Preview
Richard L. Charnley (State Bar No. 70430)
Ashleigh Bhole (State Bar No. 302771) Electronically FILED by
CHARNLEY RIAN LLP Superior Court of California,
12121 Wilshire Blvd., Suite 600 County of Los An geles
1/31/2024 4:43 PI
Los Angeles, CA 90025 David W. Slayton,
Telephone: 310-321-4300 Executive Officer/Clerk of Court,
Facsimile: 310-893-0273 By K. Parenteau, Deputy Clerk
Email: Ic@charnleyrian.com
ab@charnleyrian.com
Attorneys for Plaintiffs Thrive Real Estate
LLC, Jason Teague, Brittany Teague
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
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THRIVE REAL ESTATE LLC, CaseNo.: 245hMCYO04"1
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Plaintiff,
13 COMPLAINT FOR:
V.
14 CONSTRUCTIVELY FRAUDULENT
BROOK FAIN, an individual, BROOK TRANSFER AND FRAUDULENT TRANSFER
15 FAIN, TRUSTEE OF THE LP&B
IRREVOCABLE TRUST. and DOES 1
16 through 50 inclusive, REQUEST FOR JURY TRIAL
17 Defendants.
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22 COMPLAINT
23 As and for its causes of action against BROOK FAIN (“Fain”), an individual, BROOK
24 FAIN TRUSTEE OF THE LP&B IRREVOCABLE TRUST (the “Trustee”). and DOES | through
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50 inclusive (“Does” and, collectively “Defendants”, Plaintiff THRIVE REAL ESTATE LLC
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(“Thrive”) alleges:
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COMPLAINT
FACTS COMMON TO ALL CAUSES OF ACTION
Parties, Venue, Jurisdiction
Fain is a resident of the County of Los Angeles, State of California .
The trustee (Fain) is a resident of the County of Los Angeles, State of California.
The real property that is the subject of this Complaint is located at 28834
Countryside Drive, Agoura Hills, CA 91301.
4 Thrive is a limited liability company that is duly licensed and registered to do
business in the State of California. Thrive maintains its principal business offices in Los Angeles
County, located at 23823 Malibu Road, Suite 50, Los Angeles.
10 5 Thrive is ignorant of the true names and capacities of the defendants designated as
11 Does | through 50. Thrive will amend this complaint to set forth the true names and capacities of
12 these Doe Defendants when, and if, the identity and capacities of these Doe Defendants have been
13 more accurately ascertained.
14 6. On information and belief, at all relevant times alleged herein, Fain and Does 1
15 through 50 each acted as the principal of all other co-defendants and the principal of each,
16 responsible for the acts alleged herein and the harm and damage suffered by Thrive. While
17 participating in such acts, each of said defendants was that agent, alter ego, conspirator, and aider
18 and abettor of the other defendants and was acting in the course and scope of such agency and/or
19 with the permission, consent, authorization or ratification of the other defendants.
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20 This case is properly filed before the West District of the Los Angeles Superior
21 Court because the underlying obligation and debt which is the subject matter of this complaint was
22 to be performed at 23823 Malibu Road, Suite 50, Malibu, CA 90265.
23 8 On or about June 27, 2019, Thrive filed suit against Fain and his solely owned
24 company Lifecycle Properties, Inc. (the “Suit”). The Suit sought damages and reimbursement of
25 costs incurred to perform an underlying contract obligation owed by Defendants to Thrive. At a
26 Status Conference during 2023, when asked by the Court for an amount of its damages, Thrive
27 provided a figure in excess of $400,000 inclusive of interest. Upon hearing the amount of Thrive’s
28 damages, Fain, who was appearing in pro se, expressed dismay.
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COMPLAINT
9. Thrive was prepared to go to trial on the Suit on May 1, 2023; however, on April
18, 2023, Fain’s attorney suddenly and without explanation stopped representing Fain.
As a result, the Court continued the matter and held a further status conference on June 21, 2023.
At the June 21, 2023, status conference, the Court set a further status conference for September 7,
2023. Counsel for both Fain and Thrive attended this conference, and thereafter the Court set the
trial of case for December 11, 2023.
10. At the time of the September 7, 2023, status conference, Fain owned a parcel of real
property located at 28834 Countryside Drive, Agoura Hills, CA 91301 (the “Property”).
ll. On information and belief, on September 18, 2023, Fain transferred his interest in
10 the Property to the Trustee.
11 12. A true and correct copy of the Grant Deed (the “Deed”) whereby Fain transferred
12 his interest in the Property to the Trustee is attached hereto as Exhibit A and is incorporated herein
13 by this reference.
14 13. As specified in the Deed, there was no documentary transfer tax payable in
15 connection with transfer of the Property because the conveyance was to the Trustee; however, the
16 conveyance was to an irrevocable trust, meaning that it is a complete transfer of ownership of the
17 Property.
18 14. Fain’s conduct in transferring the Property from his personal ownership to the
19 ownership of the Trustee of an irrevocable trust left Fain insolvent as specified in California Civil
20 Code 3439.02.
21 15. The Property is an “asset” and qualifies as “property” as specified in California Civil
22 Code 3439.01 (a) and 3439.01(j).
23 FIRST CAUSE OF ACTION
24 Constructively Fraudulent Transfer
25 16. Thrive incorporates by reference paragraphs | through 15 inclusive.
26 17. Thrive was and is a creditor of Fain had a right to payment prior to the time that Fain
27 started diverting property from his own ownership to his ownership as Trustee of the [Irrevocable]
28 Trust.
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COMPLAINT
18. At the time Fain transferred the Property as alleged, Fain knew that the transfer
would result in Fain’s inability to pay Thrive, thus constituting an instance of constructive fraud
pursuant to California Civil Code 3439.04.
19. Alternatively, at the time Fain intentionally transferred assets from his personal
ownership to ownership as the Trustee, Fain incurred, or believed, or reasonably should have
believed that he would have incurred debts, including the debt owned to Thrive, beyond Fain’s
ability to pay as they became due, thus constituting an alternative instance of constructive fraud
pursuant to California Civil Code 3439.04.
20. At the time Fain made the transfer of the Property, he did so without receiving
10 reasonably equivalent value therefor, and at the time of such transfers, Fain was defending the Suit
11 and faced liability to Thrive; Fain was thus (1) engaged in businesses for which his remaining assets
12 were unreasonably small in relationship to the business, (2) incurring debts and obligations in
13 excess or their ability to pay; and/or (3) became insolvent as a result.
14 21. The conduct of Fain as alleged herein placed a valuable asset beyond the reach of
15 Thrive and otherwise not subject to seizure and sale for payment of a judgment in Thrive’s favor.
16 SECOND CAUSE OF ACTION
17 Fraudulent Transfer
18 22. Thrive incorporates by reference paragraphs | through 21 inclusive.
19 23. On information and belief, the transfers made as alleged herein were made by Fain
20 with the actual intent to hinder, delay, or defraud creditors.
21 24. Fain’s conduct was and is a substantial factor in causing Fain to be unable to pay
22 debts to Thrive and thus, should Thrive obtain a judgment against Fain, is and will be a substantial
23 factor in causing damage to Thrive in the amount believed to be in excess of $400,000.
24 THIRD CAUSE OF ACTION
25 Avoidance of Transfer
26 25. Thrive incorporates by reference paragraphs | through 24 inclusive.
27 26. The transfer of the Property is from Fain (as his sole and separate property) to an
28 irrevocable trust wherein Fain is the Trustee. As such the Trustee is not a transferee of the Property
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COMPLAINT
in good faith and for reasonably equivalent value. Further, Fain maintains control over the Property
in his capacity as Trustee.
27. Thrive is entitled to an avoidance of the transfer of the property from Fain to [Fain
as} Trustee such that Fain will hold title to the Property, and it can be liquidated to satisfy Thrive’s
claim.
PRAYER
WHEREFORE, Thrive prays for judgment against Fain as follows:
1 For payment of $400,000, or more, in damages subject to proof;
2. For interest thereon subject to proof;
10 For an award avoiding the transfer of the Property;
11 To the extent allowed by law, for attorneys’ fees;
12 Such other and further reliefas this court may deem just and proper; and,
13 For costs of suit.
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(Lan by
15 Dated January 18, 2023. CHARNLEP RIA LLP
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"Gfchara Chm ley
18 Ashleigh Bholé
Attorneysfor Plaintiff Thrive Ri
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COMPLAINT
Recording Requested by:
Fidelity-Sherman Oaks
RECORDING REQUESTED BY:
Greater LA Escrow Inc.
Order No. 1500-2309667
Escrow No. 25395-DR_
Parcel No. 2063-015-038
AND WITEN RECORDED MAIL TO:
BROOK FAIN
28834 COUNTRYSIDE DRIVE
AGOURA HILLS, CA 91301
SPACE ABOVE THIS LINE FOR RECORDER'S USE
GRANT DEED
‘THE UNDERSIGNED GRANTOR(S) DECLARE(S) THAT DOCUMENTARY TRANSFER TAX 1S $0 and CITY $0
computed on full value of property conveyed, or
[1 computed on full value less liens or encumbrances remaining at the time of sale.
(A_ unincorporated area: and
This conveyance transfers an interest into or out of a Living Trust, R&T 11930°
sole
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Brook Fain, a Married Man as his
and separate property
hereby GRANT(S) to Brook Fain, Trustee of the LP&B 2015 Irrevocable Trust dated January 13, 2016
the following described real property in the County of Los Angeles, State of California:
Legal Description to be attached as an Exhibit “A”
More commonly known as: 28834 Countryside Drive, Agoura Hills Area, CA 91301
- - = - - re ee
Date September 18, 2023 Exempt from fee per GC 27388,1 (a) (2) and
27388.2 (b); recorded concurrently “in
connection with” a transfer of real property
that Is a residential dwelling to an owner-
rook Fain occupier.
Book Fain
‘A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF C. os hh
COUNTY OF,
}ss. .
On
SHA
personally ales. prot Bi er m CV
whose nameta)Gs’are subscribed to the within instrument
who
proved to me on the basis of satisfactory evidence to be the person(
and acknowledged to me thakfig@he/they ex ecuted the same in er/their authorized capacity@es), and that by Qsher/their
signaturefs}.on the instrument the person(},.ar the entity upon behalf of which the person(s) acted, executed the instrument.
is truc and
1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
correct,
WITNESS my hand an
Gs zy ‘OZINA NELSON
Notary Pubtie « Catifornta
Signature
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(Seal)
Bs Los Angeles County z
47390007
SS Mey ‘Commiss!
‘My Comm. Expires Jan 10, 2026
Mail Tax Statement to: SAME AS ABOVE or Address Noted Below
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EXHIBIT A
Order No.: 1500-2309667
For APN/Parcel ID(s): 2063-015-038
THE LAND REFERRED TO HEREIN BELOW |S SITUATED IN THE UNINCORPORATED AREA IN
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
LOT 3 OF TRACT NO. 42038, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS
PER MAP RECORDED IN BOOK 1049, PAGES 71 THROUGH 74, INCLUSIVE OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY.
ALSO EXCEPT ONE-HALF OF ALL OIL, GAS OR OTHER HYDROCARBON SUBSTANCES IN, UPON
OR UNDER SAID LAND, TOGETHER WITH THE RIGHT TO EXPLORE, DRILL AND PROSPECT
FOR, AND TO PRODUCE AND REMOVE THE SAME, AS RESERVED BY ESER WIKHOLM AND
MYRTLE H. WIKHOLM, HUSBAND AND WIFE, IN DEED RECORDED MARCH 27, 1951, IN BOOK
35894, PAGE 343, OFFICIAL RECORDS.
H.
THE INTEREST OF ESER WIKHOLM, NOW DECEASED, HAS SINCE PASSED TO MYRTLE
AS TO AN UNDIVIDE D 43.897 PERCENT INTEREST AND MYRTLE H. WIKHOLM, AS
WIKHOLM,
TRUSTEE, UNDER THE WILL OF ESER WIKHOLM, DECEASED , AND THE DECREE OF
DISTRIBUTION OF HIS ESTATE, A Cl ERTIFIED COPY THEREOF BEING RECORDED MARCH 8,
PERCENT
1963, IN BOOK 01947, PAGE 1, OFFICIAL RECORDS, AS TO AN UNDIVIDED 56.103
INTEREST.
, WERE
ALL RIGHTS FROM THE SURFACE THEREOF TO A DEPTH OF 500 FEET THEREOF
OWNERS OF RECORD AS THEIR
QUITCLAIMED TO THE RECORD OWNER OR OWNERS OR
INTEREST MAY APPEAR OF RECORD BY DEED EXECUTE D BY MYRTLE H. LONINI,
M AND
INDIVIDUALLY AND AS TRUSTEE, WHO ACQUIRED TITLE AS MYRTLE H. WIKHOL
R 30, 1963, AS INSTRUM ENT NO.
MYRTLE H. WIKHOLM, AS TRUSTEE, RECORDED DECEMBE
4963-240, IN BOOK D2303 PAGE 480, OFFICIAL RECORDS .
ee