Girn v. Barney CA4/3

CourtCalifornia Court of Appeal
DecidedFebruary 9, 2026
DocketG064213
StatusUnpublished

This text of Girn v. Barney CA4/3 (Girn v. Barney CA4/3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Girn v. Barney CA4/3, (Cal. Ct. App. 2026).

Opinion

Filed 2/9/26 Girn v. Barney CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

RAMANDEEP GIRN et al.,

Plaintiffs and Appellants, G064213

v. (Super. Ct. No. 30-2021- 01221442) CARL BARNEY et al., OPINION Defendants and Respondents.

Appeal from a judgment and postjudgment order of the Superior Court of Orange County, Erick L. Larsh, Judge. Dismissed. Holmes, Athey, Cown & Mermelstein, Mark Mermelstein and Joel M. Athey for Plaintiffs and Appellants. Jackson Lewis, James P. Carter, Jonathan P. Schmidt, Kelli M. Dreger and Dylan B. Carp for Defendants and Respondents.

* * * Plaintiffs Ramandeep Girn et al., are shareholders (shareholder plaintiffs) of LePort Educational Institute, Inc. (LEI). They filed derivative claims on LEI’s behalf against defendants Carl Barney and other former members of LEI’s board (Barney defendants). The trial court granted Barney defendants’ motion for judgment on the pleadings (the MJOP) and entered judgment (the judgment) in their favor. Shareholder plaintiffs filed a purported motion to vacate the judgment (the motion to vacate) under Code of Civil Procedure section 663, which the court denied (the postjudgment order).1 Shareholder plaintiffs then filed a notice of appeal of the judgment and the postjudgment order. Barney defendants have moved to dismiss the appeal for lack of jurisdiction. First, they argue the appeal of the judgment was untimely filed. Second, they assert the motion to vacate was invalid under section 663, making the postjudgment order unappealable. We agree with these arguments and dismiss the appeal. FACTS AND PROCEDURAL HISTORY I. LEI’S HISTORY LEI was founded in 2000 by Dr. Peter LePort (Dr. LePort). It previously owned and operated several Montessori schools across the country but has sold all of its schools except for one. Plaintiffs are LEI shareholders Ramandeep (Ray) Girn, Rebecca Girn, Kristina Biniek, and Guy Barnett (defined above as shareholder

1 Further undesignated references are to the Code of Civil

Procedure.

2 plaintiffs).2 Ray, Rebecca, and Barnett are also former officers and employees of LEI. LEI terminated Ray’s and Barnett’s employment in February 2016. Rebecca left LEI shortly thereafter. Barney defendants are Barney, Eric Juhlin, Lenny Esmond, and Rony Miller. Barney is an LEI investor and shareholder. In August 2016, he loaned LEI more than $17 million. In exchange, he obtained the right to serve on LEI’s six-member board of directors (the board) and to appoint three of the five remaining director positions. The other three defendants are directors that Barney appointed to the board. LEI suffered a series of financial setbacks, culminating in the sale of nearly all its assets to a third party in June 2018. After the sale, multiple lawsuits were filed involving Barney, the Girns, Dr. LePort, and other LEI shareholders and former employees. II. THE PRIOR ACTION In early 2018, LEI purportedly assigned Barney all claims it had against certain former officers and employees, including Dr. LePort and the Girns.3 Based on these assignments, Barney filed a lawsuit in July 2018 (the prior action), alleging breach of fiduciary duty claims against Lukas Pieter, LEI’s former chief financial officer. After several amendments, he filed the third amended complaint in August 2021. This complaint was brought by Barney on behalf of himself and LEI against (1) Pieter, (2) Dr. LePort, (3) Dr.

2 We refer to Ray and Rebecca individually by their first names to

avoid confusion, and we refer to them collectively as the Girns. 3 The validity of one of these assignments is at issue in the

related appeal in the prior action, Barney v. Girn, et al., case number G064412.

3 LePort’s sister and son, who are LEI shareholders, (4) the Girns, and (5) Higher Ground Education, Inc., an LEI competitor that was allegedly owned and controlled by the Girns. Several of the defendants in the prior action cross-complained against LEI. Pieter cross-complained against LEI for indemnity in August 2018. The Girns also cross-complained against Barney and LEI in February 2020. They later filed a first amended cross-complaint in March 2022 that added Juhlin, Esmond, and Miller as cross-defendants.4 III. THIS LAWSUIT AND THE MJOP Shareholder plaintiffs filed this lawsuit in September 2021, asserting derivative claims on LEI’s behalf against Barney defendants. They filed an amended complaint in November 2021. Generally, the shareholder plaintiffs alleged that Barney defendants had used LEI’s resources to enrich Barney at the expense of LEI. Based on these allegations, they asserted derivative claims for breach of fiduciary duty, unjust enrichment, and civil conspiracy. Barney defendants filed the MJOP in response. They argued the shareholder plaintiffs’ claims should have been brought as compulsory cross- claims in the prior action and were now barred under section 426.30, subdivision (a). This statute provides, “if a party against whom a complaint has been filed and served fails to allege in a cross-complaint any related cause of action which (at the time of serving his answer to the complaint) he has against the plaintiff, such party may not thereafter in any other action

4 The Girns amended their cross-complaint again after the filing

of the MJOP, but these amendments are immaterial to the issues raised in this appeal.

4 assert against the plaintiff the related cause of action not pleaded.” (§ 426.30, subd. (a).) Shareholder plaintiffs disagreed with Barney defendants’ interpretation of section 426.30, subdivision (a). They argued LEI was the true plaintiff in this lawsuit since only derivative claims had been asserted. And, as they read the statute, the compulsory cross-claim rule would only apply if the Barney defendants had asserted claims against LEI in the prior action. Since they had not, shareholder plaintiffs maintained the compulsory cross-claim rule did not apply. The trial court rejected the shareholder plaintiffs’ interpretation of section 426.30, subdivision (a), and granted the MJOP without leave to amend (the MJOP order). It concluded, “even if LEI was not directly sued by Carl Barney, the issues in this shareholder derivative action should have been asserted by LEI as a compulsory cross-complaint in the [prior action]. Therefore this action should be dismissed.” IV. THE MOTION TO INTERVENE IN THE PRIOR ACTION After the MJOP order, Biniek and Barnett filed a motion in the prior action to intervene as plaintiffs. The motion was denied by Judge Erick L. Larsh in May 2023. At the motion to intervene hearing, though, Biniek and Barnett noted that they could not bring their claims in this lawsuit because the MJOP order, made by another judge, found their claims were barred under the compulsory cross-claim rule. In response, Judge Larsh commented, “[i]t couldn’t have been a compulsory cross-complaint. I agree with you on that, but that wasn’t this court. And it is where we find ourselves at this point. I don’t know that I would have dismissed the derivative lawsuit

5 as a result. For that, fairness, I’d love to put you in [the prior action], but I don’t know that [the legal standard to intervene] is met.” V. THE MOTION TO VACATE After the MJOP hearing, this lawsuit was reassigned to Judge Larsh. Based on the MJOP order, Judge Larsh entered the judgment in Barney defendants favor on March 1, 2024. Barney defendants’ provided notice of entry of the judgment on March 4, 2024.

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Girn v. Barney CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/girn-v-barney-ca43-calctapp-2026.