Judge: Margaret L. Oldendorf, Case: 21GDCV00167, Date: 2023-08-04 Tentative Ruling
Case Number: 21GDCV00167 Hearing Date: August 4, 2023 Dept: P
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES
NORTHEAST DISTRICT
I.
INTRODUCTION
This litigation concerns allegations of
a fraudulent financial scheme. Plaintiffs Jan and Anna Borkowski allege they are
a married couple who immigrated from Romania, and that Defendant Paul Barbu,
who immigrated from Romania years earlier than Plaintiffs did, befriended them and offered his services
as a financial advisor. Based on his advice, Plaintiffs invested $310,000 with
Paul Barbu’s company Cedonia.
Plaintiffs allege that Paul first
helped them purchase real estate; and then the next year convinced them to open
a line of credit on their real property and allow him to invest it for them.
They did. Then, they made a non-equity investment in the form of a loan with
Cedonia. This money was then re-lent to others who purchased real property and
were to make payments at 10% interest. When the 18-month term of the loan was
up, Plaintiffs allege Paul convinced them to leave their money with him and
allow him to reinvest it, which they did. Since that time, Plaintiffs allege
they have made diligent and regular inquiries as to the status of their
investment and Paul has repeatedly assured them their investment is safe. Plaintiffs
allege that although Paul has made some periodic payments, the loan has never been
fully repaid.
Also named in this litigation is Anca
Barbu, Paul Barbu’s daughter. The Complaint alleges that Anca Barbu is listed
as Cedonia’s Director, and that Paul and Anca are also listed as treasurer and
president of another company, West Development Group. Plaintiffs allege that Paul
and Anca purchased certain real property using assets “stolen” from the
investments of others, including themselves.
As a result of this alleged theft, Anca, with the assistance of her
father, purchased real property in Sherman Oaks. Anca has filed a
cross-complaint for indemnity and contribution against Paul.
Before the Court is an unopposed
motion by Anca to preclude evidence of her financial condition until there is a
verdict for Plaintiffs awarding damages and finding Anca guilty of malice,
fraud, or oppression. The motion is granted.
II. LEGAL
STANDARD
Civ. Code §3295(d) provides: The court shall, on
application of any defendant, preclude the admission of evidence of that
defendant’s profits or financial condition until after the trier of fact
returns a verdict for plaintiff awarding actual damages and finds that a
defendant is guilty of malice, oppression, or fraud in accordance with Section
3294. Evidence of profit and financial condition shall be admissible only as to
the defendant or defendants found to be liable to the plaintiff and to be
guilty of malice, oppression, or fraud. Evidence of profit and financial
condition shall be presented to the same trier of fact that found for the
plaintiff and found one or more defendants guilty of malice, oppression, or
fraud.
III. ANALYSIS
This motion seeks relief that is authorized pursuant to
Civ. Code §3295(d), namely, an order that evidence of Defendant Anca Barbu’s
financial condition be precluded and only admitted into evidence following the
return of a verdict supporting punitive damages. The statute contains mandatory
language. And, the motion is not opposed. For all these reasons, the motion is
granted.
IV. ORDER
The motion for order precluding admission of evidence of
Defendant Anca Barbu’s financial condition until a verdict is returned
demonstrating that she is guilty of malice, fraud, or oppression is granted.
Moving party is ordered to provide notice of this order.
Dated: _______________________________
MARGARET L. OLDENDORF
JUDGE
OF THE SUPERIOR COURT