Case Number: SC129762 Hearing Date: February 07, 2019 Dept: P

TENTATIVE RULING

Pickford Fund LLC v. Masoud Isaac Kahrobaie et al., Case no. SC129762

Hearing Date: 2/7/2019

Defendant Shama Enterprises, Inc.’s Demurrer to Plaintiff Pickford Fund, LLC’s Complaint

(NO OPPOSITION FILED)

FACTUAL BACKGROUND:

In August 2018, plaintiff received an assignment of a money judgment against defendant Masoud Kahrobaie. Plaintiff alleges that Masoud Kahrobaie and the other defendants colluded to transfer or hide assets to prevent enforcement of the judgment. Specifically, plaintiff alleges that defendant Masoud Kahrobaie conveyed his interest in a piece of real property to Defendant Shama Enterprises in 2004 for the purposes of hiding his interest from future creditors.

Defendant demurs to the First, Second, Fourth, Eleventh, Twelfth, Thirteenth, and Fourteenth Causes of Action, and moves to strike requests for punitive damages and attorney’s fees.

First, Second and Fourth Causes of Action —Statute of Limitations/Repose Under UFTA

A cause of action for fraudulent transfer or conveyance is subject to a seven year statute of repose which begins to run when the transfer was made. (Cal. Civ. Code §3439.09) A statute of repose extinguishes a cause of action entirely once it passes and is not subject to any kind of tolling. (PGA West Residential Association v. Hulven Int’l. (2017) 14 Cal.App.5th 156, 176.)

The only transfer Plaintiff alleges involving Shama is the transfer of the Washington Property on August 30, 2004. (Complaint at ¶105.) This falls outside the seven-year repose period. While Plaintiff may argue the transaction it seeks to avoid is the 2016 settlement agreement, not the 2004 transfer, this is unclear on the face of the complaint. As currently pled, the bar applies. The demurrer to the first, second, and fourth causes of action are SUSTAINED. Leave to amend to allege facts showing the claims are not barred by the statute of limitations or statute of repose will be granted if plaintiff can so allege.

Eleventh through Thirteenth Causes of Action

These causes of action are derivative of the UFTA claims and are based on the same alleged conduct. To the extent the seven year statute of repose applied to those causes of action, it will also be sustained to these claims. Further, to the extent these claims are based on Shama Enterprises’ aiding and abetting defendant Kahrobaie’s fraudulent concealment of his ownership interest in the Washington property, plaintiff has not pleaded the underlying fraud with sufficient particularity. SUSTAINED. Leave to amend to allege that the seven year statute of repose does not apply to the transfer to defendant and to plead the conduct constituting the underlying fraud with sufficient particularity if plaintiff can so allege.

Fourteenth Cause of Action – declaratory relief

Defendant lists this cause of action in its notice but makes no argument. OVERRULED.

Motion to Strike

The demurrer is sustained to all causes of action brought against defendant except the fourteenth, declaratory relief. As declaratory relief cannot be a basis for a recovery of punitive damages, the motion to strike is GRANTED. Additionally, plaintiff has not set forth a statutory or contractual basis for the recovery of attorney’s fees; the motion to strike is GRANTED as to attorney’s fees.