Navigators Real Estate v. Chao CA2/3

CourtCalifornia Court of Appeal
DecidedSeptember 16, 2024
DocketB332359
StatusUnpublished

This text of Navigators Real Estate v. Chao CA2/3 (Navigators Real Estate v. Chao CA2/3) 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
Navigators Real Estate v. Chao CA2/3, (Cal. Ct. App. 2024).

Opinion

Filed 9/16/24 Navigators Real Estate v. Chao CA2/3 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THREE

NAVIGATORS REAL ESTATE, B332359 INC. et al., (Los Angeles County Plaintiffs and Respondents, Super. Ct. Nos. 23AHCV00045, 23AHCV00201) v.

JACK W. CHAO,

Defendant and Appellant.

APPEALS from orders of the Superior Court of Los Angeles County, Margaret L. Oldendorf, Judge. Affirmed. Jack Wei Chao, in pro. per., for Defendant and Appellant. Law Office of Charles Pok and Associates, Charles Pok; Mascheroni Law and Laura E. Mascheroni for Plaintiffs and Respondents. ‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗

Defendant and appellant Jack W. Chao, a real estate attorney, appeals from trial court orders denying his special motions to strike pursuant to California’s anti-SLAPP statute (Code Civ. Proc., § 425.16).1 Chao moved to strike causes of action asserted against him in two complaints, one filed by Navigators Real Estate, Inc., which does business as Pinnacle Real Estate Group (Pinnacle), and a second filed by Jing Shao, a real estate buyer. We affirm the trial court orders. FACTUAL AND PROCEDURAL BACKGROUND On December 6, 2022, Jing Shao and Liping Huang entered into a real estate purchase agreement whereby Shao agreed to purchase Huang’s real property in Monrovia, California. The parties agreed to close escrow by December 26. On December 6, Huang also signed a contract with Pinnacle in which she agreed to pay Pinnacle a commission on the sale of her property. Despite these agreements, and acting at least in part on Chao’s advice, Huang refused to complete the sale and did not pay the commission. On January 6, 2023, Pinnacle filed a complaint against Chao, Huang, and Lina Ta, Huang’s son’s girlfriend or fiancée. The complaint alleged a claim for breach of contract against Huang and a claim for intentional inference with contractual relations against Chao and Ta. The complaint alleged that Chao is a real estate broker who, acting in concert with Ta, “persuaded Defendant Liping Huang not to close the escrow as required by the [real estate

1 All subsequent undesignated statutory references are to the Code of Civil Procedure.

2 purchase agreement] and not to pay the service fee as required per the [commission agreement] to Plaintiff.” According to the complaint, Chao and Ta persuaded Huang “to cancel this valid [real estate purchase agreement] so that Jack Wei Chao can become Defendant Liping Huang’s real estate broker and sell the property for Defendant Liping Huang and pocket the commission and Lina Ta can control the proceeds of the sale of The Property in conjunction with Defendant Jack Wei Chao.” Pinnacle also alleged that Chao was aware of the “valid contract” between Pinnacle and Huang, his “conduct prevented” Huang from “performing” her two contracts, and Chao knew his conduct would cause Huang to refuse to perform her obligations under the contracts. On January 27, 2023, Shao also filed a complaint against Chao, Huang, and Ta. Shao asserted an intentional inference with contractual relations claim against Chao and Ta. Shao alleged that Chao and Ta “persuaded” Huang not to close escrow and to cancel the real estate purchase agreement. Shao further asserted that Chao and Ta persuaded Huang to withhold Shao’s money in escrow. Like Pinnacle, Shao alleged Chao had done so to become Huang’s real estate broker and to sell the property himself. Shao asserted Chao was aware of the valid real estate purchase agreement and his conduct prevented Huang from closing escrow and performing her contractual obligations. On June 12, 2023, the trial court issued an order finding the Pinnacle and Shao cases related. Chao’s Special Motions to Strike On June 14, 2023, Chao filed a special motion to strike Shao’s intentional interference with contractual relations cause of action, pursuant to section 425.16. On June 26, Chao filed a

3 special motion to strike the same cause of action in Pinnacle’s complaint. Chao made the same arguments in both motions. Chao argued the anti-SLAPP statute applies to lawyers engaged in litigation activity. He asserted he had an attorney- client relationship with Huang when he persuaded her not to complete the real estate transaction. He also argued that his communications with individuals at Pinnacle were protected “settlement negotiations.” Chao further contended the litigation privilege in Civil Code section 47, subdivision (b) barred the plaintiffs’ claims. In support of both special motions to strike, Chao submitted a declaration stating that on December 16, 2022, Huang retained Chao as an attorney to represent her in the real estate transaction. Lina Ta, who had power of attorney for Huang because Huang lived in China and had “mental issues,” had contacted Chao. Chao declared that he performed a legal analysis and concluded Huang did not understand the terms of the commission and real estate purchase agreements, did not approve of the amount of the commission, and did not consent to some of the real estate purchase agreement terms. Chao also declared that he discovered a “$1.027 [million] note secured by the property which benefits the Buyer Jing Shao.” The note was not documented in either contract and, in Chao’s opinion, presented a “huge risk” to Huang. Chao therefore “suggested Liping H[u]ang not complete the transaction.” Chao described three subsequent communications with Pinnacle. On December 21, 2022, Chao called real estate broker Brian H. Chen, Huang’s broker at Pinnacle who represented her

4 in the sale, to “dispute” the agreements.2 Two days later, Chao called Charles Pok, a real estate attorney representing Pinnacle and buyer Shao. Chao accused Pinnacle of acting as a “dual agent” because Pinnacle represented both the buyer and seller in the transaction. Pok disagreed and “indicated a possible lawsuit.” Chao told Pok he would represent Huang and Ta “in the upcoming legal proceedings.” According to Chao, on January 2, 2023, he e-mailed Pok. Chao declared that this e-mail was a “settlement offer.” The e- mail stated, “After my extensive effort on the Seller’s son, who is the decision maker in this case, I’m presenting the following terms to resolve the purchase agreement dispute . . . .” The e- mail proposed: the “purchase price to be paid in full in [U.S.] dollars through escrow,” a total 4 percent commission for the sales and listing agents, and furniture would not be included in the sale. Chao also supported the special motions to strike with a declaration from Chen, which Pinnacle had previously filed in support of a motion for default judgment. Chen declared that sometime around the scheduled close of escrow on December 26, 2022, Huang told Chen that Chao and Ta advised her to pressure Shao to pay more by “lock[ing]” Shao’s money in escrow. When Chen refused to assist Huang, she told him she would not close escrow or pay the commission. On July 14, 2023, Pinnacle filed an opposition arguing that Chao’s special motion to strike was untimely and also that he failed to show his conduct was protected by the anti-SLAPP

2 According to Ta’s declaration in support of Chao’s motions to strike, Chao advised Huang to stop the sale before he called Chen on December 21.

5 statute or the litigation privilege. Pinnacle did not submit any evidence with the opposition, but referred to evidence Chao had previously submitted in support of the special motion to strike.

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Navigators Real Estate v. Chao CA2/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navigators-real-estate-v-chao-ca23-calctapp-2024.