Yan v. Rhoads CA1/4

CourtCalifornia Court of Appeal
DecidedJanuary 30, 2026
DocketA170789
StatusUnpublished

This text of Yan v. Rhoads CA1/4 (Yan v. Rhoads CA1/4) 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
Yan v. Rhoads CA1/4, (Cal. Ct. App. 2026).

Opinion

Filed 1/30/26 Yan v. Rhoads CA1/4

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOUR

TINA YAN, Plaintiff and Appellant, A170789 v. (Marin County STEVEN RHOADS, Super. Ct. No. CIV1800005) Defendant and Respondent.

Against the background of several appellate proceedings arising out of an action by Charles Li to set aside allegedly fraudulent transfers of real property by Dennis Yan to Tina Yan1 and a group of other transferees, Tina filed the present action for professional malpractice against attorney Steven Rhoads, alleging negligence in connection with her in an appeal of the judgment for Li. In this appeal from a judgment against Tina in her professional negligence case against Rhoads, she contends the trial court erred in (1) resolving a bifurcated issue as to the remedies that were properly awardable in the fraudulent transfer case under the Uniform Voidable

1 Because Tina and Demas share the same last name, we refer to each

by first name only.

1 Transactions Act (UVTA; Civ. Code,2 § 3439 et seq.), and (2) denying her subsequent motion for a new trial. We find no error and affirm. I. BACKGROUND The procedural background here is complex and extensive, but since it provides important context for our analysis of the issues presented in this appeal, we begin by stepping through the full chronology.3 A. Professional Negligence Lawsuit—Li v. Yan This dispute traces back to a professional negligence action filed by Charles Li against Demas in 2010, involving Demas’s representation of Li in lawsuits concerning property ownership rights. After a bench trial in 2012, the trial court found Demas had engaged in the unauthorized practice of law and was liable to Li for professional negligence, breach of fiduciary duty, breach of contract, and fraud. Division Two of this court affirmed the judgment against Demas. (See Li v. Yan (2016) 247 Cal.App.4th 56, 59, 62.) A judgment was ultimately entered against Demas totaling $1,086,001.12. B. Fraudulent Conveyance Lawsuit Under the UVTA Through efforts to enforce the judgment, Li learned that Demas had transferred certain residential property to a wholly owned limited liability company in 2007 and then, after trial commenced in the professional negligence action, Demas transferred his ownership interest in the LLC to relatives, purportedly to repay debts Demas owed. After the LLC was

2 Undesignated statutory references are to the Civil Code.

3 We take our summary of the background facts largely from appellate

decisions authored by our colleagues in Divisions Three and Five of this court—Li v. Chiu (May 31, 2018, A149849) [nonpub. opn.] (Li v. Chiu I); Li v. Chiu (Dec. 22, 2020, A156760) [nonpub. opn.] (Li v. Chiu II); and Yan v. Hearst (Sept. 1, 2021, A161732) [nonpub. opn.]—which we judicially notice on our own motion. (Evid. Code, §§ 452, subd. (d), 459, subd. (a); see Berger v. Varum (2019) 35 Cal.App.5th 1013, 1017, fn. 2.)

2 ordered to appear for a judgment debtor examination, the property was transferred yet again to a newly formed LLC. In February 2014, after learning of the suspicious transactions involving the property, Li filed a complaint to set aside fraudulent transfers, alleging actual fraud (§ 3439.04, subd. (a)(1)) as well as constructive fraud (§§ 3439.04, subd. (a)(2), 3439.05). Li alleged the conveyances were made to prevent him from satisfying his judgment against Demas. Li named as defendants Demas, Tina and Cheuk Tin Yan (Demas’s parents), Thai Ming Chiu and Kaman Liu (both brothers-in-law of Demas), and the two LLCs that had held title to the property. Li took defaults against Demas and the two LLCs. A jury trial proceeded against Demas’s parents and his brothers-in-law (the “transferee defendants”), and at the same time a bench trial was conducted on the transferee defendants’ equitable title affirmative defense. Demas testified he had not paid any of Li’s judgment. In 2012 he transferred his ownership in the first LLC (holding title to the property) as follows: 68.43 percent to his mother, Tina; 25.83 percent to Chiu; and 5.74 percent to Liu. After Demas failed to appear for a debtor’s exam as an agent for the LLC, the property was again transferred to a new LLC owned by the transferee defendants in the same percentages. At about the same time, the property was publicly offered for sale at the price of $1,925,000. The jury returned special verdicts against all the defendants, finding each liable for actual and constructive fraud. The jury also found that Tina did not take her interest in the property in good faith or for reasonably equivalent value. The trial court denied the transferee defendants’ request for equitable relief.

3 In June 2016, the trial court entered default judgments against Demas and the two LLCs and, consistent with the special verdicts returned by the jury, entered judgment against each of the transferee defendants in the following amounts: $824,180.57 jointly against Demas’s parents, Tina and Cheuk Tin (who is now deceased); $324,167.58 against Chiu; and $72,037.24 against Liu. The judgment also declared Demas to be the sole owner of all legal and equitable interest in the property. In addition, the trial court granted Li’s request for attorney fees and entered a first amended judgment that incorporated an award of attorney fees of $802,059.50 and costs of $11,527.19. C. The Transferee Defendants’ Appeal of the First Amended Judgment in the Fraudulent Transfer Action According to Tina’s allegations in her present action against Rhoads (reiterated in part in the parties’ appellate briefs in this appeal), Tina retained attorney Rhoads in late 2016 “on a motion for new trial in anticipation of an appeal” of the judgment in the fraudulent transfer action. In about January 2017 (apparently before the filing of any appellate briefs), Rhoads withdrew as counsel because he concluded the appeal was meritless. Tina and the other transferee defendants then retained attorney Joseph Hearst in January or February 2017 as counsel. In their appeal from the first amended judgment in the fraudulent transfer action (Li v. Chiu I, supra, A149849), Hearst represented the transferee defendants. They raised two issues on appeal: (1) that the trial court erred in granting Li’s motions in limine preventing them from presenting certain evidence; and (2) that it was error to award attorney fees against the transferee defendants because they were not parties to the earlier action between Li and Demas and cannot be liable for attorney fees incurred to enforce the judgment in that earlier action. (Li v. Chiu I, supra, A149849.)

4 Our colleagues in Division Three found in favor of the transferee defendants on the second issue only. Noting that there had been no finding that the transferee defendants conspired with Demas to engage in the fraudulent transfers for the purpose of evading Li’s enforcement of his judgment, Division Three concluded there was no basis to impose an attorney fee award against anyone other than Demas. The trial court was directed to enter a new amended judgment providing that the fees award was imposed solely against Demas. The judgment was otherwise affirmed. (Li v. Chiu I, supra, A149849.) D. The Second Amended Judgment in the Fraudulent Transfer Action and the Transferees’ Appeal On remand, the trial court entered the second amended judgment in November 2018. In accordance with the appellate decision in Li v.

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Yan v. Rhoads CA1/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yan-v-rhoads-ca14-calctapp-2026.