Judge: Keri G. Katz, Case: 37-2022-00045117-CU-DF-CTL, Date: 2023-10-27 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - October 26, 2023

10/27/2023  08:30:00 AM  C-74 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Keri Katz

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Civil - Unlimited  Defamation Motion Hearing (Civil) 37-2022-00045117-CU-DF-CTL RYVYL INC VS LUNA [IMAGED] CAUSAL DOCUMENT/DATE FILED:

Plaintiff/Cross-Defendant Vanessa Luna's demurrer to Defendant/Cross-Complainant RYVYL, Inc.'s cross-complaint is OVERRULED.

Luna demurrers to the two causes of action alleged against Luna – conversion and quasi-contract/unjust enrichment.

Conversion Luna's demurrer is OVERRULED.

' '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....' [Citation.]' (Los Angeles Federal Credit Union v. Madatyan (2012) 209 Cal.App.4th 1383, 1387, 147 Cal.Rptr.3d 768; see CACI 2100; Gruber v. Pacific States Sav. & Loan Co. (1939) 13 Cal.2d 144, 148, 88 P.2d 137 [conversion is the wrongful exercise of dominion 'over another's personal property in denial of or inconsistent with his rights therein'].) Welco Electronics, Inc. v. Mora (2014) 223 Cal.App.4th 202, 208 [166 Cal.Rptr.3d 877, 881] The court finds the cross-complaint alleges facts sufficient to state a cause of action for conversion against Luna [XC ¶¶ 36, 37]. The factual issues Luna raises regarding whether Luna is or was a member of Cross-Defendant Lux Pay Group, LLC, whether Luna signed the contracts at issue, and whether Luna received proceeds from the transaction are not properly resolved on demurrer. Similarly, the related evidence Luna relies on to support Luna's arguments is not properly before the court on demurrer.

Quasi-Contract/Unjust Enrichment Luna's demurrer is OVERRULED.

The elements of a cause of action for unjust enrichment are simply stated as 'receipt of a benefit and unjust retention of the benefit at the expense of another.' (Lectrodryer v. Seoulbank (2000) 77 Cal.App.4th 723, 726, 91 Cal.Rptr.2d 881; accord, First Nationwide, at pp. 1662-1663, 15 Cal.Rptr.2d Calendar No.: Event ID:  TENTATIVE RULINGS

3006230  11 CASE NUMBER: CASE TITLE:  RYVYL INC VS LUNA [IMAGED]  37-2022-00045117-CU-DF-CTL 173.) Professional Tax Appeal v. Kennedy-Wilson Holdings, Inc. (2018) 29 Cal.App.5th 230, 238.

The court finds the cross-complaint alleges facts sufficient to support a cause of action for quasi-contract/unjust enrichment against Luna [XC ¶¶ 45, 46]. The court is not persuaded by either of the arguments Luna raises. Luna relies on authority holding that '[a]n action based on . . .

quasi-contract cannot lie where there exists between the parties a valid express contract covering the same subject matter.' Rutherford Holdings, LLC v. Plaza Del Rey (2014) 223 Cal.App.4th 221, 231 citing Lance Camper Manufacturing Corp. v. Republic Indemnity Co. (1996) 44 Cal.App.4th 194, 203.

However, the allegations of the cross-complaint are not that there is an express contract between RYVYL and Luna. The allegations are of an express contract between RYVYL and Lux Pay Group [XC ¶¶ 8-13, 25]. Such allegations do not preclude a finding of a quasi-contract between RYVYL and Luna.

As above, the factual issue of whether Lux Pay Group returned the stock to RYVYL and evidence that Lux Pay Group returned the stock to RYVYL, are not properly considered on demurrer.

Luna shall answer within 10 days of this ruling.

If this tentative ruling is confirmed the Minute Order will be the final order of the court and the parties shall not submit any further order on this motion.

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