team from LA County Auditor Controller would like to schedule a contract compliance review of AHF's DHSP contracts beginning the week of May 13th or May 20th. The primary focus of our review will be a fiscal review of contract years 2011-12 and 2012-13 with more limited review of contract years 2009-10 and 201011.Once we agree on a commencement date we will send a formal engagement letter with a list of documents needed for the audit and more details on the scope of our review. I would appreciate it if you could get back to me so we can confirm the start of our review. If you have additional questions please contact me either by email or at the number listed below,
Best regards,
Page 2 oft
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Case 2:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 14 of 27 Page ID

~~~lay, July 18,2013 9:40:13 AM Pacific Daylight Time Subject: FW: Scheduling for Review of DHSP Contracts Date: From: Thursday, July 18, 2013 9:40:10 AM Pacific Daylight Time Samantha Azulay
From: Patricia Bermudez Sent: Tuesday, June 11, 2013 10:40 AM To:'Khalsa, Sat Avtar' Cc: Lyle Honig; Tom Myers;'Urbanski, Katherine' Subject: RE: Scheduling for Review of DHSP Contracts
Hello Sat Avtar,
Based on your call last week, I have communicated internally about the dates requested which are July 8th or July 15th to schedule the DHSP program audit. I will fet know our response. Thanks Patty
Patricia D. Bermudez Director of Grants Administration AIDS Healthcare Foundation 6255 W. Sunset Blvd., 21st Floor Los Angeles, CA 90028 Office: 323.860.5253 Mobile: 323.203.7381 Fax: 323.962.8513
"Cutting-Edge Medicine and Advocacy Regardless of Ability to Pay" _ From: Patricia Bermudez Sent: Monday, April 22, 2013 11.09 AM To:'Khalsa, Sat Avtar' __ __
Cc: Lyle Honig; Urbanski, Katherine Subject: RE: Scheduling for Review of DHSP Contracts Importance: High
Page 1 of 2

Hello Sat Avtar, have been working to coordinate the requested dates for the LA County Auditor Controller compliance review however, given the multiple audits/reviews/monitoring visits which LA County has requested it is difficult to accommodate all requested dates without impacting service to clients. As of Friday, April 12, 2013 the program review to be performed by your office has doubled in scope to include 2 additional program years. Given that we have about five other LA County visit between April and May, AHF is requesting to push back the Auditor Controller review until after July 2013.
Please provide your availability for the new proposed timeframe or let me know if you have any questions
Patricia D. Bermudez Director of Grants Administration AIDS Healthcare Foundation 6255 W. Sunset Blvd., 21st Floor Los Angeles, CA 90028 Office: 323.860.5253 Mobile: 323.203.7381 Fax: 323.962.8513
Page 2 oft
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Document 59-3 Filed 07/18/13 Page 17 of 27 Page ID #~~pF~ay,July 18,2013 9:42:55 AM Pacific Daylight Time
From: Khalsa, Sat Avtar Sent: Thursday, June 13, 2013 4:09 PM To: Patricia Bermudez Cc: Lyle Honig; Urbanski, Katherine Subject: RE: Scheduling for Review of DHSP Contracts
Good Afternoon Patty.
Thanks for the update on scheduling the audit. Can you let us know which date you prefer by early next week (Monday or Tuesday)so that we can plan our staff scheduling?
Thanks.
Page 1 of1
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~r5~ay,luly 18,2013 9:44:28 AM Pacific Daylight Time Subject: FW:Scheduling for Review of DHSP Contracts Date: From: Thursday, July 18, 2013 9:44:14 AM Pacific Daylight Time Samantha Azulay
__
__
From: Urbanski, Katherine [mailto:kurbanskiCa~auditor.lacounty.4ov1 Sent: Thursday, June 20, 2013 10:49 AM To: Patricia Bermudez; Lyle Honig Cc: Khalsa, Sat Avtar Subject: RE: Scheduling for Review of DHSP Contracts
Good morning Patty and Lyle,
Have you reached a decision on whether you would like our audit to start on July 8th or July 15th? We would like to send out the commencement documents. Please let me today if possible.
Thank you,
Katherine Urbanski, CPA Senioi Accountant-Auditoi Countywide Contract Monitoring Division Department of Auditor-ContLollei County of Los Angeles
350 S. Figueroa St., 8th Floor, Los Angeles, CA 90071 T:(213) 253-0332 F:(213) 897-1561 kuibanskinp,auditorlacounty.gov
Page 1 of1
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#~~~lay,July 18,2013 9:46:33 AM Pacific Daylight Time Subject: FW: Scheduling for Review of DHSP Contracts Date: From: Thursday, July 18, 2013 9:46:27 AM Pacific Daylight Time Samantha Azulay
From: Patricia Bermudez Sent: Friday, June 21, 2013 7:10 PM To:'Urbanski, Katherine'; Khalsa, Sat Avtar Cc: Lyle Honig; Dhanya Hiremath Subject: RE; Scheduling for Review of DHSP Contracts
Hi Katherine and Sat Avtar, Attached, please find AHF's response to the dates requested for the Auditor Controller review to begin either July 8th or 15th
If you have any questions please let me know. Patty
Patricia D. Bermudez Director of Grants Administration AIDS Healthcare Foundation 6255 W. Sunset Blvd,, 21st Floor Los Angeles, CA 90028 Office: 323.860.5253 Mobile; 323.203.7381 Fax: 323.962.8513
Page 1 of1
Case 2:12-cv-1040.0-PA-AGR Document 59-3 Filed 07/18/13 Page 22 of 27 Page ID #:4649

AIDS 1-[EALTHCAIZE FOU(VDATION Sent via email on June 21,2013
Sat Avtar I<. Khalsa, Los Angeles County Auditor Controller 500 W Temple Street, Room 525 Kenneth Hahn Hall of Adninislration Los Angeles, CA 90012
Dear Sat Avtar: This communication is with respect to your communication dated June 10, 2013 about rescheduling a financial audit for AIDS HealChcare roundation's (tli-IF).contracts with DHSP. Upon further review of the audit requirements with our i~iteriial program and management teams, I regret to infom you that the aveelcs of July 8~~~ or July 1S~h cannot be accommodated at t1~is time by AFI C. Since January AHC has undergone a series of audits and is still in the process of completion
and our resources have been stretched beyond the optimal level, AFIe staff has not only had to continue program operations and support but have undergone DHSP Program Reviews, DHSP Facilities and Operations Reviews, DI-ISP Site Visits, UHSP Deslc Review and 1-[WLA Site Reviews. ~1HC staff needs to refocus their attention to patient care after the intense administrative overload they undertook for the first half of the year. Our staff has been put on an intense work schedule including overtime and vacation blackout, Please note tlial given tl~e expanded scope of your audit review across 11 service components and 4 programmatic fiscal years, AEIP is faced with administrative challenges in allocating appropriate resources wiChout impacting services to
patients at this time. AHD would lilte to coordinate with your agency to negotiate suitable times for tl~e proposed f3etd work to commence in Septemt~cr 2013, to ensure that AHF is well equipped to support the audit requests and ensure participation oFall the required parties. As always, AI-I~ is committed to estaUlishing effective collaboration with your agency and we look forward to an effective collaboratio~i. IF you leave any questions or requi~e additional information, please contact me or Dhanya hliremath, Grants Manager at ~hanya.l~lirem~th(~aidsh~alrh ~rP at 323.860.5277. Sincerely,
Patricia D, Bermudez
"'"
Director of Grants Administration
ADMINISTRATIVE O]'FICG: 6?55 W SUNSET BLVD,21ST FLOOR LOS ANGGLLS, CA 90028 USA TEL 323.860.5200PAX 323.96?.9513
X 1 It

~f~i~s~ay, July 18,2013 10:26:12 AM Pacific Daylight Time Subject: FW: Scheduling for Review of DHSP Contracts Date: Thursday, July 18, 2013 10:26:09 AM Pacific Daylight Time
From: Samantha Azulay
From: Urbanski, Katherine [mailto:kurbanskiCa~auditor.lacounty.Qov] Sent: Tuesday, June 25, 2013 7:43 AM To: Patricia Bermudez; Lyle Honig
Cc: Dhanya Hiremath; Khalsa, Sat Avtar Subject: RE: Scheduling for Review of DHSP Contracts
Patty and Lyle,
I'm following up on the voicemail I left Patty yesterday morning. Due to other agency reviews and staff vacations, we are unable to accommodate your September 2013 request. However, as you requested to postpone a May 2013 audit to July 2013, please choose a date in July that work best for you and your staff. If you agree to July 8th or 15th, barring any other delays, we should be finished with our review by August 21 St. Also, please be reminded that DHSP reviews are required every other year; your last audit was for Fiscal Years 2007-08 and 200809.
Please let me know by today what July date you would prefer, and if you have any questions, feel free to call me.
Thank you for your cooperation,
Katherine Uxbanski T:(213) 253-0332 kurbanski(c~auditoi.lacounty.gov
Page 1 of1
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Case 2:12-cv-10400-PA-AGR Document 59-3 Filed 07/18/13 Page 26 of 27 Page ID ~h~a~~y,July 18,201310:56:58 AM Pacific Daylight Time Subject: FW:Scheduling for Review of DHSP Contracts Date: From: Thursday, July 18, 2013 10:56:43 AM Pacific Daylight Time Samantha Azulay
From: Patricia Bermudez Sent: Wednesday, June 26, 2013 1:18 PM To:'Urbanski, Katherine'; Lyle Honig Cc: Dhanya Hiremath; Khalsa, Sat Avtar Subject: RE; Scheduling for Review of DHSP Contracts
Hi Katherine,
I am following up on the voicemail I le$ this afternoon. I would like to get your agency's availability for September so that we can start scheduling the review. Please contact me regarding your availability. Patty
Patricia D. Bermudez Director of Grants Administration AIDS Healthcare Foundation 6255 W. Sunset Blvd,, 21st Floor Los Angeles, CA 90028 Office: 323.860.5253 Mobile; 323.203.7381 Fax: 323.962.8513
"Cutting-Edge Medicine and Advocacy Regardless ofAbilrty to Pay" __ _ _ _ From: Urbanski, Katherine [mailto:kurbanskiCa~auditor.lacount~govl Sent: Tuesday, June 25, 2013 7:43 AM To: Patricia Bermudez; Lyle Honig Cc: Dhanya Hiremath; Khalsa, Sat Avtar Subject: RE: Scheduling for Review of DHSP Contracts
Page 1 of2
Patty and Lyle,
I'm following up on the voicemail I left Patty yesterday morning. Due to other agency reviews and staff vacations, we are unable to accommodate your September 2013 request. However, as you requested to postpone a May 2013 audit to July 2013, please choose a date in July that work best for you and your staff. If you agree to July 8th or 15th, barring any other delays, we should be finished with our review by August 21St. Also, please be reminded that DHSP reviews are required every other year; your last audit was for Fiscal Years 2007-08 and 200809.
Please let me know by today what July date you would prefer, and if you have any questions, feel free to call me.
Thank you for your cooperation,
Katherine Urbanski T:(213) 253-0332 kuibanski o cni,auditoi.lacount~gov
Page 2 of 2
2 3 4
Tom Myers(SBN 176008) tom.myers@aidshealth.org Samantha 1~. Azulay, SBN 283424 samantha.azulay(a~aidshealth.org AIDS Healthcare Foundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim plonskerlaw.com 1990 Bundy Drive, Suite 280
8 Los Angeles, CA 90025
(310)861-2050 9 Telephone: Facsimile: (310)496-2577 10 Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS it and MICHAEL WEINSTEIN
13 14
12
UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION CV 12-10400 PA(AGRx) DECLARATION OF WAYNE CHEN,M.D.IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Applacation 2. Memorandum of Points and Authorities; 3. Declarations of Samantha Azula~, Michael Weinstein, Patricia Bermudez, Sharon Matland Lod ed concurrently 1.[Proposed] Order Date: Time: Courtroom: 15
15 AIDS HEALTHCARE

18
vs. MARIO J. PEREZ,
19 COUNTY OF LOS ANGELES; 20 21 22 23 24 25 26 27 28
Defendants.
DECLARATION OF WAYNE CHEN IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
1
2 3
DECLARATION OF WAYNE CHEN,M.D. I, Wayne Chen, M.D., declare as follows: 1. The facts set forth herein are true of my own personal knowledge, and if
4 ~ called upon to testify thereto, I could and would competently do so under oath. 5
2.
I am a licensed medical doctor. I am the Senior Medical Director of
6 Managed Care and am the Acting Chief of Medicine for AIDS Healthcare Foundation 7 (AHF). My day-to-day duties involve leading AHF's healthcare providers, including 8 physicians and registered nurses, in the providing of quality medical care, among 9 other tasks. I also am responsible for leading the operations of the Healthcare
l0 Centers operated by AHF. I also directly render patient care.

11
3.
AHF is a nonprofit corporation. Its global mission is to provide cutting
12 edge medicine and advocacy to people with HIV/AIDS, regardless of ability to pay. 13 The treatment of HIV/AIDS provided by AHF is uniquely successful because it 14 involves intensive, highly structured and rigidly scheduled drug regimens and 15 interaction between patients and AHF service providers (e.g., registered nurses and 16 physicians). The treatment provided by AHF is, therefore, time consuming and is not 17 easily subject to "schedule shifting." More specifically, in caring for people living 18 with HIV/AIDS, AHF assigns a team of healthcare professionals to monitor members 19 and aggressively manage their treatment. A case management team, consisting of a 20 registered nurse, a licensed vocational nurse and a social worker, is provided to each 21 client. The case management team monitors the care plan established by each client's 22 primary care physician, answers healthcare questions the client might have, and, 23 perhaps most importantly, takes steps to ensure that members remain compliant with 24 their medication regimens and care plan. The registered nurse assigned to each client 25 further assists the members by acting as a liaison to the client's primary care 26 physician, by coordinating the various components of care, and by assisting members 27 in learning to manage their disease. The level of service and care provided by AHF is 28 far above what can be had through the traditional fee-for-service system. This
DECLARATION OF WAYNE CHEN IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Cas~ 2:12-cv-10400-PA-AGR Document 59-4 Filed 07/18/13 Page 3 of 4 Page ID #:4657
1 improves health outcomes and reduces the total cost of caring for AHF patients. And 2 it is perhaps needless to say that this level of care saves lives otherwise lost. 3 4. In the past several months, I have been called upon to assist in
4 connection with audits conducted by Los Angeles County. These audits required that 5 members of AHF's staff and I spend time in preparing for and the actual conduct of 6 the audits. Speaking conservatively, Ispent at least four hours assisting County 7 auditors in navigating AHF's computer and record keeping systems. A psychiatrist 8 on AHF's staff(who reports to me)Karl Goodkin, M.D. spent approximately four 9 hours assisting with the audit process, as did a nurse practitioner on my staff, 10 Meaghan Carr. One of our Healthcare Center coordinators Eugenia Dudley spent 11 approximately four hours assisting with the audit. Also, I attended what I understood 12 to be entrance and exit meetings with County and AHF personnel (the former 13 conducted at the commencement of the audits and the latter conducted at the 14 conclusion of the information gathering process ofthe audits) which took 15 approximately 1.5 and 1 hours, respectively. My staff and I spent an additional three 16 to five hours planning for the audit process. Although it is my understanding that the 17 audits are concluded (from the standpoint of information gathering), I also understand ig that there is a significant likelihood that I will be called upon to analyze and respond 19 to the audit results and conclusions. 20 5. As noted, my department staff, all of whom report directly to me and 21 most of whom render direct patient care and services, spent significant time in 22 connection with the audits in the recent past. Neither my staff nor I can render 23 patient services (or supervise and oversee the rendering of such services, as the case 24 may be) when we are called upon to participate in County audits. 25 6. I am gravely concerned that, if the County is permitted to commence an 26 audit of AHF's overall finances for a four year period, the preparation for that audit, 27 as well as the conducting of the audit itself and any follow up, will require that I or 28 members of my staff devote additional time away from patient services and care on
2
DECLARATION OF WAYNE CHEN IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Case :12-cv-10400-PA-AGR Document 59-4 Filed 07/18/13 Page 4 of 4 Page ID #:4658
1 members of my staff devote additional time away from patient services and care on 2 the heels of a massive loss oftime in connection with the recently concluded audits. 3 Given the nature of AHF's treatment methods and protocols, any further loss of time 4 (without a period to permit us to "catch up"), will directly impact patient care, 5 services and welfare. 6 I declare under penalty of perjury pursuant to the laws of the United States of
7 America that the foregoing facts are true and correct. 8

9
Executed on July 17, 2013 at Los Angeles,f~f~ni .

"' ~~
; -~
Nt ir
io
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
WAYNE CHEN
DECLARATION OF WAYNE CI~N IN SUPPORT OF PLAINTIFFS'EXPARTE APPLICATION FOR TEMPORARY RESTRAINII~IG ORDER AND OSC RE PRELIMINARY INJUNCTION
2 3 4 5
Tom Myers(SBN 176008) tom.myers@aadshealth.org Samantha R. Azulay, SBN 283424 Samantha.azulay(a~aidshealth.org AIDS Healthcare Foundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 323-467-8450 Facsimile akim plonskerlaw.com 1990 Bundy Drive, Suite 280
8 Los Angeles, CA 90025
(310)861-2050 9 Telephone:(310) 496-2577 Facsimile:

10
Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS ii and MICHAEL WEINSTEIN UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION CV 12-10400 PA(AGRx) DECLARATION OF SHARON MATLAND IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Applacation 2. Memorandum of Points and Authorities; 3. Declarations of Samantha Azulax, Michael Weinstein, Patricia Bermudez, Wayne Chen, M.D. Lod ed concurrently 1.Proposed] Order Date: Time: Courtroom: 15
13 14
12
AIDS HEALTHCARE MICHAEL FOUNDATION; 15 WEINSTEIN Plaintiffs,

vs. 17 18
16
COUNTY OF LOS ANGELES; PEREZ, 19 MARIO J. Defendants. 20

21 22 23 24 25 26 27 28
DECLARATION OF SHARON MATLAND IN SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Cash 2:12-cv-10400-PA-AGR Document 59-5 Filed 07/18/13 Page 2 of 4 Page ID #:4660
1 2 3
DECLARATION OF SHARON MATLAND I, Sharon Matland declare as follows: 1. The facts set forth herein are true of my own personal knowledge, and if
4 called upon to testify thereto, I could and would competently do so under oath. 5
2.
I am a registered nurse. I am the Director of Nursing for the Healthcare
6I Centers run by AIDS Healthcare Foundation(AHF). Approximately 60 registered 7I nurses, licensed vocational/practical nurses and medical assistants working for AHF 8 nationwide report to me. I am responsible for supervising and overseeing these 9 nurses, all of whom render patient care in their day-to-day jobs. I estimate that I 10 spend about 10% of my time rendering patient care directly. 11
3.
AHF is a nonprofit corporation. Its global mission is to provide cutting
12 edge medicine and advocacy to people with HIV/AIDS, regardless of ability to pay. 13 The treatment of HIV/AIDS provided by AHF is uniquely successful because it 14 involves intensive, highly structured and rigidly scheduled drug regimens and 15 interaction between patients and AHF service providers (e.g., nursing staff and 16 physicians). The treatment provided by AHF is, therefore, time consuming and is not 17 easily subject to "schedule shifting." More specifically, in caring for people living 18 with HIV/AIDS, AHF assigns a team of healthcare professionals to monitor members 19 and aggressively manage their treatment. A registered nurse is provided to each 20 client to serve as a case manager. The case manager monitors the care plan 21 established by each client's primary care physician, answers healthcare questions the 22 client might have, and, perhaps most importantly, takes steps to ensure that members 23 remain compliant with their medication schedules. The registered nurse assigned to 24 each client further assists the members by acting as a liaison to the client's primary 25 care physician, by coordinating the various components of care, and by assisting 26 members in learning to manage their disease. The level of service and care provided 27 by AHF is far above what can be had through the traditional fee-for-service system. 28
DECLARATION OF SHARON MATLAND 1N SUPPORT OF PLAINTIFFS' EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Cash 2:12-cv-10400-PA-AGR Document 59-5 Filed 07/18/13 Page 3 of 4 Page ID #:4661
1 This improves health outcomes and reduces the total cost of caring for AHF patients. 2 And it is perhaps needless to say that this level of care saves lives otherwise lost. 3
4.
In the past several months, I have been called upon to assist in
4 connection with audits conducted by Los Angeles County. These audits required that 5 I spend a total of more than seven full work days performing tasks in connection with 6 the audits. I spent approximately five full days visiting the Healthcare Centers run by 7 AHF in preparation for the audits. I spent approximately nine hours participating in 8 site visits to the nine Healthcare Centers located in Los Angeles County. I spent 9 approximately another two full business days dealing with and reviewing policies and l0 procedures and finalizing other required documentation. 11
5.
My department staff, all of whom report to me and most of whom render
12 direct patient care and services, also spent time in connection with the audits. Nurse 13 j managers from the nine discrete Healthcare Centers located in Los Angeles County 14 each spent approximately 1.5 days preparing for and assisting with the audits. 15 Another registered nurse who reports to me spent approximately four full days 16 reviewing policies and procedures and additional required information. These times 17 do not include travel time between Healthcare Centers. 18
6.
I am gravely concerned that, if the County is permitted to commence an
19 audit of AHF's overall finances for a four year period, the preparation for that audit, 20 as well as the conducting of the audit itself and any follow up, will require that I or 21 members of my staff devote additional time away from patient services and care on 22 the heels of a massive loss oftime in connection with the recently concluded audits. 23 Given the nature of AHF's treatment methods and protocols, any further loss oftime 24 // 25 // 26 // 27 // 28 //
DECLARATION OF SHARON MATLAND IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Case 2:112-cv-10400-PA-AGR Document 59-5 Filed 07/18/13 Page 4 of 4 Page ID #:
.~
(without a peripd tia hermit us to "catch up"), vvzll directly impact pati~ez~t care, I declare under penaXty ofperjury pursuant to tk~e laws ofthe United States of Executed on July 17, 20 3 at Los Angeles, Cali
2 services and r~elfar~, 3
4 America ghat the foregoxz~g facts are true and correct. 5 G

7
'a,
SHARO~t ~,TLAND
8
9 ZO
1~
72 ~3
1~ z5
16 17'~ X8 19 20 21 22 23 24 25 26 27 28 TTON OF SHARON MATLANI7 TN SUPPORT OF P~A,~NTZFFS' ~'~PARTE APpLICA'Z'~ON FOTt
T~M1~O1tARY KE5TRf1IMIJG Q~2I7~~ t~,NJ7 OSC ~E PRELIMIIVA,RY ~NNNCrION
2:12-cv-10400-PA-AGR Document 59-6 Filed 07/18/13 Page 1 of 10 Page ID #:
~3
2 3 4 5
Tom Myers(SBN 176008) tom.myers aidshealth.o~rg Samantha . Azulay, SBN 283424 samantha.azulay aidshealth.org AIDS Healthcare~oundation 6255 West Sunset Boulevard, 21st Floor Los Angeles, CA 90028 Telephone 323-860-5200 Facsimile 323-467-8450
6 Andrew F. Kim(SBN 156533) akim(~plonskerlaw.com Plons~cer Law LLP 7 1990 Bundy give Suite 280 Angeles, CA X0025 8 Los Telephone:(310)861-2050 9 Facsimile: (310)496-2577 10 Attorn~e~ ys for Plaintiffs AIDS HEALTHCARE FOUNDATION 11 and MICHAEL WEINSTEIN 12 13 14 15 16 17 18 vs. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA,WESTERN DIVISION AIDS HEALTHCARE FOUNDATION; MICHAEL WEINSTEIN Plaintiffs, CV 12-10400 PA(AGRx) DECLARATION OF SAMANTHA R AZULAY IN SUPPORT OF PLAINTIFFS'EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Filed concurrently 1. Ex Parte Applacation 2. Memorandum of Points and Authorities; 3. Declarations of Michael Weinstein,Patricia Bermudez, Sharon Matland, Wayne Chen, M.D. Lod ed concurrently 1.[Proposed] Order Date: Time: Courtroom: 15
COUNTY OF LOS ANGELES; 19 MARIO J. PEREZ, Defendants. 20 21 22 23 24 25 26 27 28
DECLARATION OF SAMANTHA AZULAY RE: NOTICE OF APPLICATION FOR TEMPORARY RESTRAINING ORDER 1
1 2 3
DECLARATION OF SAMANTHA R. AZULAY I, SAMANTHA R. AZLTLAY, declare and state as follows: 1. I am an attorney at law duly licensed to practice before all courts of
4 the State of California. I am one of the attorneys of record for Plaintiff and 5 6 Counterdefendant AIDS Healthcare Foundation("AHF") 2. I make this declaration regarding the Notice ofPlaintiffs' Intent to
7 Seek a Temporary Restraining Order("TRO"). The facts set forth herein are true 8 9 10 11 of my own personal knowledge, and if called upon to testify thereto, I could and would competently do so under oath. 3. Pursuant to Local Rule 7-19.1, on July 16, 2013 at 2:01 p.m., I called
Defendants' counsel, Joel Klevens, and left a detailed message regarding AHF's
12 concerns over the audit scheduled for July 22, 2013, AHF's request to reschedule 13 this audit, and AHF's notice of intent to seek a TRO if the County refused to
14 reschedule the audit. At 2:03 p.m., I called Defendant's counsel John Ly and 15 spoke to him at length regarding our concerns over the audit scheduled for July 22,
16 2013, and asked for an extension ofthe audit until a date after September 1, 2013. 17 18 Specifically, I stated that AHF would be forced to seek a TRO ifthe County refused to coordinate a workable date with AHF, and I discussed the substance of
19 ~, the Application for TRO. Mr. Ly informed me that he would respond to me by 20 3:00 p.m. on July 17, 2013. 21 22 5. On July 16, 2012 at 5:01 p.m., Mr. Ly sent an e-mail stating that he
had been unable to reach his client, but he would provide a response by 3:00 p.m.
23 the following day. Attached as Exhibit A is a true and correct copy of this e-mail. 24 25 6. On July 16, 2013 at 5:04 p.m., I responded to Mr. Ly's e-mail
confirming that AHF would stand by until 3:00 p.m. on July 17, 2013. Attached a~
26 Exhibit B is a true and correct copy of this e-mail. 27 28

DECLARATION OF SAMANTHA AZULAY RE: NOTICE OF APPLICATION FOR TEMPORARY RESTRAINING ORDER 2
C e 2:12-cv-10400-PA-AGR Document 59-6 Filed 07/18/13 Page 3 of 10 Page ID #: 665
7.
On July 17, 2013 at 2:48 p.m., Mr. Ly informed me via e-.mail that the
2 County believes the fiscal. audit should take place as scheduled on July 22, 2013. 3 4 5 6 7 8 DATED: ~~ly 17, 2013 ~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
DECLARATION OF SAMANTHA AZULAY RE; NOTICE OF APPLICATION FOR TEMPORARY RCSTRAINING ORDER 3
Attached as Exhibit C is a true and correct copy of this e-mail, I declare under penalty of perjury pursuant to the laws of the State of California.that the foregoing facts are true and correct. Executed. on July 17, 2013 in Los Angeles, California. ~, >a~ ~~ ~,~ a ~ ~~ ;~ ~~ Bye~ ~'- ~:~-~~ ~.--~~~m~~ SAMANTHA It. AZULAY
X 1 It

Wednesday,July 17,2013 3:40:00 PM Pacific Daylight Time Subject: AHF v. LA County Date: From: To: CC: Tuesday, July 16, 2013 5:01:08 PM Pacific Daylight Time John Ly Samantha Azulay Joel Klevens
Samantha:
As discussed this afternoon, you asked me whether the County could further reschedule the July 22 audit to September 2013. You stated that, unless the County agrees to reschedule this audit, AHF intends to file a TRO before Judge Anderson. You agreed to provide me until 3:00 p.m. tomorrow to respond to this request before filing any TRO. I have not yet been able to reach my client but will provide you with a response before 3 p.m. tomorrow. Thanks.
user rw~'~ii 1=inl~ ~a~co~s H4vMr~rd Avchen ~ S~rapir~ ~~~

John Ly ~ Attorney 10250 Constellation Blvd., 19th Floor, Los Angeles, CA 90067 Main: 310.553.3000 ~ Direct: 310.556.7861 ~ Fax: 310.843.2661 E-mail: jlyCa~glaserweil.com ~ www.glaserweil.com
This message and any attached documents may contain information from the law firm of Glaser Weil Fink Jacobs Howard Avchen &Shapiro LLP that is confidential and/or privileged. If you are not the intended recipient, you may not read, copy, distribute or use this information. If you have received this transmission in error, please notify the sender immediately by reply E-mail and then delete this message.
Page 1 of1
X 1 It
Document 59-6 Filed 07/18/13 Page 7 of 10 Page ID #:4669 Wednesday,July 17,2013 3:40:56 PM Pacific Daylight Time
Subject: Re: AHF v. LA County Date: From: To: CC: BCC: Tuesday, July 16, 2013 5:04:27 PM Pacific Daylight Time Samantha Azulay John Ly Joel Klevens, Andrew Kim Tom Myers, Christina Yang
Thank you. We will stand by until 3pm tomorrow. Samantha R. Azulay Assistant General Counsel AIDS Healthcare Foundation 6255 W. Sunset Boulevard, 21St Floor Los Angeles, California 90028 Tel: (323)860-5223 Fax: (323) 467-8450 samantha.azulayC~aidshealth.org www.aidshealth.org From: John Ly <ilvCc~glaserweil.com> Date: Tuesday, July 16, 2013 5:01 PM To: Samantha Azulay <Samantha.azulayC~aidshealth.or~> Cc:loel Klevens <jklevens glaserweil.com> Subject: AHF v. LA County Samantha: As discussed this afternoon, you asked me whether the County could further reschedule the July 22 audit to September 2013. You stated that, unless the County agrees to reschedule this audit, AHF intends to file a TRO before Judge Anderson. You agreed to provide me until 3:00 p.m. tomorrow to respond to this request before filing any TRO. I have not yet been able to reach my client but will provide you with a response before 3 p.m. tomorrow. Thanks.
Maser 1,~eil ~~inl< ~acvbs I~~owv~r~d ~~r~ch~n ~ ~h~pir~ ~.~~

John Ly ~ Attorney 10250 Constellation Blvd., 19th Floor, Los Angeles, CA 90067 Main: 310.553.3000 ~ Direct: 310.556.7861 ~ Fax: 310.843.2661 E-mail: ilvna alaserweil.com ~ www.glaserweil.com
Page 1 of 1
X 1 It

Wednesday,July 17,2013 3:39:47 PM Pacific Daylight Time Subject: RE: AHF v. LA County Date: From: To: CC: Wednesday,July 17, 2013 2:48:28 PM Pacific Daylight Time John Ly Samantha Azulay Joel Klevens, Andrew Kim
Samantha: wanted to follow up on our conversation yesterday. As reflected in its correspondence with AHF,the County believes that the mandatory fiscal audit for AHF's ambulatory outpatient contract should take place, as scheduled, on July 22, 2013.
John Ly ~ Attorney 10250 Constellation Blvd., 19th Floor, Los Angeles, CA 90067 Main: 310.553.3000 ~ Direct: 310.556.7861 ~ Fax: 310.843.2661 E-mail: llyCa~alaserweil.com ~ www.glaserweil.com
This message and any attached documents may contain information from the law firm of Glaser Weil Fink Jacobs Howard Avchen &Shapiro LLP that is confidential and/or privileged. If you are not the intended recipient, you may not read, copy, distribute or use this information. If you have received this transmission in error, please notify the sender immediately by reply E-mail and then delete this message. From: Samantha Azulay [mailto:Samantha.Azulay@aidshealth.org] Sent: Tuesday, July 16, 2013 5:04 PM To: John Ly Cc: Joel Klevens; Andrew Kim Subject: Re: AHF v. LA County Thank you. We will stand by until 3pm tomorrow.
Samantha R. Azulay Assistant General Counsel AIDS Healthcare Foundation 6255 W. Sunset Boulevard, 21St Floor Los Angeles, California 90028 Tel: (323)860-5223 Fax: (323)467-8450 samantha.azulay_(alaidshealth.org www.aidshealth.org
From: John Ly <ilvC~~laserweil.com> Date: Tuesday,July 16, 2013 5:01 PM To: Samantha Azulay <samantha.azulay(c~aidshealth.or~> Cc: Joel Klevens <jklevensC~glaserweil.com> Subject: AHF v. LA County Samantha: As discussed this afternoon, you asked me whether the County could further reschedule the July 22 audit to September 2013. You stated that, unless the County agrees to reschedule this audit, AHF intends to file a Page 1 of2

TRO before Judge Anderson. You agreed to provide me until 3:00 p.m. tomorrow to respond to this request before filing any TRO. I-have not yet been able to reach my client but will provide you with a response before 3 p.m. tomorrow. Thanks.
~I~ser "~~VV~i~ ~inl< ~~ec~bs H~av+r~rd 14v~ch~n ~ Shapira ~~~

John Ly ~ Attorney 10250 Constellation Blvd., 19th Floor, Los Angeles, CA 90067 Main: 310.553.3000 ~ Direct: 310.556.7861 ~ Fax: 310.843.2661 E-mail: jly anglaserweil.com ~ www.glaserweil.com
Page 2 of2
Tom Myers(SBN 176008) tom.myeYs@aidshealth.org 2 Samantha R. Azulay, SBN 283424 samantha.azulay aidshealth.org 3 AIDS Healthcare oundation 6255 West Sunset Boulevard, 21st Floor 4 Los Angeles, CA 90028 Telephone 323-860-5200 Facsimile 323-467-8450
6 Andrew F. Kim(SBN 156533) 7 Plonsker Law, LLP
akim@plonskerlaw.com
1990 Bundy Drive, Suite 280 8 Los Angeles, CA 90025 Telephone:(310)861-2050 9 Facsimile: (310)496-2577
10
Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS it and MICHAEL WEINSTEIN UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION CV 12-10400 PA(AGl~) PROPOSED1 ORDER GRANTING ~ XPARTE APPLICATION OF PLAINTIFFS AIDS HEALTHCARE FOUNDATION AND MICHAEL WEINSTEIN FOR TEMPORARY RESTRAINING ORDER AND ORDER TO SHOW CAUSE RE PRELIMINARY INJUNCTION Date: Time: Courtroom: 15 Hon. Percy Anderson
13 14
12
AIDS HEALTHCARE MICHAEL FOUNDATION; 15 WEINSTEIN

16
Plaintiffs, vs.
17 18
COUNTY OF LOS ANGELES; PEREZ, 19 MARIO J. Defendants. 20

21 22 23 24 25 26 27 28
[PROPOSED]ORDER GRANTING EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
The Ex Parte Application for Temporary Restraining Order and Order to Show
2 Cause Regarding Preliminary Injunction of Plaintiffs AIDS Healthcare Foundation 3 and Michael Weinstein in the above-captioned action (the "Application") came on for 4 hearing on July _,2013 before the Honorable Percy Anderson, United States District 5 Court Judge. 6
Andrew F. Kim appeared on behalf of Plaintiffs, unless appearances are
7 waived and the Court determines the Application without a hearing and on the papers. 8 All other appearances, if any, are noted in the record. 9
After review ofthe moving papers and all documents in support thereof and the
10 opposition thereto, and hearing the arguments of counsel, and good cause appearing 11 therefor, it is hereby ORDERED: 12
1.
Plaintiffs' request for an immediate temporary restraining order
13 prohibiting the Defendants from commencing an audit of AHF's finances on July 22, 14 2013 (the "New Audit") is GRANTED. Pursuant to Fed. R. Civ. P. 65(b)(2), the 15 Court further orders that the temporary restraining order is effective for 14 days from 16 the date of issuance. 17
2.
This Court issues an order to show cause regarding the issuance of a
18 preliminary injunction prohibiting the Defendants from commencing the New Audit 19 prior to September 1, 2013 and shall set a briefing and hearing schedule on the 20 preliminary injunction. 21 DATED: 22 23 24 25 26 27 28
[PROPOSED]ORDER GRANTING EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER AND OSC RE PRELIMINARY INJUNCTION
Hon. Percy Anderson United States District Court Judge
Gwendolyn Edwards
From: Sent: To: Subject: John Ly Thursday, July 18, 2013 12:27 PM Gwendolyn Edwards FW: Activity in Case 2:12-cv-10400-PA-AGR AIDS Healthcare Foundation et al v. Los Angeles County et al Ex Parte Application for Temporary Restraining Order
user ~i fink acabs HQ~+rar~ ~~r~F~~~ e~ 5f~~pira ~ ~ ~,

John Ly ~ Attorney 10250 Constellation Blvd., 19th Floor, Los Angeles, CA 90067 Main: 310.553.3000 ~ Direct: 310.556.7861 ~ Fax: 310.843.2661 E-mail: Jly(c~glaserweil.com ~ www.glaserweil.com
This message and any attached documef~ts may contain information from the IaUv firm of Glaser Vlfeil Fink Jacabs Howard Buchan &Shapira LLP fihat is confidential and/or privileged. If you are not the intended recipient, you may not read, copy, distribute or use this information. If you have received this transmission in error, please notify the sender immediately by reply E-mail and then delete this message.
From:~cacd_ecfmail@cacd.uscourts.gov [mailto:cacd_ecfmail@cacd.uscourts.gov] Sent: Thursday, July 18, 2013 12:24 PM To: ecfnef@cacd.uscourts.gov Subject: Activity in Case 2:12-cv-10400-PA-AGR AIDS Healthcare Foundation et al v. Los Angeles County et al Ex Parte Application for Temporary Restraining Order
This is an automatic e-mail message generated by the CM/ECP system. Please DO NOT RESPOND to this e-mail because the mail box is unattended. ***NOTE TO PUBLIC ACCESS USERS*** Judicial Conference of the United States policy permits attorneys of record and parties in a case (including pro se litigants) to receive one free electronic copy of all documents filed electronically, if receipt is required by law or directed by the filer. PACER access fees apply to all other users. To avoid later charges, download a copy of each document during this first viewing. However,if the referenced document is a transcript, the free copy and 30 page limit do not apply. UNITED STATES DISTRICT COURT for the CENTRAL DISTRICT OF CALIFORNIA Notice of Electronic Filing The following transaction was entered by Azulay, Samantha on 7/18/2013 at 12:23 PM PDT and filed on 7/18/2013 AIDS Healthcare Foundation et al v. Los Angeles County et al Case Name: 2:12-cv-10400-PA-AGR Case Number: AIDS Healthcare Foundation Filer: Michael Weinstein
Document Number:59 Docket Text: EX PARTE APPLICATION for Temporary Restraining Order as to Continue July 22, 2013 Audit. If this is filed during normal business hours, please contact the courtroom deputy assigned to the judge. If you are filing this document after 5:00 Monday through Friday, on a weekend or holiday, and need immediate judicial review, please call 213-894-2485 to advise that a Temporary Restraining Order has been electronically filed. Failure to call the courtroom deputy, or the after hours filing contact number, may result in a delay of judicial review. Ex Parte Application filed by plaintiffs AIDS Healthcare Foundation, Michael Weinstein. (Attachments: #(1) Memorandum,#(2) Declaration Michael Weinstein,#(3) Declaration Patricia Bermudez,#(4) Declaration Wayne Chen, M.D.,#(5) Declaration Sharon Matland,#(6) Declaration Samantha R. Azulay,#(7) Proposed Order)(Azulay, Samantha)
2:12-cv-10400-PA-AGR Notice has been electronically mailed to: Andrew F Kim Christina T Yang Joel N Klevens akim(c~lonskerlaw.com, andrew.kim.esq(a,~mail.com christina.~~a,aidshealth.org jklevens ,glaserweil.com
John K Lyjly(a~glaserweil.com, k~ibson(a~glaserweil_.com Patricia L Glaser p~laser(a~glaserweil.com
Samantha Robin Azulay samantha.azulavC~aidshealth.org, Christina.yang~a~aidshealth.org, rachel.young~a,aidshealth.ors Thomas Andrew Myers tom.mvers~a~,aidshealth.org
2:12-cv-10400-PA-AGR Notice has been delivered by First Class U. S. Mail or by other means BY THE FILER to The following documents) are associated with this transaction: Document description:Main Document Original filename:AHF L A County -- Ex Parte Application for TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-0 [1770c4ff33ab57aa2e25e1470ae03db3f506f47f323c55f~91336f11f3da6881789 ] 9d3c7bad404641d829121b5bcaba753c86dd03929bb345d569f49e5f3dca7]] Document description:Memorandum Original filename:AHF L A County -- Memorandum ofPoints and Authorities re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-1 ][3de61bf8c6df~c63cd16c523b25c1b9b97ad6fb1a305905a2c582d0395f58b47a61 Sbb1a89992e97c590d9ec75e16f1a1434d67dfd2a1bb11d047e9a577320cd]] Document description:Declaration Michael Weinstein
Original filename:AHF L A County -- Weinstein Declaration re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-2 ][35a14fef4cbb10060d00dd26205db75e08220ea9889c420a0477e6e3ee4a8f2a66b e75ebe847c5f53c811fac38a412199e5c967c0123a6177e7aac7efd09a7ffJ] Document description:Declaration Patricia Bermudez Original filename:AHF L A County --Bermudez Declaration re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=-15941228-3 ][Oe178c9ee95769afbOd99b2ce3b3ee5255509a00ecf7d24935c8657480c6dea9663 aa3082fabfc652a95672f243aa25d2253708e63ca4ae4f2100d923fe699ed]] Document description:Declaration Wayne Chen, M.D. Original filename:AHF L A County -- Chen Declaration re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-4 ][bf~cSccOd5bb1bb17e4e5ca4502c30635b999203fb0a0b2b62696747b1356b67f26 6b67ce664c2bac8a18547eb15316bdd4f~0aad199f7360~cfdb684f37eb9]] Document description:Declaration Sharon Matland Original filename:AHF L A County -- Matland Declaration re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-5 ][95c493ca46d9a91ab18fd53e2ad766c8742452fe734c76d44cfcfdca3b46bc8fa95 4774f5a6c7d59d255f860f86ca64ecd73d611d15589a9e3635eb8dad7b06c]] Document description:Declaration Samantha R. Azulay Original filename:SRA declaration re TRO.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-6 ][4376ec5f783acb053a36de74d62bec68725dfd3de66a45591199b561f6f891414ad 57691d41e380672b81c2d426ca44def5d2121bOb2bf5c79fc9211a41b087fJ] Document description:Proposed Order Original filename:AHF L A County -- Proposed Order re TRO and OSC.pdf Electronic document Stamp: [STAMP cacdStamp_ID=1020290914 [Date=7/18/2013][FileNumber=15941228-7 82 ][b1e8e2fe698ddafgce213f7f7a4749874654695e7a5184ee5dc9039059c499e4f 8e904a9614e013c7fc1b5684faee992b0869e8aeda67f75c9bOdc563f0006]]

AHF V LAC 2013-07-18 Ex Parte Application of AHF For TRO and OSC Re Preliminary Injunction Docs 59 Thru 59-7

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2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 1 of 4 Page ID #:4589

6 Andrew F. Kim(SBN 156533) 7 Plons er Law, LLP

8 Los Angeles, CA 90025 9

Telephone:(310)861-2050 Facsimile: (310)496-2577

Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS 11 and MICHAEL WEINSTEIN

FOUNDATION; MICHAEL 16 WEINSTEIN Plaintiffs, 17

vs. MARIO J. PEREZ,

ANGELES; 19 COUNTY OF LOS

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 2 of 4 Page ID #:4590

EXPARTE APPLICATION FOR TEMPORARY RESTRAINING ORDER

Plaintiffs AIDS Healthcare Foundation and Michael Weinstein hereby request,

Pursuant to Local Rule 7-19, opposing counsel's contact information is as

Although there is no time sensitivity from Defendants' perspective or any

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 3 of 4 Page ID #:4591

The treatment of HIV/AIDS provided by AHF is uniquely successful because it

An immediate temporary restraining order is necessary to prevent imminent

24 ~ potential harm to AHF's patients. 25 26 27 II.

Ca~~e 2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 4 of 4 Page ID #:4592

Issuing an immediate temporary restraining order forbidding Defendants

Issuing an Order to Show Cause setting a schedule and briefing and a

17 hearing on a preliminary injunction. 18

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 1 of 4 Page ID #:4589

6 Andrew F. Kim(SBN 156533) 7 Plons~er Law, LLP

8 Los Angeles, CA 90025 9 10

Telephone:(310)861-2050 Facsimile: (310)496-2577

Attorneys for Plaintiffs HEALTHCARE FOUNDATION AIDS 11 and MICHAEL WEINSTEIN

FOUNDATION; MICHAEL WEINSTEIN 16 Plaintiffs, 17

vs. MARIO J. PEREZ,

OF LOS ANGELES; 19 COUNTY

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 2 of 4 Page ID #:4590

EXPARTS APPLICATION FOR TEMPORARY RESTRAINING ORDER

Plaintiffs AIDS Healthcare Foundation and Michael Weinstein hereby request,

Pursuant to Local Rule 7-19, opposing counsel's contact information is as

Although there is no time sensitivity from Defendants' perspective or any

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 3 of 4 Page ID #:4591

The treatment of HIV/AIDS provided by AHF is uniquely successful because it

An immediate temporary restraining order is necessary to prevent imminent

24 ~ potential harm to AHF's patients. 25 26 27 II.

2:12-cv-10400-PA-AGR Document 59 Filed 07/18/13 Page 4 of 4 Page ID #:4592

Issuing an immediate temporary restraining order forbidding Defendants

Issuing an Order to Show Cause setting a schedule and briefing and a

17 hearing on a preliminary injunction. 18

12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 1 of 15 Page ID #:4593

6 Andrew F. Kim(SBN 156533) 7 Plonsker Law, LLP

AIDS HEALTHCARE MICHAEL FOUNDATION; 15 WEINSTEIN Plaintiffs, vs.

COUNTY OF LOS ANGELES; 19 MARIO J. PEREZ, Defendants. 20

Case X2:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 2 of 15 Page ID #:4594

'_:12-cv-10400-PA-AGR Document 59-1 Filed 07/18/13 Page 3 of 15 Page ID #:4595

3 Alliancefor the Wild Rockies v. CotYell, 4

5 Blair v. Bethel School Dist.,. 6

7 K Clark v. Time Warner Cable, 8

..................................8, 9 2007 U.S. Dist. LEXIS 100716(C.D. Cal. 2007)

9 Lochkeed Missile &Space Co., Inc. v. Hughes Aircraft Co., 10

......................................................9 887 F.Supp. 1320(N.D.CaI. 1995)

.....................................................................10 520 U.S. 968(1997)

13 Mission Power Eng g v. Continental Cas. Co., 14

....................................................9 883 F. Supp. 488(C.D. Cal. 1995)

15 Playboy Enterprises, Inc. v. Calvin Designer Label, 16

17 Republic ofPhillipines v. Marcos, 18

19 Southwest Voters Registration Ed. Project v. Shelley, 20 21 22

23 STATUTES: 24 Federal Rule of Civil Procedure 65.......................................................10, 11 25 26 27 28