Zhao v. Sun CA4/1

California Court of Appeal·Decided July 22, 2026·No. D087438·Unpublished

Opinion

Filed 7/22/26 Zhao v. Sun CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

QIAN ZHAO, D087438

Plaintiff and Respondent,

v. (Super. Ct. No. CIVSB2409485)

XIAOFAN SUN et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of San Bernardino County, Wilfred J. Schneider, Jr., Judge. Affirmed in part, reversed in part, and remanded with directions. Kingswood Law and Jing Wang for Defendants and Appellants. Skywheel Law and Virginia Liu for Plaintiff and Respondent. A dispute between Plaintiff Qian Zhao and Defendant Xiaofan Sun over money Zhao deposited into accounts allegedly controlled by Sun eventually grew to encompass Sun’s counsel in this action, Jing Wang and Kingswood Law, PC. As relevant for this appeal, after Wang filed a document and declaration accusing Zhao of being a criminal fugitive subject to an arrest warrant in China, Zhao amended his complaint to assert claims against Wang for false light, libel per se, and declaratory relief. Zhao also accused Wang of receiving and helping Sun misuse funds allegedly belonging to Zhao. Wang accused Zhao of initiating a strategic lawsuit against public participation (SLAPP) against her, so she moved to strike the claims arising from her protected petition or speech. The trial court denied Wang’s anti- SLAPP motion. Based on Wang’s dual role as an advocate and a witness, Zhao successfully moved to disqualify Wang and Kingswood Law from representing Sun in this action. Wang appeals the denial of her anti-SLAPP motion and the disqualification order. On the anti-SLAPP motion, Wang identified protected activity—filing her declaration and a fugitive status notice—that is the basis for some of Zhao’s claims against her. Although Zhao claims those filings were illegal, and thus cannot constitute protected activity, he falls short of his burden to prove criminal conduct as a matter of law because he offers no evidence that Wang knew those filings were false. Of the claims related to those filings, Wang challenges only the falsity element for false light and libel per se, so we limit our discussion accordingly. Zhao has presented evidence that the statements about him being a criminal fugitive subject to an arrest warrant are false, including evidence that he has been able to travel freely within and outside of China since the time Wang claims he escaped from criminal custody. Wang contends the litigation privilege bars Zhao’s claims as a matter of law, but the tenuous basis she offers for the filings’ relevancy does not convince us the privilege applies here. As a result, Zhao has satisfied his burden to show a probability of success, so we affirm the order denying Wang’s anti-SLAPP motion.

2 On the disqualification order, because Wang will likely be called as a witness, which carries risk of confusing the jury, the court did not abuse its discretion in disqualifying her. But the court abused its discretion by extending the scope of Wang’s disqualification to all phases of litigation without explanation. Accordingly, we reverse the order to the extent it precludes Wang from representing Sun in all pretrial activities and remand with directions to modify the scope of the disqualification order to provide that Wang is disqualified from representing Sun at trial and during any other pretrial activities that the court determines pose a risk of revealing Wang’s dual role to the jury. In addition, we reverse the disqualification of Kingswood Law, as Wang’s dual role is not by itself a basis to disqualify the entire firm. In all other respects, we affirm the disqualification order. I. A. According to the operative complaint, Zhao, a resident of China, arranged a foreign currency transaction with Sun, a California resident. Sun allegedly opened an irrevocable trust into which Zhao transferred $3 million. Sun, however, did not complete the exchange process. Zhao alleges that Sun—without his knowledge or consent—used money from the trust to purchase real property that Sun later transferred to herself as the sole owner. He claims Sun withdrew other monies from the trust without his knowledge or consent, including transferring $250,524.29 to Wang, who in turn allegedly used those funds to purchase another property. After suing Sun, Zhao moved to stop Sun from transferring any more funds from the trust account. Seemingly in response, on June 5, 2024, Wang filed a notice of lodging of a document she claimed came from China’s National Fugitive Information System “regarding the fugitive status” of Zhao

3 in China, which we will refer to as the Fugitive Status Notice. In her accompanying declaration, Wang attested that she searched for “any evidence that Qian Zhao had ever been involved in the exchange of [Chinese] currency for U.S. dollars,” during which time she “came upon” the Fugitive Status Notice. Wang attested that the document indicates Zhao “was suspected of committing the crime of exchanging [Chinese currency] for U.S. dollars; that he had escaped from Criminal Detention in China on May 8, 2024; and that an Arrest Warrant has been issued.” The translated copy of the Fugitive Status Notice states that Zhao “is suspected of committing the crime” and “absconded,” with May 8 listed as the “Date of Escape.” In addition, the Fugitive Status Notice says one can “Click to View” an arrest warrant. Zhao later amended his complaint to add Wang and Kingswood Law as defendants and to assert against them causes of action for quiet title, aiding and abetting breach of fiduciary duty, conversion, conspiracy to commit conversion, aiding and abetting conversion, conspiracy to commit fraud, aiding and abetting fraud, false light, libel per se, declaratory relief, and civil theft. The claims against Wang for false light, libel per se, and declaratory relief arose from her filing of the Fugitive Status Notice and the related declaration. B. Wang then filed an anti-SLAPP motion to strike Zhao’s claims that “arise solely from protected petition or speech in connection with Defendant Wang’s legal representation of Defendant Xiaofan Sun in this action.” The trial court denied Wang’s motion because “although she has demonstrated the filing of her declaration and lodging [of] evidence are protected conduct at issue under the 12th-14th causes of action, Plaintiff Zhao has demonstrated a probability of prevailing on those causes of action.”

4 C. Zhao moved to disqualify Wang and Kingswood Law from representing Sun in this action. One ground for disqualification Zhao advanced was under the advocate-witness rule of California Rules of Professional Conduct Rule 3.7 based on Wang’s testimony being “essential to establish material issues and key facts in this litigation.” The trial court granted the motion and disqualified Wang and Kingswood Law from representing Sun “due to the prejudicial concern of [Wang] representing Sun while being a likely witness in this litigation arising from her and her law firm being named Defendants in this litigation.” II. A. Wang challenges the denial of her anti-SLAPP motion. We affirm. The anti-SLAPP statute seeks to cut short “lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition.” (Code Civ. Proc., § 425.16(a).) It “provides a procedure for weeding out, at an early stage, meritless claims arising from protected activity.” (Baral v. Schnitt (2016) 1 Cal.5th 376, 384.) An anti-SLAPP motion involves a two-step process.

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