Superior Court of California

County of Los Angeles

Department 50

WAVE INVESTMENT, LLC, Plaintiff, vs. SECURCAPITAL CORP., et al., Defendants.	Case No.:	21STCV47554
	Hearing Date:	November 7, 2024
	Hearing Time: 2:00 p.m. [TENTATIVE] ORDER RE: MOTION BY DEFENDANTS STEPHEN J. RUSSELL AND SECURCAPITAL CORP. FOR SUMMARY JUDGMENT AND/OR SUMMARY ADJUDICATION
AND RELATED CROSS-ACTION

Background

Plaintiff Wave Investment, LLC (“Wave”) filed this action on December 30, 2021 against Defendants SecurCapital Corp. (“SecurCapital”) and Stephen J. Russell (“Russell”) (jointly, “Defendants”).

Wave filed the operative Third Amended Complaint (“TAC”) on November 15, 2023, alleging causes of action for (1) breach of contract, (2) declaratory relief, (3) breach of partnership or joint venture agreement, (4) breach of fiduciary duty, (5) conversion,

(6) fraudulent concealment, (7) fraudulent misrepresentation, (8) negligent misrepresentation,

(9) unjust enrichment, (10) accounting, and (11) constructive trust.

On February 20, 2024, SecurCapital filed a Cross-Complaint against Wave and Mark Boyce, alleging causes of action for (1) fraudulent concealment, (2) fraudulent misrepresentation, (3) fraudulent inducement, (4) breach of the covenant of good faith and fair dealing, and (5) declaratory relief.

Russell now moves for summary judgment or, in the alternative, summary adjudication as to each cause of action asserted against Russell in TAC., i.e., Wave’s first, fourth, sixth, seventh, eighth, ninth, and eleventh causes of action against Russell. In addition, SecurCapital moves for summary adjudication as to the second, third, fourth, fifth, sixth, seventh, eighth, ninth, tenth, and eleventh causes of action asserted against SecurCapital in Wave’s TAC. Wave opposes.

Discussion

As an initial matter, the Court notes that in connection with the motion, Defendants filed a “Notice of Lodging of Pleadings Conditionally Under Seal,” which provides that “on August 23, 2024, in Department 50 of the above-captioned Court, Defendant Stephen J. Russell and Defendant and Cross-Complainant SecurCapital Corp. will lodge the following pleadings conditionally under seal:

(1) MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEFENDANTS STEPHEN J. RUSSELL’S AND SECURCAPITAL CORP.’S MOTION FOR SUMMARY JUDGMENT AND/OR SUMMARY ADJUDICATION (CONDITIONALLY UNDER SEAL);

(2) SEPARATE STATEMENT OF UNDISPUTED MATERIAL FACTS IN SUPPORT OF DEFENDANTS STEPHEN J. RUSSELL’S AND SECURCAPITAL CORP.’S MOTION FOR SUMMARY JUDGMENT AND/OR SUMMARY ADJUDICATION (CONDITIONALLY UNDER SEAL); and

(3) COMPENDIUM OF EVIDENCE IN SUPPORT OF DEFENDANTS STEPHEN J. RUSSELL’S AND SECURCAPITAL CORP.’S MOTION FOR SUMMARY JUDGMENT AND/OR SUMMARY ADJUDICATION (CONDITIONALLY UNDER SEAL).” (Defendants’ Notice of Lodging at p. 1:2-17.)

The Court notes that Defendants’ memorandum of points and authorities and separate statement in support of the instant motion, both filed on August 22, 2024, contain redactions. Defendants’ compendium of evidence filed on August 22, 2024 also contains redacted material. However, it does not appear that Defendants filed any motion to seal the redacted portions of their moving papers. The Court notes that pursuant to California Rules of Court, rule 2.551, subdivision (a), “[a] record must not be filed under seal without a court order. The court must not permit a record to be filed under seal based solely on the agreement or stipulation of the parties.” In addition, “[a] party requesting that a record be filed under seal must file a motion or an application for an order sealing the record. The motion or application must be accompanied by a memorandum and a declaration containing facts sufficient to justify the sealing.” (Cal. Rules of Court, Rule 2.551, subd. (b)(2).)¿Accordingly, the Court continues the hearing on Defendants’ instant motion, as discussed below.

Conclusion

In light of the foregoing, the hearing on Defendants’ motion for summary judgment and/or summary adjudication is continued to ____________, 2024, at 10:00 a.m. in Dept. 50. If Defendants seek to seal the redacted portions of their moving papers, Defendants must immediately file a motion or application to seal pursuant to California Rules of Court, rule 2.550 et seq.¿If Defendants do not seek to seal the redacted portions of the moving papers, Defendants must immediately file with the Court unredacted versions of the moving papers. ¿

Defendants are ordered to give notice of this Order.

DATED: November 7, 2024 ________________________________

Hon. Teresa A. Beaudet

Judge, Los Angeles Superior Court