Wang v. Plaza Bonita CA2/2

CourtCalifornia Court of Appeal
DecidedJanuary 30, 2025
DocketB321484
StatusUnpublished

This text of Wang v. Plaza Bonita CA2/2 (Wang v. Plaza Bonita CA2/2) 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
Wang v. Plaza Bonita CA2/2, (Cal. Ct. App. 2025).

Opinion

Filed 1/30/25 Wang v. Plaza Bonita CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 TWO

STEVEN WANG et al., B321484 (Los Angeles County Plaintiffs and Appellants, Super. Ct. No. 21STCV44289)

v.

PLAZA BONITA, LLC, et al.,

Defendants and Respondents.

APPEAL from a judgment and orders of the Superior Court of Los Angeles County, William F. Fahey, Judge. Judgment reversed in part and remanded; order on anti-SLAPP motion affirmed in part, reversed in part; order on demurrer affirmed in part, reversed in part and remanded; order on motion for attorneys’ fees affirmed. Mirch Law Firm, Kevin J. Mirch and Marie C. Mirch, for Plaintiffs and Appellants. Blackmar, Principe & Schmelter, George B. Blackmar, Gerry C. Schmelter and Peter J. Attarian, Jr., for Defendants and Respondents. Plaintiffs and appellants Steve Wang and Dinah Wang (collectively, appellants) appeal from the trial court’s judgment of dismissal following defendants and respondents Plaza Bonita, LLC; Culver City Mall, LLC; Valencia Town Center Venture, LP; Jason Woods; and Jessica Scales’s (collectively, respondents) successful special motion to strike pursuant to Code of Civil Procedure section 425.16 (anti-SLAPP statute) and demurrer.1 Appellants also appeal the court’s order granting respondents’ motion for attorneys’ fees and costs.2 We conclude the complaint is partially based on protected activity. While the claims at issue in respondents’ anti-SLAPP motion are mostly subject to the anti-SLAPP statute, the trial court struck some claims that fall outside the statute. As to the demurrer, leave to amend should be granted as to certain causes of action because appellants demonstrate they can be sufficiently amended. In addition, we conclude the court correctly granted the motion for attorneys’ fees and costs.

1 Despite not being a party to the motions, Unibail-Rodamco- Westfield (URW) is a respondent and a party to the appeal. All undesignated statutory references are to the Code of Civil Procedure. 2 This court granted appellants’ motion to consolidate appeals, ordering appeal Nos. B323121 and B321484 consolidated into No. B321484.

2 BACKGROUND Appellants’ complaint The lease and Plaza Bonita’s unlawful detainer actions Appellants are owners and operators of three separate Burger King restaurant franchises in National City, Culver City, and Valencia. Appellants entered into three separate leases with Plaza Bonita, Culver City Mall, and Valencia Town Center Venture, through amendments that replaced Shihlin Electric with appellants as lessees. Plaza Bonita brought two unlawful detainer actions against appellants, one in February and one in June 2021. In the second unlawful detainer suit, a writ of possession was executed preventing appellants from accessing their restaurant in National City. Plaza Bonita disposed of the personal property left on the premises. Both unlawful detainer actions were dismissed in September 2021. Plaza Bonita and Culver City Mall subsequently terminated their respective leases with appellants pursuant to terms in the lease amendments allowing terminations upon 60 days’ notice. Appellants’ claims and allegations regarding the 60- day termination clause and the writ of possession In December 2021, appellants sued respondents, including URW.3 Appellants asserted causes of action for breach of

3 The complaint alleges URW was a real estate investment trust that owned and managed Plaza Bonita, Culver City Mall, and Valencia Town Center Venture. Woods and Scales allegedly both worked for URW and negotiated the lease amendments that replaced Shihlin Electric with appellants as lessees. URW filed a motion to quash that was never ruled upon below.

3 contract, breach of covenant of good faith and fair dealing, fraudulent inducement, negligent inducement, wrongful eviction, conversion, defamation, unfair business practices, and negligence. Appellants alleged they never agreed to the terms in the lease amendments allowing the defendant landlords to terminate the underlying leases upon 60 days’ notice for any reason. Respondents allegedly added the termination provisions surreptitiously and concealed it from appellants. Appellants alleged Plaza Bonita attached a false five-day notice to quit to its unlawful detainer complaint that falsely contended appellants owed substantial amounts in past due rent. Further, the complaint alleged Plaza Bonita unlawfully obtained a writ of possession by failing to serve the request for entry of default and default judgment until after appellants had been locked out of the premises. Appellants allegedly were prohibited from accessing their personal property in the restaurant, including operating cash, supplies, and furniture. Plaza Bonita allegedly converted the property by disbursing it without appellants’ permission. The fraudulent inducement and defamation allegations Appellants also alleged Woods and Scales, while acting individually and as agents for the other respondents, made a number of false statements to induce appellants to execute the lease amendments. Woods and Scales allegedly misrepresented respondents’ intent to enter into long-term lease agreements with appellants that would justify their capital investment in the three leasehold estates. Appellants alleged Woods and Scales also misrepresented the lease agreements would be subject to the same terms and conditions as the original leases.

4 In addition, the complaint alleged URW, Plaza Bonita, Woods, and Scales defamed appellants by falsely telling their vendors, customers, and employees that appellants did not timely pay their rent and were therefore having their leases terminated. The aforesaid respondents also allegedly falsely stated appellants owed at least $45,929.63 to URW and Plaza Bonita. Appellants contend these statements were false because appellants were in compliance with their COVID-19 deferred rent agreement at the time. Moreover, appellants alleged Plaza Bonita obtained its writ of possession by false pretenses and provided false information to the sheriff to have appellants removed from their restaurant in National City. Procedural history The anti-SLAPP motion In February 2022, respondents filed an anti-SLAPP motion as to portions of the first and second causes of action and to the fifth through eighth causes of action of the complaint. Respondents argued appellants’ claims were based on Plaza Bonita’s unlawful detainer action, which was protected activity. Respondents asserted appellants could not show a probability of prevailing on these claims because they were subject to litigation privilege that protected Plaza Bonita’s filing and prosecution of the unlawful detainer complaint. In opposition, appellants argued the conduct was not protected activity because it fell within the illegality exception discussed in Flatley v. Mauro (2006) 39 Cal.4th 299 (the Flatley rule). Appellants maintained the unlawful detainer action was illegal due to the eviction moratorium in effect at the time. Appellants asserted the alleged conduct at issue was not limited to the prosecution of the unlawful detainer action. Appellants posited the litigation privilege did not apply for the same

5 reason—the alleged conduct was illegal under the eviction moratorium. The demurrer Respondents concurrently demurred to the complaint, asserting among other grounds that it failed to state facts sufficient to constitute a cause of action under section 430.10, subdivision (e).

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Bluebook (online)
Wang v. Plaza Bonita CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wang-v-plaza-bonita-ca22-calctapp-2025.