Jue v. Jue CA1/5

CourtCalifornia Court of Appeal
DecidedDecember 17, 2024
DocketA167601
StatusUnpublished

This text of Jue v. Jue CA1/5 (Jue v. Jue CA1/5) 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
Jue v. Jue CA1/5, (Cal. Ct. App. 2024).

Opinion

Filed 12/17/24 Jue v. Jue CA1/5 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FIVE

JEFFREY M. JUE, Cross-complainant and Respondent, A167601 v. CLIFFORD T. JUE, as Trustee, etc., (Alameda County Cross-defendant and Appellant. Super. Ct. No. 22CV009541)

Cross-defendant Clifford T. Jue (Clifford) and cross-complainant, Jeffrey M. Jue (Jeffrey), are brothers who have been embroiled in litigation involving their late mother Lillie Jue’s estate since 2014.1 Lillie Jue and her husband, Jun Jue, amassed a large portfolio of San Francisco Bay Area real estate that was held in a family trust, the Jue 1995 Trust, of which the couple were cosettlors. Jun Jue passed away in 2000, followed by Lillie Jue in 2021. At that time, Clifford became trustee of the Lillie T. Jue Living Trust and the

1 We refer to the parties using their first names for ease of reference,

intending no disrespect.

1 Jue 1995 Trust, as well as the subtrusts created thereunder2 (collectively, Trusts). Clifford brought the present lawsuit in his capacity as trustee of the Trusts to enforce his right to, among other things, net operating income in proportion to his ownership interest in one of the trust assets, an apartment building located at 740 Oakland Avenue in the City of Oakland (740 Oakland). After being sued, Jeffrey filed a cross-complaint asserting causes of action against Clifford that included breach of contract, declaratory relief, and abuse of process. At hand is Clifford’s appeal from the trial court’s order denying his special motion to strike the abuse of process cause of action in Jeffrey’s cross- complaint pursuant to the anti-SLAPP statute (Code Civ. Proc., § 425.16).3 According to Clifford, the trial court erred in finding Jeffrey met his burden under Code of Civil Procedure section 425.16 of demonstrating a probability of success on the merits. Clifford asserts that Jeffrey cannot make a prima facie factual showing of abuse of process and the litigation privilege under Civil Code section 47, subdivision (b) is a complete defense to the claim.4 We agree with Clifford that Jeffrey has not met his burden of proof under the second prong of the anti-SLAPP statute. Accordingly, we reverse the trial court’s order denying Clifford’s anti-SLAPP motion and remand with

2 On the death of Jun Jue, the Jue 1995 Trust was divided into three

subtrusts referred to as the survivor’s trust, the exemption trust, and the marital trust. 3 Unless otherwise stated, all statutory citations herein are to the Code

of Civil Procedure. 4 There is no dispute that Jeffrey’s abuse of process claim arises from

protected activity under section 425.16.

2 instructions to grant the motion and dismiss the abuse of process claim in Jeffrey’s cross-complaint. FACTUAL AND PROCEDURAL BACKGROUND In October 2014, Lillie Jue commenced a lawsuit against Jeffrey for financial elder abuse based on his conduct in inducing Lillie to transfer to him her ownership interests in certain real property, including her ownership interest in 740 Oakland.5 The matter eventually settled, and on May 10, 2019, an order on stipulation and findings was entered by the court (hereinafter, 2019 settlement agreement). Among other terms, the 2019 settlement agreement provided that the transfer of Lillie’s 50-percent ownership interest in 740 Oakland to Jeffrey was set aside and rescinded. In addition, Jeffrey was granted, upon Lillie’s death, an option to purchase her interest in 740 Oakland “for a purchase price equal to 90% of 105% of the appraised value of Oakland Ave. determined by a report issued by an MAI appraiser mutually agreed to by the then owners of Oakland Ave.” On March 3, 2020, Lillie filed a motion to enforce the 2019 settlement agreement that was joined by Clifford, Jennifer Jue, and Terrence Jue, all of whom were beneficiaries of the Trusts. Jeffrey opposed this motion. After a contested hearing, the court entered an order and judgment on July 23, 2020, partially granting Lillie’s motion (July 23, 2020 judgment). Under the July 23, 2020 judgment, the transfer of Lillie’s 50-percent interest in 740 Oakland to Jeffrey on November 12, 2012, was “rescinded and set aside ab initio.” Jeffrey was permitted to retain a separate 10-percent interest in 740 Oakland (among other property interests) upon his payment to the

5 According to the complaint, after her husband’s death, Lillie owned a

50-percent interest in 740 Oakland in her survivor’s trust and a 50-percent interest in 740 Oakland in the Jue QTIP Marital Trust. After Lillie died, Clifford became the trustee of both trusts.

3 Jue QTIP Marital Trust of an amount constituting “good and sufficient consideration for the sale . . . .” I. The Complaint. After Lillie’s death, Clifford continued Lillie’s efforts to enforce the 2019 settlement agreement, as well as a property management agreement she entered into with defendants Cedar Properties Real Estate Group (Cedar Properties) and Jonathan Weldon. To this end, on April 7, 2022, Clifford, in his capacity as trustee of the Trusts, filed a complaint against Jeffrey, Cedar Properties and Weldon (collectively, defendants) for breach of contract, breach of the covenant of good faith and fair dealing, interference with contract and declaratory relief. According to the complaint, Lillie entered into the written property management agreement with Cedar Properties and Weldon (referred to as “the broker”) in 2016, which, among other things, required them to disburse to Lillie the net operating income from 740 Oakland that was being held in the broker’s trust account (NOI). The NOI consisted of the balance of rental payments collected from the tenants of 740 Oakland less compensation payable to the broker and other operating expenses and costs. The complaint further alleged Lillie made repeated efforts, before and after moving to enforce the 2019 settlement agreement, to obtain defendants’ compliance with the requirement in the property management agreement that she receive 90 percent of the NOI based on her ownership interest in 740 Oakland.6 Initially, Cedar Properties and Weldon told Lillie that the NOI distributable to her was being held in the broker’s trust account pending

6 With respect to Lillie’s 90-percent ownership interest in 740 Oakland,

50 percent is held by the survivor’s trust and 40 percent is held by the Jue QTIP Marital Trust.

4 final determination of the ownership interests in 740 Oakland. Lillie then advised defendants that under the July 23, 2020 judgment, her transfer to Jeffrey of a 50-percent interest in 740 Oakland was rescinded. However, even with this information, defendants refused to comply with her demand for disbursement of the NOI, allegedly based on Jeffrey’s misrepresentation that the parties were still in settlement discussions regarding their respective interests in the property. II. The Cross-complaint On December 2, 2022, Jeffrey filed a cross-complaint against Clifford asserting causes of action for abuse of process, breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory relief, and specific performance. According to this cross-complaint, Clifford breached the 2019 settlement agreement by, among other things, interfering with Jeffrey’s right to purchase Clifford’s 90-percent interest in 740 Oakland by failing to obtain the requisite appraisal of the property within 90 days of Lillie’s death.

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