Judge: Melvin D. Sandvig, Case: 25CHCV00375, Date: 2025-04-04 Tentative Ruling

Case Number: 25CHCV00375    Hearing Date: April 4, 2025    Dept: F47

Dept. F47

Date: 4/4/25

Case #25CHCV00375

DEMURRER & MOTION TO STRIKE THE ORIGINAL COMPLAINT

Demurrer & Motion to Strike filed on 3/4/25 in one document.

MOVING PARTY: Defendants Sokolof Remtulla; Highview Group, LLC; and Xorin Holdings Limited Corporation

RESPONDING PARTY: Plaintiff Tapia Canyon Management LLC

NOTICE: ok

Demurrer is to the entire complaint:

            1.  Wrongful Foreclosure

            2.  Declaratory Relief

            3.  Conversion

RELIEF REQUESTED IN MOTION TO STRIKE: An order striking allegations regarding and the prayer for punitive damages in the complaint (p.6:14-17, p.7:21-24, p.8:3).

RULING: The hearing on the motion will be continued.

SUMMARY OF FACTS & PROCEDURAL HISTORY

This action arises out of foreclosure proceedings against certain real property in Los Angeles County in which Plaintiff Tapia Canyon Management LLC (Plaintiff) claims a tenant-in-common interest.  On 1/30/25, Plaintiff filed this action against Defendants Sokolof Remtulla; Highview Group, LLC; Xorin Holdings Limited Corporation; and DACA-Castaic LLC alleging causes of action for: (1) Wrongful Foreclosure, (2) Declaratory Relief and (3) Conversion. 

After meet and confer efforts failed to resolve the issues Defendants Sokolof Remtulla; Highview Group, LLC; and Xorin Holdings Limited Corporation (collectively, Defendants) have with the complaint, on 3/4/25, Defendants filed and served the instant demurrer to the entire complaint and motion to strike which seeks to strike allegations regarding and the prayer for punitive damages in the complaint (p.6:14-17, p.7:21-24, p.8:3).  Plaintiff has opposed the demurrer and Defendants have filed a reply to the opposition. 

ANALYSIS

Defendants’ Request for Judicial Notice (RJN) is granted.

Defendants specially demur to the entire complaint on the ground that Plaintiff is a suspended LLC and, therefore, lacks capacity to sue.  See CCP 430.10(b); V&P Trading Co., Inc. (2012) 212 CA4th 126, 133.

Lack of capacity to sue can be based on a corporation’s suspension by the Secretary of State.  See Color-Vue, Inc. (1996) 44 CA4th 1599, 1604-1605.  A suspended corporation/limited liability company may not prosecute or defend an action.  Grell (1999) 73 CA4th 1300, 1306; Timberline, Inc. (1997) 54 CA4th 1361, 1365; Palm Valley Homeowners Association (2000) 85 CA4th 553, 560; Revenue & Taxation Code 23301, 23301.5.

Here, the Secretary of State website shows that Plaintiff’s status is “suspended – FTB.”  (RJN, Ex.11).  In response to the foregoing, Plaintiff contends that its corporate powers have been restored and Plaintiff’s attorney declares that based on his personal knowledge, the company is reinstated.  (See Opposition, p.8:16-18; Gilmore Decl.).  However, the opposition also concedes that the Secretary of State website does not show Plaintiff’s restored status.  (Opposition, p.8:16-18; Gilmore Decl. ¶2).  Plaintiff’s attorney states that he anticipates having confirmation from the Secretary of State regarding Plaintiff’s restored status “at any time,” but he also states that Plaintiff “was told that it might take many weeks.”  (Gilmore Decl. ¶¶2-3).  Plaintiff’s attorney states that he will provide the confirmation to the court once received.  (Gilmore Decl. ¶3).

Plaintiff asks that if the Court is not satisfied with the foregoing, that it grant a 30 day continuance to confirm Plaintiff’s reinstatement. 

Based on the foregoing, the Court finds that it is in the interests of justice to confirm that Plaintiff has the capacity to pursue this action before making a ruling on the demurrer and/or Plaintiff’s Motion to Void Trustee Sale and Deed which is scheduled for hearing on 4/7/25.

CONCLUSION

The hearing on the demurrer and motion to strike will be continued to June 13, 2025.

The hearing on Plaintiff’s Motion to Void Trustee Sale and Deed scheduled for 4/7/25 is advanced to 4/4/25 and continued to June 13, 2025.

Plaintiff is ordered to file proof of its reinstatement at least 10 court days before the continued hearing date.