Judge: William A. Crowfoot, Case: 19GDCV00602, Date: 2023-04-17 Tentative Ruling

Case Number: 19GDCV00602    Hearing Date: April 17, 2023    Dept: 3

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - NORTHEAST DISTRICT

On May 14, 2019, Jenny Zhang (“Zhang”) and her son, Z.D. (collectively, “Plaintiffs”) filed this action against defendants Janice Yen, Leslie Yen, Jenny Chan, Vivien Djeu, and Steps Academy, Inc. (“Steps”).  Zhang is a minority shareholder of Steps, a closely held corporation that runs a private elementary school in Arcadia, California.  Zhang alleges that she purchased a 29% ownership interest in Steps in 2015 and claims that ever since, her rights as a minority shareholder have oppressed.  Z.D. alleges he sustained personal injuries and asserts causes of action for battery, assault, false imprisonment, intentional infliction of emotional distress, and defamation. 

On March 14, 2023, Plaintiffs filed this motion for leave to file a First Amended Complaint (“FAC”).  The proposed FAC adds Arroyo Pacific Academy (“Arroyo Pacific”) as a defendant, removes Z.D.’s claims, and includes allegations supporting Zhang’s claims against Arroyo Pacific.  The motion is unopposed. 

The court may, in its discretion and after notice to the adverse party, allow, upon any terms as may be just, an amendment to any pleading, including adding or striking out the name of any party, or correcting a mistake in the name of a party, or a mistake in any other respect.  (Code Civ. Proc., § 473, subd. (a)(1).)  “Public policy dictates that leave to amend be liberally granted.”  (Centex Homes v. St. Paul Fire & Marine Ins. Co. (2015) 237 Cal.App.4th 23, 32.)  “Although courts are bound to apply a policy of great liberality in permitting amendments to the complaint at any stage of the proceedings, up to and including trial . . . this policy should be applied only ‘where no prejudice is shown to the adverse party.’  [Citation].  A different result is indicated ‘where inexcusable delay and probable prejudice to the opposing party’ is shown.  [Citation.]”  (Magpali v. Farmers Group, Inc. (1996) 47 Cal.App.4th 471, 487.)

A motion to amend a pleading must include a copy of the proposed amendment or amended pleading which must be serially numbered to differentiate it from previous pleadings or amendments and must state what allegations in the previous pleading are proposed to be deleted or added, if any, and where, by page, paragraph, and line number, the allegations are located.  (Cal. Rules of Court, Rule 3.1324(a).)  The motion shall also be accompanied by a declaration attesting to the effect of the amendment, why the amendment is necessary and proper, when the facts giving rise to the amended allegations were discovered, and why the request for amendment was not made earlier.  (Cal. Rules of Court, Rule 1.324(b).)

Zhang’s counsel, Long Z. Liu, attaches excerpts from the deposition transcripts of Janice Yen and Leslie Yen showing that Defendants agreed, without Zhang’s consent, to effectively merge Steps with Arroyo Pacific.  Counsel declares that the request for amendment is “timely made” and “will not prejudice Defendants” but does not identify when the facts giving rise to the requested amendments were discovered or why the request for amendment was not made earlier.  (Liu Decl., 3:3.)  However, because Defendants do not oppose the motion, the request for leave to file the FAC is GRANTED.

The remaining plaintiff, Zhang, is ordered to file the proposed FAC within 5 days of the date of this order.

Moving party to give notice.

Parties who intend to submit on this tentative must send an email to the Court at ALHDEPT3@lacourt.org indicating intention to submit on the tentative as directed by the instructions provided on the court website at www.lacourt.org.  Please be advised that if you submit on the tentative and elect not to appear at the hearing, the opposing party may nevertheless appear at the hearing and argue the matter.  Unless you receive a submission from all other parties in the matter, you should assume that others might appear at the hearing to argue.  If the Court does not receive emails from the parties indicating submission on this tentative ruling and there are no appearances at the hearing, the Court may, at its discretion, adopt the tentative as the final order or place the motion off calendar.

Dated this 17th day of April, 2023