Judge: Joseph Lipner, Case: 23STCV16399, Date: 2024-02-15 Tentative Ruling

Case Number: 23STCV16399    Hearing Date: February 15, 2024    Dept: 72

 

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

 

DEPARTMENT 72

 

TENTATIVE RULING

 

JALEH ELGHANIAN,

 

                                  Plaintiff,

 

         v.

 

 

ABNER PARTIYELI, et al.,

 

                                  Defendants.

 

 Case No:  23STCV16399

 

 

 

 

 

 Hearing Date:  February 15, 2024

 Calendar Number:  7

 

 

 

Defendants Abner Partiyelli (“Abner”) (the Court uses first names for clarity, and means no disrespect by it), Farshid Partiyelli (“Farshid”), Robertson Regency Center, LLC (“Robertson), 914 Holding Group LLC (“914”), Clara Industrial Holding LLC (“Clara”), Euro-Cuisine Inc. (“Euro-Cuisine”), and Westlake Spring, LLC (“Westlake”)  (collectively, “Defendants”) demur to the complaint filed by Plaintiff Jaleh Elghanian (“Plaintiff”).

 

The Court SUSTAINS the demurrer WITH LEAVE TO AMEND with respect to Plaintiff’s fifth and sixth causes of action.

 

The Court SUSTAINS the demurrer as to Plaintiff’s seventh and eighth causes of action WITHOUT LEAVE TO AMEND. Neither of these claims are stand-alone causes of action under California law.  However, Plaintiff is granted leave to amend the Complaint (1) to allege a cause of action for restitution or constructive trust; and (2) to make allegations concerning alter-ego so long as they are not alleged as a standalone cause of action. 

 

The Court OVERRULES the demurrer as to the remaining causes of action.

 

The Court GRANTS the motion to strike Plaintiff’s prayer for attorney’s fees for breach of the LLC agreements and DENIES the motion to strike the remaining prayers for attorney’s fees.

 

The Court GRANTS the motion to strike Plaintiff’s prayer for punitive damages WITH LEAVE TO AMEND.

 

The Court DENIES the motion to strike Plaintiff’s entire prayer for relief.

 

Plaintiff may amend within 20 days.

 

Background

 

This action arises out of events following the dissolution of Plaintiff’s marriage with Abner. The facts here are taken from the allegations in Plaintiff’s Complaint. Plaintiff alleges that Defendants improperly withheld information from her regarding community property to which Plaintiff obtained a judgment. As a result, Plaintiff was unable to pay her legal fees associated with the dissolution. Plaintiff’s attorneys in the dissolution foreclosed on a number of her community property interests, and Defendants, through Westlake, bought those property interests in the resulting foreclosure sale for well below their actual value.

 

On July 17, 2018, Plaintiff’s divorce with Abner was finalized in a Judgement of Dissolution (the “Dissolution Judgment”). The Dissolution Judgment determined that partial ownership interests in Robertson, 914, Clara, Euro-Cuisine (collectively, the “Business Interests”) and 321 San Vicente Blvd., #801, Los Angeles, CA 90048 (the “San Vicenty Property) (collectively, the “Divided Property”) were community property. Plaintiff thus obtained title to half each of the above interests. These interests included a 9.5% interest in Robertson, a 12.5% interest in 914, and a 12.5% interest in Clara.

 

Despite the Dissolution Judgment, Plaintiff received no communication or documentation from Defendants evidencing compliance with the judgment. Plaintiff received no information related to the value or accounting of the Divided Properties or her ownership interests. Defendants continuously told Plaintiff that the Business Interests were worth nothing.

 

Plaintiff was represented by Sorrell Trope d/b/a Trope & Trope LLP (“Trope”) in the dissolution action. Plaintiff fell behind on her legal fees, and Trope filed Case No. BS170018 Sorrell Trope, et al. v. Jaleh Elghanian (the “Trope Action”) in Department 44 of the Los Angeles County Superior Court to recover the fees it was owed. On January 2, 2019, Trope obtained a judgment in its favor and against Plaintiff for the balance of the fees owed (the “Fee Judgment”).

 

On March 28, 2019, Trope filed a Motion for Assignment Order, Turnover Order, and Charging Order (the “Assignment Motion”). The motion sought, inter alia, to charge Robertson, 914, and Clara and Euro-Cuisine for the fees. Defendant Farshid filed an Interested Party Opposition to the Assignment Motion. (Complaint, Exh. 3.) In the opposition, Farshid contended that Plaintiff was not a partner or member of Robertson, 914, or Clara. Farshid also contended that Plaintiff did not possess Euro-Cuisine Stock. For those reasons, Farshid contended that it was improper to charge the Business Interests. On July 17, 2019, the court granted the Assignment Motion.

 

On November 15, 2019, Trope filed a motion to foreclose on Plaintiff’s interests in Robertson, 914, and Clara (the “Judgment Entities”). On February 25, 2020, the court ordered the foreclosure of Plaintiff’s interests in the Judgment entities and provided that the Judgment Entities were the property of Trope (the “Foreclosure Order”).

 

On March 11, 2020, Defendants, through Westlake, purchased Trope’s interests in the Judgment Entities through a written assignment agreement (the “Assignment Agreement") for $160,000.00.

 

Plaintiff believes that the Judgment Entities were worth millions of dollars at the time of the Assignment Agreement.

 

Plaintiff contends that Defendants’ continuous failure to acknowledge or transfer Plaintiff’s equity in the Divided Properties, paired with Defendants’ insistence that the Business Interests were worth nothing, led Plaintiff to believe that there was no way to satisfy the Fee Judgment, which hindered her ability to defend herself or fulfill her obligations.

 

          Plaintiff filed this action against Defendants on July 13, 2023, alleging (1) breach of fiduciary duty; (2) breach of contract/LLC agreement; (3) conversion; (4) accounting; (5) constructive fraud; (6) conspiracy to defraud; (7) unjust enrichment; (8) piercing the corporate veil and alter ego; (9) financial abuse of an elderly person; (10) violation of court order; and (11) declaratory relief.

 

          Defendants filed the instant demurrer and motion to strike on December 15, 2023. Plaintiff filed an opposition to each, and Defendants filed a reply in support of each.

 

Request for Judicial Notice

 

The Court grants Plaintiff’s request for judicial notice but notes that it is not necessary to seek judicial notice of the Complaint, which is already in the court record.

 

Legal Standard

 

Demurrer

 

As a general matter, in a demurrer proceeding, the defects must be apparent on the face of the pleading or via proper judicial notice. (Donabedian v. Mercury Ins. Co. (2004) 116 Cal.App.4th 968, 994.) “A demurrer tests the pleading alone, and not the evidence or facts alleged.” (E-Fab, Inc. v. Accountants, Inc. Servs. (2007) 153 Cal.App.4th 1308, 1315.) The court assumes the truth of the complaint’s properly pleaded or implied factual allegations. (Ibid.) The only issue a demurrer is concerned with is whether the complaint, as it stands, states a cause of action. (Hahn v. Mirda (2007) 147 Cal.App.4th 740, 747.)

 

Where a demurrer is sustained, leave to amend must be allowed where there is a reasonable possibility of successful amendment. (Goodman v. Kennedy (1976) 18 Cal.3d 335, 348.) The burden is on the plaintiff to show the court that a pleading can be amended successfully. (Ibid.; Lewis v. YouTube, LLC (2015) 244 Cal.App.4th 118, 226.) However, “[i]f there is any reasonable possibility that the plaintiff can state a good cause of action, it is error to sustain a demurrer without leave to amend.” (Youngman v. Nevada Irrigation Dist. (1969) 70 Cal.2d 240, 245).

 

Motion to Strike

 

The court may, upon a motion, or at any time in its discretion, and upon terms it deems proper, strike any irrelevant, false, or improper matter inserted in any pleading. (Code Civ. Proc., § 436(a).) The court may also strike all or any part of any pleading not drawn or filed in conformity with the laws of this state, a court rule, or an order of the court. (Code Civ. Proc., § 436(b).) The grounds for a motion to strike are that the pleading has irrelevant, false or improper matter, or has not been drawn or filed in conformity with laws. (Code Civ. Proc., § 436.) The grounds for moving to strike must appear on the face of the pleading or by way of judicial notice. (Code Civ. Proc., § 437.)

 

Discussion

 

Demurrer

 

Res Judicata

 

“As generally understood, [t]he doctrine of res judicata gives certain conclusive effect to a former judgment in subsequent litigation involving the same controversy.’ The doctrine has a double aspect. In its primary aspect, commonly known as claim preclusion, it operates as a bar to the maintenance of a second suit between the same parties on the same cause of action. In its secondary aspect, commonly known as collateral estoppel, [t]he prior judgment ... operates in a second suit ... based on a different cause of action ... as an estoppel or conclusive adjudication as to such issues in the second action as were actually litigated and determined in the first action.” (Boeken v. Philip Morris USA, Inc. (2010) 48 Cal.4th 788, 797 [internal citations and quotation marks omitted.)

 

“Claim preclusion, the primary aspect of res judicata, acts to bar claims that were, or should have been, advanced in a previous suit involving the same parties.” (DKN Holdings LLC v. Faerber (2015) 61 Cal.4th 813, 824 [internal quotations and citations omitted].) “Claim preclusion arises if a second suit involves: (1) the same cause of action (2) between the same parties (3) after a final judgment on the merits in the first suit.” (Ibid.) “To determine whether two proceedings involve identical causes of action for purposes of claim preclusion, California courts have consistently applied the ‘primary rights' theory.” (Boeken v. Philip Morris USA, Inc. (2010) 48 Cal.4th 788, 797 [internal quotations and citations omitted].) “When two actions involving the same parties seek compensation for the same harm, they generally involve the same primary right.” (Id. at 798.) A dismissal ordered by a court constitutes a final judgment. (Code Civ. Proc., § 581d.)

 

“Issue preclusion differs from claim preclusion in two ways.  First, issue preclusion does not bar entire causes of action. Instead, it prevents relitigation of previously decided issues. Second, unlike claim preclusion, issue preclusion can be raised by one who was not a party or privy in the first suit.” (DKN Holdings LLC v. Faerber, supra, 61 Cal.4th at p. 824.) “In summary, issue preclusion applies: (1) after final adjudication (2) of an identical issue (3) actually litigated and necessarily decided in the first suit and (4) asserted against one who was a party in the first suit or one in privity with that party.” (Id. at p. 825.)

 

Defendants argue that Plaintiff’s claims should have been brought in the Trope Action and are therefore subject to claim preclusion. This argument fails because Defendants, with the apparent exception of Farshid, were not parties to the Trope Action, and these claims therefore could not have been brought against them there.

 

Issue preclusion may be more appropriate – at least with respect to certain issues. The Foreclosure Order expressly provided that Trope obtained title to Plaintiff’s interests in the Judgment Entities. That issue was actually litigated and necessarily decided, and Plaintiff was a party to the Trope Action. Thus, Plaintiff may not collaterally attack the judgment that Trope had title to those interests.

 

Issue preclusion does not apply to Plaintiff’s claims against Defendants for wrongdoing preceding the Foreclosure Order. The Foreclosure Order neither necessarily considered nor expressly decided the issues of Plaintiff’s claims against Defendants, most of whom were not even parties to the Trope Action.

 

Further, although the Foreclosure Order in the Trope Action resolved the issue of Plaintiff’s rights as against Trope; it did not necessarily resolve the issue of Plaintiff’s rights as against Defendants. One of Plaintiff’s fundamental allegations is that Defendants misrepresented the value of the Business Interests to Plaintiff, which itself was a factual cause of the foreclosure. In other words, Plaintiff alleges that if she had been apprised of the full value of the Business Interests – or, for that matter, had possession of them so that she could sell them – she could have satisfied the Fee Judgment without losing the entirety of the Business Interests in foreclosure. If the foreclosure sale, and Defendants subsequent obtainment of the Business Interests, resulted from Defendants’ malfeasance, then Plaintiff may have claims against Defendants in equity that she would not have had against Trope.

 

Breach of Fiduciary Duty – First Cause of Action

 

“The elements of a cause of action for breach of fiduciary duty are the existence of a fiduciary relationship, breach of fiduciary duty, and damages.” (Oasis West Realty, LLC v. Goldman (2011) 51 Cal.4th 811, 820.)

 

“The manager of an LLC has a fiduciary duty and owes to the members of the LLC the same duties of loyalty and good faith as a partner owes to the partnership and its partners.” (Feresi v. The Livery, LLC (2014) 232 Cal.App.4th 419, 425, as modified (Jan. 8, 2015).) “Uncompromising rigidity has been the attitude of courts of equity when petitioned to undermine the rule of undivided loyalty by the disintegrating erosion of particular exceptions[.]” (Id at p. 426 [citations and quotation marks omitted].)

 

Corporations Code, section 17704.10 provides LLC members the right to inspect and copy company information upon request, including financial statements. (Corp. Code, § 17704.10.) LLCs must maintain a current list of the full name and business or residence address of each manager, a copy of the articles of organization and all amendments thereto, copies of federal, state, and local income tax or information returns and reports for at least the last six years, a copy of any written operating agreement and any amendments thereto, copies of financial statements for at least the last six years, and books and records of the limited liability company as they relate to the internal affairs of the company for at least the last four years. (Corp. Code, § 17701.13.)

 

Plaintiff has adequately alleged that Defendants not only denied her information that she was owed, but actual possession of Business Interests to which she had title. Plaintiff has thus alleged a breach of fiduciary duty.

 

The Court overrules the demurrer on this cause of action.

 

Breach of Contract/LLC Agreement – Second Cause of Action

 

To state a cause of action for breach of contract, Plaintiff must be able to establish “(1) the existence of the contract, (2) plaintiff’s performance or excuse for nonperformance, (3) defendant’s breach, and (4) the resulting damages to the plaintiff.” (Oasis West Realty, LLC v. Goldman (2011) 51 Cal.4th 811, 821.)

 

If a breach of contract claim “is based on alleged breach of a written contract, the terms must be set out verbatim in the body of the complaint or a copy of the written agreement must be attached and incorporated by reference.” (Harris v. Rudin, Richman & Appel (1999) 74 Cal.App.4th 299, 307.) In some circumstances, a plaintiff may also “plead the legal effect of the contract rather than its precise language.” (Construction Protective Services, Inc. v. TIG Specialty Ins. Co. (2002) 29 Cal.4th 189, 198-199.)

 

Defendants argue that Plaintiff fails to identify any contractual provision actually breached. This argument appears incorrect. California law prohibits an LLC from eliminating the duty of loyalty from its operating agreement. (Corp. Code, § 17701.10, subd. (c)(4).) Thus, by alleging a breach of the duty of loyalty, Plaintiff has alleged a breach of the Business Interest companies’ operating agreements, insofar as those agreements were lawful in the first place. Further, it would be manifestly unreasonable to dismiss an action for failure to attach the LLC agreements where the exact crux of the harm alleged is the failure of the LLCs to provide any of the information owed to Plaintiff as a member.

 

The Court overrules the demurrer as to this cause of action.

 

Conversion – Third Cause of Action

 

“Conversion is the wrongful exercise of dominion over the property of another. The elements of a conversion claim are: (1) the plaintiff’s ownership or right to possession of the property; (2) the defendant’s conversion by a wrongful act or disposition of property rights; and (3) damages.” (Lee v. Hanley (2015) 61 Cal.4th 1225, 1240.)

 

Defendants argue that Plaintiff cannot state a claim to conversion because her interests in the Business Interests have been foreclosed. However, Plaintiff can state a claim for conversion in the time leading up to the foreclosure when Defendants withheld possession of Plaintiff’s interests in the Divided Property.

 

The Court overrules the demurrer as to this cause of action.

 

Accounting – Fourth Cause of Action

 

“A cause of action for an accounting requires a showing that a relationship exists between the plaintiff and defendant that requires an accounting, and that some balance is due the plaintiff that can only be ascertained by an accounting. An action for accounting is not available where the plaintiff alleges the right to recover a sum certain or a sum that can be made certain by calculation.” (Teselle v. McLoughlin (2009) 173 Cal.App.4th 156, 179, citations and paragraph break omitted.)

 

Defendants argue that Plaintiff cannot raise a claim for accounting because she is not an owner of any of the defendant entities. However, Plaintiff has adequately alleged that such a relationship existed and that she suffered damages due to Defendants’ misconduct over the course of that relationship which cannot be made certain by virtue of the fact of Defendants’ misconduct.

 

The Court overrules the demurrer as to this cause of action.

 

Constructive Fraud – Fifth Cause of Action

 

“Constructive fraud is a unique species of fraud applicable only to a fiduciary or confidential relationship.” (Prakashpalan v. Engstrom, Lipscomb & Lack (2014) 223 Cal.App.4th 1105, 1131 [citation and quotation marks omitted].) “Constructive fraud arises on a breach of duty by one in a confidential or fiduciary relationship to another which induces justifiable reliance by the latter to his prejudice.” (Ibid. [citation and quotation marks omitted].) “Constructive fraud exists in cases in which conduct, although not actually fraudulent, ought to be so treated—that is, in which such conduct is a constructive or quasi fraud, having all the actual consequences and all the legal effects of actual fraud.” (Ibid. [citation and quotation marks omitted].)

 

The elements of a constructive fraud cause of action are (1) a fiduciary duty or confidential relationship, (2) nondisclosure (breach of fiduciary duty); (3) intent to deceive, and (4) reliance resulting in injury. (Younan v. Equifax Inc. (1980) 111 Cal.App.3d 498, 516, fn. 14.)

 

The facts constituting the alleged fraud must be alleged factually and specifically as to every element of fraud, as the policy of “liberal construction” of the pleadings will not ordinarily be invoked. (Lazar v. Superior Court (1996) 12 Cal.4th 631, 645.) To properly allege fraud against a corporation, the plaintiffs must plead the names of the persons allegedly making the false representations, their authority to speak, to whom they spoke, what they said or wrote, and when it was said or written. (Tarmann v. State Farm Mut. Auto. Ins. Co. (1991) 2 Cal.App.4th 153, 157.)

 

Here, Plaintiff has pled facts showing fraud, but without the required particularity. Defendants owed Plaintiff, a partial owner and member of the LLCs, a fiduciary duty to provide her with information and, even more basically, provide her with the materials necessary to exercise the basic functions of ownership. Defendants allegedly misrepresented the value of the Business Interests and withheld possession of the interests, to which Plaintiff was legally entitled, resulting in Plaintiff’s loss of those interests in foreclosure and Defendants obtainment of those interests at significantly below their fair value.

 

These events have all the appearances and effects of actual fraud. Plaintiff simply needs to plead more particular facts, including the identity of the persons who represented that the Business Interests were worthless and the times when those representations were made. To the extent that there are further facts as to the withholding of information, such as when requests for information were made, Plaintiff must plead those as well – though the Court acknowledges the difficulty in pleading a negative with particularity.

 

The Court therefore sustains the demurrer with leave to amend as to this cause of action.

 

Conspiracy to Defraud – Sixth Cause of Action

 

“[I]n order to state a cause of action based upon a conspiracy theory the plaintiff must allege the formation and operation of the conspiracy, the wrongful act or acts done pursuant to it, and the damage resulting from such acts. [Citation.] In making such allegations bare legal conclusions, inferences, generalities, presumptions, and conclusions are insufficient. [Citations]” (State of California ex rel. Metz v. CCC Information Services, Inc. (2007) 149 Cal.App.4th 402, 419.)   

 

“It is the settled rule that ‘to render a person civilly liable for injuries resulting from a conspiracy of which he was a member, it is not necessary that he should have joined the conspiracy at the time of its inception; everyone who enters into such a common design is in law a party to every act previously or subsequently done by any of the others in pursuance of it.’ [Citations]” (De Vries v. Brumback (1960) 53 Cal.2d 643, 649.)   

 

As discussed above, Plaintiff has pleaded facts showing all the appearances of fraud. Plaintiff simply needs to plead more particular facts to meet the heightened pleading standard, including the identity of the persons who represented that the Business Interests were worthless and the times when those representations were made. To the extent that there are further facts as to the withholding of information, such as when requests for information were made, Plaintiff must plead those as well – though the Court acknowledges the difficulty in pleading a negative with particularity.

 

The Court therefore sustains the demurrer with leave to amend as to this cause of action.

 

Unjust Enrichment – Seventh Cause of Action

 

“The elements for a claim of unjust enrichment are receipt of a benefit and unjust retention of the benefit at the expense of another. The theory of unjust enrichment requires one who acquires a benefit which may not justly be retained, to return either the thing or its equivalent to the aggrieved party so as not to be unjustly enriched.” (Lyles v. Sangadeo-Patel (2014) 225 Cal.App.4th 759, 769, quotation marks and citations omitted.)

 

Notably, “[u]njust enrichment is not a cause of action”; it is simply “a restitution claim.” (Hill v. Roll International Corp. (2011) 195 Cal.App.4th 1295, 1307; see also Melchior v. New Line Productions, Inc. (2003) 106 Cal.App.4th 779, 793 [“there is no cause of action in California for unjust enrichment”].) “Rather, unjust enrichment is a basis for obtaining restitution based on quasi-contract or imposition of a constructive trust.” (McKell v. Washington Mutual, Inc. (2006) 142 Cal.App.4th 1457, 1490.)

 

The Court therefore sustains the demurrer as to this cause of action. The Court grants Plaintiff leave to amend to file claims for restitution or constructive trust if she wishes to do so.

 

Piercing the Corporate Veil and Alter Ego – Eighth Cause of Action

 

“In California, two conditions must be met before the alter ego doctrine will be invoked. First, there must be such a unity of interest and ownership between the corporation and its equitable owner that the separate personalities of the corporation and the shareholder do not in reality exist. Second, there must be an inequitable result if the acts in question are treated as those of the corporation alone.” (Sonora Diamond Corp. v. Superior Court (2000) 83 Cal.App.4th 523, 538.)

 

When these conditions are met, courts disregard the corporate structure and impute the actions of a corporation onto its owner or parent. (McLaughlin v. L. Bloom Sons Co. (1962) 206 Cal.App.2d 848, 851-852.) Veil-piercing thus is not a standalone basis for liability; rather, it is a basis on which an owner may be tagged with the already-existing liability of the business entity that they own.

 

The Court therefore sustains the demurrer as to this cause of action. The Court grants Plaintiff leave to amend to separately allege the applicability of the alter ego doctrine if she wishes to do so.

 

Financial Abuse of an Elderly Person – Ninth Cause of Action

 

“[F]inancial abuse of an elder . . . occurs when a person or entity does the following:”

 

(1) Takes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

 

(2) Assists in taking, secreting, appropriating, obtaining, or retaining real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

 

(3) Takes, secretes, appropriates, obtains, or retains, or assists in taking, secreting, appropriating, obtaining, or retaining, real or personal property of an elder or dependent adult by undue influence, as defined in Section 15610.70.

 

(Welf. & Inst. Code, § 15610.30, subd. (a).)

 

Plaintiff has adequately alleged that Defendants improperly retained, secreted, or assisted in the retention and secretion of the property she owned in the Business Interests pursuant to the Dissolution Judgment.

 

The Court overrules the demurrer as to this cause of action.

 

Violation of Court Order – Tenth Cause of Action

 

Insofar as Plaintiff argues that Defendants improperly avoided a sale pursuant to the Foreclosure Order, Defendants are correct that Plaintiff does not state a claim. It is clear that the Foreclosure Order did not order a sale of Plaintiff’s interests in the Judgment Properties. (Complaint, Exh. 6.)

 

However, Plaintiff adequately alleges that Defendants violated the Dissolution Judgment by failing to give her information and actual possession of the Business Interests that she was owed as the legal owner of those interests.

 

The Court overrules the demurrer as to this cause of action.

 

Declaratory Relief – Eleventh Cause of Action

 

“To qualify for declaratory relief, a party would have to demonstrate its action presented two essential elements: (1) a proper subject of declaratory relief, and (2) an actual controversy involving justiciable questions relating to the party’s rights or obligations.” (Jolley v. Chase Home Finance, LLC (2013) 213 Cal.App.4th 872, 909, quotation marks and brackets omitted.)

 

A cause of action for declaratory relief should not be used as a second cause of action for the determination of identical issues raised in another cause of action. (General of America Insurance Co. v. Lilly (1968) 258 Cal.App.2d 465, 470.) “The availability of another form of relief that is adequate will usually justify refusal to grant declaratory relief” (California Insurance Guarantee Association v. Superior Court (1991) 231 Cal.App.3d 1617, 1624), and a duplicative cause of action is subject to demurrer (Palm Springs Villas II Homeowners Association, Inc. v. Parth (2016) 248 Cal.App.4th 268, 290). Further, “there is no basis for declaratory relief where only past wrongs are involved.” (Osseous Technologies of America, Inc. v. DiscoveryOrtho Partners LLC (2010) 191 Cal.App.4th 357, 366, quotation marks omitted.)

 

This claim primarily appears to function only to reopen the Foreclosure Order. It is clear that the Foreclosure Order did not order a sale. Those issues are precluded by collateral estoppel.

 

However, the issue of whether the Business Interests were vested in Plaintiff at the time of foreclosure does appear to be a live issue.

 

The Court therefore overrules the demurrer as to this cause of action.

 

Motion to Strike

 

Punitive Damages

 

Punitive damages are appropriate when a defendant acted with malice, oppression, or fraud. (Civ. Code, § 3294, subd. (a).) “In order to survive a motion to strike an allegation of punitive damages, the ultimate facts showing an entitlement to such relief must be pled by a plaintiff.” (Clauson v. Superior Court (1998) 67 Cal.App.4th 1253, 1255.) “In passing on the correctness of a ruling on a motion to strike, judges read allegations of a pleading subject to a motion to strike as a whole, all parts in their context, and assume their truth.” (Ibid.) “In ruling on a motion to strike, courts do not read allegations in isolation.” (Ibid.)

 

Plaintiff bases her prayer for punitive damages in fraud. Because the Court dismisses Plaintiff’s claims for fraud with leave to amend, the Court grants the motion to strike as to punitive damages with leave to amend.

 

Attorney’s Fees

 

A plaintiff who prevails in an elder financial abuse case can recover their attorney’s fees and costs. (Welf. & Inst. Code, § 15657.5, subd. (a), (b).)

 

A plaintiff may similarly recover damages for the money expended in pursuit of converted property. (Civ. Code, § 3336.)

 

Plaintiff contends that the LLC operating agreements entitle her to attorney’s fees in this action, but that she cannot point to the specific clause which says so because Defendants have withheld the operating agreements. However, Plaintiff does not allege the existence of such a clause, even on information and belief. Thus, the Court grants the motion to strike Plaintiff’s prayer for attorney’s fees for breach of the LLC agreements and denies the motion to strike the remaining prayers for attorney’s fees.

 

Prayer for Relief

 

Defendants argue that Plaintiff’s entire prayer for relief should be stricken because her causes of action are defective as argued in the demurrer. Because the Court does not dismiss Plaintiff’s complaint in its entirety, the Court also denies this request.