Case Number: BC678531 Hearing Date: January 12, 2018 Dept: 32

Haejung Lee,

Plaintiff,

v.

Soo Kim, et al.,

Defendants.

Soo Kim,

Cross-Complainant,

v.

Haejung Lee,

Cross-Defendant.

Case No.: BC678531

Hearing Date: January 12, 2018

[TENTATIVE] order RE:

Demurrer to FIRST AMENDED Cross-Complaint

Lee’s request for judicial notice is GRANTED.

In the first amended cross-complaint (“FACC”), Cross-Complainant/Defendant Soo Kim (“Kim”) asserts a single cause of action for conversion against Cross-Defendant/Plaintiff Haejung Lee (“Lee”).

“Conversion is the wrongful exercise of dominion over the property of another. The elements of a conversion claim are: (1) the plaintiff’s ownership or right to possession of the property; (2) the defendant’s conversion by a wrongful act or disposition of property rights; and (3) damages….” (Lee v. Hanley (2015) 61 Cal. 4th 1225, 1240.)

Kim alleges that Lee was hired as a sales manager for Kim’s business called Bella Jean. (FACC ¶ 5.) Kim alleges that Lee diverted money due to Kim by forging invoices, and having checks written to “2V La Int’l Group,” which was purportedly a company created by Lee for the purpose of usurping Bella Jean’s money. (FACC ¶ 8.) However, Kim fails to allege the first element of conversion: ownership or right to possession of the property. Kim alleges that the converted money belonged to Bella Jean, not to Kim in an individual capacity.

Lee additionally demurs to the FACC on the grounds that it is barred by collateral estoppel and res judicata. Lee contends that the issues alleged in the FACC were adjudicated in prior case involving the parties, BC639866. Kim does not oppose the demurrer to dispute this showing.

Based on the foregoing, the demurrer is SUSTAINED WITHOUT LEAVE TO AMEND.