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Property Trust v. Orange Mall Development Assocs.
Plaintiffs appeal the dismissal of their action against defendants, after the trial court sustained, without leave to amend, the Newman defendants’ demurrer to the second amended complaint and the Ampton defendants’ demurrer to the third amended complaint.
Court held as follows: Plaintiffs’ second amended complaint fails to state a cause of action for breach of fiduciary duty against Ms. Newman as an individual, as a “de facto” general partner of OMDA and Shoprop, or for personal liability as trustee of the Newman Family Trust (Newman Trust) the general partner of OMDA and Shoprop. Plaintiffs’ second amended complaint fails to state a cause of action for breach of fiduciary duty or an accounting against OMDA and Shoprop. Court therefore affirmed the trial court’s order of dismissal based on its order sustaining, without leave to amend, the demurrer of the Newman defendants. Plaintiffs’ third amended complaint states a cause of action against the Ampton defendants for aiding and abetting a breach of fiduciary duty by the Newman Trust. Accordingly, court reversed the order of dismissal based on its order sustaining the demurrer of the Ampton defendants.

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