Case Number: BC582260 Hearing Date: February 21, 2018 Dept: 47

California Herbal Remedies, Inc. v. Orlando Yepes dba California Clinic, et al.

MOTION TO CONSOLIDATE

MOVING PARTY: Plaintiff (in BC582260) and Respondent (in BS169975) California Herbal Remedies, Inc.

RESPONDING PARTY(S): No opposition filed.

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

In BC582260, Plaintiff California Herbal Remedies, Inc. alleges that it qualified as a Medical Marijuana Business with limited immunity. Defendant Yepes was an employee and officer of Plaintiff but resigned all positions he held with Plaintiff in 2012, then obtained unemployment benefits from the Employment Development Department. However, in 2014, Yepes began to hold himself out as the rightful owner of Plaintiff and its limited immunity by operating his own marijuana dispensary.

In BS169975, Petitioners CHR Herbal Remedies and Laura Aguirre seek reinstatement of Petitioner CHR Herbal Remedies, Inc. to active status in the Secretary of State’s records on the ground that Petitioner CHR Herbal Remedies was misrepresented as being the disappearing corporation when California Herbal Remedies, Inc., without Petitioners’ knowledge or consent, filed an Agreement and Plan of Merger.

Plaintiff (in BC582260) and Respondent (in BS169975) California Herbal Remedies, Inc. move for an order consolidating BC582260 and BS169975 for all purposes, including trial.

TENTATIVE RULING:

Plaintiff (in BC582260) and Respondent (in BS169975) California Herbal Remedies, Inc.’s motion to consolidate Cases BC582260 (and BC617571) with BS169975 for all purposes, including trial, is GRANTED.

DISCUSSION:

Motion To Consolidate

Request For Judicial Notice

Plaintiff’s request that the Court take judicial notice of documents filed in LASC Case Nos. BC582260, BC617571 and BS169975 is GRANTED per Evid. Code § 452(d)(court records).

Analysis

Plaintiff (in BC582260) and Respondent (in BS169975) California Herbal Remedies, Inc. move for an order consolidating BC582260 and BS169975 for all purposes, including trial.

CCP § 1048(a) provides:

When actions involving a common question of law or fact are pending before the court, it may order a joint hearing or trial of any or all the matters in issue in the actions; it may order all the actions consolidated and it may make such orders concerning proceedings therein as may tend to avoid unnecessary costs or delay.

(Bold emphasis added.)

“Whether separate actions shall be consolidated for trial is a matter within the discretion of the trial court and its decision will not be disturbed on appeal absent a clear showing of abuse of discretion. (Citation omitted.) . . . ‘A consolidation of actions does not affect the rights of the parties. The purpose of consolidation is merely to promote trial convenience and economy by avoiding duplication of procedure, particularly in the proof of issues common to both actions.’ (Citation omitted.)” Estate of Baker (1982) 131 Cal.App.3d 471, 485 (bold emphasis added).

The Plaintiff in California Herbal Remedies v. Orlando Yepes, BC582260 is California Herbal Remedies, Inc. Defendants are Orlando Yepes dba California Clinic, an individual;; Helena W. Wang, individually and as trustee for the William H.Y. Wang and Helena W. Wang Revocable Trust[1]. Laura Aguirre was substituted in as Doe 2 and Gabriel Dezio was substituted in as Doe 3. The first amended complaint alleges that Plaintiff California Herbal Remedies, Inc. qualified as a Medical Marijuana Business with limited immunity. Defendant Yepes was an employee and officer of Plaintiff but resigned all positions he held with Plaintiff in 2012, then obtained unemployment benefits from the Employment Development Department. However, in 2014, Yepes began to hold himself out as the rightful owner of Plaintiff and its limited immunity by operating his own marijuana dispensary.

On July 26, 2017, the Court ordered Case No. BC582260 (above) consolidated with Case No. BC582260. The Plaintiffs in CHR Herbal Remedies, Inc. v. California Herbal Remedies, BC617571 are CHR Herbal Remedies, Inc. and Laura Aguirre. Defendants are California Herbal Remedies, Inc. and Scott Kawasaki. Plaintiff alleges that it, controlled by Orlando Yepes until January 6, 2017 when Plaintiff Aguirre and another individual, Gabriel Dezio, succeeded Yepes as managers, officers and owners of CHR, is the true owner of the Business Tax Registration Certificate (“BTRC account”).

The case which Plaintiff California Herbal Remedies, Inc. (in BC582260) seeks to consolidate is BS169975. In BS169975, Petitioners CHR Herbal Remedies and Laura Aguirre seek reinstatement of Petitioner CHR Herbal Remedies, Inc. to active status in the Secretary of State’s records on the ground that Petitioner CHR Herbal Remedies was misrepresented as being the disappearing corporation when California Herbal Remedies, Inc., without Petitioners’ knowledge or consent, filed an Agreement and Plan of Merger.

The central and overlapping issue between the above cases—which must be resolved consistently—is whether California Herbal Remedies, Inc. or, rather, CHR Herbal Remedies, Inc. (Petitioner in BS169975) has the right to operate a business associated with City of Los Angeles Business Tax Registration Certificate Number 0002095479-0001-1. In this regard, common questions of fact and law are necessarily involved, and it will avoid unnecessary costs and delay to consolidate the cases for all purposes, including trial.

As such, the motion to consolidate Cases BC582260 (and BC617571) with BS169975 for all purposes, including trial, is GRANTED.

Moving Party to give notice, unless waived.

IT IS SO ORDERED.

Dated: February 21, 2018 ___________________________________

Randolph M. Hammock

Judge of the Superior Court