Judge: Salvatore Sirna, Case: 23PSCV03340, Date: 2024-02-13 Tentative Ruling

Case Number: 23PSCV03340    Hearing Date: February 13, 2024    Dept: G

Defendant Kyle Dou’s Demurrer to Complaint

Respondent: Plaintiffs Zenith Technology Inc. and Zhaohui Wang

TENTATIVE RULING

Defendant Kyle Dou’s Demurrer to Complaint is summarily STRICKEN and placed off calendar as Defendant Kyle Dou is in default.

BACKGROUND

This is an action for breach of contract arising from a stock purchase agreement. In June 2023, Plaintiffs Zenith Technology Inc. (Zenith) and Zhaohui Wang entered into a written agreement with Defendant Kyle Dou in which Zenith purchased 38,250 common stock shares from Dou’s company, Hixih Rubber Industry Group, Ltd. (Hixih). In exchange, Zenith agreed to pay $500,000 in cash, assume $230,000 in outstanding debt owed by Hixih, and issue 3,187,541 shares of Zenith’s stock to Dou. Subsequently, Zenith and Wang allege they discovered Hixih owed additional debts that were not disclosed. They also allege they discovered that Dou had used company funds to go on vacations and purchase an expensive watch.

On October 27, 2023, Zenith and Wang filed a complaint against Dou and Does 1-20, alleging the following causes of action: (1) breach of contract, (2) conversion, (3) unfair business practices, (4) breach of the implied covenant of good faith and fair dealing, and (5) unjust enrichment. On November 14, Zenith and Wang’s process server served Dou with substitute service in Los Angeles.

On January 3, 2024, default was entered against Dou. On January 11, Dou filed the present motion. A hearing on Dou’s motion is set for February 13 with a case management conference on April 2.

ANALYSIS

Dou demurs to Zenith and Wang’s entire Complaint. For the following reasons, the court STRIKES Dou’s demurrer and places it off calendar.

While Dou filed the demurrer on January 11, 2024, Dou was already found to be in default on January 3 after failing to timely file a responsive pleading to Zenith and Wang’s Complaint.

Because a defaulted defendant has no standing to file responsive pleadings, Dou’s demurrer is summarily STRICKEN and removed from the court’s calendar. (See Forbes v. Cameron Petroleums, Inc. (1978) 83 Cal.App.3d 257, 262.)