Judge: Robert B. Broadbelt, Case: 23STCV00164, Date: 2025-01-07 Tentative Ruling

Case Number: 23STCV00164    Hearing Date: January 7, 2025    Dept: 53

Superior Court of California

County of Los Angeles – Central District

Department 53

MOVING PARTIES:              Defendants Sang Yoon Lee, Seung Hyung Lee, and Eui Hyung Lee                 

RESPONDING PARTIES:     Plaintiffs Extudy USA, Inc. and Extudy Co., LTD.  

Demurrer to First Amended Complaint

The court considered the moving, opposition, and reply papers filed in connection with this demurrer.

BACKGROUND

Plaintiffs Extudy USA, Inc. and Extudy Co., LTD[1] (“Extudy Korea.”) (collectively, “Plaintiffs”) filed the operative First Amended Complaint in this action on January 16, 2024, against defendants Sung Lee Yoo, Sang Eun Ji, Four Stars Management, Inc., WS Property Management, LLC, Sang Yoon Lee, Seung Hyung Lee, and Eui Hyung Lee. 

The First Amended Complaint alleges eight causes of action for (1) conversion; (2) breach of fiduciary duty; (3) aiding and abetting breach of fiduciary duty; (4) money had and received; (5) constructive fraud; (6) quiet title; (7) violation of Penal Code section 496; and (8) accounting.

            Defendants Sang Yoon Lee, Seung Hyung Lee, and Eui Hyung Lee (“Defendants”) now move the court for an order sustaining their demurrer to the seventh cause of action for violation of Penal Code section 496.

DISCUSSION

The court overrules Defendants’ demurrer to Extudy Korea’s seventh cause of action for violation of Penal Code section 496 because it states facts sufficient to constitute a cause of action since Extudy Korea has alleged facts establishing that (1) Defendants (i) received property that was stolen or obtained in a manner constituting theft or extortion based on their receipt of funds that were embezzled by defendant Sung Lee Yoo (“Yoo”) (FAC ¶ 93), including defendant Seung Hyung Lee’s receipt of payments from the account that belonged to plaintiff Extudy Korea (FAC ¶ 29), and (ii) knew that the funds had been so stolen or obtained (FAC ¶¶ 27, 93), including because they are alleged to have assisted her in embezzling those funds (FAC ¶¶ 30 [defendant Sang Yoon Lee represented that he was involved in every aspect of Yoo’s embezzlement scheme], 93], and (2) Defendants agreed to conceal defendant Yoo’s theft of those funds from Extudy Korea and for their own gain (FAC ¶¶ 93).  (Code Civ. Proc., § 430.10, subd. (e); Pen. Code, § 496, subd. (a) [“Every person who buys or receives any property that has been stolen or that has been obtained in any manner constituting theft or extortion, knowing the property to be so stolen or obtained, or who conceals, sells, withholds, or aids in concealing, selling, or withholding any property from the owner, knowing the property to be so stolen or obtained, shall be punished” as set forth therein] [emphasis added]; Finton Construction, Inc. v. Bidna & Keys, APLC (2015) 238 Cal.App.4th 200, 213 [“The criminal statute for receipt of stolen property (Penal Code, § 496, subd. (a)) requires demonstrating ‘(1) that the particular property was stolen, (2) that the accused received, concealed or withheld it from the owner thereof, and (3) that the accused knew that the property was stolen.  [Citation.]’”].)  

ORDER

            The court overrules defendants Sang Yoon Lee, Seung Hyung Lee, and Eui Hyung Lee’s demurrer to plaintiffs Extudy USA, Inc. and Extudy Co., LTD’s First Amended Complaint.

            The court orders plaintiffs Extudy USA, Inc. and Extudy Co., LTD to give notice of this ruling.

IT IS SO ORDERED.

DATED:  January 7, 2025

_____________________________

Robert B. Broadbelt III

Judge of the Superior Court