Hadar v. Luria CA1/3

CourtCalifornia Court of Appeal
DecidedFebruary 15, 2023
DocketA161387
StatusUnpublished

This text of Hadar v. Luria CA1/3 (Hadar v. Luria CA1/3) 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
Hadar v. Luria CA1/3, (Cal. Ct. App. 2023).

Opinion

Filed 2/15/23 Hadar v. Luria CA1/3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION THREE

SHACHAR M. HADAR et al., Plaintiffs and Respondents, A161387 v. GERSHON LURIA, (Contra Costa County Super. Ct. No. C16-00396) Defendant and Appellant.

Defendant Gershon Luria (Luria), appearing in pro per, appeals from an order granting summary adjudication in favor of plaintiffs Shachar Hadar and Esther Kolyer on their cause of action for partition of real property. Luria contends summary adjudication should have been denied because he raised a triable dispute over the parties’ respective ownership interests in the subject property; he disputed the existence of a valid agreement to sell the property; he presented evidence of an agreement to hold the property for 10 years from the date of purchase; and he presented evidence raising a triable issue that plaintiffs should be prevented from obtaining equitable relief under the doctrine of unclean hands. We affirm. FACTUAL AND PROCEDURAL BACKGROUND According to the operative first amended complaint, plaintiffs own an undivided 50 percent tenancy-in-common interest in property located in Richmond (the Property). Defendants Luria and his wife, Irit Sanger, own

1 the remaining undivided 50 percent interest. In their first cause of action, plaintiffs describe the Property and the parties’ respective ownership interests and request that the Property be partitioned by sale. They allege partition by sale “is more equitable” because the Property “consists of a single building which is not susceptible to physical division.” In their second cause of action, plaintiffs allege that defendants, in performing management duties over the Property, breached their fiduciary duties to plaintiffs by failing to maintain and preserve an accurate account of the income and expenses associated with management of the Property; by expending income generated from the Property for expenses not reasonably related thereto; and by retaining income from the Property beyond the agreed-upon compensation for management duties. In a prior appeal, this court reversed an order granting summary adjudication in favor of plaintiffs on their partition claim. (Hadar v. Luria (May 15, 2019, A153420) [nonpub. opn.] (Hadar I).) Luria had opposed the motion by submitting a declaration stating that the parties had agreed to hold the Property for a minimum of 10 years from the date of purchase. (Ibid.) Plaintiffs objected to Luria’s declaration on the ground that it failed to state the place of execution as required under Code of Civil Procedure section 2015.5. (Hadar I.) Plaintiffs also argued that the evidence did not raise a triable issue of material fact because an agreement to waive the right of partition had to be in writing under the statute of frauds. (Ibid.) In reversing the trial court’s grant of summary adjudication, we concluded the declaration sufficiently complied with Code of Civil Procedure section 2015.5. We remanded the matter for further proceedings, noting the trial court had declined to reach the statute of frauds issue due to its ruling on the declaration. (Hadar I.)

2 Following remand, plaintiffs again moved for summary adjudication of their partition claim. In support, they submitted evidence to establish the following facts and conclusions: (1) in January 2011, the parties purchased the Property—a multiunit apartment building in Richmond—with each side owning an undivided 50 percent interest; (2) there was no written agreement between the parties waiving plaintiffs’ right of partition; (3) in January 2016, Hadar sent an email to Luria memorializing a telephone conversation between them in which Luria “stated that if we decide[d] to sell the property, you are OK with that”; and (4) due to the location and characteristics of the Property, partition in kind would be impractical and less equitable to the parties on both sides. According to Hadar’s supporting declaration, the parties agreed that Luria would manage the Property for a management fee of 10 percent of the gross rents. The parties “initially agreed that ownership of the Property would be transferred to a limited liability company, in which the four of us were co-equal members, but that plan was never executed after Mr. Luria changed his mind. There was never any express or implied agreement between Plaintiffs and Defendants, or any of them, whereby it was agreed that the Property would be owned for a required period of time or that the Property could not be sold until a particular date.” Hadar further averred that “difficulties in the relationship between the co-owner couples developed” due to Luria’s “ ‘management’ of the Property,” including his “apparent misappropriation of funds” and insufficient reporting of financial matters. Also, “Mr. Luria’s propensity for conflict with tenants at the Property . . . led to multiple lawsuits being filed either against Mr. Luria individually or all co-owners collectively.” Hadar stated that in January 2016, he and Luria agreed during a telephone call—later memorialized in an email—“that if

3 Plaintiffs wanted to sell the Property that this would be acceptable.” (Underscore omitted.) In response to the email, Luria did not dispute he was amenable to plaintiffs selling the Property. Instead, Luria stated he had “specifically promised you [Hadar] this before we purchased, and as I hope you and Esther know that I always keep my word, because I believe this is ‘ “good business.” ’ ” Hadar further averred that because of “the physical characteristics of the Property and the density of the existing structure on a narrow lot in a densely built-out residential neighborhood,” partition of the Property in kind was “totally impractical. Nor has it been suggested by Defendants or by anyone that an in-kind division of the Property could be accomplished, by partition or otherwise.” Defendants opposed the motion, arguing that under Summers v. Superior Court (2018) 24 Cal.App.5th 138 (Summers), any disputes regarding ownership of the Property had to be determined in a trial before a partition by sale could be ordered. According to defendants, there was indeed an ownership dispute because in March 2016, in case No. C16-00579, defendants sued plaintiffs for breach of fiduciary duty, abuse, and unjust enrichment and “demand[ed] the transfer of title to us.” Defendants further disputed the existence of an agreement to sell the Property, arguing that Luria was not authorized to make a commitment to sell on behalf of his wife. Defendants reiterated their argument from the first summary adjudication motion that the parties had agreed to hold the Property for at least 10 years. Defendants also argued there was a triable issue of material fact that plaintiffs should be denied equitable relief because of their unclean hands. According to defendants, Hadar had breached fiduciary duties to defendants by opening a limited liability company (GLSH Properties) in March 2011

4 without defendants’ awareness or consent and keeping it open for several years; Hadar falsely stated in his summary adjudication declaration that the parties’ plan to open the limited liability company “ ‘was never executed’ ” when, in fact, it was partially executed; Hadar gave “false, fabricated testimony to the insurance company” in a tenant’s lawsuit against Luria (Freeman v. Luria) that Luria had caused a “ ‘personal vendetta’ ” with the tenant; and in another tenant lawsuit (Brawly v.

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Hadar v. Luria CA1/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hadar-v-luria-ca13-calctapp-2023.