Keyway Pride Limited v. Reuben CA2/5

CourtCalifornia Court of Appeal
DecidedMay 1, 2026
DocketB340135
StatusUnpublished

This text of Keyway Pride Limited v. Reuben CA2/5 (Keyway Pride Limited v. Reuben CA2/5) 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
Keyway Pride Limited v. Reuben CA2/5, (Cal. Ct. App. 2026).

Opinion

Filed 5/1/26 Keyway Pride Limited v. Reuben CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION FIVE

KEYWAY PRIDE LIMITED LLC, B340135

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. v. 21SMCV00182)

SIMON REUBEN,

Defendant and Respondent.

APPEAL from an order of the Superior Court of Los Angeles County, Michael E. Whitaker, Judge. Affirmed. Barnes & Thornburg, David P. Schack, Matthew B. O’Hanlon, and Brian T. Nguyen for Plaintiff and Appellant. Greenberg Traurig, Eric V. Rowen, and Matthew R. Gershman for Defendant and Respondent. Plaintiff Keyway Pride Limited LLC (plaintiff) asserted various civil claims against defendant Simon Reuben (Simon) and others based on their involvement in the allegedly unauthorized transfer of plaintiff’s real property located in Beverly Hills. Simon is a British citizen residing in Monaco. The trial court granted Simon’s motion to quash plaintiff’s summons for lack of personal jurisdiction. We consider whether Simon’s role as a beneficial owner of entities that were involved in lending funds secured by plaintiff’s property and that later purported to acquire the property is sufficient to establish he (apart from the entities) is subject to personal jurisdiction in California.

I. BACKGROUND A. The Disputed Property Transactions and Ensuing Lawsuit Plaintiff is a California limited liability company formed in 2017. Its operating agreement provides its sole member is a Delaware limited liability company called Midas Commodities Agents Delaware LLC (Midas).1 Plaintiff asserts its “ultimate beneficial owner” is Kimora Lee Simmons Leissner (Simmons). Plaintiff characterizes Tim Leissner (Leissner) as Simmons’s “now estranged husband.” Plaintiff acquired 25 Beverly Park Circle in Beverly Hills (the Property) in 2017. Simmons lived at the Property with her children at all relevant times. In 2018, plaintiff borrowed $12 million from Koronus Holdings Designated Activity Company

1 Midas changed its name to Z-One LLC in 2019.

2 (Koronus) secured by a deed of trust against the Property.2 The loan documents were executed by Gregory Robinson (Robinson) on behalf of Midas as Keyway’s manager. Robinson also executed a first amendment to the deed of trust the following year. In November 2020, Leissner purported to enter into a purchase and sale agreement on behalf of plaintiff transferring the Property to defendant 25 Beverly Park Circle Propco LLC (Propco). Around the same time, Leissner purported to enter a contract on plaintiff’s behalf leasing the Property back from Propco for one year. A lease rider provided plaintiff an option to purchase the Property within one year for approximately $17.6 million. Plaintiff filed a complaint against Propco in 2021 to cancel deed and quiet title. Plaintiff filed the operative first amended complaint in 2023. The first amended complaint includes additional causes of action against Propco and others allegedly involved in the disputed transfer. Plaintiff alleges Leissner had no authority to contract on its behalf. Plaintiff alleges documents purporting to give Leissner such authority, on which Propco and others purportedly relied, were forgeries. Plaintiff further contends that, even if authentic,

2 The loan agreement provided that a substantial portion of the loan proceeds were to be disbursed to Ghanim bin Saad Al Saad (Al Saad), an individual who is not a party to this litigation, with “Mr. Al Saad [required to] use $3,000,000.00 of the [l]oan proceeds towards funding the redevelopment” of certain property located in New York. An email between associates of Simon, on which he was copied, characterized Al Saad as the “borrower” and “our tenant in . . . the . . . NYC property,” and stated “$3m of these proceeds will be diverted to initiate that project.”

3 these documents would not give Leissner authority to act on his own. Plaintiff also maintains, in any case, that the disputed transaction amounts to “an extension of the loan for one year as a disguised sale/lease back” that would allow Propco and Koronus (which have the same beneficial owners) to “evade foreclosure procedures.” In this regard, plaintiff alleges the purported sale price was substantially below the Property’s fair market value and, rather than Propco issuing the loan payoff amount to Koronus, the outstanding loan balance was “simply credited against the purported purchase price.” Approximately $2.3 million in cash (the bulk of the difference between the sale price and the balance due on plaintiff’s debt to Koronus) was wired to defendant Cantervale Limited (Cantervale), an entity owned by defendant Amanda Staveley (Staveley).3 Neither Cantervale nor Staveley has any affiliation with plaintiff. This appeal concerns only one of the several defendants named in the operative first amended complaint: Simon. Keyway alleges Simon and his brother, Reuben David Reuben (David), are the beneficial owners of Koronus and Propco, which function as their alter egos. The first amended complaint alleges causes of action for quiet title and cancellation of instruments against Propco and Koronus; causes of action for a civil violation of Penal Code

3 As quoted in the trial court’s minute order denying Staveley’s motion to quash, Staveley filed a declaration stating “part of the funds was repayment of . . . funds that [she] had advanced for the benefit of the borrower of the Koronus loan [(i.e., Keyway)]” after learning “Keyway had missed interest payments” and feeling “embarrassed as [she] had pitched the loan to Koronus.”

4 section 496 (receiving stolen property), violation of the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.), and for declaratory relief against Propco, Koronus, the Reuben brothers, Cantervale, Staveley, and another entity;4 and claims for breach of contract and gross negligence against Chicago Title Company (Chicago Title). Propco filed a cross-complaint against plaintiff, Simmons, and Leissner. The operative first amended cross-complaint alleges causes of action for unlawful detainer, quiet title, breach of contract, fraud, unjust enrichment, equitable lien, ejectment, trespass, and a common count for money had and received.

B. Simon’s Motion to Quash Simon and David filed a joint motion to quash Keyway’s summons for lack of personal jurisdiction. Simon and David are British citizens and longtime residents of Monaco. They are the

4 The other defendant named in these causes of action, PCP Capital Partners LLP, allegedly furnished the forged operating agreement for plaintiff to the title company handling the disputed transaction. With respect to the declaratory relief cause of action, plaintiff seeks a declaration that “a. Leissner was never authorized by Keyway [to] act on Keyway’s behalf in connection with the [purchase and sale agreement], the [g]rant [d]eed, the [l]ease, and/or otherwise; [¶] b. [t]he purported sale of the Property to Propco and lease back to Keyway was actually a disguised loan transaction designed to enhance the [defendants’] security in the Property and charge an onerous, usurious rate of interest; [¶] c. Keyway has no obligation to pay claimed amounts constituting usurious loan interest; and [¶] d. Keyway has no obligation to repay amounts on the Koronus [l]oan that were not paid to Keyway upon funding of the loan by Koronus.”

5 ultimate beneficial owners of both Koronus and Propco.

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Bluebook (online)
Keyway Pride Limited v. Reuben CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keyway-pride-limited-v-reuben-ca25-calctapp-2026.