Judge: Peter A. Hernandez, Case: 22PSCV01790, Date: 2023-10-03 Tentative Ruling

Case Number: 22PSCV01790    Hearing Date: October 3, 2023    Dept: K

The hearing on Counsel for Plaintiffs Yanjun Liu’s and Xinzhi Xing’s (i.e., Law Offices of Edward C. Ip & Associates, APC) Motion to be Relieved as Counsel is CONTINUED TO October 5, 2023 at 9:30 a.m. [see below].

Background[1]  

Plaintiffs Yanjun Liu and Xinzhi Xing (together, “Plaintiffs”) allege as follows:

On July 25, 2017, Plaintiffs purchased the residential property located at 3623 Hawkwood Rd., Diamond Bar, California 91765 (“subject property”) for $1 million. When purchasing the subject property, Plaintiffs made a $400,000.00 down payment and sought to obtain a loan for the remainder of the purchase price. Honghua Shang aka Henry Shang (“Shang”), the Chief Executive Officer and Chief Financial Officer of Great Wall Realty, Inc. (“GWR”), assisted Plaintiffs with the purchase of the subject property and helped them obtain a $600,000.00 loan through Margaret Hsu (“Hsu”). Plaintiffs subsequently returned to China and entrusted Shang and GWR to provide property management services for the subject property. Shang and GWR proposed that Plaintiffs rent out the subject property for $3,500.00. Shang represented that the money received from rent was the exact amount owed on the interest of the loan. Shang and GWR did not use the entirety of the rent received for repayment of the loan. In 2019, Plaintiffs remitted a check for $200,000.00 to Hsu to pay down the loan principal. In 2021, Plaintiffs contacted Shang to assist them with selling the subject property. Shang advised that the subject property required various repairs in preparation for listing it on the market and requested funds to perform such repairs. Shang instead misappropriated these funds for his personal use. Plaintiffs entered into a Residential Listing Agreement with Shang and GWR on August 3, 2021. In January 2022, Shang and GWR received an officer to purchase the subject property, which they failed to communicate to Plaintiffs. On January 11, 2022, Shang executed a Residential Purchase Agreement on behalf of Plaintiffs but without their prior knowledge or consent. Shang falsified and executed a Power of Attorney as well. Plaintiffs did not know of the foregoing acts and omissions until late 2022, when Plaintiffs requested documents and information from GWR and Shang. On October 17, 2022, Plaintiffs sent GWR and Shang a cease and desist letter and demand for all records pertaining to the subject property but GWR and Shang have yet to comply.

On November 14, 2022, Plaintiffs filed a complaint, asserting causes of action against Shang, Punchun Cai (“Cai”), Hsu, GWR and Does 1-50 for:

1.                  Breach of Contract

2.                  Breach of Fiduciary Duty

3.                  Intentional Misrepresentation

4.                  Negligent Misrepresentation

5.                  Negligence

6.                  Fraudulent Concealment

7.                  Misappropriation of Funds

8.                  Conversion

9.                  Conspiracy

10.              Aiding and Abetting

11.              Quiet Title

12.              Cancellation of Written Instrument

13.              Declaratory Relief

On April 14, 2023, Plaintiffs dismissed Hsu, without prejudice.

The Final Status Conference is set for March 4, 2025. Trial is set for March 18, 2025.

Discussion

The Law Offices of Edward C. Ip & Associates, APC (“Firm”) seeks to be relieved as counsel of record for Plaintiffs Yanjun Liu and Xinzhi Xing (“Clients”).

The hearing on the instant motion is continued to October 5, 2023 at 9:30 a.m., due to the notice deficiency noted in the footnote above. Plaintiffs’ counsel is instructed to give notice of the continued hearing date.