Lugli v. Medical Investor Holdings, LLC et al.

Nature of Proceedings: Demurrer; Motion to Strike

Russell and Susan Lugli, on behalf of themselves as individuals and as trustees of the Lugli Family Trust (together, “plaintiffs”), allege as follows[1]: Plaintiffs own two parcels of property known as Wellsprings Ranch, located in Buellton. The property consists of 400 acres of cultivable land, is located in a remote location, and is a secure area for cannabis cultivation. Defendants Francine Shulman and Emerald Sky Agricultural Acquisition, LLC wanted to buy the property and develop to grow cannabis. In July 2017, plaintiffs entered a Purchase and Sale Agreement (PSA) for $7.5 million dollars. Escrow was to close on January 15, 2018. Shulman wanted to occupy the property prior to close of escrow, so the parties entered into a lease agreement from July 15, 2017 through January 15, 2018.

In 2014, Ms. Shulman purchased property from plaintiffs. She leased that parcel to defendant Todd Kaplan (“Kaplan”), ........