Judge: David Sotelo, Case: 21STCV14591, Date: 2022-08-02 Tentative Ruling
Case Number: 21STCV14591 Hearing Date: August 2, 2022 Dept: 40
MOVING PARTY: Defendants, Jang Geun
Chung, Sung Ki Lee, Yeon Ho Lee, and Sarah Pak.
This case involves a series of related actions involving The
Oriental Mission Church (“OMC”) and lawsuits by its two leading members against
one another for breaches of fiduciary duties and defalcations.
This new action was filed by Senior Pastor Kim on April 16,
2021 and alleges that Defendants,
including Elder and Board member Jang Geun Chung, along with church members Sung
Ki Lee, Yeon Ho Lee, and Sarah Pak, who each are also alleged to have been or
are still employed by OMC, have used their positions at OMC to engage in
actions constituting breaches of fiduciary duties and other torts.
These include
(without much more detail) the attempted embezzlement of $210,000.00 of OMC
funds in the way of cashier’s checks, (Complaint, Ex. A); freezing OMC’s
operational bank account (letter from bank attached, (Complaint, Ex. B); filing
incorrect Statements of Information with the California Secretary of State,
misrepresenting the elected positions in the State filings [Complaint, Ex. C];
informing the United States Citizenship and Immigration Services (USCIS) that
the OMC no longer needed the services of Reverend Chan Woo Kim; preventing OMC
from obtaining a second PPP loan; cancelling the pastoral payroll authority at
OMC; cancelling the salary of musical performers; and physically interfering
with Church operations, including threatening Church members.
Based on this claimed
conduct, OMC alleges (1) breaches of fiduciary duty, (2) negligence, (3) fraud,
(4) negligent interference with prospective economic advantage, (5) unfair
competition, (6) accounting, (7) declaratory relief, and (8) injunctive relief. While it is not clear who filed this action
on behalf of OMC, it appears it was filed Senior Pastor Kim or his appointees.
Defendants in this
action (including Elder Chung) demurred to the on August 6, 2021,
arguing that the Complaint should be dismissed because (1) the Court lacks
jurisdiction over the Complaint’s claims based on the Establishment Clause, (2)
OMC does not have capacity to sue because the suit is brought by Senior Pastor
Kim or his appointees on behalf of OMC, (3) there are related actions alleging
the same claims as those stated in this action, (4) all the causes are action
are not sufficiently pled, and (5) all the causes of action are uncertainty
pled.
Plaintiff OMC provided a bare bones opposition and
Defendants have replied.
Judicial Notice
The court may take judicial notice of “[r]ecords of (1) any
court of this state or (2) any court of record of the United States or of any
state of the United States” and “[f]acts and propositions that are not
reasonably subject to dispute and are capable of immediate and accurate
determination by resort to sources of reasonably indisputable accuracy.” (Evid.
Code, § 452, subds. (d) and (h).)¿ The trial court shall take judicial notice
of any matter specified in Section 452 if a party requests it and gives each
adverse party sufficient notice of the request, through the pleadings or
otherwise, to enable such adverse party to prepare to meet the request and
furnishes the court with sufficient information to enable it to take judicial
notice of the matter. (Evid. Code, §¿453.) The court, however, may
not take judicial notice of the truth of the contents of the documents.¿ (Herrera
v. Deutsche Bank National Trust Co. (2011) 196 Cal.App.4th 1366, 1375.)¿
Documents are only judicially noticeable to show their existence and what
orders were made such that the truth of the facts and findings within the
documents are not judicially noticeable.¿ (Lockley v. Law Office of Cantrell,
Green, Pekich, Cruz & McCort (2001) 91 Cal.App.4th 875, 885.)
Here, Defendants seeks judicial notice of the OMC’s Bylaws
and of five records of the Superior Court in the 20STCV42005 and 21STCV04092
actions. (See Mot., Judicial
Notice Request; Reply, Judicial Notice Request.) That Court takes judicial notice of these
documents as requested to the extent of the documents’ existence and court
orders made therein, if any.
First, the Court SUSTAINS the demurrer at to paragraphs 23
through 31 as these do not constitute PLEADINGS
in any way, shape or form, under California law: A complaint shall contain a statement
of the facts consisting of the cause of action in ordinary and concise
language. Counsel for Plaintiff is admonished
to keep what should be opposition argument separate for fact pleadings.
Demurrer
Meet and Confer: The Court finds that Defendants
satisfied the meet and confer requirement pursuant to Code of Civil Procedure
section 430.41, subdivision (a)(3)(B). (Kim
Decl., ¶¶ 3-8.)
Standard: A demurrer for sufficiency tests whether
the complaint states a cause of action.
(Hahn v. Mirda (2007) 147 Cal.App.4th 740, 747; see Code Civ.
Proc., § 430.10, subd. (e).) This device
can be used only to challenge defects that appear on the face of the pleading
under attack or from matters outside the pleading that are judicially
noticeable. (Blank v. Kirwan
(1985) 39 Cal.3d 311, 318.) “To survive
a [general] demurrer, the complaint need only allege facts sufficient to state
a cause of action; each evidentiary fact that might eventually form part of the
plaintiff's proof need not be alleged.”
(C.A. v. William S. Hart Union High School Dist. (2012) 53 Cal.4th
861, 872.) For the purpose of testing
the sufficiency of the cause of action, the demurrer admits the truth of all
material facts properly pleaded. (Aubry
v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 966-967.) A demurrer, however, “does not admit
contentions, deductions or conclusions of fact or law.” (Daar v. Yellow Cab Co. (1967) 67
Cal.2d 695, 713.) When considering
demurrers, courts read the allegations liberally and in context. (Taylor v. City of Los Angeles Dept. of
Water and Power (2006) 144 Cal.App.4th 1216, 1228.) The face of the complaint includes exhibits
attached to the complaint. (Frantz v.
Blackwell (1987) 189 Cal.App.3d 91, 94.)
If facts appearing in the exhibits contradict those alleged, the facts
in the exhibits take precedence. (Holland
v. Morse Diesel Intern., Inc. (2001) 86 Cal.App.4th 1443, 1447.)
Standard: A demurrer to a pleading lies where the
pleading is uncertain. (Code Civ. Proc.
§ 430.10, subd. (f).) Uncertain language
includes ambiguous and unintelligible language.
(Ibid.) “A demurrer for
uncertainty is strictly construed, even where a complaint is in some respects
uncertain, because ambiguities can be clarified under modern discovery
procedures.” (Khoury v. Maly's of
California, Inc. (1993) 14 Cal.App.4th 612, 616.) As a result, a special demurrer for
uncertainty is not intended to reach failure to incorporate sufficient facts in
the pleading but is directed only at uncertainty existing in the allegations
already made. (People v. Taliaferro (1957) 149 Cal.App.2d 822,
825.) Where complaint is sufficient to
state a cause of action and to apprise defendant of issues he is to meet, it is
not properly subject to a special demurrer for uncertainty. (See ibid.;
see also Gressley v. Williams (1961) 193 Cal.App.2d 636, 643 [“[a]
special demurrer [for uncertainty] should be overruled where the allegations of
the complaint are sufficiently clear to apprise the defendant of the issues
which he is to meet”].)
Analysis: The First cause of action
is sufficiently pled as to overcome demurrer based on Section 430.10,
subdivision (e) [sufficiency], of the Code of Civil Procedure. Therefore, the cause of action cannot be said
to be uncertain, as it sufficiently apprises Defendants that they are facing a
allegations of breach of fiduciary duties.
Second Cause of Action, Negligence: OVERRULED
Third Cause of Action, Fraudulent Concealment: SUSTAINED
WITH LEAVE TO AMEND
Fourth and Fifth Causes of Action, Intentional and
Negligent Interference with Prospective Economic Advantage: SUSTAINED WITH
LEAVE TO AMEND
Sixth Cause of Action, Unfair Competition under
California Business & Professions Code: SUSTAINED WITHOUT LEAVE TO AMEND
Seventh Cause of Action, Accounting: OVERRULED
Eighth Cause of Action, Declaratory Relief: OVERRULED
Here, “Plaintiff … seeks an Order
of this Court declaring that effective upon the issuance thereof that the
elections held to date are valid, that the Statements of Information filed on
Plaintiff’s behalf by its lawful CEO are valid and effective and all those to
the contrary are not, that OMC is entitled to the immediate production and
delivery of all of its own corporate and financial books and records, and that
the Session as currently composed is lawful, appropriate and consistent with
the intent of the By Laws.” (Demurrer,
13:1-5.) The controversy between the
parties concerns “the application of the written By Laws of OMC, the right to
make filings on its behalf, and the propriety of elections held by OMC during
the interim period of time during which these Defendants have been trying to
destroy OMC and/or steal its assets as a result of Chung being one of only two
members of the Session.” (Demurrer,
12:5-9.) Based on these allegations, the
Court finds that the eighth causes of action is sufficiently pled. While the Court notes that Department 58 has
previously ruled that Senior Pastor Kim’s election of Kwang
Chan Kim and Joongkoo
Ninth Cause of Action, Injunctive Relief: SUSTAINED
WITHOUT LEAVE TO AMEND
Conclusion
Defendants Jang Geun
Chung, Sung Ki Lee, Yeon Ho Lee, and Sarah Pak’s Demurrer to Plaintiff The
Oriental Mission Church’s Complaint based on subdivisions (a) through (c) of
Code of Civil Procedure section 430.10 is OVERRULED.
Defendants Jang Geun
Chung, Sung Ki Lee, Yeon Ho Lee, and Sarah Pak’s Demurrer to the Complaint’s First,
Second, Seventh and Chung’s Demurrer to the Eighth causes of is OVERRULED as
these claims are sufficiently and not uncertainly pled.
Defendants Jang Geun
Chung, Sung Ki Lee, Yeon Ho Lee, and Sarah Pak’s Demurrer to the Complaint’s Third,
Fourth and Fifth causes of action is SUSTAINED WITH LEAVE TO AMEND because the
allegations pled therein do not sufficiently support the stated claims.
Defendants Jang Geun
Chung, Sung Ki Lee, Yeon Ho Lee, and Sarah Pak’s Demurrer to the Complaint’s Sixth
and Chungs’ Demurrer to the Ninth causes of action is SUSTAINED WITHOUT LEAVE
TO AMEND because both claims are defective as a matter of law and therefore are
incapable of curing, for which reason leave to amend is not merited.