Defendants Haynie & Company of California, Accountancy Corporation and Michael L. Zurovski’s demurrer to the third cause of action for aiding and abetting conversion in the First Amended Complaint (“FAC”) filed by Plaintiff Development Specialists, Inc., as assignee for the benefit of Vertical U.S. Recovery Fund, LLC and Vertical U.S. Recovery Fund II, LLC, is sustained with 15 days leave to amend. The Court grants Plaintiff one final opportunity to amend its complaint to state sufficient facts to show Defendants had actual knowledge of the funds manager’s conversion. Plaintiff’s FAC alleges a cause of action for aiding and abetting conversion against Defendants. Conversion is the wrongful exercise of dominion over the personal property of another. (Farmers Ins, Exchange v. Zerin (1997) 53 Cal.App.4th 445, 451-452.) A conversion claim has the following three elements: (1) claimant’s ownership or right to possession of the property; (2) defendant's conversion by a wrongful act or dispos
Hearing Date
August 01, 2016
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Defendants Haynie & Company of California, Accountancy Corporation and Michael L. Zurovski’s demurrer to the third cause of action for aiding and abetting conversion in the First Amended Complaint (“FAC”) filed by Plaintiff Development Specialists, Inc., as assignee for the benefit of Vertical U.S. Recovery Fund, LLC and Vertical U.S. Recovery Fund II, LLC, is sustained with 15 days leave to amend. The Court grants Plaintiff one final opportunity to amend its complaint to state sufficient facts to show Defendants had actual knowledge of the funds manager’s conversion. Plaintiff’s FAC alleges a cause of action for aiding and abetting conversion against Defendants. Conversion is the wrongful exercise of dominion over the personal property of another. (Farmers Ins, Exchange v. Zerin (1997) 53 Cal.App.4th 445, 451-452.) A conversion claim has the following three elements: (1) claimant’s ownership or right to possession of the property; (2) defendant's conversion by a wrongful act or dispos