Board of Trustees of Leland Stanford Junior University v. Zhang

CourtDistrict Court, N.D. California
DecidedSeptember 28, 2022
Docket4:19-cv-02904
StatusUnknown

This text of Board of Trustees of Leland Stanford Junior University v. Zhang (Board of Trustees of Leland Stanford Junior University v. Zhang) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees of Leland Stanford Junior University v. Zhang, (N.D. Cal. 2022).

Opinion

1 UNITED STATES DISTRICT COURT 2 FOR THE NORTHERN DISTRICT OF CALIFORNIA 3 OAKLAND DIVISION 4

5 THE BOARD OF TRUSTEES OF THE Case N o: 19-cv-02904 SBA 6 LELAND STANFORD JUNIOR UNIVERSITY, ORDER GRANTING IN PART AND 7 DENYING IN PART MOTION FOR Plaintiff, JUDGMENT ON THE PLEADINGS 8 vs. 9 ZHANG YUZHEN, et al., 10 Defendants. 11

12 AND RELATED COUNTERCLAIM. 13 The Board of Trustees of the Leland Stanford Junior University (“Stanford”) brings 14 the instant quiet title action against Zhang Yuzhen (“Ms. Zhang”). Ms. Zhang brings 15 various counterclaims against Stanford and Li Nanyang (“Ms. Li,” and together with 16 Stanford, “Counter-Defendants”). Pending is Counter-Defendants’ motion for judgment on 17 the pleadings under Federal Rule of Civil Procedure 12(c) as to Ms. Zhang’s second, 18 seventh, eighth, and ninth counterclaims. The matter is suitable for resolution without oral 19 argument. See Fed. R. Civ. P. 78(b); N.D. Cal. Civ. L.R. 7-1(b). For the reasons stated 20 below, the motion is granted in part and denied in part. 21 I. BACKGROUND 22 A. FACTUAL ALLEGATIONS1 23 Li Rui was a prominent Chinese political figure and outspoken critic of the leaders 24 of the Communist Party of China until his death on February 16, 2019. First Am. Compl. 25 (“FAC”) ¶ 12, Dkt. 15; see also id. ¶¶ 13-15. Li Rui created personal diaries from at least 26 27 1 The parties are familiar with the underlying facts; only those matters pertinent to 1 1938 to 2019. Id. ¶ 16. He also maintained letters, photographs, and other materials, 2 including but not limited to, diaries created by his first wife, Fan Yuanzhen, a diary created 3 by both Li Rui and Fan Yuanzhen, and correspondence between Li Rui and Fan Yuanzhen 4 (the physical copies of these materials and Li Rui’s personal diaries, exclusive of the 5 intellectual property rights thereto, are referred to as the “Materials”). Id. ¶ 17. 6 In February 1989, Li Rui visited Stanford and its Hoover Institution (“Hoover”). Id. 7 ¶ 18.2 During the visit, he was shown some of Hoover’s China Collection. Id. According 8 to Stanford, due to Hoover’s reputation for its holdings of twentieth century Chinese 9 historical materials, Li Rui gave the Materials to his daughter, Ms. Li, beginning around 10 early 2014, to transfer ownership of the same to Stanford. Id. ¶ 20.3 He instructed Ms. Li 11 to take the Materials from China to the United States to gift them permanently to Stanford. 12 Id. Ms. Li delivered the Materials to Stanford between March 3, 2014 and July 31, 2018, 13 and executed agreements transferring ownership of the same to Stanford between March 3, 14 2014 and February 13, 2019. Id. ¶¶ 21-22. 15 Li Rui was married to his second wife, Ms. Zhang, from 1979 through his death on 16 February 16, 2019. FAC ¶ 26; First Am. Answer & Countercl. (“Countercl.”) ¶ J, Dkt. 46. 17 The Materials constitute original copies of diaries, letters, work notes, and other 18 manuscripts prepared by Li Rui over the course of his life, including the 40-year period 19 during which he and Ms. Zhang were married. Id. ¶ M. Ms. Zhang contends that, in 20 addition to providing accounts of significant events in Chinese history, the Materials “also 21 reflect deeply personal and private affairs of [her and Li Rui’s] life together, described in, 22 among other things, diary entries, letters, and poetry.” Id. ¶ N. According to Ms. Zhang, Li 23 24 2 Hoover is a public policy research center devoted to the study of politics, 25 economics, and political economy—both domestic and foreign—as well as international affairs. FAC ¶ 5. The Library & Archives at Hoover is dedicated to documenting war, 26 revolution, and peace in the twentieth and twenty-first centuries. Id. ¶ 7. It includes the China Collection, which is part of the larger East Asia Collection. Id. ¶¶ 8-9. 27 3 Ms. Li is one of three children Li Rui had with Fan Yuanzhen; the others are Fan 1 Rui intended that she would take ownership of the Materials after his death, and that any 2 publication or public display of their contents would be made at her sole discretion. Id. ¶ P. 3 Despite Li Rui’s intentions, Ms. Li, “secreted” the Materials out of China “at a time when 4 she stood in a fiduciary position to [him].” Id. ¶ Q. It is alleged that Ms. Li was an 5 employee or agent of Stanford when she took the Materials. Id. ¶ R. 6 Li Rui died, intestate, in China. FAC ¶ 27; Countercl. ¶ K. Shortly after his death, 7 on March 20, 2019, Ms. Zhang sent a letter to Stanford, through her counsel, asserting her 8 rightful claim to ownership of the Materials. Id. ¶ W. On April 2, 2019, Ms. Zhang filed 9 an inheritance action against Ms. Li in the Xicheng District People’s Court of Beijing of the 10 People’s Republic of China, Zhang Yuzhen et al. v. Li Nanyang, (2019) J010MC No. 11 17194 (the “Chinese Proceeding”). Id. ¶ X & Intro. Ms. Zhang notified Stanford of the 12 Chinese Proceeding by letter dated April 5, 2019. Id. ¶ Z; FAC ¶ 28. Stanford thereafter 13 filed the instant action. Countercl. ¶¶ AE-AF; FAC ¶ 30. 14 On November 20, 2019, a civil judgment issued in the Chinese Proceeding, 15 awarding Ms. Zhang ownership of the Materials and ordering Stanford and Hoover to 16 transfer possession of the same to her within 30 days. Countercl. ¶ AJ. According to 17 Ms. Zhang, Stanford and Hoover were named as third parties and eligible to appear in the 18 Chinese Proceeding but elected not to do so. Id. ¶¶ Y, AJ. Stanford denies that it elected 19 not to participate in the Chinese Proceeding, alleging, among other things, that it was added 20 as a third party in the judgment without any notice or opportunity to participate. Answer 21 ¶¶ Y, AE, AJ, Dkt. 54. Stanford retains possession of the Materials. Countercl. ¶ AK. 22 On April 23, 2019, Stanford held a panel discussion regarding Li Rui. Id. ¶ AB. At 23 its conclusion, the Materials were displayed for attendees to view. Id. During the 24 discussion, Ms. Li stated that Stanford had reproduced, photocopied, transcribed, or 25 otherwise copied the Materials for “ease of access.” Id. Thereafter, on July 12, 2019, 26 Stanford announced that the Materials were being made available to researchers. Id. ¶ AG. 27 On February 3, 2020, Hoover reopened its Library & Archives reading room, which had 1 Materials, were made “more widely available.” Id. According to Ms. Zhang, this already 2 led to “multiple individuals” accessing the Materials in the short time between the 3 reopening of the reading room and the filing of her Counterclaim. Id. Continued 4 publication of the Materials has caused and continues to cause Ms. Zhang personal 5 embarrassment and emotional distress. Id. ¶ AN. 6 B. PROCEDURAL HISTORY 7 Stanford brings a single claim for Quiet Title under California Code of Civil 8 Procedure §§ 760.010 et seq.4 Ms. Zhang brings counterclaims for: (1) Copyright 9 Infringement, against Counter-Defendants; (2) Public Disclosure of Private Facts, against 10 Counter-Defendants; (3) Intentional Infliction of Emotional Distress, against Counter- 11 Defendants; (4) Conversion, against Ms. Li; (5) Aiding and Abetting Conversion, against 12 Stanford; (6) Civil Conspiracy to Commit Conversion, against Stanford; (7) Breach of 13 Fiduciary Duty, against Ms. Li; (8) Aiding and Abetting Breach of Fiduciary Duty, against 14 Stanford; (9) Conspiracy to Commit Breach of Fiduciary Duty, against Stanford; 15 (10) Unjust Enrichment, against Counter-Defendants; and (11) Enforcement of Chinese 16 Judgment. Counter-Defendants move for judgment on the pleadings under Rule 12(c) with 17 respect to Ms. Zhang’s second, seventh, eighth, and ninth counterclaims. Dkt. 64. 18 II.

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Board of Trustees of Leland Stanford Junior University v. Zhang, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-of-leland-stanford-junior-university-v-zhang-cand-2022.