Judge William A. Crowfoot, Case Number: 22AHCV00192, Date: 2024-12-20 Tentative Ruling

Judge: William A. Crowfoot, Case: 22AHCV00192, Date: 2024-12-20 Tentative Ruling

On November 18, 2024, defendants Eastern Horizon, LLC (“Eastern Horizon”), Chong Ding aka Virginia Ding (“Ding”) and Yan Ding (“Trustee”), as Trustee of the 2004 Anchen Gift Trust dated December 23, 2004 (“Anchen Gift Trust”) (collectively, “Defendants”) filed this memorandum of points and authorities in support of their request to try plaintiff Pauline Yip’s (“Plaintiff”) equitable claims for specific performance, quiet title, cancellation of instrument, and declaratory relief by the Court before empaneling a jury.

A trial court has the authority to order a trial of equitable claims before legal claims. (Nwosu v. Uba (2004) 122 Cal.App.4th 1229, 1242.) “[T]his is the preferred procedure where the case includes both equitable and legal claims” and the “gist” of the complaint seeks equitable relief because a trial of equitable issues may result in factual findings that effectively dispose of the legal claims. (Id., at p. 1242, 1244.)

Here, Defendants argue that Plaintiff’s equitable claims concern the ownership of the property located at 37 Twiggs, Irvine, California (“Twiggs Property”) and should be tried first because they are based on the same exact facts as her two legal claims for fraud and negligent misrepresentation. (Brief, p. 6.) Defendants assert that the only other legal claim remaining is Plaintiff’s claim for indemnity relating to improper reporting of capital gains to the Internal Revenue Service in 2014 while Plaintiff served as trustee of the Anchen Gift Trust. Defendants contend this indemnity claim is predicated on facts that are completely unrelated to any claims relating to the Twiggs Property.

Plaintiff opposes Defendant’s proposal to essentially bifurcate trial and argues that bifurcation would not save time or judicial resources. Plaintiff broadly claims that the issues of tax liability requires the same testimony and evidence as those relating to the equitable cause of action because the parties’ relationship dates back to the 1990s and the tax liability arose in 2013. However, the issue of tax liability does not appear to be related to Plaintiff’s claims regarding the Twiggs Property, which make up the “gist” of her claims. Plaintiff does not specify how the evidence presented would necessarily overlap, considering the Twiggs Property was purchased in 2018, several years after Plaintiff’s tax liability arose. Also, even if the relationship between Plaintiff and Ding began in the 1990s, Plaintiff did not serve as trustee of the Anchen Gift Trust until 2010. Additionally, Defendants point out in their reply brief that they have asserted equitable defenses which may be dispositive of Plaintiff’s claims regarding the Twiggs Property. (Reply, p. 8.)

Accordingly, Defendants’ motion to bifurcate trial is GRANTED and Plaintiff’s causes of action for specific performance, quiet title, cancellation of instrument, and declaratory relief, as well as Defendant’s defenses of estoppel, unclean hands, and failure to do equity, shall be tried by the Court before a jury will hear any remaining legal claims.

William A. Crowfoot

Judge of the Superior Court

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.